Eurasian Economic Union – Mongolia Free Trade Agreement Expected In December

The Eurasian Economic Union (EAEU) is expected to sign an interim free trade agreement with Mongolia before the end of this year, according to Alexei Overchuk, the Russian Deputy Prime Minister. He stated yesterday (November 26) that “We’re approaching the signing of an interim free trade zone agreement with Mongolia, we’re expecting it.”

Numerous infrastructure projects enhancing Mongolian connectivity with Russia and onto China have been taking place in anticipation of the agreement. These include the doubling of rail freight capacity, the construction of the ‘Steppe Road’ to enhance Russia-Mongolia-China road transport by building new road, rail and related infrastructure, a new road project linking the Mongolian capital, Ulaan Baatar, to Astana, the capital of Kazakhstan, via Russia, and the construction of border-region Special Economic Zones to provide tax and customs incentives to investors looking to add value to manufacturing products destined for cross-border trade.

Russia-Mongolia bilateral trade is up 21% in 2024 over 2023, while the signing of the EAEU-Mongolia FTA is expected to boost multilateral trade between the bloc and Mongolia by 25%. The EAEU also includes neighbouring Kazakhstan, as well as Russia, Belarus and Kyrgyzstan.

To date, the EAEU has signed free trade agreements with Iran, Vietnam, and Serbia. It was reported earlier that the negotiations on signing trade agreements with Indonesia, the UAE, and Egypt are in the final stage. The Eurasian Economic Commission (EEC) has indicated that these agreements with the UAE and Indonesia are likely to be signed in 2025.