Mongolian enterprises. How a Russian businessman creates companies on the Mongolian market. Both options for transporting oil to China through Mongolia or bypassing Mongolia pose a real environmental threat - the threat of pollution of Lake Baikal

During the years of extensive cooperation between the two countries, Russian geologists, together with Mongolian colleagues, searched for ore and water, oil and coal, that is, everything that was later reflected on the map “Natural Resources of Mongolia. Minerals.”

Research into the oil-bearing regions of Mongolia in 1922-1923 was carried out by American geologists H. Berkeley and S. Morris in the Gobi. Another American geologist D. Tenner in 1931 suggested the existence of oil in Mongolia. Systematic geological exploration of oil fields in Mongolia began in 1934. Two oil fields were explored in the south and south-east with a reserve of about 6.2 million tons.

American geologist D. Tenner in 1931 suggested the existence of oil in Mongolia

Before 1941, geological surveys were carried out in southeastern Mongolia, which resulted in a fairly complete stratigraphic diagram of the Cretaceous and Tertiary deposits with which the oil fields are associated, with the participation of the Mongolian geologist J. Dugersuren and the Soviet geologist Yu. Zhelubovsky. An important result of these works was the discovery of surface signs of oil content in the Dzunbayan area, which subsequently led to the discovery of the Dzunbayan oil field in the Eastern Gobi near the city of Dzunbayan, which was further explored, delineated, as geologists say, and put into operation by 1948. Structures favorable to oil and gas accumulations have also been installed. Over twenty years of operation, more than 260 wells with a depth of up to 3 km have been drilled at the Dzunbayan field. each. Between 1947 and 1963, Soviet geologists discovered two small oil fields and 80 suspected oil-bearing structures in the southern, southeastern and eastern parts of the country.

After the end of World War II in 1947, the Mongolneft trust was created and in 1950 an oil refinery with a capacity of about 0.4 million barrels per year, equivalent to thousands of tons, was built in Dzunbayan. Between 1950 and 1969, more than 4 million barrels (about 0.6 million tons) of oil were produced from the Dzunbayan field, and a total of 7 million barrels of oil (538.7 thousand tons of crude oil, including light oil imported from Russia for blending with local oil) were processed at refineries, which provided 20 percent of the country's consumption during that historical period.

In 1969, the plant's operation was suspended for several reasons: a decrease in pressure in the wells of the Dzunbayan field and the resulting problems of uninterrupted supply of raw materials, a fire at the refinery, and the discovery of oil fields in Soviet Western Siberia. As a consequence of this, the Mongolneft company was reorganized.

Today, up to 100 wells of the Dzunbayan field have been restored; 5 wells produce oil with a flow rate of 30-100 barrels per day. The extracted oil (volume of 550 thousand barrels per month) is transported to China for processing.

Mongolian oil produced at the Dzunbayan field - 550 thousand barrels per month - is processed in China

The reserves of the Dzunbayan field are estimated at 22 million tons; there are three oil regions or units of sandstones, of which the first unit is tamed to the bituminous subformation, and the second and third to the Tsagantsab formation. The second unit contains 4 oil-bearing horizons, and the third unit contains 12 oil-bearing horizons. The most productive are the 13th horizon with a thickness of 7-8 m, the 11th horizon - 9-10 m and the 7-8th horizon -10-12 meters. The depth of the production horizons of the third pack is on average 700-800 m. Oil reserves of the Dzunbayanskoye field of category A + B amount to 2158.3 thousand tons.

Oil shows in the East Gobi Depression were also identified during drilling on the Ukha, Khamarin-Khural, and Tsaganel uplifts. All these oil shows have not yet been explored in detail and not fully delineated.

Exploration work was also organized in other regions of Eastern Mongolia: Nyalga, Choibalsan, Tamsagbulag. In the first two, in addition to the bitumen manifestations identified during geological mapping, manifestations of liquid oil were noted, but commercial inflows were not obtained in the wells. The Tamsag depression is located in the extreme east of the country and occupies about 30 thousand km within the country. However, geological and geophysical research has been carried out insufficiently. In terms of oil content, it is of great interest. In the submerged part of the Paleozoic, for example, the northeastern village. Tamsagbulak, the thickness of Mesozoic deposits exceeds 3000 m. However, only one well was drilled here to a depth of 2500 m.

The latest exploration work at the Tamsag-Bulak oil field in the Matad soum of Dornod aimag confirmed previously established oil reserves of 19 million barrels and showed that the estimated reserves here, taking into account the risk, could amount to 58 million barrels.

Estimated oil reserves in Dornod aimag amount to 58 million barrels

In March 2010, Amarsaikhan Damdiny, head of supply at the Mongolia Petroleum and Minerals Administration, reported that the Mineral Resources Board had officially registered Mongolia's total proven oil reserves at 1.6 billion tons. The Tamsag Basin, in particular, has crude oil reserves of 119.2 million tons. Thus, in terms of oil reserves, Mongolia ranked 33rd among more than a hundred oil-producing countries in the world. The crude oil reserves identified to date can meet the country's fuel needs for 40-50 years.

The crude oil reserves identified to date can meet Mongolia's own fuel needs for 40-50 years

According to experts, in the Tamsag field, oil reserves that can be extracted from the subsoil at the lowest cost amount to 13 million tons, which is equal to the country’s needs for a period of up to 10 years. Currently, 11 companies are conducting oil exploration work in the country. Most of these companies are Chinese; Russian companies have not yet shown interest in developing Mongolia's oil fields.

Russian companies have not yet shown interest in developing Mongolia's oil fields

Since 2005, the Chinese have drilled 300 wells in the Mongolian border aimak of Dornod (Eastern), 70 of which have produced an influx of oil.

In 2006, Petro Matad Limited entered into a production sharing agreement with the Mongolian government to explore for oil in Matad. It was listed on the London Stock Exchange in May this year. The owner of the majority share of this company is the Mongolian company Petrovis. The latter conducted a study of the oil field in the Davsan Tolgoi area in August and September 2012. Previous exploration had established that oil reserves in this area were estimated to be 19 million barrels. The reserves of the Tamsag deposit are estimated at 37 million tons. Production is carried out by the Chinese company PetroChina Daqing Tamsag, the extracted oil goes to China, where it is processed, and the refined products are supplied back to Mongolia under a production sharing agreement.

In general, for Mongolia such reserves are estimated by the American company Exploration Associates international - Texas at 4-5 billion tons. Mongolian oil is located at depths of 700-1000 and 2200-3000 m.

In 2010, the Mongolian company Mongolsekiyu Co., Ltd. and the Japanese corporation Toyo Engineering signed an agreement on the construction of an oil refinery on the territory of the Darkhan aimag, with a processing capacity of up to 44 thousand barrels of oil per day, that is, up to two million tons per year. The project is the largest event within the framework of the "10-year Basic Program of Mongolian-Japanese Cooperation." The construction of this plant will allow Mongolia to fully provide itself with petroleum products, while about $200 million will be transferred to the country's budget annually. After the plant is commissioned, raw materials will first be supplied from abroad, and in the future it is planned to switch to domestic oil. The Japanese side will allocate all the funds necessary for construction - US 600 million. The opening of the enterprise will create 600 new jobs. The Japanese company Marubeni is taking part in the project. According to Mr. Namjim, director of Mongolsekiyu, fuel consumption per year is about 850,000 tons. With the development of production and infrastructure development, it will amount to more than 1.5 million tons by 2015 and will continue to grow. The refinery under construction should therefore produce two million tons per year.

Oil exploration and production work in Mongolia was also carried out by Australian, Canadian and French companies. A representative office of the Russian company Tatneft has been opened in Ulaanbaatar. Oil shows associated with Mesozoic deposits are known not only in Mongolia, but also in the regions of Russia and China bordering us. The closest oil shows in Russia are in the area of ​​Gusinoye Lake and in the Borgoy Basin. In China, oil deposits are known closer to Mongolia: in the Dzungarian, Ordos, and Songliao basins. Oil shows have also been known for a long time in the Dalainor depression, which is the northern continuation of the Tamsagbulak depression. The totality of the considered oil shows and fields, scattered over a vast area from the lake. Lake Baikal to the central part of China, indicates the regional development of Meso-Cenozoic oil and gas accumulation processes here.

The closest oil shows in Russia to the Mongolian ones are located in the area of ​​Gusinoe Lake and in the Borgoi Basin

During 1990-1993, the British Petroleum company explored sedimentary basins and, together with the American company Exploration Associates International, processed information from previous studies, and also carried out a seismic study of Mongolia with the Sibneftegeofizika company.

Since January 2001, on 7 out of 22 blocks, foreign oil companies have entered into “Production Sharing Agreements” contracts that separate production contracts for exploration, development of oil fields and production. Soko is working on the Toson Uul-XIX, and Matad-XX, Tamsag-XXI, and Buir-KHP contract areas, while Australia's Rock Oil is the contractor for the Tsagaan Els-XSh and Zuun-Bayan contract areas. -XIV.

From 1993 to 2004, contractors drilled 47 wells in Mongolia, at a total cost of more than US214 million. From 1998 to 2000, contractors exported approximately 33 thousand tons of crude oil accumulated during test production to China. Beginning in July 2000, the Chinese company Desert Oil began exploration activities in the Khar-Us II block, but due to financial difficulties it postponed exploration. In addition, several companies from Russia and China were interested in exploring oil in some blocks of the contract. Currently, the American company Soco, the Chinese Dongsheng and the Canadian companies Storm Cut Energy and Ivanhoe Mines operate in Mongolia.

Oil exploration work in Mongolia is carried out by 11 companies, including the American company Mongolian Soco International PLC, the Chinese Dongsheng and the Canadian companies Storm Cat Energy and Ivanhoe Mines.

Exploration with the subsequent stage of oil production has become a very intensively developing industry in the country's economy, attracting the close attention of foreign investors. Mongolia's resource base today: oil reserves as of 01/01/2004 in categories A+B+C1+C2 amount to more than 20 million tons of oil, which allows maintaining the level of oil production for domestic demand for petroleum products.

The research and development of the physical properties of oil from the Zuunbayan-XIV and Tsagaan els-XSH fields by the Australian company Rock Oil showed that the lack of appropriate infrastructure and production capacity does not allow oil to be processed. Currently, there are 2 small-scale oil refining units (LTUs) operating in Mongolia; the production potential of the complexes can be up to 50-100 thousand tons/year.

MTUs are characterized by shallow processing of raw materials and therefore should not be considered as an alternative to refineries and petrochemical plants. The maximum demand for MTU in the Eastern aimag is estimated at 1-2 units, which will amount to no more than 50-100 thousand tons/year of total capacity. Therefore, their use can significantly improve the region’s fuel supply. From the standpoint of long-term development, it is advisable to focus on the primary use of funds from private companies in combination with state support measures for oil exploration and production in the fields of the eastern aimak.

Currently, 2 small-scale units for shallow oil refining are operating in Mongolia.

An analysis of the situation in Mongolia indicates that domestic consumption of motor fuels, which decreased from 440 thousand tons in 1990 to 359 thousand tons in 1994, even by 2010 may not increase to the level of 1990. This means that in the eastern The aimag needs an oil refining industry that would focus on the domestic market, with a capacity of 200-300 thousand tons. The insufficiency of these oil refining capacities in Mongolia can only be revealed in the following situations:

• a significant increase in the demand for petroleum products, which can happen mainly due to an “economic miracle”;
• unforeseen rapid development of the regional vehicle fleet and/or dramatic improvement of the regional road network;
• unexpectedly rapid intensification of regional air transportation.

Some considerations for and against the construction of small refineries can be seen in the analysis of the presence of objective prerequisites for the construction of such an oil refinery in the city of Erdenet. The city's annual demand for motor gasoline is about 40 thousand tons, diesel fuel - 100 thousand tons, fuel oil - 5 thousand tons, in total - about 145 million tons of petroleum products per year. The MTU built in the city provides 30-50 percent of the demand, the rest is produced by importing them from the Russian Federation, mainly from the nearest refinery located in the Russian cities of Angarsk and Omsk.

70 percent of all petroleum products in Erdenet are imported from Angarsk and Omsk. The city's annual demand for oil and its products is about 145 million tons

With proper design and consideration of local conditions, small-scale installations can have sufficient versatility. The Erdenet project, for example, may include an autonomous power plant, the production of diesel and boiler fuels, bitumen, high-octane gasoline, and liquefied gases. This makes it possible to provide nearby areas with electricity, household gas, heating oil, as well as the main MTU product - motor fuel.

Relatively large MTUs, with a capacity of 200 - 500 thousand tons per year, are capable of solving the problems of processing raw materials from an entire group of deposits. For example, oil refining in the Eastern aimag near the Tamsag field with a potential production of 10-50 thousand tons/year can be carried out at MTU. It may also be specifically focused, for example, on solving the issue of sustainable supply to the eastern aimags of Mongolia.

When implementing the hypothesis of low levels of energy consumption in the country, postponing the construction of the Choibalsan-Ulaanbaatar transport highway, introducing new technologies and pursuing a government policy of containing prices, refusing to subsidize railway transportation and accelerating the cessation of support for the oil industry, the industry finds itself in the most difficult situation: possible volumes oil production in Mongolia by 2010 is estimated at 1-2 thousand tons. If this scenario is implemented, foreign companies are forced to reduce development and/or production at all exploration blocks, open blocks will remain without any geological exploration work, and any -the possibility of exporting oil from Mongolia. The development of the oil industry under this minimum scenario is undesirable for reasons of the country's energy security.

Currently, specialists from RAO Rosneftegazstroy have returned to Mongolia, armed with the idea (for now, the idea) of mutually beneficial development of previously explored resources there. They brought a completely new electronic map of mineral resources and presented their assessment of the country’s resource potential in Ulaanbaatar to members of the government, the khural and representatives of private capital. However, Russian companies, unlike Chinese or South Korean ones, are not united into a single team, are almost not supported by the state and act solely at their own peril and risk.

Russian companies, unlike Chinese or South Korean ones, are not united in a single team, are almost not supported by the state and operate in the Mongolian market solely at their own peril and risk

In the process of business contacts, the government structures of Mongolia proposed that RAO Rosneftegazstroy become the general contractor for the largest project in the history of Mongolia to build a trans-Mongolian highway, which should not be inferior, and in some ways should surpass the best highways in the United States and Europe. The project assumed that the new road would play the role of a backbone with which the country’s transport network would be linked; the main highway would connect the centuries-tested trade route of Russia, Mongolia, China and Kazakhstan. The enclave type of economic management will be eliminated, which does not allow the country to stand on a par with the economic leaders of the pan-Asian market.

It's not just about the road. Mongolia needs a modern transport network consisting of roads of different classes, including main pipelines that provide the country with energy resources and transport hydrocarbons beyond its borders, while the interests of Russian companies will not be infringed. In this regard, a small digression. Today, there are two options for transporting hydrocarbons to China: bypassing Mongolia from Angarsk to Daqing, a length of 2488 km, and through Mongolia: Angarsk-Ulaanbaatar-Beijing, 2437 km. There is a tripartite agreement signed by the China National Petroleum Corporation (CNPC), Transneft and the former Yukos on transporting 20 million tons of oil per year to China until 2010, and after that - 30 million tons.

Beijing strongly opposes the Mongolian version of the route, although it has significant advantages over the alternative. Without dwelling on all the pros and cons of these options, we can say with confidence that they both pose a real environmental threat - the threat of pollution of Lake Baikal. Next to it, all the advantages of these projects fade.

Both options for transporting oil to China through Mongolia or bypassing Mongolia pose a real environmental threat - the threat of pollution of Lake Baikal

However, there is a report that Russia has developed an optimal, environmentally friendly version of the Russia-China oil and gas pipeline route through Western Mongolia, taking into account the energy resources of Western and Eastern Siberia and Kazakhstan. This option is not only environmentally friendly, but also goes through natural hydrocarbon traps and provides energy raw materials to sparsely populated areas of China that are in dire need of it. The widespread belief that China's territory is densely populated is deeply mistaken, and to understand this, one only needs to look at the administrative map of the country. The transport network must be provided with oil filling stations, for which it is planned to build an oil refinery near Ulaanbaatar. In eastern Mongolia, the Americans are already pumping oil. Quite recently, an oil field was discovered in the southern part of the “oil belt” with recoverable reserves of 2 million tons. Four more similar deposits have emerged nearby.

Today, Mongolia's need for hydrocarbons, in oil equivalent, is about 560-580 thousand tons per year. This is normal for an agricultural country, but extremely little for moving into the ranks of industrialized countries. Oil is imported from Russia (Angarsk, Achinsk, Omsk), although Mongolia has its own oil. As stated above, the Dzunbayan (Southern Mongolia) and Tamsag (Eastern Mongolia) oil blocks have been explored, where, according to the British and Americans, oil reserves are about 22 and 37 million. In general, for Mongolia, such reserves are estimated by the American company Exploration Associates international - Texas at 4 -5 billion tons. It is possible that these figures are overestimated, but we must admit that other companies also quote similar figures.

Mongolia's need for hydrocarbons, in oil equivalent, is about 560-580 thousand tons per year

All of the above indicates that Mongolia has considerable resources of energy raw materials and is quite capable of satisfying not only its internal needs for it, but also becoming one of the importers of energy drinks. The return of Russia to Mongolia, mutual assistance and friendship between the two countries are beneficial to both Russia and Mongolia. Both sides want this. However, wanting is not enough, you must act. And in this, the main bonding, cementing role should belong to the governments of the two countries. For Mongolia, as the entire experience of its history shows, there is no other way.

Russian Embassy in Mongolia
Mongolia-trade.org/- Website of the Mongolian trade mission
News.mn/- Info-portal of Mongolia
Infopol.ru Mongolia News - Ulan Ude (en)
Mongolia-tourizm-planet.blogspot.com/- Tourism Mongolia
Mol.mn/- Mongolia Online (en)
OWC.org.mn/- Mongolian National Tourism Administration (en)

Mongolia (Mongolian Uls) - state in East-Central Asia. It borders with Russia in the north and China in the south, and has no access to the sea.

Natural conditions:
Mongolia is a plateau, elevated to a height of 900-1500 m above sea level. A series of mountain ranges and ridges rise above this plateau. The highest of them is the Mongolian Altai, which stretches in the west and southwest of the country for a distance of 900 km.
Rivers of Mongolia are born in the mountains. Most of them are the headwaters of the great rivers of Siberia and the Far East, carrying their waters towards the Arctic and Pacific oceans. The largest rivers in the country are the Selenga (within the borders of Mongolia - 600 km), Kerulen (1100 km), Onon (300 km), Khalkhin Gol, Kobdo, etc.
In Mongolia, there are over a thousand permanent lakes and a much larger number of temporary lakes that form during the rainy season and disappear during the dry season.

Climate:
In Mongolia sharply continental climate with harsh winters and dry, hot summers. Temperatures range from minus 25°C - 35°C in winter to plus 25°C - 35°C in summer. Ulaanbaatar is one of the coldest winter capitals in the world: the coldest month is January. The warmest month is July.

Minerals:
Despite abundance of mineral deposits, their development is still limited.
There are 4 brown coal deposits in Mongolia (Nalaikha, Sharyngol, Darkhan, Baganur). In the south of the country, in the area of ​​the Taban Tolgoi mountain range, coal was discovered.
Medium-sized deposits of tungsten and fluorspar have long been known and are being developed. Copper-molybdenum ore found in Treasure Mountain (Erdenetiin ovoo) led to the creation of a mining and processing plant, around which the city of Erdenet was built.
Mongolia is rich in fur-bearing animals(especially a lot of marmots, squirrels, foxes). Fishing is carried out in the lakes and rivers of the northern regions.
Currently, Mongolia ranks 10th in the world in terms of coal reserves. According to the Ministry of Mineral Resources and Energy of Mongolia, the country's total proven coal reserves amount to 150 billion tons.

Industry:
One of the main components of GDP is the mining industry and cashmere production.
Significant number of manufacturing enterprises concentrated in Ulaanbaatar, and in the city of Darkhan to the north of the capital there is a coal mining, iron foundry and steel smelting complex.
Mongolia produces more than a thousand types of industrial and agricultural products, most of which are consumed domestically, are being exported furs, wool, leather, leather and fur products, livestock and animal products, phosphorites, fluorites, molybdenum ore.

Agriculture:
The economy gives priority to agriculture.
But agriculture plays a secondary role in the economic life of Mongolia. Various crops are grown in the northern and western parts of the country, some using irrigation. Main crop is wheat, although barley, potatoes and oats are also grown. Procurement of hay and feed for livestock plays a significant role.
Pastoralism, still remains the main type of economic activity. Today Mongolia is among leading countries in the world by livestock population on a per capita basis.

Economy:
GDP (2006): $5.781 billion
Export: copper, livestock products, goat down, wool
Import: fuel, machinery, cars
Main trading partners: China, Russia, USA, Japan

Transport:
The total length of highways in 2002 was 49,256 km.
In 2004, there were 36 airports in the country. Of these, 11 have a paved runway.

INFORMATION FOR TOURISTS

ECONOMY OF MONGOLIA

Mongolia is an agrarian-industrial country. Mongolia currently trades with more than 80 countries around the world. Trade turnover is more than 2 billion US dollars. If until the 90s, 90% of Mongolia’s foreign trade was occupied by trade with the USSR, today more than 40% is trade with the Russian Federation and the People’s Republic of China, and the remainder is occupied by trade with such highly developed countries as Japan, the USA, South Korea, Switzerland.

Based on the results of the third quarter of 2005, the total foreign trade turnover of Mongolia is 1.27 billion US dollars, which is 11.6% more than in the same period in 2004. Imports increased by 150.6 million US dollars.
Mongolia exports goods and raw materials to 60 countries, of which 50.8% to China, 13.8% to Canada, 10.1% to the USA. 45.2% of total exports are minerals and mining products, 21.5% are sewing and knitwear, 25.6% are precious and semi-precious metals, 3.7% are raw leather and products made from it.
Mongolia imports more than 90% of its petroleum products from Russia, and the remainder from China and Kazakhstan.

Mongolia, as a member of the World Trade Organization, in March 2005 presented its trade policy, which is quite liberal, for discussion by members of this organization. In 2002, the Government of Mongolia established uniform five percent customs rates on most imported goods. For the further development of Mongolia's foreign trade, the decision of the European Union to include Mongolia, as a developing country with a vulnerable economy and as a landlocked country, in the GSP+ program is important. Thus, from July 1, 2005, Mongolian goods began to be imported into the European market without customs duties.

GENERAL CHARACTERISTICS OF THE ECONOMY OF MONGOLIA

Mongolia's economic activities have traditionally been based on agriculture and livestock. Mongolia also has extensive mineral deposits - the mining of copper, coal, molybdenum, tin, tungsten and gold accounts for a significant part of industrial production. Soviet aid, which previously amounted to up to a third of GDP, ceased after the collapse of the USSR. The Mongolian economy suffered a long decline, exacerbated by the reluctance of the Mongolian People's Revolutionary Party (MPRP) to carry out fundamental economic reforms. The Democratic Coalition government took the path of a market economy, weakened price controls, liberalized domestic and foreign trade, and attempted to rebuild the banking system in the energy sector. Large privatization programs were undertaken, measures to stimulate foreign investment were implemented (international tenders for the sale of a petroleum products trading company, the largest cashmere production company and banks). The progress of reforms was slowed by resistance from the former communist MPRP and political instability generated by the frequent change of governments of the Democratic Coalition (four governments changed). Following the crisis in 1996, caused by a number of natural disasters and a decrease in world prices for copper and cashmere, in 1997-99. economic growth followed. In August and September 1999, Mongolia's economy suffered from Russia's temporary ban on the export of oil and petroleum products. In 1997, Mongolia joined the World Trade Organization (WTO). At the last meeting of the Consultative Group in Ulaanbaatar in June 1999, foreign donors decided to allocate $300 million per year to Mongolia.

Meanwhile, Renaissance Capital experts called Mongolia's economy the fastest growing in the world. Thanks to huge reserves of mineral raw materials, the development of which is just beginning, and the development of the banking system. Mongolia's GDP in dollar terms will double by 2014, analysts believe. They noted that Mongolia is preparing to become a new Asian tiger, and not just another source of raw materials in Central Asia,” writes the CA NEWS News Agency. (12/22/2009)

Natural resources of Mongolia. Despite the abundance of mineral deposits, their development is still limited. There are 4 brown coal deposits in Mongolia (Nalaikha, Sharyngol, Darkhan, Baganur). In the south of the country, in the area of ​​the Taban Tolgoi mountain range, coal was discovered, the geological reserves of which amount to billions of tons. Medium-sized deposits of tungsten and fluorspar have long been known and are being developed. Copper-molybdenum ore found in Treasure Mountain (Erdenetiin ovoo) led to the creation of a mining and processing plant, around which the city of Erdenet was built. Oil was discovered in Mongolia in 1951, after which an oil refinery was built in Sain Shanda, a city southeast of Ulaanbaatar, near the border with China (oil production ceased in the 1970s). Near Lake Khubsugul, gigantic deposits of phosphorites were discovered and their mining even began, but soon, due to environmental considerations, all work was reduced to a minimum. Even before the start of reforms in Mongolia, with the help of the USSR, the search for zeolites, minerals of the aluminosilicate group, which are used in animal husbandry and agriculture as adsorbents and biostimulants, was carried out unsuccessfully.

Labor resources of Mongolia. The working population in 2003 was 1.488 million people. Employment structure: agriculture/livestock - 42%, mining - 4%, manufacturing - 6%, trade - 14%, services - 29%, private sector - 5%, other -3.7%.

As of November 2009, about 40 thousand unemployed were registered in Mongolia. This is 10 thousand more than last year. And a record figure for the last 5 years. These data were announced by employees of the Employment and Social Services Department of Mongolia. According to the Office, employers offered more than 50 thousand jobs to the labor exchange, of which 57 percent were vacancies that did not require specialization, mostly auxiliary ones.

Market transformations in the economy in the 1990–2000s

The economic system of Mongolia on the eve of the start of market reforms. Choosing a “shock” reform model. Main directions of economic transformations. Liberalization of economic activity, freeing prices. Institutional changes; privatization of state and cooperative property. Financial stabilization. The role of the state in the economy of modern Mongolia. The first results of reforms, their impact on the economy and social sphere. Prospects for deepening market reforms.

AGRICULTURE OF MONGOLIA

Agriculture has always been the basis of Mongolia's economy. In the context of the transition to a market, its importance has increased. It employs 50% of the country's population (in 1950 - about 80%), and produces more than 40% of GDP. In terms of livestock per capita, we rank third in the world, second only to Australia and New Zealand.

Until the early 40s, when industry formed into an independent sphere, agriculture was the only branch of material production in the country. As recently as 1950, it produced 60% of national income. Then its share decreased: in 1970 - to 25%, in 1975 - to 22.4%. Currently, it has increased slightly – to almost 30%. At the same time, over 50% of export products are agricultural raw materials, and taking into account products made from them - over 70%.

The level and pace of agricultural development largely determine the most important national economic proportions. Such traditional industries as light and food industries completely depend on its condition, since the costs of agricultural raw materials constitute the bulk of their production costs.

Pasture farming continues to be the main economic activity. Today, Mongolia is among the leading countries in the world in terms of livestock per capita (approximately 12 heads per person).

Agriculture plays a secondary role in the economic life of Mongolia. To correct this situation, the government developed and began implementing the “Revival of Agricultural Production” (Virgin Land-3) and “Green Revolution” programs.

INDUSTRY OF MONGOLIA

General characteristics of the industry. Specific features of industrialization of Mongolia. Stages of industrial development. Industry personnel. The ratio of mining and manufacturing industries. Dynamics of main indicators of industrial development. Efficiency of industrial production.
Sectoral structure of industry. The current state and development trends of the main industries.
The impact of market reforms on industry in Mongolia. The role of external assistance in industrial development. Prospects for industrial development.

Industrial growth - 4.1% in 2002.

Electricity production in 2005 - 3.24 billion kWh.
Electricity consumption - 3.37 billion kWh.
Electricity export - 18 million kWh.
Import of electricity - 130 million kWh.

A significant number of manufacturing enterprises are concentrated in Ulaanbaatar, and in the city of Darkhan to the north of the capital there is a coal mining, iron foundry and steel smelting complex. Initially, local industry was based almost exclusively on the processing of livestock raw materials, and the main types of products were woolen fabrics, felt, leather goods, and food products. Many new industrial enterprises appeared in Mongolia after the end of World War II - especially in the 1950s and early 1960s, when the country received significant financial assistance from the Soviet Union and China. In the 1980s, local industry provided approximately 1/3 of Mongolia's national product, while in 1940 it was only 17%. After the end of World War II, the share of heavy industry in total industrial production increased significantly. There are over two dozen cities with enterprises of national importance: in addition to the already mentioned Ulaanbaatar and Darkhan, the largest are Erdenet, Sukhbaatar, Baganur, Choibalsan. Mongolia produces more than a thousand types of industrial and agricultural products, most of which are consumed domestically; furs, wool, leather, leather and fur products, livestock and animal products, phosphorites, fluorites, and molybdenum ore are exported.

CAPITAL CONSTRUCTION

Dynamics of capital investments in the economy of Mongolia. Structure of capital investments by economic sectors. Material base and construction personnel. The role of external assistance in the development of capital construction. Basic forms of assistance.

TRANSPORT AND COMMUNICATION

In 1915, the Mongol Emperor Bogd VIII Zhavzandamba for the first time issued a decree addressed to the minister of the Great Khural and members of the Khural on the development of the mining industry and the construction of the railway.

Creation of modern modes of transport after the revolution of 1921. Dynamics of freight turnover and passenger turnover of transport. The state and development trends of the main types of transport (railway, road, air, water). Prospects for transport development. "Millennium Road". The main types of communications in modern Mongolia (postal, telephone, telegraph, radio and television communications). Development of mobile communications and the Internet.

FINANCIAL SYSTEM OF MONGOLIA

The main links of the financial system of modern Mongolia and its role in the development of the economy. State budget, ratio of central and local budgets. Structure of budget income and expenses.
Monetary system. The national currency is the tugrik and its exchange rate in relation to other currencies. Currency regulation.
Credit system. Formation and development of a two-tier banking system. The role and functions of the Central Bank. Development of a network of commercial banks. Credit and deposit operations of banks. Formation of the insurance system. Problems and difficulties in the development of the credit system during the period of market reforms.

DOMESTIC TRADE

Basic forms of internal trade. State, cooperative and private trade, their relationship. Wholesale and retail trade. Domestic trade prices, the problem of inflation. Dynamics and structure of domestic trade turnover.

TERRITORIAL STRUCTURE OF THE ECONOMY

Diversity of approaches to economic zoning in Mongolia. Mongolia Zonal Development Concept (2002). Main economic zones and their production specialization. The relationship between the sectoral and territorial structure of the economy.

LIVING STANDARD OF POPULATION

Living standards and social security in socialist Mongolia. A sharp drop in living standards during the initial period of market reforms. Dynamics of real income of the population in recent years. Social differentiation of the population. The problem of poverty and attempts to solve it. Employment problem; dynamics and structure of unemployment. The role of the state in solving social problems.

FOREIGN ECONOMIC RELATIONS

The total turnover in foreign trade for the first half of 2008 amounted to 2,971.3 million US dollars, including exports of 1,276.3 million dollars, imports of 1,695.0 million dollars. The deficit amounted to 418.7 million US dollars, which is 386.5 million US dollars more compared to the same period last year. The total trade turnover compared to the same period in 2007 increased by 74.3%, exports - by 52.6%, imports - by 95.2%. The negative balance of foreign trade was significantly affected by the growth of imports, which is 42.6 points more than the volume of exports.

Main import. Imports mainly consist of petroleum products, equipment and spare parts, vehicles, metals, chemicals, construction materials, food and consumer goods.

In 2004, imports amounted to $1 billion.
In 2005, imported goods came from: Russia - 34.5%, China - 27.4%, Japan - 7.1%, South Korea - 5.3%.

In the total volume of imports, mineral products increased by $196.4 million, pulp, paper, cardboard and products made from them - by $189.2 million, vehicles - by $133.7 million, cars, electrical equipment, televisions, spare parts - by 92.3 million. dollars, metallurgical products - by 68.1 million dollars, food products - by 37.2 million dollars.

Main export. The main Mongolian exports are: minerals (copper, molybdenum, tin, spar concentrate), raw materials of animal origin (wool, cashmere, leather, fur), consumer goods (leather, sheepskin, leather products, carpets, cashmere, camel knitwear, blankets from wool and cashmere). The country's interior is rich in mineral resources, including vast deposits of coal, iron ore, tin, copper, uranium, petroleum, zinc, molybdenum, phosphorus, tungsten, gold, fluorite and semi-precious stones.

In 2004, exports amounted to $853 million.
In 2005, exports were sent to: China - 48.1%, USA - 14.2%, Canada - 11.6%, UK - 8.3%, South Korea - 6.2%.

Exports of mineral raw materials, which constitute the main export item, increased by $245.9 million compared to the same period in 2007, precious and semi-precious stones, metals and jewelry - by $175.4 million, products of chemical enterprises - by $22.1 million, raw materials, processed leather, furs and products made from them - by 1.9 million dollars. However, export supplies of knitted products decreased by $7.8 million, metallurgical products - by $3.4 million.

The actual volume of exports of copper concentrate compared to 2007 decreased by 0.6 percent or 8.2 thousand tons, and in prices increased by 27.1%.

The main forms of foreign economic relations in modern Mongolia. Dynamics, structure and geography of foreign trade. Export and import of selected goods. Organization of foreign trade.

Credit and gratuitous assistance from the outside world of Mongolia. Distribution of foreign assistance by economic sectors. Organization of donor countries of Mongolia and its activities. The role of external assistance in the development of the economy and social sphere.

Cooperation of Mongolia with major foreign economic partners. The most important areas of Mongolian-Russian economic cooperation and its role in the development of the Mongolian economy. Participation of Mongolia in international economic organizations (IMF, World Bank, ADB, etc.).

• Ulaanbaatar, Mongolia, /MONTSAME/ Over the 11 months since the beginning of 2010, Mongolia has carried out foreign trade operations with 130 countries. The total trade turnover amounted to 5,421.8 million US. dollars, of which the volume of exports is 2,550.6 million dollars, imports - 2,871.1 million dollars.
  Compared to the same period last year, the volume of foreign trade turnover increased by 1,831.4 million dollars, or 51.0%, of which the volume of exports increased by 872.3 million dollars, or 52.0%, and the volume of imports - by 959.0 million dollars, that is, by 50.2%.
  The negative foreign trade balance for January-November 2010 reached 320.5 million dollars, which is an increase of 86.8 million dollars, or 37.1%, compared to the same period last year.
  94.8 percent of all types of export products are mineral resources, knitwear and knitwear, precious and semi-precious metals and jewelry.
  G. Battsetseg

GDP

At purchasing power parity, $5.781 billion in 2006. GDP growth 7.5%.

Agriculture - 20.6%.
Industry - 21.4%.
Services - 58%.
Inflation - 9.5% (2005).

BUDGET 2010

Mongolia's budget for 2010 has been adopted. Budget revenues will amount to 2 trillion 426.8 billion tugriks. Expenses - 2 trillion 785.4 billion tugriks. The deficit of the country's main financial document is more than 385 billion tugriks. Losses could not be avoided, despite the reduction in social costs. (27.11.2009)

Last year, Mongolia's gross national product shrank by 1.6%

As reported by MONTSAME, according to preliminary data for 2009, the country's gross national product amounted to 6055.8 billion tugriks (47-50 tugriks = 1 ruble) in annual terms or 3564.3 billion tugriks in 2005 prices. Compared to last year, this figure decreased in comparable prices by 1.6%.

The official index of consumer goods and services at the end of 2009 increased compared to the end of 2008 - by 4.2%.

In 2009, during 255 trading sessions on the Mongolia Stock Exchange, the turnover of securities trading amounted to 23.2 billion tugriks. Compared to the previous year 2008, trade volume decreased by 62.8% or 39.2 billion tugriks, the report notes.

The Yekaterinburg publication Delovoy Kvartal published an interview with a businessman, a native of the Urals. According to the magazine, Konstantin Romanovsky no longer has any business left in Russia. In recent years he has been working, and quite successfully, in Mongolia. the site presents to its readers this interesting interview about how an entrepreneur with a Russian mentality can develop active activities in the neighboring steppe country. At the same time, solve pressing problems for the Mongols. After all, one of its activities is related to the construction of thermal power plants. Let us remember that this country faces an acute shortage of energy resources. Intentions to build a hydroelectric power station on the Selenga River are being vigorously discussed in the press, and propaganda is being conducted against the construction of a cascade.

Konstantin Romanovsky, a businessman of the first wave, who built the Harbin restaurant in Yekaterinburg, is launching a project worth $67 million in Mongolia. Chinese and German competitors were left in the cold, the article says. The material begins with a dossier on Konstantin Romanovsky.

Born on September 6, 1960 in the city of Kizel, Perm Region. Education: 1977-1982 — study at the Sverdlovsk Institute of National Economy (specialty: “engineer-technologist of public catering”). Career: 1982-1984 — service in Afghanistan; 1984-1985 - forwarder; 1985-1987 - director of the canteen; 1987-1989 - Deputy Director of Canteen Trust No. 3; 1989-1991 - Director of the Harbin cooperative; 1991-1995 — General Director of the Harbin JV; 1995-2000 — General Director of the company “Geohekon”; 2000-2005 - Director of the company "FGA"; since 2005 - shareholder of enterprises in Mongolia: Gobi-Ural, Mogoin Gol, Khuden. Family: Married, three daughters and a son. Hobbies: Hockey

Beginning of Mongolian history

Konstantin Romanovsky has no enterprises left in Russia, except for a company that accepts and clears Mongolian coal through customs. But there is no particular need for it - consumers are increasingly switching to direct deliveries. Mr. Romanovsky's business is now in Mongolia. Last year he was going to move his family there so as not to live in two houses, but for various reasons this has not yet happened.

— My business in Mongolia began in 2002, when Mongolian friends with whom I studied at the institute asked for help - they needed large metal containers - two tanks of 3 thousand tons each to equip an oil depot on the border with China, - recalls Konstantin Romanovsky. “I undertook to manufacture, supply and assemble these metal structures. For this work, the Deputy Prime Minister of Mongolia awarded me the Order for Economic Development. Then we started mining coal.

Adventurer

Just five years ago, Ulaanbaatar was surrounded by yurts. In winter they were heated with coal, and there was thick smog in the city - this was a big problem. But over the past two or three years, Ulaanbaatar has changed. Now it is the real capital of the Asian state, where 1.5 million people live. - half of the country's inhabitants. The other half is in 15 regional aimags. Previously, foreigners felt very comfortable in Mongolia - prices here were two to three times lower than in Russia. I really liked it. Now everything has changed, including due to the devaluation of the ruble. On weekends, Mongols travel to neighboring Buryatia to buy groceries, a distance of 300-400 km, because food has become cheaper in Russia. Buryat retail turnover these days increases to record amounts, and queues appear at the border.

To resettle people from yurts, the state launched large-scale housing construction using borrowed $7.5 billion - now every family can purchase an apartment with a mortgage at 6-7% per annum for a period of 30 years. The country's leaders hoped that the construction industry would become the engine of the economy, and they actually succeeded. In particular, cement, which was previously imported from China, is now produced at its own factories. At the same time, Russian or Chinese valves are still used; metallurgical production has not been developed, although there is enough coal and iron ore in the country. There is a shortage of energy capacity, and this is an area where foreign investors can make good money.

With the construction program, however, it didn’t turn out quite the way we wanted. It soon became clear that the population did not have enough money to buy housing, and the Mongols probably regretted that they so recklessly rushed to build houses instead of investing in other industries. For example, in coal mining, which is developing despite the global fall in prices. And since the coal mines are located in another part of the country, residents of Ulaanbaatar have to go to work hundreds of kilometers from home.

Under Soviet rule, relations between the Soviet Union and Mongolia were trusting. Mongols still see Russia as a like-minded person who is ready to help. But after the collapse of the USSR, ties weakened. Judging by the actions of the Russian side, those at the top decided to sell assets and leave Mongolia. By and large, Russia participated in two large enterprises - the Erdenet plant, which processed copper ore, and Rostsvetmet, where they mined fluorspar and silver ores. They say that all the years after perestroika, these companies did not bring dividends to the country - the Mongols showed such costs that the profit was minimal. At the same time, the Oyu Tolgoi copper deposit, which is ten times larger than Erdenet, was recently taken control of by the French company Areva.

Mongols sometimes ask me: “Konstantin, do you really expect to make money here?” And I’m already making money and I’m going to launch a new project.

Didn't get along

Gobi-Ural was the first enterprise that I created in Mongolia in 2005 to solve the organizational and transport problems of shareholders of a coal mine at the Tavan Tolgoi deposit. In the absence of infrastructure, their only buyers were the Chinese, who imposed an enslaving contract on the mining company and took coal at $8 per ton, while the world price was at $120. Then we built a coal warehouse at the nearest Choir railway station, a railway dead end where 24 cars can be driven, and equipped the weighing facility with equipment and loaders. Coal was delivered to the station by 30 coal trucks. As soon as all this appeared, we were able to send coal to Russia, Japan and South Korea.

In April 2007, the Gobi-Ural company shipped the first batch of coal to the Russian enterprise Altai Koks. From that moment on, the number of requests for supplies began to increase and in a short time exceeded our capabilities - they were limited only by the capacity of the Mongolian railway and the lack of wagons. We planned to launch two enrichment factories with a capacity of 300 thousand tons of concentrate per year and a total turnover of $60 million. It was assumed that we would invest 30% of the money ourselves, 30% would be given by banks, and the rest would come from coal consumers.

The plans collapsed due to disagreements between the founders - the shares of Russian and Mongolian partners in the company's capital were the same, and this made it difficult to negotiate. Our Mongolian friends preferred to wait for the situation to resolve itself. If we were talking about strategic issues, we lost time and money, and the Russian side acted as the investor. When disputes prevented us from completing the enrichment plant, I decided to leave to start from scratch.

Photo: DK.RU

On the stock exchange, I purchased shares in a coal mine located in another aimag and gradually collected a controlling stake so that no one would interfere with my decisions. This is how the second Mongolian company “Mogoin Gol” appeared. I again researched the quality of fuel, bought Chinese equipment and trucks, built a processing plant and began selling coal concentrate to Russia. All this took three years, but now no one could confuse my plans.

Mogoin Gol supplied coal to Altai-Koks, Severnaya Central Processing Plant (Kemerovo), Gubakha Koks, and Magnitogorsk Iron and Steel Works. At first we transported them by car - 900 km through Kyzyl (Tuva) to Abakan (Khakassia), then by rail, and then the aimag built an asphalt road in the direction of Erdenet, and we began sending cargo from there. Over time, small buyers were abandoned in favor of the largest - Magnitogorsk. Unlike metallurgical plants, which have created their own raw material base, Magnitka continues to purchase part of its resources. And it is always calculated correctly.

Business was booming until the price per ton of coal on world markets dropped to a historic low of $80.

Thank you for being alive

The global coal market is unpredictable—that’s the problem. The forecasts of banks and independent analysts are far from reality, so you can only rely on your own instincts. Mogoin Gol's problems were aggravated by the fact that Russian enterprises bought our coal for rubles, while in Mongolia we paid in tugriks, which turned out to be a more stable currency. When the ruble to dollar exchange rate fell from 32 to 70, it became unprofitable to work - workers, office workers and car drivers had to be fired. We have not shipped coal for more than a year, except for 50 thousand tons sold on the domestic market. But this is minuscule.

But at the beginning of 2017, the price of coal jumped to $300 per ton, and a rush began in the industry. Market participants learned to work on the brink of profitability even at $80 - since then their costs have not increased, and everyone counted on high profits. But no miracle happened - very soon the price dropped to $160. It will be good if it stays at this level for a couple more years.

In lean times, no one expected sales to slow down. Each ton of coal brought $100 in profit. When the Chinese offered $30 million for my stake, I refused for fear of selling myself short. And now I bite my elbows - in a falling market, I could buy out my share of the business for some $5-6 million.

But it’s a sin to complain - I was lucky, and many of the largest traders went bankrupt. Several years ago I met with a Chinese entrepreneur, the owner of an international corporation that has earned billions of dollars from Mongolian coal. He invested the proceeds on shares with the Japanese in a Canadian field and completely went bankrupt. Now he is hiding from the Hong Kong mafia, to whom he owes money.

There is, however, some good news. A company from Australia, developing a neighboring field, is starting to lay a railway line that will go through our mine. As soon as construction is completed, we will be able to send goods not by road transport, but by wagons - to China, or through Kyzyl - to Russia. It is more profitable for Mogoin Golu to work with Russian enterprises - they pay more, although the Chinese are ready to buy a lot. China is already exporting about 200 thousand tons a year from Mongolia, and appetites are only growing. In 2017, we entered into an annual contract with Magnitogorsk - the plant is ready to buy up to 50 thousand tons of coal per month (revenue is about $6 million). At the same time, we are establishing contacts with the Chinese - one contract has already been signed, and two more companies have shown interest in our coal. If the ruble falls again, this will allow me to ship only to China. The economics there are clear.

Powered by electricity

Three years ago there was a conflict between the two countries. The Russian State District Power Plant, which has been providing electricity to half of Mongolian aimags since Soviet times, refused supplies due to a large debt. Mongolia was not happy that Russia sold it electricity at almost twice the price it paid to China. Another reason for the discontent was that Russian hydroelectric power stations in the Angara-Yenisei basin generate electricity from water flowing from Mongolian territory, and Mongolia does not use its water resources. To correct this omission, the country's leaders decided to build a hydroelectric power station on the Selenga River - with the help of Chinese contractors and money from the World Bank, which agreed to finance the project. The paradox was that the locations for these hydroelectric power stations were indicated by our engineers during the Soviet era.

Russian environmentalists became worried, because the Selenga is the main source that feeds Lake Baikal. Even one hydroelectric power station can catastrophically lower the level of the lake if it uses water from the river to turn turbines. And here we were talking about a cascade of three stations. Moreover, the shallowing of Lake Baikal was not the only threat - it was believed that the dams would interfere with the migration of rare fish species. Mongolia would also have environmental problems if its pastures were flooded, and in recent years the countries have been negotiating alternative energy sources.

Immediately there were people who wanted to create energy capacities in Mongolia and make money by selling (cheap) electricity. Some proposed using solar and wind energy, others - launching nuclear power plants. And we were sure that it would be easier for a country with huge coal reserves to develop thermal power plants. All that remained was to take a step from theory to practice, for example, to build a thermal power plant in one of the energy-deficient areas.

For the new project, we created the third Mongolian enterprise “Khuden”. The founders were three partners - me, my friend Sergei Pisarev and Indian businessman Niirav Shiv. Recently, Mr. Shiv has been producing scaffolding and formwork in India, England, the USA, Australia and Ukraine (a few years ago he acquired a pipe plant in Donbass and is now worried about its fate). For $10 million, we bought a site in Ulaangom (in western Mongolia) with a license for coal mining - first for a small volume, to check the quality of the fuel and the estimated size of reserves. The mine itself had already been explored under Soviet rule, and we had this data, but the banks where we were going to apply for loans required that the documents comply with international standards.

Konstantin Romanovsky and his companion Sergei Pisarev. Photo: DK.RU

The research cost us another $400 thousand.

— The project with the construction of a thermal power plant in Ulaangom interested me for three reasons. Firstly, I come from Lake Baikal, and at one time I headed the first fund for the protection of this unique natural site, so the news about the environmental threat to the lake due to the possible construction of a hydroelectric power station on Selenga did not make me happy. Secondly, the launch of a thermal power plant is beneficial to both parties - Mongolia will receive cheap electricity, and domestic companies will supply and install equipment. In essence, VEB is issuing a tied loan that implies the participation of only Russian businesses. Thirdly, I have been friends with Konstantin Romanovsky since the days when he was one of the first entrepreneurs in Yekaterinburg who opened the Harbin Chinese restaurant, and I want to help him in his new business. I would be glad if the leadership of Mongolia sees in our PPP project an opportunity to eliminate the energy shortage and prevent environmental damage to Lake Baikal.

Money for the Russian manufacturer

There were two tasks - to obtain guarantees from the Mongolian government that the state would agree to buy all the electricity that the thermal power plant in Ulaangoma would produce, and to find an investor who would finance its construction. We negotiated sales with officials from the Ministry of Energy of Mongolia and the Center for Energy Development. Our competitors were NCPE (China) and Siemens (Germany), which offered their own options. We weren’t particularly afraid of the Chinese - their thermal power plants are already operating in the south of Mongolia, and malfunctions often occur there, leading to power outages. Another thing is Siemens with its advanced technologies and financial capabilities. Remembering that in Russia Siemens representatives gave bribes to officials, we assumed the same scenario in Mongolia.

By that time, it became obvious that Russia could not ignore the environmental risks associated with the construction of a hydroelectric power station on the Selenga. The country's leadership ordered to look for acceptable solutions, and we believed that the Huden company would be given the green light. The production part of the project was handled by SB Electrotechnical Company from St. Petersburg, which offered to equip a turnkey thermal power plant for $67 million. With these calculations, we turned to Vnesheconombank, which at that time was already financing the reconstruction of the thermal power plant in Ulaanbaatar - the old turbine was replaced with a more powerful one. Of course, we did not come from the street, but secured the consent of the Russian Trade Mission in Mongolia to include our construction in the Russian program for lending to the most important objects. Now we are talking about a thermal power plant with a capacity of 60 MW (two stages of 30 MW each). VEB, which considered the project realistic, agreed to allocate 85% of the amount in rubles - for nine years at 8.3% per annum. The rest will be invested by shareholders.

According to preliminary calculations, the thermal power plant in Ulaangoma will pay for itself in 5.5 years. With operating costs of $3.5 million per year and an electricity price of 0.07 per kWh, the power plant will generate about $17.5 million in profit annually. Our thermal power plant will not solve all of Mongolia’s energy problems, but it will provide electricity to an industrially backward region of the country. And this is one of the PPP options that allows the country’s government to abandon the cascade of hydroelectric power stations on the Selenga River, which my friend Sergei Pisarev advocates.

The devaluation of the ruble turned out to be to our advantage. According to some reports, competitors' projects were much more expensive. Their payback period exceeded 10 years, and this did not suit the Mongolian side, which was interested in the thermal power plant going through the investment project stage as early as possible and starting paying taxes. Therefore, the Khuden enterprise received guarantees from the Mongolian government.

We are starting construction this summer.

During the years of people's power, industry has been created in Mongolia, becoming an important branch of the national economy. Mongolia has transformed from an agricultural country into an agrarian-industrial one. Before the 1921 revolution, Mongolia had no industry and no working class. Processing of livestock products - leather processing, sheepskin dressing, felt rolling, as well as blacksmithing, carpentry and other types of production - were artisanal in nature and served the on-farm needs of the Mongolian population. Actually, Mongolian industrial enterprises included a small number of coal mines in the Nalaikha tract. In certain areas of the country (the basin of Iro, Khar, etc.), foreign capitalists were predatory in the mining of gold and precious stones; they also owned small handicraft enterprises for the primary processing of wool and leather, carpentry, metalwork, blacksmithing and other workshops. The country was entirely dependent on the import of industrial products from other countries.

One of the main tasks of the People's Government was to create a national industry, but the lack of sufficient funds and skilled workers created great difficulties along this path. From the very first years of the Mongolian revolution, the Soviet Union began to provide significant assistance in the creation of the Mongolian national industry.

The creation of a national industry was outlined in the decisions of the Third Congress of the MPRP and the First Great People's Khural of the MPR (1924). The industry of Mongolia was created from the very beginning as the foundation of the socialist sector of the national economy. In the creation of industry, two stages can be distinguished, determined by the specific historical characteristics of the country.

At the first stage (1921 -1940), mainly the light and food industries developed, and the foundations of the energy industry were laid. In the 1920s, construction began on modern enterprises processing various types of livestock raw materials. By 1933, mechanical and brick factories and a power plant and a sawmill on the river came into operation in Ulaanbaatar. Iro and other enterprises. In 1931, construction began on the largest light and food industry enterprise in Mongolia - the Ulaanbaatar Industrial Plant, and in 1934 its construction was completed. This enterprise subsequently became a source of personnel for socialist industry. In those same years, the Khatkhyl wool washing factory came into operation.

The successful development of the light and food industries required the creation of the foundations of the fuel and energy industry. The coal mines in Nalaikha were significantly expanded and mechanized. New coal mines were created - in the area of ​​Yugotzyr, Under-Khan, Sain-Shand and in other places. A unified power plant was created in Ulaanbaatar in 1939, and small power plants came into operation in aimags.

At the first stage, the republic also began to develop individual rudiments of metalworking production (a mechanical plant with an iron foundry was created in 1928), a building materials industry, printing, and gold processing industries.

Thus, in the public sector of the national economy for 1921-1940. The foundations of Mongolian industry were created.

At the second socialist stage of the Mongolian revolution (“since 1940), the industry of Mongolia has been successfully developing. The party and government pay great attention to the development of industry. The amount of capital investment in industry in 1960 increased 16 times compared to 1941. From 1940 to 1960 (over 20 years) gross industrial output increased by 7.5 times. Production of certain types of industrial products per capita in 1960 increased in the following amounts compared to 1940: electricity - 7.2 times, coal - 2.8 times, electricity. - 27 times, woolen fabrics - 4 times, leather shoes - 3.3 times.

The development of industry leads to a change in its share in the country's economy. If in 1940 the share of industrial products was 17% of the total gross output of the national economy, then in 1960 it reached 34.4%.

The food industry currently accounts for over 40% of all industrial products. Various branches of the food industry are developing, such as butter, dairy, meat processing, etc. Hundreds of butter factories and separating stations have been built in aimags. Previously, Mongolia did not produce commercial butter, but now it exports it.

Ulaanbaatar Industrial Plant is the largest enterprise processing agricultural products. It includes a whole complex of plants and factories equipped with the latest technology. There are wool washing, cloth, worsted, fulling and felting, shoe, saddlery and textile factories, sheepskin and fur factories, tanning, chrome, chevre factories and other industries. The industrial plant also produces felt, various woolen fabrics, drape, cloth, shoes of various models, felt boots, beautiful blankets made of camel wool, coats, bags, etc. Its products become an important export item. The plant is continuously expanding. As the plant grew, its individual workshops were separated into independent new enterprises.

The Ulaanbaatar dairy plant processes tens of tons of milk and cream per day. All technological processes are mechanized and automated. It produces pasteurized milk, kefir, cream, butter, cottage cheese, cheese curds, ice cream and other dairy products. Near Ulaanbaatar there is a large meat processing plant equipped with modern high-performance equipment. On the basis of semi-finished products of the plant, in addition to the sausage factory, there are enterprises for the production of canned food, soap, bone products, etc. A significant part of the products of the meat processing industry is exported.

Now the food industry of the Mongolian People's Republic is represented by meat, butter, bakery and confectionery, alcohol and vodka, fish and other industries. There is also a confectionery factory in Ulaanbaatar, a dairy factory in Sukhbaatar, and bakery, confectionery, sausage production, etc. in many regions of the republic.

In recent years, one new branch of the food industry has appeared in the republic - flour milling. The existing mill plant named after. XXII Congress of the CPSU in Ulaanbaatar (25 thousand tons of flour per year) and a number of other mechanized flour milling enterprises in aimags. Mongolia now fully meets the population's need for flour through its own production. All production processes in the flour milling industry are mechanized.

In recent years, the energy, coal, oil, metalworking, mining, construction, woodworking, paper, printing and pharmaceutical and other industries have also been successfully developing in the country.

The average annual increase in industrial production was in 1948-1952. 1.4%, and in 1958-1960. 17.9%.

The growth rate of industry in Mongolia, as an economically less developed country, significantly exceeds the growth rate of other socialist countries, which step by step brings the industrial development of the Mongolian People's Republic closer to the level of advanced countries.

The Mongols rightly see the creation and development of industry as the basis for the development of all other sectors of the national economy. For example, the successful development of the chemical-pharmaceutical and bio-industry is of great importance for the intensification of livestock farming.

The development of industry in Mongolia is determined by the fuel and energy balance, where the coal industry occupies the main place. Currently, 13 large deposits of brown and hard coal, including coking coal, have already been discovered in the Mongolian People's Republic. The most significant production of high-grade coal occurs in the Nalaykha region, near Ulaanbaatar. There are coal mines in Tumen-Tsogto, Bain-Bulak, Under-Khan, Sain-Shand, Dzun-Bulak and Taban-Tologoy. In some areas of the country, in particular in the Ubur-Khangai and Sukhbaatar aimags, coal mines were opened, which began to meet the needs of not only their own aimags, but also some neighboring ones. Thanks to the commissioning of new mines and the equipping of old mines with new equipment, coal production in the republic increased by 15.9% compared to 1961. In the Darkhan region, in the river basin. Sharyn-Gola, Mongolian geologists have found reserves of high-quality coal. Deposits of iron ore, asbestos, lime and other valuable minerals were also discovered here. To use these natural resources, an industrial and energy complex is being built in the Darkhan region of the Selenga aimag. As a result of the development of the Sharyn-Gol coal basin, Mongolia can fully supply the needs of the national economy of the republic with coal. The new city of Darkhan is called the “Flower of Friendship” in Mongolia. In the construction of these complex enterprises, Mongolia is being greatly assisted by the countries participating in the Council for Mutual Economic Assistance of Socialist Countries. With the help of the Soviet Union, the main facilities of the complex are being built - a coal mine, a railway line, a high-voltage power line and an elevator. A new socialist city is emerging here - a major industrial and cultural center of the country.

With the growth of the fuel base and industry as a whole, electricity production increases. Most aimak centers and state farms operate local power plants. Electrification of the country promotes mechanization and automation of production.

Electricity consumption will increase in 1965 by 3.5 times compared to 1960, and the average annual increase in power plant capacity will be 28%. In 1961 -1965 The fifth expansion of the Ulaanbaatar Thermal Power Plant will be carried out, and the Tolgoit power plant will be built near Ulaanbaatar. It is planned to build power plants in Selenginsky, Bayan-Ulegeyekom and other aimags, as well as in Dzunkhara and Kharkhorin. The capacity of power plants in the country will increase by 1.7 times, and rural diesel power plants - by 2 times.

The oil industry appeared, a completely new branch of industry, the existence of which could not have been known in pre-revolutionary Mongolia. A large oil field has recently been created in the Eastern Gobi. A young white-stone city of oil workers, Dzunbayan, grew up here, with cultural and community facilities and even a swimming pool. Currently, Mongolia produces about half of the gasoline consumed in the country. The oil industry satisfies a significant part of the country's needs.

The mining industry of the MPR produces gold, manganese, tungsten, magnetic iron ore, lead, rock crystal, turquoise and other non-ferrous and precious metals, various salts, etc. Mining enterprises are built on the site of rich mineral deposits. Mongolia exports tungsten, fluorspar, rare and non-ferrous metals, etc.

The metalworking industry of the MPR is represented by a mechanical plant with an iron foundry. The plant produces cultivators, hillers, transport and horse-drawn rakes, and cast iron.

Marble, limestone, asbestos, gypsum, and mineral paints are mined in the republic. Based on these raw materials, the building materials industry is developing. In recent years, several factories for the production of lime, cement, slate, brick and other building materials have been commissioned, including a house-building plant in Sukhbaatar, a large-panel house-building plant in Ulaanbaatar, a glass factory in Nalaikha, and the Tolgoitinsky brick factory. factory, brick, reinforced concrete factories in Ulaanbaatar. The country's first glass factory, which produces technical and household glassware, as well as art glass, vases and other products, is successfully operating. The factory is equipped with modern technology. 1960 The construction materials industry of the Mongolian People's Republic produced as many products as were produced in all previous five-year plans. It should be noted that the construction materials industry plays an important role in the Mongols' transition to sedentism. Every year, more and more comfortable houses, schools, hospitals, and cultural amenities are being built. institutions in Mongolian cities and towns.

The technical equipment of all industrial enterprises is continuously improving, in which the Soviet Union and other socialist countries are providing great assistance to Mongolia.

The development of industry in the Mongolian People's Republic entailed the emergence and development of the working class. As mentioned above, by the beginning of the revolution in feudal Mongolia, the main classes were secular and spiritual feudal lords and serf arats.

The Mongolian working class arose only under the conditions of the people's democratic stage of the revolution. It took shape under the leadership of the Mongolian People's Revolutionary Party in enterprises where socialist ownership of the means of production dominated. Therefore, its emergence was accompanied by a number of features that differed from the emergence of the working class in bourgeois society. The Mongolian working class did not know capitalist exploitation; it was formed as a bearer of socialist production relations. Developing in collaboration with the laboring arats, it became the leading force in the struggle of the Mongolian people for a gradual transition to socialism.

The Soviet working class also had a beneficial influence on the formation of the Mongolian working class. Mongolian national cadres of workers were trained in various ways. On the one hand, they acquired experience and knowledge in their production, working directly under the guidance of Soviet craftsmen, studied in special circles and technical educational institutions of the Mongolian People's Republic, on the other hand, many workers, engineers and technicians received and are receiving education in the Soviet Union. In recent years, training centers opened at large enterprises and organizations have begun to play an important role in the training of national workers. So, in 1951 such a plant was organized under

Ulaanbaatar Railway; Its task is to train railway workers of various specialties. In 1954, a training center was opened at the Zunbain oil fields in the East Gobi aimag. A common form of training workers, as well as improving their skills on-the-job, are technical minimum and advanced training clubs organized at enterprises. Mongolian workers are also studying the experience of workers in other socialist countries.

In an effort to increase the economic power of their homeland, workers compete for the best implementation of production plans, fight for the rationalization of production processes, for saving materials and costs.

Trade

Advances in industrial and agricultural production contributed to the growth of trade turnover, which is carried out mainly by state and cooperative organizations.

Until 1921, internal and external trade in Mongolia was almost entirely in the hands of foreign capitalists; back in 1927, the share of foreign firms in the total turnover reached 67%; by the beginning of 1930, foreign firms had already been forced out of the Mongolian market. From this time on, both internal and external trade began to be mainly in the hands of Mongolian organizations, although private trade was also allowed. In 1951, the share of private trade did not exceed 6% of the volume of organized trade. Cooperative trade in the republic is carried out by consumer and trade cooperation. The number of shareholders of the cooperation reaches 250 thousand.

The volume of foreign trade of the republic increases every year. The MPR exports livestock, meat, wool, leather, furs, oil, and some types of minerals. From abroad, the MPR receives industrial equipment, agricultural machinery, means of transport and communications, tea, sugar, tobacco, fabrics, etc. The Soviet Union occupies the main place in the foreign trade of the MPR. Over the last period, economic ties have been developing with all socialist and many capitalist states.

In 1952, the MPR participated in the International Economic Conference in Moscow and repeatedly took part in international fairs in Leipzig and Plovdiv.

Transport and communications

Before the revolution in Mongolia, transport and communications were very poorly developed. Ox carts, pack camels and horses were the only means of transport. Service communication with aimaks and soums was carried out through urtons - postal stations. The latter were located at a distance of 30-40 km from each other. Before the revolution, the arats provided free horses for urtons, transported feudal lords, lamas and officials free of charge, and also maintained them for free. This was one of the difficult duties. All Arat farms paying the state cattle breeding tax were subject to urton duty. In 1949, the government of the MPR completely abolished this duty. Transportation of civil servants is carried out at the expense of the state.

Currently, all modern types of transport and communications have been created. Horse-drawn and pack transport, which until recently was the main means of communication, is now of an auxiliary nature. Regular road and air traffic connects all the most important regions of the country. There is a wide network of asphalt and dirt roads, road and railway bridges have been built and are being built. Motor transport bases, repair shops, supply points, etc. have been created in all aimags. The country's vehicle fleet numbers approximately 10 thousand vehicles. For every 100 people in the Mongolian People's Republic there are more cars than in some capitalist countries, and there are 3.7 times more trucks per capita than in Iran and 15.5 times more than in Pakistan.

Air transport in Mongolia is developing. The Soviet Union provided and continues to provide great assistance in this regard. A civil aviation fleet of the MPR has now been created, which services postal and passenger transportation between all aimags and Ulaanbaatar. Mongolian pilots serve international routes connecting Ulaanbaatar with Moscow and the capitals of other countries. Ulaanbaatar Airport accepts modern airliners such as IL-18 and others.

In 1956, the Trans-Mongolian railway went into operation, connecting the Mongolian People's Republic with the Soviet Union and China. New industrial enterprises, cities, and towns have emerged and are being built along the Trans-Mongolian Railway. These changes are especially noticeable in the Gobi Desert. The total length of railways in the Mongolian People's Republic is about 2000 km. The railways of the Mongolian People's Republic operate on diesel locomotive traction. At the end of 1960, railways accounted for 42% of all internal and external transportation of the MPR.

Shipping in the country is poorly developed; out of a large number of rivers and lakes, it is only available on the lake. Khubsugul (Kosogol), on the river. Selenga and partly its tributary Orkhon. Water transport accounts for an average of 7th part of the total cargo turnover. It mainly carries out foreign trade freight transportation.

Mongolia has all modern means of communication. A number of telephone exchanges have been put into operation, outdated systems are being replaced by more modern ones. An automatic telephone exchange for 10 thousand subscribers is being put into operation. The aimak centers are connected to the capital and to each other by telegraph and telephone. State farms and agricultural enterprises have been equipped with telephones and radios. The complete radioification of the country is planned. In 1960, a powerful central radio broadcasting station of the MPR, built with the fraternal assistance of the Soviet Union, was put into operation in Ulaanbaatar. It simultaneously transmits Mongolian radio programs on long wave and short wave. Created Montsame - Mongolian Telegraph Agency.

Thus, transport and communications have become an independent and new sector of the national economy for Mongolia; they occupy one of the first places in terms of technical equipment and power supply of labor. The rapid growth of all industries will cause further development of all types of transport and communications. The total volume of cargo turnover by all types of transport will increase by 90% over the five years, including by rail - by 11.5%, by road transport - by 2.9 times, by air transport - by 1.6 times.

However, new means of transportation have not yet destroyed the local horse-drawn and horse-drawn transportation developed by the long history of the Mongolian people, adapted to the natural conditions of the country.

The horse, bull, and camel continue to play an important role as riding and pack animals, and in some areas, mainly in the central and eastern parts of the country, they are used to harness two-wheeled carts. All Mongols - men, women and children - are excellent horsemen.

Previously, cargo transportation was mainly carried out only on oxen and camels. The oxen were harnessed to two-wheeled wooden carts of a very primitive design, in which there were no iron parts at all; cargo was transported on camels in packs; harnessing them to carts was practiced only in some areas of the eastern part of the country.

The population usually moved around the country on horseback, for which horses were used primarily, but bulls and camels were also used. Accustoming horses to harnesses began only after the revolution, and for a long time remnants of long-established traditions of special respectful attitude towards horses were observed here. So, for example, the owner preferred not to sit in a cart with a horse harnessed, but walked alongside or rode on another horse. New means of transportation, as indicated above, do not destroy the local horse-drawn and horse-drawn transportation developed by the long history of the Mongolian people. The peculiarities of material culture as a result of the centuries-old experience of the Mongol nomad are still very strong here. They are expressed in the design of pack and riding saddles, carts, in methods of saddling and packing animals, etc.

A pack saddle (yangirtsag) for a horse and a bull consists of two boards connected to each other by two massive wooden arms. The boards and arms are drilled and sewn together with thin straps. The girth is thrown over the saddle, and shallow grooves are cut into the boards for it. A potfeya (undertail) is attached to the ends of the rear boards. A felt saddle (tokum) is first placed on the animal’s back, and a saddle is secured on top of it. For camels, a different form of saddle is used. First, to protect the camel's back from abrasion and injury, its humps are wrapped in felt, pillows (hom) stuffed with wool are applied to the sides, and then the whole thing is pressed with sticks. To strengthen the pack on the camel's saddle, it is forced to lie on the ground by pulling the leash.

In the central and eastern regions, camels are harnessed to two-wheeled carts; for this purpose, a special felt saddle-collar is used, which is put on the front hump of the camel.

During long treks over sandy and pebble-covered areas, the soles of camels crack; in such cases the camels are laid on their sides, their legs are tied, and the cushion-shaped soles of their feet are sutured with leather using a long, curved needle.