Rosneft has signed two 5-year contracts for oil products supplies with Magnai Trade and Shunkhlai, committing itself to supply more than one million tons of oil products worth more than $1 billion at current prices between June 2014 and May 2019. In return for assuring uninterrupted supplies of fuel to the Mongolian market, Rosneft will receive a guaranteed distribution channel and will increase its market share in Mongolia. These and similar agreements with other local companies mean Rosneft will be supplying 80% of Mongolia’s oil needs.
Rosneft President Igor Sechin has also signed an Agreement of Cooperation with Gungaajv Olziburen, head of the Petroleum Authority of Mongolia. The two parties will collaborate on infrastructure projects relating to oil products supplies to Mongolia and also in developing oil and gas fields in Mongolia.