Mongolia Breaks Ground for its First Refinery to be Constructed with Indian Assistance

Ulaanbaatar: Mongolia broke ground on Friday for the construction of the landlocked country's first oil refinery with the help of a USD 1 billion loan from India which Home Minister Rajnath Singh described as an important milestone in the bilateral ties.

Mongolia hopes the project, located at 'Stantsiin Hooloi' in Altanshiree Soum, will boost the economy and reduce its dependence on foreign gasoline imports, particularly from Russia. Nearly all of its petroleum products come from Russia.

Singh attended the ground breaking ceremony for the construction of the refinery.

The home minister while recalling the statement made by Prime Minister Narendra Modi during his historical visit to Mongolia in 2015 where he had announced Line of Credit of USD 1 billion for this project, expressed confidence that with the start of this refinery, Mongolia would derive rich benefits, a statement issued Home Ministry said.

Singh was of the opinion that the project will further strengthen the relationship between both the countries and averred that it was India which first established diplomatic relations with Mongolia after it came out of Communist Bloc, it said.

The refinery is situated at 'Stantsiin Hooloi' in Altanshiree Soum, Mongolia. The Prime Minister of Mongolia, Ukhnaagin Khurelsukh and other dignitaries were present during the event.

The home minister lauded the efforts made by his holiness Kushak Bakula (revered monk) who during his life called upon the youth to lead life with human values.

Singh further stated that both India and Mongolia should work in close coordination not only for progress and development of Asia but to usher peace and prosperity in the Indo-Pacific region.

The home minister is on a three-day visit to Mongolia to further strengthen India's relations with Mongolia and security cooperation.

Mongolia is seen as an important strategic partner of India and New Delhi wants to realise the huge potential of bilateral relations with Ulaanbaatar.

The Home minister will also visit a Buddhist monastery and hold a meeting with his counterpart and Mongolia's minister for justice and interior affairs tomorrow.

He will also visit the headquarters of Mongolia's Border Protection Force there before returning to Delhi on June 24.

Modi had in 2015 visited Mongolia, the first ever visit by an Indian prime minister. External Affairs Minister Sushma Swaraj was also in Mongolia in April this year where she discussed economic cooperation in infrastructure development, energy, services and information technology with her Mongolian counterpart.