Mongolia Pegs $1 Billion From India for Oil Refinery, Pipelines

  • Refinery would boost GDP, reduce reliance on Russian fuel
  • India seen as key economic partner to boost ailing economy
Photographer: Taylor Weidman/Bloomberg
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Mongolia will seek approval from the Import-Export Bank of India to build an oil refinery and pipelines with $1 billion in infrastructure funding negotiated last year, a project that could boost the nation’s gross domestic product by 10 percent.

The government intends to use $700 million of the loan for an oil refinery and $264 million for oil pipelines, according to a statement on its website last week. Prime Minister Erdenebat Jargaltulga has instructed relevant ministries to negotiate with the Ex-Im Bank of India, according to the statement.