Mongolian Finance Minister Javkhlan Bold said there was no point in avoiding Russia, given that Putin could work all over the country. Credit: SeongJoon Cho/Bloomberg
Mongolia has signaled its willingness to help Russian President Vladimir Putin secure new gas supply routes to the east amid international sanctions.
Javkhlan Bold, Mongolian Finance Minister, said that policymakers are hoping to capitalize on opportunities that will expand infrastructure across the country as the Kremlin redirects its energy supplies to Asian countries such as China and India.
In an interview with the Telegraph, Mr Bold said he hopes the so-called Power of Siberia 2 gas pipeline, which transports gas between Russia and China through his country, will develop in the coming months, adding that it is important that Mongolia explores new partnerships in the future.
Importing Russian crude oil
“Our ultimate goal is to generate some income from passing [the Power of Siberia 2 pipeline] through Mongolia, and to some extent we can also become buyers” , he said.
Mongolia buys almost all of its gas from Russia, and Mr Bold said the government is ready to work with Moscow and Beijing on future projects.
The original Power of Siberia gas pipeline runs directly to China across the country's northern border with Russia.
Mr Bold said giving up further options would not make economic sense, despite Mr Putin's decision to invade Ukraine.
“[Russia] still has options if Mongolia refuses the possibility of gas transit. It has access to the Chinese market, for example, through Vladivostok. And so does it make sense to forego this income opportunity?”
Mr Bold added: “We will be open to new opportunities because Russia has a back-up plan if we do not.”
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Mongolia is heavily dependent on coal exports and seeks to diversify its income streams as more countries, including China, set zero net emission targets.
2907 Coal pollution soars < p>Sandwiched as a democratic outpost between China and Russia, the country struggled to remain neutral throughout the war.
The landlocked country is no longer importing goods from Ukraine that used to come through Russia, pushing up prices.
Mr Bold said he hopes to strengthen ties with Beijing in later years. ahead, although he described China's recovery after it abandoned its zero-Covid policy as disappointing. However, he added that the country's dependence on the world's second-largest economy helped Mongolia avoid a post-pandemic “catastrophe.”
“If China’s borders remained closed and we had a war, we would not have imagined what catastrophic consequences this would have,” he said.
Moscow pushed for a new Sino-Russian gas pipeline through Mongolia, though Chinese politicians are dragging out talks to complete the pipeline, which analysts say could help Beijing secure a lower gas price as Mr Putin's options continue to shrink.
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