Russian President Vladimir Putin (right) and Mongolian leader Nambaryn Enkhbayar were speaking the same language.
Photo: Dmitry Azarov
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Russia and Mongolia Share Profits
Russian President met his Mongolian counterpart Nambaryn Enkhbayar on Friday to agree to lift visa regime between Russia and Mongolia. Russia and Mongolia also discussed joint ventures and lucrative investments in Mongolia’s economy.
The meeting proceeded without an interpreter since Moscow-educated Nambaryn Enkhbayar speaks excellent Russian.
Vladimir Putin has also suggested prolonging a treaty between Mongolia and Russia on free military and technical aid to Mongolia. The current agreement expires next March. Russia has already sent armaments to Mongolia worth $5 million since 2004 when the agreement was struck.
The two leaders announced at the final news conference that visa regime between Russia and Mongolia would be streamlined and soon lifted altogether.
Enkhbayar and Putin have reportedly agreed on support for the Russian consortium of Basic Element, Renova and Severstal which is to bid to develop Tavan-Tolgoi, Mongolia’s largest coal deposit. High-placed sources of Kommersant in the Kremlin say that the leaders have also discussed the situation with the Russian-Mongolian Erdenet, Mongolrostsvetmet and Ulan-Bator Railways joint ventures. Russia holds 49 percent in each of these firms. The companies account for 20 percent of Mongolia’s GDP. Only $47 billion went to Russia’s budget from the three companies’ taxes between 2003 and 2006, while Mongolia reaped $427 million. What is more, the Mongolians has recently levied a 68-percent extra tax on Erdenet’s profits.
Kommersant sources report that the Mongolian party has derailed the run-up for the signing of new charter documents for Erdenet and a new agreement on Mongolrostsvetmet in Moscow. Vladimir Putin told the press that Russia is set to invest some $5 billion in the three companies. However, the parties need first to sign documents for these firms, which was finally agreed on at the meeting in the Kremlin.
www.kommersant.com
All the Article in Russian as of Dec. 09, 2006
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