Rosneft to supply Mongolia with oil products not delivered due to railway congestion, boost exports ahead of refinery repairs

MOSCOW. June 22 (Interfax) - The CEO of Russian oil company Rosneft , Igor Sechin held a meeting with the chairman of Mongolia's parliament, Gombojav Zandanshatar at which they discussed the development of comprehensive energy cooperation between their two countries.

They discussed supplies of oil products and crude oil to Mongolia, and the modernization of power generating facilities in Ulaanbaatar, among other things, Rosneft reported.

"The stability of pricing for supplies was one of the key topics of the negotiations. The parties confirmed their commitment to previously reached agreements to apply a flexible market approach to setting prices for oil products," the company said.

The reliability and continuity of supplies was an important subject of the talks. The parties agreed on compensatory measures in the event of future and past force majeure circumstances, the company said.

This includes making up for oil products not delivered in June due to railway congestion in Mongolia, Rosneft said. "Under the reached agreements, this amount will be compensated in the coming months," the company said.

Furthermore, in light of the upcoming scheduled maintenance at the company's Angara group of oil refineries, Rosneft said it will increase exports to Mongolia in the coming months.

Sechin and Zandanshatar also noted the changes made to Mongolian legislation in December that made it possible to supply aircraft fuel to the refueling station at the new Chinggis Khaan airport in Ulaanbaatar.

"Mongolia is our strategic partner in energy. We guarantee the reliability of supplies to the country," Sechin said in the press release.

Rosneft has been working on the Mongolian market since 2005 and has exported a total of 13.7 million tonnes of oil products to the country.