Table of Contents
INDIA–MONGOLIA RELATIONS
•India established diplomatic relations in December 1955.
•Mongolia supports India’s candidature as a permanent member of the United Nations
Security Council while India supported the inclusion of Mongolia as a full member of the
Non-Aligned Movement.
INDIAN LOANS
•The Indian line of credit includes a $700 million loan for the oil refinery and $264 million for oil pipelines.
•The loan was announced during Prime Minister Narendra Modi’s visit to the East Asian country in 2015.
The 20-year loan will have an interest rate of 1.75 percent and principal payments will be waived during the first five years.
NOTES
Mongolia has launched construction of its first strategically important oil refinery funded by India in southern Dornogovi province.
The ground-breaking ceremony of long-awaited project was attended by Mongolian Prime Minister Khurelsukh Ukhnaa and Indian Minister of Home Affairs Rajnath
Singh
IMPORTANCE
The refinery will be capable of processing 1.5 million tonnes of crude oil per year. That is about 30,000 barrels per day (bpd). It planned for completion in late 2022.
On completion, it will meet all of the nation’s demand for gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG).
The strategically important oil refinery will make Mongolia
independent from energy imports and stabilise fuel and
commodity prices in its domestic markets.
It is expected to boost Mongolia’s gross domestic product
(GDP) by 10%.
It will end country’s dependence on Russian fuel as it
imported almost 1.5 million tonnes of oil products in 2017,
virtually all from Russia, thus diversifying its sources of oil
products from the current single source.
OIL IN MONGOLIA
Mongolia’s vast reserves make it the ‘Saudi Arabia of Asia’
Mongolia is an up and coming producer in the world”s oil and gas industry with proven reserves
of 2.3 billion barrels and estimated to have 3.1 billion barrels of oil-in-place.
‘THIRD NEIGHBOUR’ POLICY
• The ‘Third Neighbour’ policy of Mongolia, a land-locked nation between Russia and China, refers to its building ties with countries other than these two.
• With this Ulaanbaatar to boost bilateral and multilateral diplomatic relations with countries around the world.
• The strategic policy framework intends to use a soft-power approach to international relations as a modus operandi to tackle developing vital sectors such as education, science and technology, mining, and energy infrastructure
MONGOLIA – JAPAN
Increasing Chinese influence in the region has forced Japan to seek new levels of partnerships and economic alliances, thus opening the door for Mongolia and Japan to upgrade their ties. In October 2015,
Mongolian Prime Minister Ch. Saikhanbileg and Japanese Prime Minister Shinzo Abe signed a Memorandum of Understanding (MOU) for major economic cooperation and development of mining and infrastructure at Tavan Tolgoi, including a railroad.
These mega-projects will not only strengthen economic ties between Mongolia and Japan but have a direct effect on employment and support for domestic workers
WhatsApp