Russia claim jumping OT?WTF....................
Russia Promotes Joint Ventures with Mongolia
Sergei Blagov
The Kremlin has reiterated its pledges to implement sizableinfrastructure development projects in Mongolia in an attempt to boostbilateral economic ties. On ?May 13, the Russian Prime MinisterVladimir Putin visited Mongolia, urging the country to create new majorjoint ventures and develop agricultural cooperation. He also statedthat both countries will shortly conclude an agreement on joint uraniummining (Interfax, ITAR-TASS, RIA Novosti, May 13).
In response, Prime Minister Sanjaa Bayar said that Mongolia alsoaimed to develop nuclear cooperation with Russia. He suggested thatRussian agricultural loans to Mongolia might be extended on similarterms offered by international financial organizations. Bayar proposedspeeding up the creation of a bilateral joint venture to mine uraniumin Mongolia. He also said that the Russian Chief of the General StaffArmy-General Nikolai Makarov, had recently traveled to the country todiscuss military ties, including the modernization of the Mongolianarmy (Interfax, ITAR-TASS, RIA Novosti, May 13).
During Putin's visit, five agreements were signed on nuclear,transport and agricultural cooperation. The Russian national airlineAeroflot and the Mongolian MIAT inked an agreement on flights betweenthe two capitals (Interfax, ITAR-TASS, RIA Novosti, May 13).
The most significant deal, however, was clinched by the RussianRailroad (RZD) company. RZD agreed to form a joint venture with ErdenesMGL and the Mongolyn Tomor Zam to upgrade Mongolian railroads anddevelop the Tavan-Tolgoi coal deposit as well as the Oyu-Tolgoi copperand gold mines. The Mongolian side will contribute mining licenses,while RZD pledged to build railroad links to both deposits. On May 13the RZD CEO Vladimir Yakunin announced that the company had alsosecured a 50 percent stake in the Ulaanbaatar Railroad. He said thatthe RZD-led joint project to develop the Mongolian coal and coppermining infrastructure might reach a value of $7 billion (Interfax,ITAR-TASS, RIA Novosti, May 13).
The Mongolian government has long promised to support Russianinvestment in new projects to develop the country's mineral deposits,including Tavan Tolgoi in southern Mongolia. Major Russian companieshave expressed an interest in Mongolia's Tavan Tolgoi coal deposit insouthern Gobi region, which has estimated reserves of 5-6 billion tons.The Oyu Tolgoi field is believed to contain up to 30 million tons ofcopper and about 32 million ounces of gold.
Russian officials insist that these projects are economicallyviable. On May 13 the Russian Energy Minister Sergei Shmatko said thatMoscow might also consider building power plants in Mongolia, in orderto export electricity to China. These plants could be powered usingMongolian coal reserves, he said (Interfax, May 13).
Nonetheless, the Russian media questioned the economic viability ofsuch joint ventures. The Kommersant daily commented on May 14 thatTavan Tolgoi remained a difficult project with unclear prospects.Mongolian coal is due to be mined thousands of kilometers away from thenearest seaports, thus rendering it uncompetitive (Kommersant, May 14).
Since earlier this year, the Kremlin has offered Mongolia somemeasured economic incentives. On March 17 during a meeting with SanjaaBayar in Moscow, Putin pledged to grant Mongolia a $300 million loan toimport Russian goods to develop Mongolian agriculture. However, Russianfinancial institutions have since proved slow to disburse the promisedloan.
Meanwhile, the Mongolian offer to form closer bilateral relationsreceived a non-committal response from Russian officials. At a meetingwith Putin on May 13, the Mongolian President Nambaryn Enkhbayarsuggested improving cross-border exchanges, and allowing visa-freetravel across the border. In response, Putin appeared unenthusiastic,saying only that these initiatives required further examination(Interfax, May 13).
Russia remains Mongolia's major foreign trade partner. In 2008,bilateral trade reached $1.3 billion, including $1 billion in Russianexports to Mongolia (Interfax, May 13). In 2007, their trade turnoveramounted to around $670 million -or 30 percent up year-on-year,according to official Russian customs statistics.
When Putin traveled to Mongolia in 2000, both sides agreed to boosteconomic ties. Since the Soviet collapse in 1991, bilateral economicrelations were overshadowed by Mongolia's Soviet-era debt to Russia. InDecember 2003, the Russian government decided to write off almost theentire debt, estimated at $11 billion. However, the debt write-off hasproved slow in stimulating investment. In the Soviet era, the Mongolianeconomy heavily relied on massive loans and aid. More than 700 projectswere developed, including over 1,000 kilometers in road construction.The Erdenet copper mining company, Ulaanbaatar Railroad and theMongolRosTsvetmet metal firm are currently involved in three majorjoint ventures with Russia -accounting for as much as 20 percent ofMongolian GDP. Moreover, Russia holds major stakes in Erdenet, theUlaanbaatar Railroad and in MongolRosTsvetmet.
Moreover, Moscow has expressed interested in developing Mongolianuranium deposits. In March, the Russian nuclear agency Rosatom and theMongolian Nuclear Energy Agency signed an agreement on bilateralcooperation. Rosatom wants to enter a joint venture to develop uraniumdeposits in Mongolia. Those deposits within northeastern Mongolia,including Dornod and the eastern Gobi fields, are close to Russia'slargest uranium deposit in Priargunsky. Mongolian experts haveestimated the country's uranium deposits at 60,000 tons, while Rosatombelieves the figure might be up to 100,000 tons.
Officials in Moscow and Ulaanbaatar have long pledged to revivetheir bilateral economic partnership. However, the ambitious scale ofjoint projects has proven slow to implement.
https://georgiandaily.com/index.php?option=com_content&task=view&id=11885&Itemid=132