Western provinces to expand business in Russia

The Business Revival-West Region Forum, organized by the Mongolian Chamber of Commerce and Industry (MNCCI), took place in Uvs Province as part of the National Business Revival Program. Attended by leaders from Uvs, Khovd, Zavkhan, Bayan-Ulgii and Govi-Altai provinces, as well as representatives from Buryats, Tuva and Altai Territorial regions of the Russian Federation, the forum served as a platform for exchanging ideas and fostering cooperation for future business recovery in the region.

The forum commenced with a speech by General Secretary of MNCCI S.Bayasgalan who shed light on the aspirations of entrepreneurs. S.Bayasgalan revealed key findings from a survey on Mongolia’s business environment, emphasizing the need for improved credit terms, a favorable tax environment, enhanced legal frameworks and policy support for national production.

Subsequent discussions at the forum centered around proposals to boost exports, address tender unfairness, enhance infrastructure and streamline permit and licensing processes. In response, MNCCI urged the government to prioritize these recommendations to foster a conducive business environment.

During the discussion, Minister of Economy and Development Ch.Khurelbaatar outlined the government’s plans for the future development of the western region. He stressed the importance of expanding cooperation with Russian and Chinese markets to unlock business opportunities and spur economic growth. Minister Ch.Khurelbaatar underscored ongoing infrastructure projects, including road construction and the development of trade ports, saying their significance in facilitating regional trade and connectivity.

Governor of Khovd Province E.Bolormaa emphasized the potential of transport logistics and cross-border trade for driving economic development in the western region. She underlined the need for collaboration among the provinces to maximize the utilization of existing land ports and expand Mongolia’s trade footprint.

The forum marked a significant step towards fostering cross-border cooperation and laying the groundwork for sustained economic growth in Mongolia’s western provinces.

During the forum, the delegation of the Chamber of Commerce and Industry of the Russian Federation highlighted significant strides in border infrastructure and trade facilitation between Mongolia and Russia. With 16 ports along the border, including 10 operational ones, efforts have been focused on enhancing accessibility and efficiency, particularly at carports. The recent opening of Borshoo port, facilitated by extensive investments and infrastructure improvements, has significantly boosted daily travel and cargo turnover, showcasing tangible results of cross-border cooperation.

The Russian side also addressed a longstanding barrier to trade between the two nations - the imposition of customs duties on wool, leather and meat products entering Russia from Mongolia. A breakthrough was achieved with the decision to eliminate customs duties on key Mongolian goods, including meat, wool, cashmere, carpets and leather products in this October. This move is expected to bolster trade relations and promote economic integration between Mongolia, Russia and other Eurasian countries.

In her closing remarks, Governor of Uvs Province Ch.Chimed mentioned the importance of the forum in strengthening regional economic capacity and fostering cooperation among neighboring countries. Upcoming initiatives, including the connection of Borshoo port with Yarant port in Khovd Province and the development of a new corridor linking the centers of Uvs and Khovd provinces, were highlighted. This collaborative effort is poised to drive regional economic development and elevate cross-border cooperation to new heights.

The governor expressed gratitude to the MNCCI, and other supporting agencies for their contributions to enhancing income generation and facilitating the cross-border regional economic forum. Uvs Province Governor also extended appreciation to leaders and entrepreneurs from the Buryats, Tuva, Gas, Altai and western provinces of the Russian Federation for their active participation and commitment to fostering economic prosperity in the region.