On September 2, 2025, a legally binding memorandum was signed on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline. The project will enable the annual supply of 50 billion cubic meters of gas from Russia to China via Mongolia. Mongolian Prime Minister Gombojavyn Zandanshatar called it the grand project of the millennium.<\/p>\n
As concerns the proposed NPP, in September 2024, Rosatom stated that the technical design of the project to build Mongolia\u2019s first small nuclear power plant was finalized. It was reported that the agreement could be signed during 2025. However, there have been no updates on this timeline, suggesting there has been some slippage.<\/p>\n
The future nuclear power plant is crucial for ensuring Mongolia\u2019s energy stability, according to Daria Saprynskaya, a research fellow at the Laboratory for Modern Central Asia and the Caucasus Studies at the Institute of Oriental Studies of the Russian Academy of Sciences. She has said that \u201cCurrently, gasification and coal play a vital role in ensuring Mongolia\u2019s stability and security. A new nuclear power plant could potentially provide a sustainable source of electricity to replace coal-fired power plants, which is especially important for the development of large cities and industrial projects. For example, a small nuclear power plant project is being considered to supply electricity to New Kharkhorum.\u201d<\/p>\n
However, there is a financial aspect to this. The question is whether the country\u2019s budget can afford to build a nuclear power plant, as the project is expensive. Nevertheless, Mongolia\u2019s interest is clear. Previously, the Deputy Speaker of the Mongolian Parliament, Bekhchuluun Purevdorj, emphasized that if work on nuclear power plant construction begins now, the country will resolve its nuclear energy problem within 10-15 years.<\/p>\n
Meanwhile, Evsikov has said that other Russia-Mongolia joint venture projects are being discussed, including uranium and rare earth element mining. He added that \u201cCooperation in the energy sector is a strategic area for Russia and Mongolia, as this is playing an increasingly important role in ensuring sustainable economic development.\u201d<\/p>\n
![\"Mongolia](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/01\/Mongolia_Map1.jpg\")
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Bilateral relations between Moscow and Ulaanbaatar are experiencing a new wave of development. In early December, the first Russian \/ Mongolian Regional Forum<\/strong><\/a> took place. A cooperation program for 2026\u20132030, covering approximately 70 areas, was signed.<\/p>\n Russian Deputy Prime Minister Alexey Overchuk stated at the forum that Ulaanbaatar remains an important trading partner in Asia, as evidenced by the growing trade turnover. He stated that it increased by 17.8% in 2024 and by another 5% in the first nine months of 2025. Bilateral trade is approaching the US$2 billion mark, up from US$1.4 billion in 2020. Now, the two sides have the opportunity to further increase these figures, as trade cooperation has been boosted by Mongolia signing a Free Trade Agreement with the Eurasian Economic Union (EAEU). This agreement provides for the trade liberalization for 367 types of goods. Trade services are also being improved. For example, in October 2024, the Kyakhta customs and logistics<\/strong><\/a> terminal opened on the Russian-Mongolian border, simplifying trade flows and increasing throughput.<\/p>\n Overchuk said, \u201cWe see potential in increasing imports of Mongolia\u2019s traditional goods\u2014wool, cashmere, leather, and meat.\u201d Mongolia exports meat, wool, and textiles, as well as substantial mineral reserves: gold, silver, iron ore, coal, copper, tin, nickel, and zinc. Upmarket Mongolian cashmere stores are now appearing in Russian shopping malls.<\/p>\n Mongolia mainly imports petroleum products, cars, buses and other transport vehicles and equipment, electrical equipment, metal products, food products, and pharmaceuticals from Russia.<\/p>\n Saprynskaya adds that water is an interesting area for cooperation between Russia and Mongolia, with Mongolian authorities previously proposing cooperation with Russia on the future construction of the Egiin-Gol hydroelectric power station project on the Selenga River, a tributary of Lake Baikal. The two sides are also focusing on the mutual preservation of large bodies of water.<\/p>\n Political dialogue is also currently on the rise. On September 2, 2025, Russian President Vladimir Putin met with Chinese President Xi Jinping and Mongolian President Ukhnaagiin Khurelsukh in Beijing. A year earlier, in September 2024, the Russian leader paid an official visit to the country. Following Vladimir Putin\u2019s invitation, the Mongolian president also traveled to Moscow to participate in the 80th anniversary celebrations of Victory Day in May 2025.<\/p>\n Further Reading<\/p>\n