On Wednesday (8 January), Mongolian Cabinet has approved D.Sumiyabazar, Minister of Mining and Heavy Industries to establish a hedge fund for ensuring price security for fuel.

The fund will help Mongolia to protect prices of Ai-92 fuel in the event of an escalation of the global political situation in the Middle East.

Mongolia relies heavily on its northern neighbour for its fuel supply. 90% of fuel is imported from Russia making Mongolia vulnerable to supply shortages. This dependency should come to an end, when the country’s first refinery comes on line, which will enable it to process domestic crude oil.