Mongolia Feels the Impact of Russia’s Fuel Crunch, Official Says

Mongolia is feeling the effects of Russia’s fuel crunch, with long queues reported at petrol stations and prices rising sharply. Russia remains Mongolia’s dominant supplier of gasoline and diesel, making disruptions in its neighbour difficult to absorb.

“ I know about the problem in Russia. However, the fuel price is rising for Mongolia,” Bolorchuluun Tsendgombo, director of the policy and planning department at Mongolia’s food ministry, told Reuters. He said prices had climbed to nearly $1.50 to $2 per litre, compared with roughly $1 per litre in the spring.

The shortages spread from Russia, where Ukrainian drone attacks on oil refineries and strong seasonal demand contributed to the fuel crunch. Russia’s ban on gasoline and diesel exports exempts countries such as Mongolia that have intergovernmental fuel-supply agreements.

Traders said Russian diesel supplies to Mongolia rose 7% to 1.05 million metric tons between January and July. Gasoline exports increased to 515,000 tons from 450,000 tons, while jet-fuel supplies fell 40% to 32,000 tonnes. In July alone, Russian motor-fuel exports to Mongolia declined to 173,000 tons from 186,400 tons in June.

Tsendgombo also said Mongolia might reduce Russian grain imports because of an expected larger harvest. Mongolia bought about 100,000 tons of Russian wheat last year. The comments came during the Eastern Economic Forum in Vladivostok, where President Vladimir Putin met Mongolian Prime Minister Nyam-Osoryn Uchral and described the countries’ ties as a comprehensive strategic partnership.

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I know about the problem in Russia. However, the fuel price is rising for Mongolia.