Big business, big investments, big money and once again secrecy and obscurity all around. Tsk tsk tsk!
Mongolian government workers declined to give out information about a stability agreement with the Russian invested Vostock Nefte Gaz Company which was signed in October, 2005, according to government and company officials.
"The Mongolian government signed a stability agreement with Vostock Nefte Gaz Company to establish an oil refinery. I support this project because it is very profitable for Mongolia such as increasing jobs, Mongolian people will get more income from this refinery, it would reduce the petroleum price in Mongolia and other productions following this industry," B. Jargalsaikhan, Minister of Industry and Trade told MonInfo Monday.
"This company is investing in Mongolia and it is very good for us. The refineries capacity could be as high as 5 million tonnes of crude oil per year," he said.
According to the website of the company www.vostokneftegaz.com, "The Company's primary business in Mongolia is the realization of two large related investment projects – gasification of the country and the creation of an oil refinery with the annual capacity of two million tonnes of crude oil."
"I can't comment about the stability agreement of Vostock Nefte Gaz Company although I am responsible for this issue, I have not received any information until now," said Ts. Ulemjbayar, specialist of commerce and economics cooperation department of the Ministry of Industry and Trade.
On Tuesday an advisor of the Vostock Nefte Gaz Company said the directors are currently abroad and after a week they can give out more information.
"We can't give out more information than that because after the Mongolian President's visit in Russia the project's issue, such as the stability agreement, will be clearer. After the president's visit we hope a memorandum will be signed," Lkhagva, advisor to the director of the Vostock Nefte Gaz Company said Tuesday.
Other Mongolian government officials were not able to comment or declined to comment on the specifics of the agreement.
"The stability agreement between the government and Vostock Nefte Gaz Company was done when Ch. Ulaan was Minister of Finance and was signed by me when I was Minister. I can't give out any information about the agreement because I don't have it right now," said D. Altankhuyag, former Minister of Finance.
According to the website information Vostock Nefte Gaz Company has established a stability agreement for 15 years and the refinery is planned to be located in the vicinity of the largest consumer of oil products – the city of Ulaanbaatar, on a land plot of 162 hectares, of which 120 ha will be occupied by the plant, 30 ha – by the railway tracks and 12 ha by the residential area for the workers. The plot is located on the territory of the 21st area of the Songinokharkhan district.
A spokeswomen of the Ministry of Finance replied that Minister of Finance N. Bayartsaikhan was very busy on Monday and Tuesday and thus couldn't hold discussions with media personal.
"I was responsible for this issue under the previous Minister and I know the agreement but now I have no right to give out information because I'm responsible for another issue at the present time," J.Ganbat, chairman of the Budget Regulatory and Coordination Department of Ministry of Finance said Tuesday.
"I can't tell you the amount of the investment from Vostock Nefte Gaz Company because it is a secret of business," said Minister Jargalsaikhan Monday.
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