The Mongolian economy is heavily dependent upon Russia for fuel since the collapse of the former Soviet Union. Due to the increase of import fuel prices by 50-100 MNT last December primary products prices have also increased by up to 50-1000 MNT at 17 different markets in Ulaanbaatar city.

The Russian oil giant Rosneft is putting pressure on Mongolia suggesting an increase in fuel prices again.

The notice said that they intend to increase diesel prices by 90 US dollars per ton as well as other fuels by 30 US dollars per ton.

This is the set price of the first quarterly fuel supply being shipped to Mongolia which is already on the way. Rosneft`s move left no choice for Mongolia. If Mongolia refuses to pay the increase there will be no fuel reserve in February.

An official commented that “Since the supply is on the way, we have no choice but to increase retail prices.”