The UB Post-Leading English News

Front page

Opinion

Seven Points: Ts.Elbegdorj and Mongolian-Russian Cooperation

Written by Mark Velesov
Friday, August 07, 2009.
Democratic Party candidate Tsakhia Elbegdorj won the presidential election at the end of May in Mongolia. The 46-year-old president is considered to be a pro-Western politician, and some experts predict that he will amend foreign policy of the country and will open relations with Russian companies to allow access to the rich bowels of the Mongolia. Ts.Elbegdorj talked about the prospects of cooperating with its neighbour state with the Russian information agency Interfax, and with the broadcast company Aist-TV. There were seven points that were highlighted during the interviews: 1) Changes in external and internal country policy and the course of Russian-Mongolian relations. Mr. Elbegdorj said that Mongolia attaches great importance to mutual relations with its two neighbouring countries, Russia and China. This relationship is ingrained in state policy documents such as “The Concept of National Safety” and “The Foreign Policy Concept”. He described the Russian-Mongolian relationship as a strategic alliance, and Chinese-Mongolian diplomacy as a partnership between good neighbours who have mutual trust. In the future, Mongolia intends to develop its collaboration with these countries. 2) Possible changes in arrangements and agreements recently reached between Mongolia and Russia in various areas (coal and other minerals mining, railway transport-agreement from the Russian Railway), and the prospects of the Russian presence in the national economy. Mongolia implements the mutually advantageous and multilateral open foreign policy strategy based on the general principles of free trade. The country follows the rules of free economic growth and is interested in attracting developed countries to its economic, scientific and technical development. It is a country with rich reserves of minerals, so the great interest of some industrialized countries is undoubtedly connected with the expansion and intensification of cooperation in the mining industry. In this way, Mongolia is interested in attracting foreign investments into this sector for development of manufacturing and production. The Mongolian government invites all foreign investors who have shown interest in cooperating in the field of the mining industry – including Russian companies – to take part in open international tenders, which will be declared in the near future. Ts.Elbegdorj said that Mongolia and Russia share a long-term historical experience of cooperation in many areas, and it is obvious that countries still have huge possibilities and prospects for mutually advantageous cooperation in all spheres of economic development. 3) President’s thoughts about the chance that Russian companies will win the right to mine the Tavan Tolgoi coal mine. Mongolia should do massive work on economically developing large and stragetically important coal, gold, molybdenum and uranium projects, including deposits of coking coal at Tavan Tolgoi. Large investments are required for implementation of this project. The Mongolian Government holds the ability to not only attract national interest, but also foreign investors. Such Russian companies as Renova, The Base Element and Severstal have already shown interest in participating in this project and had united in the consortium. In the nearest future the international tender will be opened and Ts.Elbegdorj does not exclude the possibility that the Russian companies can win it. 4) The issue of Mongolian-Russian mining and processing uranium joint venture creation. Mongolia has huge possibilities of joint activity with Russia in the field of uranium. Successful cooperation between these two countries in the uranium sector has already taken place. At present the negotiations on use of a deposit of Mardaj in Dornod aimag are ongoing. Ts.Elbegdorj said it is more reasonable to begin negotiations after amendments to the laws on minerals and the coordination of license matters are approved. The Mongolian legislators are actively working in this direction. The President assures that there will be further expansion of cooperation in this area. 5) The idea of transition to calculations in roubles and tugrik in mutual trade. In the Program of Development of Cooperation between Mongolia and Russia in trade areas and economy for 2006-2010 reflect the problems of the further expansion of cooperation between the bank organizations. There is a probability that the use of national monetary units in foreign trade can decrease damages to a national economy, in particular, in the conditions of the present world economic crisis. The central Mongolian and Russian banks study possibilities of such transition and carry on negotiations on these matters. 6) Mongolian partnership with Russian Federation and the Shanghai Organization of Cooperation in solving problems of terrorism and illegal drug turnover. The new threats of international terrorism and illegal drug turnover undoubtedly greatly effects development and stability of Mongolia. Ts.Elbegdorj said that it is necessary to deepen trust and mutual understanding between countries, expand dialogue between people, and overcome economic backwardness and poverty in order to confront these threats. Mongolia highly appreciates Russia and the SOC’s attention to development and cooperation expansion in economy and humanitarian areas, and the close cooperation between law-enforcement agencies of the SOC countries. 7) Mongolia as a popular tourist nation in northeast Asia: prospects for increasing the tourists stream from Russia. In June, 2009, representatives of the Ministries for Foreign Affairs of Mongolia and Russia (the General Consul of Mongolia in Irkutsk from Mongolian party and the Head of representation the Ministry of Foreign Affairs of the Russian Federation in Irkutsk) held a business meeting on the bank of Lake Khuvsgul. There was also the governor of the Khuvsgul aimag, representatives of both administrations, and journalists. Both parties underlined interest in the further expansion of cooperation in the field of tourism, and in particular, around Lake Khuvsgul. At present, there are six Mongolian-Russian joint travel agencies. The number of tourists from Russia who wish to get acquainted with the beautiful nature of Mongolia, to have a rest and fish on Lake Khuvsgul rise every year. There are even plans to create and further expand the tourist complex covering areas of Lake Khuvsgul in Mongolia and Baikal in Russia. It will increase the stream of tourists in this region. Realization of this project demands coordination of efforts of both parties. Mark Velesov is an analyst of FBS company