Mongolia proposes Gazprombank participate in creation of oil refinery

MOSCOW. Oct 20 (Interfax) - Mongolian Deputy Prime Minister Sainbuyan Amarsaikhan has discussed with the management of Gazprombank current issues of cooperation with Russia, including energy and through traffic connecting Asia and Europe, Montsame News Agency reported.

"Gazprombank will play an important role in the implementation of the Mongolian government's New Revival Policy. In particular, I propose expanding cooperation in such major projects as the construction of a pipeline from Russia to China through the territory of Mongolia and the creation of an oil refinery," Amarsaikhan was quoted as saying by Montsame.

Mongolia is currently building the first oil refinery in the country with a capacity of 1.5 million tonnes per year. The cost of the refinery in the Altanshiree district in the southeast of Mongolia has been estimated at $1 billion. It will produce over 300,000 tonnes of gasoline and 800,000 tonnes of diesel fuel. Its launch is planned for 2025. Funds for the project have been provided by Exim Bank of India. Mongolia launched the new Sainshand - Altanshiree railway leading to the future refinery in August 2019.

Mongolia is fully dependent on imports of oil products from Russia, but at the same time exports 1-1.2 million tonnes of oil to China annually.

Gazprombank has been interested in a similar project for 15 year. VEB, Gazprombank, and Czech Export Bank signed an agreement in 2006 to organize financing for the construction of the first oil refinery in Mongolia at an estimated cost of $600 million.