Ambassador Iskander K. Azizov discusses key issues in Mongolian-Russian relations
Russian Ambassador to Mongolia Iskander K. Azizov sat down with Undesnii Shuudan to discuss key issues in Russia’s relations with Mongolia, including fuel imports, the Eg River hydroelectric power plant, and the Shanghai Cooperation Organization.
How would you frame the relations and cooperation between the two countries?
Recently, the cooperation between the two countries have intensified. Maintaining the positive developments in the political talks between the two countries is of the utmost importance and the fact that our two heads of state meet and communicate quite frequently has helped matters.
For instance, the meeting between the two presidents on the sidelines of the third Eastern Economic Forum was very constructive.
In addition, the cooperation between ministries and agencies has expanded significantly. It is now important to develop our economic and trade relations up to the level of our political, educational, and humanitarian cooperation.
This must be accomplished with our unified efforts. The mid-term program agreement to develop strategic partnership signed in 2016 between Mongolia and Russia will be the main blueprint of the cooperation between the two countries.
In which sectors did our two countries cooperate in most in 2017?
As you probably know, the operation of the joint stock company between Mongolia and Russia, Ulaanbaatar Railways has been stable. There have been no issues in the transport of fuel. There have been discussions to build new sources of energy including a new thermal power station in addition to talks about repairing facilities that were built with Russian involvement.
Our Mongolian partners have been very interested in the agricultural equipment and machinery that is manufactured in our country, I believe this will greatly improve cooperation in this sector.
Cooperation between border regions will play a key role in this aspect and will be the main catalyst to the development of the smallto-medium enterprises in our countries. We need to always strive forward and look for new opportunities and projects in our cooperation.
When discussing the relations between our two countries, the pricing of petroleum products inevitably comes up. The reason is that Mongolia is almost 100 percent dependent on your country for fuel. In addition, the price of fuel has a significant effect on the Mongolian economy. Is there any guarantee that Moscow will not suddenly change the price of petroleum?
The main supplier of fuel to Mongolia, Rosneft is a publically listed stock company and has established price stabilization agreements based on the price of petroleum on the market in Singapore with several Mongolian fuel importing companies through discussion with the Mineral Resources and Petroleum Authority. I am certain that Mongolia will not experience a shortage in the supply of fuel. Russia is a reliable supplier.
Have there been any agreements in terms of energy between the two countries?
It is probably best not to speculate too much into what will happen in the future. It is evident that the Mongolia side is keen on building on cooperation in this aspect. In June of 2017 in Saint Petersburg during an international economic forum, a memorandum of understanding was signed between the two sides to develop Thermal Power Station No. 4 and the Ural turbine factory. Russian companies are ready to be involved in smaller and in some cases large energy projects.
Discussion about building a hydroelectric power plant at Eg River has been discussed since 1998. Yet, now the process has almost halted. Are there any ongoing discussions between the two countries to address this issue?
It is not good for people that have little understanding of the subject to cause division and disputes using the media. Only now are the experts in the field conducting talks into the matter. The experts should conclude on the matter, not us.
The commission between the Cabinets of Mongolia and Russia convened for its 20th meeting and created a working group to reach a final decision on the issue of Mongolia’s construction of a hydroelectric power plant on the Selenge River. The first meeting of the working group took place on October 2 of last year. We are confident that the team of researchers will present findings based on scientific fact.
In your opinion, what are the sectors that have the opportunity to develop economic cooperation and trade between Mongolia and Russia. In other words, what can we buy from Russia and sell back in exchange to help develop economic cooperation significantly?
Buying and selling depends on the demand and supply and the competition of markets. Therefore, the market is the best source to determine that. The goal of our cooperation is to create a link between the businesses of the two countries and create a favorable condition suited to their needs.
Transport can be named as a leading sector in the cooperation between Mongolia and Russia. The economic corridor between MongoliaRussia-China is one example of this. The most important aspect pertaining the corridor is the repair and renewal of the Ulaanbaatar Railway’s infrastructure in addition to constructing the northern railway corridor.
Another critical sector is energy. There is a huge opportunity for Mongolia and Russia to develop cooperation in energy. We understand that Mongolia is in need of renewing the power plants that are in use now. It is possible for Russia to build new plants, including renewable energy plants.
In terms of agriculture, Russia is helping to replace old equipment and machinery in use in Mongolia with new ones and continuing its implementation of the agenda to improve the health of Mongolian livestock.
Other sectors where the two countries could possibly develop cooperation in is space, banking and finance, health care, information communication technology, and civilian uses of nuclear technology.
Mongolia’s two neighbors play a major part in the Shanghai Cooperation Organization, BRICS, and the One Belt, One Road initiative. How can Mongolia use this to its advantage?
Of course, it is possible. Especially in terms of the Eurasian Economic Union and China’s One Belt, One Road initiative. Significant steps have been taken for implementing the economic corridor, and Mongolia plays an important role in this. All sides believe it is possible to establish an investment research center in Ulaanbaatar for the implementation of projects needed for the economic corridor.
Mongolia will have the opportunity to improve its capacity for transit and implement its transport projects to contribute to the development of regional infrastructure. The most important is improving the Ulaanbaatar Railways and constructing the northern corridor railway network to transport the coal from Ovoot and Nuurstei mines. Coal supplied from Mongolia will increase as a result.
In terms of the Shanghai Cooperation Organization (SCO), in order to be fully involved in the activities of the organization, one must be a member.
We will be happy to receive an observer in the SCO Mongolia as a full-fledged member.