Russia, Mongolia agree on uninterrupted aviation fuel supplies to latter

ULAN-BATOR. April 17 (Interfax) - The Mongolian parliament has approved a draft agreement with Russia on uninterrupted supplies of aviation fuel to Mongolia, the parliament said on its website.

Parliamentary data shows that the country's aircraft fuel consumption has grown rapidly in recent years, from 27,900 tonnes in 2021 to 70,000 tonnes in 2024. This growth directly correlates with increased air traffic. In 2024, passenger flights reached 91,800, up 44.6% compared to 2023. Cargo transportation grew 21%.

Authorities anticipate further growth of these indicators and therefore intend to secure fuel purchases at the lowest possible market prices, which will not only maintain stable demand coverage but also influence airfare pricing.

Currently, Mongolia imports 100% of its aviation fuel from Russia. The government believes this trend will continue, as purchasing from China would be unprofitable due to high transportation costs.

"In the future, considering global oil prices and the situation on Russia's domestic oil products market, the Russian government may impose export restrictions or tax increases, which could affect petroleum product supplies to our country, including aviation fuel, potentially leading to shortages," it said.

Thus, the intergovernmental agreement will ensure stable aviation fuel supplies to Mongolia, maintain uninterrupted deliveries to Chinggis Khaan International Airport and guarantee consistent provision of internationally-standard compliant fuel to aviation enterprises, parliament said.

The agreement will take effect after Mongolia completes all necessary domestic procedures.