The Mongolian government has appealed to the Russian government with a request not to raise oil prices in bilateral trade, despite the volatility of prices on the global oil market provoked by the conflict in the Middle East, the Mongolian Cabinet of Ministers wrote on its website.

"Despite the existing disbalance between supply and demand and the volatility of prices on the oil market caused by the international geopolitical situation, a written request has been sent to Russian Prime Minister Mikhail Mishustin to stabilize the prices of the fuel which is supplied to Mongolia, and not to raise them," the statement reads.

The Mongolian Cabinet of Ministers said that the Russian government had responded, saying that it would resolve the issue of stabilizing fuel prices in the near future.

"The war in the Middle East has led to a sharp growth in fuel and oil prices, to a deficit, a crisis in transport and logistics and disruptions to foreign trade, which has paralysed the world economy. Many countries have reported a state of emergency. In our country, which is 100% dependent on imported fuel, the growth in prices and the supply deficit poses a particularly high risk. The price of fuel is the price of everything: [...] The price of bread, flour, meat, milk and all production resources," Mongolian Prime Minister Nyam-Osoryn Uchral is quoted as saying in the statement.

He said that the accompanying growth prices was feeding inflation even more, thus lowering wages, weakening the tugrik exchange rate and causing an outflow of dollars from the country. Transportation and operating costs in Mongolia have grown by at least 20% in recent times, decreasing companies' profits and household income in general.

Commenting on the initiative to adjust import duties for imported oil, previously spoken of by the Mongolian government, Uchral said that even if the duty of 5% of the price is abolished, this would not be enough to change the "price storm" on the global market.

"We have already seen enough in many sectors to understand that administrative attempts to control prices are effective at the current moment, but the consequences are serious. Lowering or waiving taxes and fees levied on fuel are limited and have little effect on prices. Nobody can predict how prices will grow due to force majeure circumstances on the international market, or what will happen tomorrow. It is essential that we work hard to prevent a fuel shortage. We will maintain an active dialogue and contact with Russia across all areas and work on ensuring supplies are delivered without disruptions," the prime minister said.

As reported, the Mongolian government sees the consequences of the U.S. and Israel's military operation in Iran as a serious threat to its fuel market and financial stability. Mongolia's economy is entirely contingent upon imported petroleum products and will suffer from the global shock on the world market, which will bring about a fuel crisis lasting for up to several months.

Russia is Mongolia's principal supplier of petroleum products, making up 95% of the total imports.

Published Date:2026-04-01