Mongolia launches construction of first oil refinery with India aid

Note4students

Mains Paper 2: IR | Bilateral, regional & global groupings & agreements involving India &/or affecting India’s interests

From UPSC perspective, the following things are important:

Prelims level: India-Mongolia cultural ties

Mains level: India-Mongolia Bilateral Relation and its importance.


 News

India funded oil refinery in Mongolia

  1. Mongolia launched construction of its first oil refinery
  2. It is a long-awaited project that is funded by India and designed to end the country’s dependence on Russian fuel.
  3. The oil refinery, in southern Dornogovi province, will be capable of processing 1.5 million tonnes of crude oil per year

Benefits for Mongolia

  1. Mongolia’s new refinery, planned for completion in late 2022, will meet all of the nation’s demand for gasoline, diesel, aviation fuel and liquefied petroleum gas (LPG).
  2. Earlier it was solely dependent on Russia for petroleum, though it exported crude oil
  3. By establishing this strategically important oil refinery, the national economy will become independent from energy imports, and fuel and commodity prices will be stabilized
  4. The project is expected to boost Mongolia’s gross domestic product by 10 percent, it said.

Indian Credit: Slow but steady

  1. A Mongolian oil refinery has been discussed since 1997, but while several projects were approved, none have been completed.
  2. The refinery’s financing is part of a $1 billion credit line agreement between Mongolia and the Export-Import Bank of India, made during a 2015 visit by Prime Minister Modi.

 Back2Basics

India-Mongolia Bilateral relations

  1. Mongolia, a large landlocked country wedged between giants China and Russia, has a population of just 3 million. Almost half its people live as nomadic stock herders.
  2. Mongolia considers India a “third neighbor” as well as a “spiritual neighbor” (the late venerable Kushok Bakula Rinpoche, a Buddhist monk who is revered in Mongolia, was the Indian ambassador to Ulaanbaatar for 10 years).
  3. India shares historical relations with Mongolia in terms of culture from over 2700 years.
  4. Nomadic Elephant was the Counter-Terrorism joint military exercise conducted by India and Mongolia in 2016
Foreign Policy Watch: Cross-Border Terrorism
  • Subscribe

    Do not miss important study material

Leave a Reply

Please Login to comment
  Subscribe  
Notify of