Mongolian Corridor of Russian-Chinese Trade

The paper examines the problems and prospects of the Mongolian railway corridor of RussianChinese trade. It is shown that the Mongolian route has not achieved much success in the transit of container cargo between China and Europe. This was influenced by competition with sea transport, the presence of alternative routes and the archaic state of the Trans-Mongolian highway. As a result of the aggravation of the international situation around Russia, container cargo flow between China and Europe through Mongolia was almost stopped in 2023. Under the current conditions, Mongolia will completely drop out of continental cargo transportation in the coming years, since, unlike Kazakhstan, it does not have the ability to transit bypassing Russia. At the same time, Mongolia still has the opportunity to realize its transit potential through participation in the dynamically growing Russian-Chinese trade. Mongolia's location between the center of Russian export formation in Siberia and the Beijing agglomeration can become an important factor in its development and cooperation with the two neighboring countries. However, the low capacity of the Trans-Mongolian Railway remains the main limitation for increasing cargo transit through Mongolia. Against the backdrop of Russia's plans to modernize the Eastern Polygon of railways, develop seaports in the Far East and build new crossings on the border with China, this threatens to once again oblivion of the Mongolian route. Modernization of the Trans-Mongolian Railway is inextricably linked with a mutually acceptable solution to the issues of further development of the Soviet-Mongolian Company «Ulaanbaatar Railway». Of key importance among these issues is the introduction of an adequate business model for the joint venture, taking into account the necessary investments in railway infrastructure and rolling stock. This requires a serious adjustment of Mongolia's state policy towards the joint company. Otherwise, the gradual transfer of Mongolian transit to other routes will inevitably lead to the bankruptcy of Ulaanbaatar Railway Company.

Mongolia, Russia, China, Trans-Mongolian Railway, foreign trade, cargo transit