From now on, all Mongolia needs in gasoline and diesel will be provided through supplies from the Russian Federation. This was officially stated by the country’s Deputy Minister of Industry and Mineral Resources Begzsurengiin Enkhtuvshin.
Mongolia imported about 97% of petroleum products from Russia. The remaining volume came from China. Now, after the ban imposed by Beijing, the Russian direction will become the only one. The price for the most popular gasoline AI-92 is fixed in the contract, which will be valid until the end of 2026. This gives the domestic market a certain guarantee of stability.
However, it will not be possible to completely protect consumers from price hikes. The cost of diesel fuel and Euro 5 gasoline is not covered by the long-term agreement. It will be formed based on the current world market conditions, which are now extremely unstable. The situation in the Strait of Hormuz, the main maritime route, also adds to tension. for oil tankers. Any interruptions there are immediately reflected in quotes.
Agreements on guaranteed volumes were reached back in 2024, when Vladimir Putin visited Ulaanbaatar on an official visit. The parties agreed on annual supplies of 1.8–1.9 million tons of petroleum products and 60 thousand tons of jet fuel. The Russian president then emphasized Moscow’s readiness to reliably provide the neighboring republic with energy resources on mutually beneficial terms.
For Mongolia, which does not have its own oil refining capacity, the stability of external supplies is a matter of national security. China’s decision to stop exports was unexpected, but having a well-functioning route through Russia avoids shortages. Nevertheless, Ulaanbaatar will have to carefully monitor global hydrocarbon pricesin order to prevent a sharp rise in fuel prices on the domestic market.
Source: TASS
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