Mongolia's $1.7 Billion Oil Refinery May Leave It Dependent on Russian Crude
- Amar Adiya
- 6 minutes ago
- 2 min read
Mongolia’s oil refinery was supposed to be finished in 2022. Then 2023. Then 2026. The new target is 2028, and the physical structure will probably get there. Whether there is oil to fill it is a different question.
The Mongol Refinery, located in Altanshiree in the southeastern Gobi, is financed through India’s Export-Import Bank.
The original $1 billion soft loan has grown considerably. Parliament approved an additional $462.2 million in January 2025, bringing the confirmed project cost to $1.698 billion. Additionally, Mongolia had to finance extensive ancillary infrastructure (rail links, oil pipeline, power plant and paved road) using other additional funding.
A condition of India’s Line of Credit requires 75% of construction contracts to go to Indian firms. Heavy equipment ships from Mumbai, travels overland through China and Russia, and arrives after delays of two to three months from port congestion.
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