The Russian President will pay an official state visit to Mongolia on September 3. During the visit, the sides are expected to discuss transforming relations to a comprehensive strategic relationship.
Negotiations have already begun on issues like infrastructure, transit transportation, bilateral investment problem solving, intensifying foreign trade, and bilateral visa-free travel of both nations’ citizens.
The sides will discuss improving the economic capacity and legal environment of Erdenet, Mongol Rostsvetment and Ulaanbaatar Railway JSCs. Mongolia will have the opportunity to talk about cooperation expansion in agriculture and increasing meat exports.
Bilateral trade turnover reached more than 1.6 million USD in 2013. Mongolian import surged to 1.56 million USD and export to 61,800 USD, which influenced Mongolia’s 2013 trade deficit of 1.5 million USD. Mongolia imports almost 90 percent of oil products from Russia, the reason for the high trade deficit.
In the past 24 years, Russia has invested 1.2 million USD in Mongolia, which is equal to 0.11 percent of Mongolia’s total foreign investment. However, 830 Russian companies represent 6.6 percent of foreign companies registered for direct investment in Mongolia. Economists conclude that establishing agreements to increase export products and on drawing investment will be beneficial in the future.
However, former Prime Minister S.Batbold discussed these issues during his visit to Russia in 2010, but with no results. This time, finalizing these issues will create a big opportunity for Mongolia to increase its exports.
In response, the Russian side might want to cooperate in the Asgat silver deposit and uranium exploration. Russian Presidents and PM’s have discussed this issue during every visit. In other words, we can say that Russia is interested in Mongolia’s uranium.
In November 2000, Vladimir Putin visited Mongolia and determined the aims of bilateral relations and cooperation and signed the Ulaanbaatariin Tunkhaglal (Ulaanbaatar Declaration). Mongolian President Ts.Elbegdorj paid an official visit to Russia in 2006, during which both state heads signed the Moscow Declaration and announced that Mongolian-Russian relations would be transformed to a strategic relationship. Mongolia became the first country with a strategic relationship with Russia, and established a strategic relationship with China in 2011, and with Japan in 2013.SOURCE: Ub Post