Azernews.Az

By Alimat Aliyeva

The governments of Mongolia and China are currently in talks regarding the potential launch of trade in petroleum products, particularly gasoline, Azernews reports.

According to Mongolian media, the discussions were confirmed by the Minister of Industry and Natural Resources, Gongoryn Damdinnyam. He noted that the ongoing instability in Russia’s fuel market is prompting Mongolia to explore alternative sources to ensure uninterrupted fuel imports.

“Russia has pledged to continue fuel deliveries without disruption. However, China has expressed interest in holding regular procurement negotiations and appears ready to supply petroleum products in sufficient volumes,” Damdinnyam stated.

Concrete steps toward this cooperation are expected to be outlined during the next government meeting.

The minister also emphasized the strategic importance of energy security for Mongolia: “The government’s action plan includes the goal of maintaining national fuel reserves sufficient for three to six months. Achieving this requires funding of around $2 billion.”

Currently, Mongolia relies heavily on Russia for petroleum imports—around 95% of its total supply. However, given recent uncertainties, several private Mongolian companies have launched initiatives to explore and develop domestic oil and gas fields. These projects aim to diversify supply sources, strengthen energy independence, and reduce reliance on foreign fuel.

If the deal with China progresses, it would mark a significant shift in Mongolia’s energy policy. For decades, Mongolia has depended almost exclusively on Russia for fuel. A new partnership with China—its other powerful neighbor—could not only improve energy security but also reshape regional trade dynamics. It may even open the door to trilateral energy negotiations involving all three countries, particularly as China continues to invest heavily in Central Asian infrastructure through its Belt and Road Initiative.