HomeWorldAsiaMongolia bears brunt of Russia's fuel crunch, official says

Mongolia bears brunt of Russia’s fuel crunch, official says

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VLADIVOSTOK, Russia, Sept 3 (Reuters) - ‌Mongolia, Russia's long-term trading partner, is feeling the pinch ​of fuel shortages in its neighbour, the dominant supplier of gasoline and diesel, a ⁠Mongolian official told Reuters.  

Media and Reuters witnesses reported long queues at petrol stations across the nation, which put curbs on sales of the fuel ​last month.

The gasoline and diesel shortages have spilled over from Russia, where Ukrainian drone ‌attacks on oil refineries and high seasonal demand led to a fuel crunch. 

"I know about the problem in Russia. However, the fuel price is rising for ⁠Mongolia," Bolorchuluun Tsendgombo, the director of the policy and ⁠planning department in Mongolia's food ministry, told Reuters.

Prices had risen to nearly $1.5 to $2 a litre, he added, from the rate during the spring, of roughly a dollar per litre, he added. 

Russia's export ban on gasoline and diesel ‌exempts countries, such as Mongolia, with which it has inter-governmental pacts on ⁠fuel supplies.

Traders said Russian diesel fuel supplies to Mongolia ‌rose by 7% to 1,05 million metric ​tons between January and July. Gasoline exports increased to 515,000 tons from 450,000 tons, while supplies of jet fuel fell 40% to 32,000 tonnes.

In ‌July alone, Russia's motor fuel exports to Mongolia ​declined to 173,000 tons from 186,400 ⁠tons in June.

Mongolia may reduce imports of Russian grain due ‌to a bigger expected harvest, after ⁠buying about 100,000 tons of its wheat last year, Tsendgombo added in remarks on the sidelines of the Eastern Economic Forum in Vladivostok.

On Wednesday President ​Vladimir Putin met Mongolian ‌Prime Minister Nyam-Osoryn Uchral in the Russian far eastern city, hailing "traditional, friendly and neighbourly" ⁠ties as having now reached ​the level of a comprehensive strategic partnership. 

(Reporting by Vladimir Soldatkin and ​Olesya Astakhova; Editing by Clarence Fernandez)

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