The President`s Foreign Policy Advisor, L Purevsuren, has denied media reports of any letter to Ts.Elbegdorj from the Director of the Rosneft Group in Russia.  At the same time, an official of The Petroleum Authority has said such a letter was indeed received by Mineral Resources and Energy Minister D.Zorigt after the President`s visit  to Russia in June where talks were held on fuel supply to Mongolia.

Contrary to media speculation, there is nothing new to Mongolians in the letter. Rosneft has merely repeated the offer to set up 100 gas stations in Mongolia that it first made in 2008 when, too, there was a fuel shortage. Implicit in the offer then, as now, was an assurance of uninterrupted supply if the demand was accepted.

In the event, nothing came of the offer/demand as the crisis blew away. Ironically, nothing else has also happened in the oil sector. There has been no progress in the oil refinery issue. A former Fuel and Energy Minister, Ch. Khurelbaatar, had said it would take around four years to build an oil refinery. Unfortunately, even a decision to build one is yet to be taken after talk of it began more than four years ago.

Rosneft can be allowed to own 100 gas stations in Mongolia only if the oil product law is changed. At present it bars exporters who supply more than 30 percent of the domestic use from selling directly in the domestic market.  It is quite possible the authorities will this time agree to amend the law article, for the people have a perception that oil importing monopolies are behind the price rise.