Foreign Minister Sergey Lavrov’s opening remarks and answers to media questions at a joint news conference following talks with Mongolian Foreign Minister Lundeg Purevsuren Ulan Bator, April 14, 2016

During this visit, we held the first round of talks with my colleague, Mongolian Foreign Minister Lundeg Purevsuren. He just indicated that we are to meet with Mongolia’s Prime Minister Chimed Saikhanbileg and President Tsakhiagiin Elbegdorj. Mongolia is our good neighbour and time-tested partner. Today, we have reaffirmed the line towards consistent strengthening of our strategic relations. Our long history of cooperation has been very positive and productive.

Our countries and peoples have invariably assisted and supported each other during various historical periods, including difficult times.

We have pointed out the dynamic development of our political dialogue, including at the high and top levels, interparliamentary contacts, and those between national security councils, foreign ministries and other agencies, as well as contact between regional authorities.

We have approved the plan of events to celebrate the 95th anniversary of the establishment of Russia-Mongolia diplomatic relations, which we will celebrate this year. We are confident that these events will help further strengthen the traditional atmosphere of friendship and mutual understanding between our peoples.

In September 2014, the presidents of our countries met here in Ulan Bator and instructed the concerned officials to prepare a midterm programme to develop Russia-Mongolia strategic partnership. We have fulfilled this instruction today. Our programme for expanding strategic partnership is a comprehensive document drafted by a number of Russian and Mongolian agencies. The programme was signed today, and we hope that its successful implementation will further move our cooperation to new levels.

Today, our talks have confirmed that Russia and Mongolia hold the same or similar views on international and regional issues. We have agreed to continue coordinating our efforts with Mongolia at multilateral venues, primarily the UN and the SCO, to further develop our dialogue on security and economic development in Asia Pacific and Northeast Asia. In July 2016, Ulan Bator will host another summit of the Asia-Europe Meeting (ASEM). The choice of Ulan Bator as the venue of this event confirms Mongolia’s high reputation internationally. We will work towards ensuring the success of this event.

Our bilateral ties are complemented with ties in the trilateral Russia-Mongolia-China framework. This format was initiated in 2014 by President of Mongolia Tsakhiagiin Elbegdorj. A road map for expanding mid-term trilateral cooperation was approved in 2015 at the second meeting of the heads of state in Ufa. Currently, a Russian, Mongolian and Chinese working group is finalising a programme for establishing the Russia-China-Mongolia economic corridor. We hope the results of this project will be presented and the project itself approved at a regular meeting between heads of state of our three countries, scheduled for the sidelines of the SCO’s Tashkent summit in July of this year.

In my estimation, the results of our talks have confirmed the desire of both countries to further their cooperation in all areas. I believe this meets the interests of our peoples.

Question: Three joint ventures, including Erdenet, Mongolrostsvetmet and the Ulan Bator Railway, have recently been established. But, not a single major investment project has been implemented in Mongolia since the 1980s. Is it possible to implement any ambitious bilateral investment project in the future? What do you think?

Sergey Lavrov: The three projects you mentioned are the pillars of our cooperation. They have a long history, and Russia and Mongolia are certainly interested in ensuring their efficient implementation. Both sides need to make them cost-effective, so that Russian and Mongolian involvement can hinge on agreed-upon and mutually beneficial principles to boost profits. Of course, you remember that these projects were launched at a time when our countries “preached” centralised, planned economy. Both Russia and Mongolia are now free market economies. We have to do business within this new reality. We continue to search for optimal models of such cooperation, including in the unfavourable situation on global markets. For example, we know that current prices for Erdenet’s products (copper and molybdenum concentrates) are not economical. Of course, this affects corporate performance. Nevertheless, as far as I understand, Erdenet still accounts for 20 percent of Mongolia’s revenues. Last year alone, Erdenet built new facilities to expand production. It should also be noted that there are other indications showing that the market is bound to improve. In any event, transnational corporations are eying the implementation of similar production projects in Mongolia. On the whole, these projects hinge on intergovernmental agreements between Russia and Mongolia. Russia, which realises the need for modernising our bilateral activity in this area, has suggested a number of ideas for making our cooperation more efficient. I recall that agreements were reached during President Putin’s 2010 visit. We are ready to continue this dialogue and reach agreements that will of course meet the interests of Mongolia and at the same time make joint ventures more cost-effective, no matter what. These opportunities exist.

Question (to both ministers): It was noted that meeting participants discussed issues of expanding bilateral partnership. Earlier, the Mongolian side indicated that it was planning to take out a rouble loan from Russia after the Russian State Duma resolves the issue of old Mongolian debt. Did you raise the issue of a rouble loan during the talks? If yes, what would the loan be valued at and what are the terms?

Sergey Lavrov: To me, a question about loan terms is almost industrial espionage.

Sergey Lavrov (after Lundeg Purevsuren): I can only confirm that, indeed, a federal law resolving the issues of Mongolia’s old debt to the Russian Federation was approved in January 2016 and signed by President Vladimir Putin in February. From now on, there are no legal obstacles for resuming credit relations between Russia and Mongolia. These opportunities are currently being discussed. As my colleague has said, the central banks are negotiating swap operations. The potential of our cooperation can be increased if Mongolia deepens its ties with the Eurasian Economic Union based on the 2015 memorandum.

As for specific credit cooperation terms and agreements on the extent of liberalising mutual trade, these issues should be negotiated taking into consideration our mutual interests. We’ll continue to work with our Mongolian neighbours and friends in this respect.