Why Mongolia Needs Practical Gains From Russia

Prime Minister Zandanshatar’s recent visit to Moscow offered a reminder of how narrow Mongolia’s operating space has become on energy and transit policy. The meeting with Russia President Vladimir Putin, held on the sidelines of the Shanghai Cooperation Organisation gatherings, was more about buying stability in the parts of the economy most exposed to external shocks.

Russian President Vladimir Putin meets with Prime Minister of Mongolia Gombojavyn Zandanshatar at the Kremlin (https://mongolia.gov.mn/news/view/27375)

Fuel remains the core vulnerability. Mongolia imports nearly all of its gasoline and diesel from Russia. Payment routes have shifted often through intermediary banks because of sanctions on Russian financial institutions. Each compliance screen slows transfers.

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