Russia, Mongolia, To Boost Trade And Economic Ties

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2021 Bilateral Trade Grew By 24%

Russia and Mongolia have adopted a declaration that sets clear targets in terms of boosting cooperation between the two countries, Russian President Vladimir Putin announced following talks with his Mongolian counterpart Ukhnaagiin Khurelsukh late last month.

“President Khurelsukh and I have adopted a joint political declaration as a follow-up to the Treaty on Friendly Relations and Comprehensive Strategic Partnership signed in 2019,” Putin said. He specified that the document “sets clear targets in terms of deepening bilateral ties in various fields of cooperation.”

Putin added that Russia and Mongolia had prepared and planned to sign a number of intergovernmental and interagency documents covering many areas of cooperation, including the economy and trade.

According to Putin, the fact that the Mongolian president chose Russia as the destination for his first foreign visit (Khurelsukh was elected in June 2021) makes it clear that Mongolia places much importance on promoting good-neighborly ties with Russia. “Certainly, we are interested in close cooperation with our Mongolian friends,” the Russian leader said, adding that 2021 marked the 100th anniversary of diplomatic relations between the two countries. Putin stressed that Russia was the first country to recognize Mongolia’s independence and since then, bilateral interaction had been progressing based on mutual respect and the willingness to take each other’s interests into account.

When speaking about economic cooperation, Putin emphasized that Russia was one of Mongolia’s major trade partners. According to him, despite the difficulties created by the coronavirus pandemic, trade between the two countries grew by 24% in the first nine months of the year. Putin also pointed to the effective work of the intergovernmental commission on trade, economic, research and technical cooperation. The Russian president noted that at a meeting in November, the commission had outlined new specific plans for cooperation in the fields of infrastructure, mining, energy, agriculture, and digital technologies.

“The Ulaanbaatar Railway is a successful flagship joint commercial project. In the past ten years, its annual freight turnover doubled from 15 to 30 million tonnes,” he specified. Putin also said that in the previous years, much had been done to modernize railway tracks and ensure the company’s financial stability. “We expect that these measures will make railroad freight traffic through Mongolia even more attractive and profitable.” Putin stated. The trans-Mongolian railway serves both Russian and Mongolian trade but also provides a route through to China.

During 2021, the main exports of Russia to Mongolia were Refined Petroleum, Raw Iron Bars, Railway Freight Cars, Electricity, and Insulated Wire. The main imports by Russia from Mongolia were Feldspar, Knit Socks and Hosiery, Knit Sweaters, Other Engines, and Railway Freight Cars. Bilateral trade is currently running at about US$1.8 billion.

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