Daily Business News Mongolia

Economic Standing Committee of the Parliament held a session yesterday.
Value of Russian oil export tariff went up to USD241 per ton. According to estimation, if export tariff increases by 16.2 percent on June, price per ton shall reach USD 279-282. Due to such increase, oil price in the domestic market would go up by MNT219-351.

Kh.Narankhuu, Minister of Industry and Trade: The Government should hold a policy on oil processing plant. Rosnefti Company granted us discount of USD 4.8 million last February and March. The Company also restricted diesel fuel.
At the moment, majority of SC members expressed their rejection on establishing 100 Russian gas stations in order to supply 10 percent of import.
In turn, Kh.Narankhuu replied and persuaded: There are 1089 gas stations operate in Mongolia. It is impossible to see from an economic view that establishment of 100 gas stations would be profitable, however at this time when our country wants to get discounts, why can’t we solve it without fassing losses.
Member B.Munkhtuya: You said that Russian Rosnefti proposals are not profitable alternative. Then why are you trying hard for granting a permission to establish 100 gas stations? Foreign investment, which is placed already in Mongolia, would not go back, right?
Kh.Narankhuu: It may be a not profitable alternative today, but it could be a long-term investment. What is our reality is that we import only gas from Russia.
Lu.Gantumur: It is reported that some Mongolian companies would sell their 100 gas stations to Russia for MNT100 million. Do police and intelligence agency investigate it? Do you concern about economic security?
Kh.Narankhuu: It is their discretion to sell or buy their private properties. Protecting domestic market belongs to a concept of economic security.
It is worth mentioning that members suspected that there might be private interests related to gas stations. During the session members agreed on discussion of draft resolution of the Parliament on some measures on increasing oil product supplies. A task group, headed by PM Ts.Munkh-Orgil works on a draft law on modifications to the oil product law and this time the draft law discussion has been postponed. Members of the Standing Committee agreed the discussion of draft law on Concession however they debated over a draft resolution on adopting a list of road construction at private funds and on the basis of returnable payment.

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