ТАВАН ТОЛГОЙН ЗУРАГ ТООЦООНООС № 1

/lkjs

  • Mongolia hopes fifth time’s the charm for oil refinery | The UB Post
    http://theubpost.mn/2018/02/11/mongolia-hopes-fifth-times-the-charm-for-oil-refinery

    The construction of an oil refinery at Altan Shiree soum of Dornogovi Province is set to commence in April of 2018, financed with a one billion USD loan from India. The progress of the project has been encouraging for many who are hopeful that the refinery will offset a certain amount Mongolia’s fuel dependence on Russia.

    Despite the optimism, there has been a lot of skepticism, rightfully so. An oil refinery has been an elusive objective for Mongolia for decades. Since the transition into a democracy in 1990, Mongolia has for the most part, been able to maintain the integrity of its political security, dictating its own foreign policy.

    What Mongolia has not been able to do is fully ensure its economic and energy security. China is Mongolia’s biggest trading partner and largest buyer of its exports. Previously, the predecessor of the Russian Federation, the Soviet Union filled that role for Mongolia. In the 1990s, due to Russia being caught up in its own internal issues, it saw a significantly reduced role in Mongolia’s economy. Where Moscow has been able to make up for that loss is in the fuel sector.

    Mongolia is essentially 100 percent dependent on Russia for fuel. Russia, in particular the state-owned Rosneft, is the largest exporter of fuel to Mongolia, accounting for 94 percent of fuel imports in 2016. In 2017, Russia accounted for up to 98 percent fuel imports to Mongolia. The almost absolute dependency of Mongolia on Russia and the fact that the Mongolian government considers fuel a strategic commodity helps maintain some influence of Russia on Mongolia’s economy.

    The oil refinery financed by India is part of Prime Minister U.Khurelsukh’s Cabinet’s efforts to ensure that Mongolia produces food, energy, and fuel internally. The sentiment to alleviate Mongolia’s dependence on its two neighbors is not new and the construction of an oil refinery has been discussed for two decades.