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Geopolitics


Russia Pursues New Ties with Mongolia


Protecting the Trans-Siberian Railroad.

Summary
Russia is reestablishing its relationship with Mongolia, an isolated nation
strategically located on the Russo-Chinese frontier. Both nations have reason
to close ranks. Russia wants the strategic depth, and Mongolia needs help
with its ailing economy.
Analysis
Russian President Vladimir Putin will travel to one of the most remote
corners of the world when he visits Mongolia Nov. 13. Putin will be the first
post-Soviet Russian president to visit the former satellite state. Putin and
his counterpart, President Natsagiyn Bagabandi, will discuss a boatload of
issues including economic ties, law enforcement and nuclear energy.
The economy is an extremely pressing issue for Mongolia. The country has
become a fair representation of a market-based parliament democracy only a
decade after the withdrawal of the Soviet presence. But Soviets made up the
bulk of Mongolia�s managerial and technical workers � and they left in the
early 1990s. They have not been replaced. Western institutions like the World
Bank and International Monetary Fund have donated millions to assist Mongolia
with its economy � 20 percent of the $1 billion gross domestic product this
year � but have made little progress improving the shortage in the nation�s
human capital.
The economy has struggled as a result, leading frustrated Mongolians to vote
the Mongolian People Revolutionary Party into power. The MPRP mainly
comprises former Communist party officials. Most of the MPRP is pro-market,
but candidates promised to focus on providing basic necessities rather than
quibble in lofty debates over democratic theory. And most MPRP officials hold
favorable views toward Moscow.
Putin�s visit will revolve around reviving the strategic relationship between
Mongolia and Russia. Both nations share a common strategic concerning China,
Mongolia�s neighbor to the south.
Mongolia�s relations with Russia extend back to 1924, when Soviet-backed
Mongolian communists proclaimed a communist state. Mongolia became a Soviet
satellite for the next seven decades. In that time, the Soviets built much of
Mongolia�s infrastructure and industrial base and stationed military troops
on the Chinese border.
Mongolia�s military is tiny, and its economy is struggling, but its geography
is invaluable. It acts as a buffer zone between Russia and China. A Russian
military presence in Mongolia would add up to 600 miles of strategic depth,
moving the de facto frontier south. This space is vital to defend the
Trans-Siberian Railroad, the only significant land link between European
Russia and Siberia. The railroad lies only about 250 miles north of the
Mongolian border.
Yet, Mongolia�s relations with China have improved significantly since the
breakup of the Soviet Union. China has replaced Russia as Mongolia�s
principal trade partner. Chinese President Jiang Zemin visited Mongolia in
1998, and Mongolian Prime Minister Rinchinnyamiin Amarjargal returned the
favor in 1999. And China has offered the occasional aid package, most
recently a $12 million dollar soft-loan.
Mongolians continue to regard China with some suspicion, however. The
reluctance to develop close relations stems from a history of conflict over
China�s territorial ambitions � Mongolia was a Chinese province from 1691 to
1911. Beijing is only about 700 miles from Ulaanbaatar, while Moscow is 3,600
miles away. Some Mongolians even worry about Chinese domination of the
economy.
Russia needs Mongolia�s defensive depth, and Mongolia needs Russian economic
aid � especially technical advisors and training. Putin will use aid offers,
plus the $360 million the Mongolian government owes Russia, as levers in his
negotiations. Mongolia has no real reason to resist reestablishing links with
Russia, but it can leverage its relationship with Western nations to extract
a few concessions. At the end of the visit, however, Mongolia and Russia will
have taken the steps toward resuming their relationship.
http://www.stratfor.com/home/giu/DAILY.asp, November 13, 2000
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