Economic and Geographical Problems in Interactions between Mongolia and Eastern Russia in Foreign Commodity Markets

Abstract

The high importance of exports of mineral raw materials for the economy of Mongolia and the weakening of its foreign trade interactions with Russia are revealed. It has been established that the value of Mongolian exports for a number of mineral raw materials exceeds Russian ones and has serious growth prospects. Using the example of coal and copper exports, the real prerequisites for the emergence of risks of competition between the exporters of Mongolia and the eastern regions of Russia for foreign markets of mineral raw materials in the near future are revealed. From an economic and geographical point of view, the strengths and weaknesses of the competitiveness of Mongolia and Russia in these markets are compared. The main disadvantage for Russia in comparison with Mongolia is its less advantageous transport and geographical position relative to the key Chinese sales market. The main ways to reduce the severity of competition between exporters of Mongolia and the eastern regions of Russia for external raw materials markets in the context of modern geopolitical challenges are proposed: a wide diversification of export deliveries of mineral raw materials to many countries around the world (primarily a reorientation to East, Southeast, and South Asia) and an increase in processing into semifinished products or finished products.