Medvedev's visit to Mongolia aims at natural resources

2009-08-27 00:49:40  

    by Xinhua writer Hao Lifeng

    ULAN BATOR, Aug. 26 (Xinhua) --

Russian President Dmitry Medvedev returned to Russia on Wednesday afternoon after a two-day visit to Mongolia that featured strong progress in bilateral ties, particularly in the area of natural resources.

    During the visit, Mongolia and Russia signed a series of agreements including a "manifesto to boost the strategic partnership." The two countries pledged to consolidate cooperation in railway system updating, uranium exploitation, and a big coal mine investment.

    Mongolia and Russia resumed bilateral cooperation in 2000. Since then, high-level visits between the two countries have been exchanged on a regular basis. During Mongolian President Nambaryn Enkhbayar's visit to Russia in 2006, the two countries decided to boost cooperation in accordance with the principles of a strategic partnership. However, little progress was developed in trade and economic cooperation.

    Medvedev said his visit was to renovate Russia-Mongolia relations and map out development plans in the near future.

    According to the "manifesto to boost the strategic partnership," the two sides would map out medium-term cooperation plans on trade and economy, and create a sound legal and commercial environment for cooperation across the border areas.

    Mongolia and Russia also signed agreements on railways. Ulan Bator Railway Company (UBRC), co-established by Mongolia and Russia in 1949, mainly manages the only railway line in Mongolia that runs north and south.

    The company is now facing some difficulties, such as backward technologies and deficient transport capability.

    Earlier this year, the UBRC refused to take 188 million U.S. dollars of aid from the U.S. Millennium Challenge Account, a U.S. official foreign assistance program.

    According to the new Mongolia-Russia agreements, the two will establish a new joint venture named "Infrastructure Development Company (IDC)," which would be a force for improving railway system in Ulan Bator. The IDC also plans to build branch railway lines to link the big Tavantolgoi coal mine with the current railway in Mongolia.

    The Tavantolgoi coal mine, 180 kilometers from the Mongolia-China border is one of the biggest in Mongolia. It has coal reserves of about 6.4 billion tons. Russia's ambassador to Mongolia said this month that Russia hoped to participate in the exploitation of the mine.

    Three big Russian companies have tried to co-invest in that coal mine since 2006. However, who will own the exploitation rights is still for the Mongolian parliament and government to decide.

    Uranium exploitation is another major agreement reached between the two sides. Accroding to the agreement, Dornod Uranium Company will be founded to exploit the "Mardai" uranium mine in Mongolia'sDornod province. Russia will provide training of nuclear energy specialists for Mongolia and offer technical support.

    Major progress has been made since Mongolia and Russia first decided to cooperate on uranium exploitation in late 2008, with Mongolia to build its first nuclear power plant to guarantee the country's power supply.

    With Medvedev's visit and agreements on enhancing cooperation signed, Russia is back in Mongolia, according to analysts.

    Russia-Mongolia cooperation would contribute to the stability of the region and there was great potential to further boost Russia-Mongolia cooperation, said the Russian president.

Editor: Yan