Source: News.mn, RIA Novosti                   Date: 03 June, 2011

President Ts.Elbegdorj told Russian Prime Minister V.V. Putin at their meeting in Moscow that curbs on fuel exports by Russia had put Mongolia to serious difficulties in agriculture, mining and public transportation.  "There have been failures in delivery in recent months, and we have serious problems: now sowing has been delayed, production has become suspended and public transportation in cities has almost stopped," Mr. Elbegdorj said. Mr. Putin explained that Russia itself faced problems in fuel supply, but instructed Russian officials to see if Mongolia could be supplied from the reserves of Rosnefti LLC.  Deputy Prime Minister I.I. Sechin will look into the matter.

Mr. Elbegdorj said the Mongolian Energy Minister will be visiting Moscow to hold talks with Mr. Sechin to seek a long-term solution to the vexing problem. "Probably once they meet, the issue will be solved," he said. Faced by fuel shortages of its own, Russia, the world's largest oil producer, raised the fuel export tax by 44% last month.  Mr. Putin has criticized Russia's oil groups, saying there was no lack of oil but that companies had restricted supplies to keep prices high.

Several dozen Russian companies work in Mongolia. The two countries boasted more than USD1 billion in trade in 2010. According to Mr. Putin, the trade turnover between the two countries grew by 50% in the first quarter of 2011. "Of course we need to retain this growth," he said.