Mongolia’s Energy Policy and Cooperation with Russia

Mongolia finds itself in extreme need of energy resources, including pipeline supplies of natural gas despite having considerable natural resources. During the latest presidential election, the slogan «Mongolia is the owner of its wealth» became the motto of the election campaign of the candidate from the Mongolian People’s Party U. Khurelsukh. The elected President, with the help of the Vision 2050 program, intends to give an impetus to the development of infrastructure (construction and modernization of railways in the east and west of the country) and highways for the development of industrial production. All these factors should contribute to the future transformation of Mongolia from a state exporting raw materials (mainly the mining industry), into an exporter of the industrial products. The author focused on the domestic political situation in the republic, changes in the Constitution and the economic situation during the pandemic of the new coronavirus infection (COVID-19). According to the authoritative Mongolian public organization Sant Maral, as of April 2021, the economic situation in the country was assessed by the majority of respondents (from 38 to 45 %) from Ulaanbaatar, other aimags (administrative units of the first level) and residents of rural areas as unsatisfactory.

In this situation the new leadership of Mongolia is focused on bringing the country out of economic stagnation with the participation of a new political team (U. Khurelsukh from the Mongolian People’s Party became President in June, 2021) and the development of economic potential in the implementation of major industrial and infrastructure projects. In order to provide energy for industry and further economic development, joint Russian-Mongolian cooperation began in 2020 to justify the construction of Power of Siberia – 2 and Soyuz Vostok pipeline gas, which will provide natural gas supplies to China through the territory of Mongolia. Thus, Mongolia will not only become a transit country for natural gas, but, given the appropriate political support from the state, will get an opportunity to ensure its national well-being and socio-economic development of the population.

1. National Statistics Committee of Mongolia // http://www.1212.mn/tables.aspx?TBL_ID=DT_NSO_0500_010V1, accessed 06.04.2022. (In Mongolian.)

2. Namzhilova V., 2020. Inner Mongolia as an energy outpost of Chin // Asia and Africa today. No 2. Pр. 22–29. DOI: 10.31857/S032150750008469-7. (In Russ.)

3. Akulov A., 2022. “Mongolia will help Gazprom save millions of dollars” // https://www.gazeta.ru/business/2022/02/10/14520763.shtml?updated, accessed 22.04.2022. (In Russ.)

4. Alifirova E., 2022. Gazprom and Mongolia approved the results of the consideration of the feasibility study of the Soyuz Vostok gas pipeline project // https://neftegaz.ru/news/transport-and-storage/722336-gazprom-i-mongoliya-utverdili-rezultaty-rassmotreniya-teo-proekta-mgp-soyuz-vostok/, accessed 22.04.2022. (In Russ.)

5. Grayvoronsky V., 2014. Mongolia: bright prospects for dynamic development // https://russiancouncil.ru/analytics-and-comments/analytics/mongoliya-svetlye-perspektivy-dinamichnogo-razvitiya/, accessed 27.04.2022. (In Russ.)

6. Dunaevsky I., 2021. Foreign Minister of Mongolia: Russia is an eternal neighbor whom we respect // https://rg.ru/2021/07/21/glava-mid-mongolii-rossiia-vechnyj-sosed-kotorogo-my-uvazhaem.html, accessed 20.04.2022. (In Russ.)

7. Jargalsaikhan D., 2021a. Absolute victory: conclusions and lessons // http://jargaldefacto.com/article/absolyutnaya-pobeda-wiiwodii-i-uroki, accessed 06.04.2022. (In Russ.)

8. Jargalsaikhan D., 2021b. What should not be done to intensify the Mongolian economy // http://jargaldefacto.com/article/chto-nujno-ne-delati-chtobii-intensifitsirowati-mongoliskuyu-ekonomiku, accessed 06.04.2022. (In Russ.)

9. Mamedova N., 2021. Who is he – the new president of Mongolia? // https://www.aa.com.tr/ru/, accessed 06.04.2022. (In Russ.)

10. Rodionov V., Zheleznyakov A., 2019. Mongolia strives to become “Asian Switzerland” // https://russiancouncil.ru/analytics-and-comments/analytics/mongoliya-stremitsya-stat-aziatskoy-shveytsariey/, accessed 13.04.2022. (In Russ.)

11. Saneev B. G., Popov S. P., 2020. Gasification of Mongolia: opportunities for multilateral cooperation // https://energypolicy.ru/b-g-saneev-s-p-popov-d-v-maksakova-gazi/regiony/2020/12/12/, accessed 22.04.2022. (In Russ.)

12. Svintsova E., Bakhtina O., 2022. Gazprom preliminary determined the tracing of the MGP Power of Siberia – 2 // https://neftegaz.ru/news/transport-and-storage/724605-gazprom-predvaritelno-opredelil-trassirovku-gazoprovoda-do-kitaya/, accessed 22.04.2022. (In Russ.)

13. Taran N., 2021. Why Mongolia is winning the battle for China’s coal market // https://forpost-sz.ru/a/2021-05-02/pochemu-mongoliya-pobezhdaet-v-bitve-za-ugolnyj-rynok-kitaya, accessed 27.04.2022. (In Russ.)

14. Churikov A., 2021. Prime Minister of Mongolia: We will always be open to cooperation // https://rg.ru/2021/02/16/premer-mongolii-my-vsegda-budem-otkryty-k-sotrudnichestvu.html, accessed 06.04.2022. (In Russ.)

15. Enkhtaivan N., 2020. Mongolia and Russia: a near neighbor is better than a distant relative // https://rg.ru/2020/09/21/mongoliia-i-rossiia-blizhnij-sosed-luchshe-dalnej-rodni.html, accessed 13.04.2022. (In Russ.)

16. Scheyder E., Menon P., 2022. Rio Tinto and Mongolia settle feud over Oyu Tolgoi copper mine // https://www.reuters.com/business/energy/rio-tinto-mongolia-settle-long-running-dispute-over–oyu-tolgoi-copper-mine-2022-01-24/?rpc=401&, accessed 27.04.2022. (In Eng.)

17. Wishnick E., 2020. Pipeline «Khanfluence»: Power of Siberia 2 to Go Through Mongolia to China // https://www.chinasresourcerisks.com/post/pipeline-khanfluence-power-of-siberia-2-to-go-through-mongolia-to-china, accessed 22.04.2022. (In Eng.)

18. China will build a hydroelectric power station on the Khovd River in western Mongolia // https://regnum.ru/news/economy/3375147.html, accessed 27.04.2022. (In Russ.)

19. The President of Mongolia expressed concern about the economic situation in the country // https://rossaprimavera.ru/news/e2e31e85, accessed 06.04.2022. (In Russ.)

20. President of Mongolia: ready to link Russia and China with a corridor // https://tass.ru/interviews/12788097, accessed 13.04.2022. (In Russ.)

21. A draft resolution on the adoption of a new revival policy will be submitted to the Parliament // http://www.mongolnow.com/proekt-rezolyutsii-o-prinyatii-novoj-politiki-vozrozhdeniya-budet-predstavlen-v-parlament/, accessed 13.04.2022. (In Russ.)

22. Politbarometer The April 2021 // https://www.santmaral.org/_files/ugd/915e91_1d367fc2acc74af18b89f18a55bd86e6.pdf, accessed 06.04.2022. (In Eng.)

23. Battery Metals Royalties to acquire 45 % stake in Mongolian coal assets from Silver Elephant Mining // https://centralasia.media/news:1773176/?from=centralasia&place=newsload, accessed 27.04.2022. (In Russ.)