Mongolia: Foreign Trade and Infrastructure Development

The paper reveals the modern specifics of the economy and plans for the development of infrastructure in Mongolia. The influence of anti-COVID restrictions on foreign trade is being studied. It is shown that the problems of export and raw material development and inland Mongolian isolation in the face of restrictions on crossing the border with China for vehicles were exacerbated by the poor development of the railway network. As a result of these restrictions, coal production and exports from Mongolia to China more than halved in 2020–2021. Together with the fall in coal prices in 2020 and the collapse in the services sector, this led to the deepest recession in the Mongolian economy since 1992. Plans for the development of international transport and energy corridors through Mongolia are being considered. Based on actual data, the insignificant role of Mongolia in the dynamically growing transit of container cargo in the direction of China–Europe–China is shown. The unsatisfactory condition of the Trans-Mongolian Railway and the absence of railways in a number of promising directions of freight flows prevent the full realization of the transit potential of Mongolian freight traffic. In connection with Russia’s reorientation of export flows to Asia, the Eastern Railway Corridor stands out as a promising corridor through Mongolia. A strategically significant initiative, which in the context of anti-Russian sanctions will seriously strengthen economic cooperation in the regional triangle Russia-Mongolia-China, is the plan to build a Soyuz-Vostok transit gas pipeline through Mongolia. This project will allow redirecting gas supplies from the West Siberian region of Russia, previously supplied to Europe, directly to the capital region of China. Mongolia is also interested in the implementation of this large-scale project, which seeks to obtain new opportunities for economic development. The implementation of these infrastructure development plans will allow Mongolia to not only take advantage of its location between Russia and China and strengthen the economic base for cooperation with them, but also, in general, lay the foundation for economic diversification and deeper integration into the global economic system.