Mongolia to enjoy Russian tariff discount of 52-66.4 percent for 25 yearsPolitics
Ulaanbaatar /MONTSAME/ On June 8, Minister of Road and Transport Development J.Bat-Erdene and Minister of Transport of the Russian Federation Yevgeny Dietrich signed Intergovernmental Agreement between Governments of Mongolia and the Russian Federation on Terms for Rail freight Transit Transportation.
It took 9 years to establish the agreement which allows landlocked Mongolia to have seaports in order to export goods to the global market and to increase transit transport crossing through Mongolia. Under the agreement, Mongolia will enjoy stable tariff discount on the transit transport of its export goods crossing through Russia for 25 years. For instance, 66.4 per cent entry tariff discount on coal transportation and 52 per cent discount on freight transportation.
This will bring competitive export price of mining products and more foreign investment in mining industry and enable Mongolian exporters to enter the global market without hindrance by facilitating the entrance requirements imposed on transit railway freight and fostering freight transport.
“As the economy grows, there arises a need for broader export markets. To meet this need, we will have access to the sea through Russia. Russia expressed its interest in cooperating in coal transportation. Mongolia will be connected to the Asian Highway Network through AH3 road. We are thus discussing the cooperation with Russia in the spheres of road and civil aviation” said the Minister of Road and Transport development during the signing ceremony.
Mongolia established such agreement with the Government of the People’s Republic of China in 2014.