Russia's State Duma ratifies trade agreement between Eurasian Economic Union and Mongolia

MOSCOW. Dec 16 (Interfax) - Russia's State Duma at its session on Tuesday ratified the interim trade agreement between the Eurasian Economic Union (EAEU) and Mongolia that aims to establish a basis for forming a free trade zone and economic and trade cooperation between the parties.

The government submitted document No. 1075573-8 to parliament in November.

"The agreement currently covers a limited range of goods at 367 tariff lines. However, the preferential regime will cover 90% of Russian-Mongolian mutual trade. Moreover, 89% of Russian exports to Mongolia will be duty-free. This includes food products, fertilizers, polymer products, certain ferrous metals, and motor vehicles," Russia's Economic Development Ministry said.

The ministry said that Russia is the second-largest supplier of goods to the Mongolian market. As a result, average duties on the Mongolian market for goods included in the agreement will be reduced from 6% to 0.2%, allowing Russian businesses to save up to 8 billion rubles per year.

"Mongolia has only one preferential agreement in place. Essentially, the EAEU is among the first to secure exclusive terms for operations on the Mongolian market. For Russia, this means doubling trade with Mongolia by 2030," Deputy Economic Development Minister Vladimir Ilyichev said in the ministry's press service. The parties also hope to sign a full-fledged free trade agreement eventually.