26 Aug 2009 11:24

Russia, Mongolia weighing up plans to lay gas pipeline to Mongolia - declaration

ULAN BATOR. Aug 26 (Interfax) - Russia and Mongolia will negotiate a project to lay a trunk gas pipeline to Mongolia under an agreement, set forth in the declaration on the development of strategic partnership between the two countries, signed by the two presidents.

Mongolian President Tsakhia Elbegdorj "proposed the idea of jointly considering the question of building a trunk gas pipeline to Mongolia," the declaration said on Wednesday.

The two presidents also reaffirmed "mutual plans to increase the charter capital of the Ulan Bator Railways company by $250 million."

"With this aim in view early talks will be held on the terms of extending a loan for this purpose," according to the declaration.

The Russian side confirmed the basic decision to provide an easy loan "along the lines of Rosselkhozbank," worth $300 million to develop Mongolia's agriculture and to promote bilateral cooperation in this area.

The sides "have agreed to continue talks on ways to liberalize mutual trade and to work on Mongolia's initiative to sign an intergovernmental agreement on the delivery of individual goods on easy terms."

Russia welcomes Mongolia's plans to become a member of the Asia-Pacific Economic Cooperation forum and will support Mongolia's bid if the forum decides in a consensus that its membership will be expanded, the declaration says.