Mongolia is a big landlocked republic situated between China and Russia, which presents a variety of difficulties.
The deputy prime minister of Mongolia defended his country’s decision to purchase practically all of its gas from Russia by stating that Mongolia’s situation as a vast landlocked nation poses “many concerns and problems.”
Sainbuyan Amarsaikhan told that while Russian sources are crucial to assure “continuous supply at a reasonable price and on schedule,” Mongolia is seeking to “diversify” its gas sector and economy “as soon as possible.”
He stated that Mongolia is seeking countries like Australia to “strengthen bilateral and multilateral collaboration.”
Mongolia is a sizable landlocked country located between China and Russia.
It is largely dependent on its two major neighbors for trade and supplies due to the logistical difficulties posed by its terrain, its status as a former Soviet colony, and its historical ties with China.
The war in Ukraine and China’s zero COVID policy have placed Mongolia in a perilous situation in 2022, bringing the country’s dependence on natural resources into the stark foreground.
Mongolia’s dependency explains its cautious stance on the Ukraine conflict. It abstained from a United Nations resolution criticizing Russia’s invasion earlier this year.
“All of our transportation comes from Europe via our northern neighbor Russia,” Mr. Amdarsaikhan remarked.
“Russia is a partner of ours”
However, he made it plain that stopping the purchase of Russian gas is not an option for a country that requires “supply security,” insisting, “We want to diversify not only the gas industry.”
Mr. Amdarsaikhan also criticized western nations for spending “trillions of dollars throughout the world on war, nuclear weapons, and all sorts of horrible activities” when there are other pressing concerns, such as assisting less developed nations in their fight against climate change.
He demanded that these expenditures be “reconsidered” and made it plain that a developing country like Mongolia cannot transition away from coal mining, a significant national business, without international assistance.
“We need expertise, knowledge, and financial backing,” he stated.
“Mongolia cannot do it on its own, and we cannot simply stop consuming coal because it is the only resource this country relies on.”
“Those who utilized and consumed billions of pounds of coal in the previous century ought to assist and aid nations like Mongolia.”
Mongolia is a developing nation where much of its population are still extremely impoverished, but it has considerable natural resources and a mining industry that grew fast in the 1990s and 2000s, following the country’s transition to a free market democracy.
Coal, copper, and gold mining make for around a quarter of the country’s gross domestic product.
At the COP27 climate summit in the fall of this year, an agreement was reached to establish a fund to assist poorer nations in coping with the “loss and damage” caused by climate disasters exacerbated by the greenhouse gas emissions of wealthier nations.
Mongolia has experienced drought and desertification, and Mr. Amarsaikhan feels that assistance should be expanded.
However, he was optimistic about the recovery of Mongolia’s economy, which has been under immense pressure due in part to the COVID-19 pandemic and China’s zero COVID policy.
The approach has resulted in the closure of the border between the two countries, which has had a significant impact on trade, the majority of which is conducted by truck.
Mr. Amarsaikhan stated, “It is wreaking havoc not just on our economy but also on our entire society, hurting every section of the country.”
In addition, he acknowledged that recent protests in the Mongolian capital Ulaanbaatar were fueled in part by economic hardship, inequality, and suspected corruption in the mining industry.
He stated that “previous errors” have caused people to “lose confidence and trust.”
He lauded the completion of a new railway between Mongolia and China as a big accomplishment and a crucial step in reviving exports and reviving the economy.
“If everything goes according to plan, our economy will be in much, much better shape within a year,” he remarked.
