Victor V. Samoilenko, the Russian Federation’s Ambassador to Mongolia, discusses how Mongolia and Russia are working together.
European Times: How would you describe relations between Russia and Mongolia?
Victor V. Samoilenko: Russia and Mongolia signed their first friendship treaty in 1912, and Russia was instrumental in helping Mongolia achieve independence from China in 1921. Ever since then we have had very close relations with Mongolia, and Russia has made major contributions to developing this country and her economy. One example is Erdenet Enterprise, in which Russia has a 49% share, and another is the Ulaanbaatar railroad, built by Russia in 1949. The Russian government still owns 50% of this railroad and has steadily improved it. It is essential for transporting Mongolia’s mining products and for railway transit between China and Europe. There are also strong cultural ties between Mongolia and Russia and Mongolians learn Russian in school. Russian, in fact, has been a window into the world culture and science for Mongols, and many of the best Mongolian artists, politicians, engineers, doctors and scientists have studied in Russia. The Mongolian people feel close to the Russian people and vice versa.
European Times: Do you advise Russian investors to target Mongolia?
Victor V. Samoilenko: Mongolia is one of the richest countries in Asia concerning mineral resources. About ten years ago the Mongolian government was struggling to attract foreign investors, but FDI started to pour in beginning 2009. Many foreign companies, first of all mining companies, have invested in Mongolia since then, stimulating the country’s strong GDP growth rates. Faced with a flood of investment from China, the government instituted new measures in 2012 to place more controls on FDI, particularly in natural resources, banking and finance, and ICT, which are the country’s fastest-growing sectors. This caused sharp reduction of FDI. Recently these rules were amended to encourage private investment. What Mongolia needs most is profitable projects with foreign investors that can pull the economy forward. The new investment law is a positive sign for Mongolia and investment community.
European Times: What is your personal message to potential investors?
Victor V. Samoilenko: Mongolia has many advantages, including its incredible natural resources and its relatively well educated human resources. Investors should be more aware of Mongolia’s investment opportunities. They should also keep in mind that nothing happens overnight. Great patience is required by anyone doing business here. Personal relationships are very important. Mongolia has vast growth potential for investors who are prepared to take a risk and have a long-term view.
