Russia to invest up to 5 billion dollars in Mongolian economy

Russian companies could invest up to 5 billion U.S. dollars in Mongolia's economy, President Vladimir Putin said here on Friday

"Should the necessary conditions to develop investment activities in Mongolia be created, Russian investment in the country may reach 5 billion dollars in the near future," Putin said at talks with visiting Mongolian President Nambaryn Enkhbayar.

"Russian companies are ready to work in Mongolia and invest significant resources in its economy," Putin was quoted by the Interfax news agency as saying.

This concerns projects in the extractive industry, electricity, construction and in developing the transport infrastructure, he said.

Putin said it is important to improve the effectiveness of the existing leading joint ventures Erdenet, Mongolrostsvetmet and Ulan Bator Railways.

Experts estimate that more than 2 billion dollars will be needed in investment to upgrade and technically re-equip these enterprises by 2015, Putin said.

Russia and Mongolia "could bring trade turnover to 1 billion dollars" soon, Enkhbayar said.

"Today we can say that our trade amounts to some 460-500 million dollars -- half of which were in the 1980s and 1990s. Soon, we shall be able to boost trade to one billion dollars, but it will not be the limit," Enkhbayar said after talks with Vladimir Putin.

"Investments and cooperation, as well as our plans reflected in the Moscow declaration enable us to aspire for more impressive goals," Enkhbayar said.

Source: Xinhua