Recently, India and Mongolia have reviewed bilateral cooperation in hydrocarbons and steel sectors.
- India reiterated its commitment to timely completion of the Mongol Refinery Project, the country’s 1 oil refinery.
- The greenfield Mongol Refinery Project is being built under a Line of Credit from the Government of India.
- It is expected to cut some of Mongolia’s fuel import dependence.
- The Project came in the backdrop of Mongolia, which has large uranium deposits signing an agreement for civil nuclear cooperation with India in 2009 and China unfolding its Belt and Road Initiative (BRI).
- India is opposed to the BRI, which seeks to invest about USD 8 trillion in infrastructure projects across Asia, Europe and Africa, as it says the initiative lures countries into debt traps and does not respect sovereignty or address environmental concerns.
- India welcomed the keenness of Mongolian companies in supplying coking coal to Indian steel industry. According to a recent report, India will overtake China as the largest importer of coking coal by 2025.
- Further, India looks forward to substantial partnerships with Mongolian companies in the areas of minerals, coal and steel.
- India expressed its willingness to further share its expertise in the oil and gas sector including capacity building in accordance with the developmental priorities of Mongolia
- Mongolia has publicly reiterated its support for India’s membership to the permanent seat of the expanded United Nations Security Council (UNSC).
- India has played an important role in getting Mongolia membership to key international forums, including the United Nations (UN), despite strong opposition from China and Taiwan. India also championed the inclusion of Mongolia in the Non-Aligned Movement.
- In a reciprocal gesture, Mongolia co-sponsored a 1972 UN resolution with India and Bhutan for the recognition of the newly liberated Bangladesh.
- Mongolia’s strategic position at the cross junction of Central Asia, Northeast Asia, far East, China and Russia attracts major powers towards it.
- India should consider Mongolia as a green zone of economic development that absorbs hi-tech features and production skills in a modernization process.
- To preserve and promote the common heritage of Indo-Mongolian culture is important. This should serve as the basis for nurturing and pursuing future common interests.