Russian oil producer Rosneft will freeze oil prices at January levels as part of an agreement to build 100 consumer gasoline stations. The company said this price freeze will remain intact through July.

This follows word that the company has received a $3.1 billion loan to assist in its restructuring of debts.

As part of the deal to freeze oil prices for Mongolians, Rosneft will not be required to pay for the land used for building the gasoline stations in Mongolia.

However, Tuesday’s announcement indicates relations between Mongolia and Rosneft are steadily improving.

Besides opening gasoline stations, Rosneft is discussing plans to work in tandem with partners to provide aviation fuel to Mongolia’s airports.

Rosneft has been a prime user of Mongolian rail lines to ship Russian oil to China. However, volatile costs of fuel had caused the price of transporting fuel to rise and Rosneft had previously considered discontinuing use of Mongolian rails.

www.mongolia-web.com

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