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Russian Minister of Industry and Trade, Denis Manturov met with Mongolian Prime Minister U.Khurelsukh this week discussing cross-border trade and economic links between Mongolia and it’s larger northern Neighbor.
Trade volumes between the two countries in 2017 were increased 37% over 2016. 2018 is expected to see similar growth.
A new railway agreement which will facilitate freight transportation between Mongolia and Russia will lead to increased trade flows. The agreement will ease border checkpoints, for freight and lead to increased shipping volumes, and further Mongolia’s railway infrastructure. The rail links will aid Mongolian exporters in reaching foreign markets.
Mongolia looks to use the railway ties to improve and diversify exports by increasing sales of meat and animal products. A key aspect of this plan will be to further develop the Mongolian meat industry by establishing a meat processing facility in Mongolia that will produce products which meet Russian standards for health and safety of meat imports. Mongolia and Russia will also cooperation In production of cashmere.
The strong economic ties with Russia are yet another factor contributing to Mongolia’s economic growth. It is hoped increased links with Russia will encourage more in bound FDI from Russian companies to Mongolia, as well as making Mongolia attractive for companies which seek access for sales into Russia and into China.