Trade and Economic Relations between Mongolia and Russia in Changing Global Economy

The article analyzes the current state of trade and economic relations between Mongolia and Russia. It is shown that over the past thirty-two years the volume and share of Russia in Mongolia’s foreign trade turnover has decreased significantly, despite the country’s rich history and vast experience of mutual trade and economic cooperation. The commodity structure of mutual trade between Mongolia and Russia has also changed significantly. It is noted that despite the growth in the total volume of Mongolia’s exports, the supply of Mongolian goods to the Russian market is an insignificant part. The main partners importing Mongolian products are China, Switzerland, Singapore and the Republic of Korea. Promising directions for expanding bilateral trade and economic cooperation are proposed, including those related to the elimination of existing tariff and non-tariff barriers, the creation of free trade zones on the border of the two countries. In addition, in order to increase the volume of mutual trade between Mongolia and Russia, it is important to implement major joint energy and infrastructure projects, develop cross-border and regional cooperation, as well as industrial cooperation, joint exploration and development of mineral resources. The possibility of implementing major infrastructure projects within the framework of the Chinese initiative “One Belt, One Road” is being considered as a factor in expanding trade between Mongolia and Russia. Ways are proposed to accelerate the planned mega-projects in the field of infrastructure and industry within the framework of the new policy of Mongolia’s revival, through the implementation of which the level of Mongolian-Russian trade and economic cooperation can increase. Such projects may include mega projects for the construction of a gas pipeline and an oil pipeline from Russia to China through Mongolia, an oil refinery, and thermal power plants powered by natural gas. As measures aimed at accelerating their implementation, the following steps should be taken: create a clear and transparent regulatory framework and involve all stakeholders in the decision-making process; eliminate technical problems associated with investing in educational programs to develop the necessary skills and experience among specialists; ensure sufficient funding, including through alternative sources such as crowdfunding, green bonds and investing; effectively manage projects and apply best risk management practices

Business · Economics · Economy · International trade · Rangeland Management and Livestock Ecology · Russia and Soviet political economy