Mongolia Oil Refinery Bet to Escape Russian Fuel Dependency
- Amar Adiya
- 2 hours ago
- 3 min read
As license-plate rationing eases and petrol queues slowly subside in Ulaanbaatar, Mongolia’s fuel crisis has moved from the petrol pump to the cabinet room. In recent weeks officials have relied on price controls, temporary tariff waivers and emergency loans to ease shortages after Russian rail shipments faltered.
Now the government is trying to change the structure that made the shortages so disruptive.
Prime Minister Nyam-Osoryn Uchral has brought the long-delayed $1.7bn oil refinery in Dornogovi province under his direct oversight, ordering ministers to resolve regulatory, financing and logistical obstacles and pledging to review progress himself each month.
The Mongolia oil refinery is more than 60% complete and remains scheduled to begin operations in 2028. To keep the market supplied until then, the government has expanded state-backed loans to private distributors to 360bn tugrik ($99m) for new storage and turned to spot purchases from South Korea and China.
Want to read more?
Subscribe to mongoliaweekly.org to keep reading this exclusive post.
