Indian PM Modi Writes A Check To Mongolia
mongolian horses in vast grassland standing in water, mongolia

May has been a busy month of deal-making for Mongolia.  The country’s prime minister traveled to Dubai in May to sign an agreement that ends a two-year standoff with Rio Tinto, and paves the way for an additional US$ 5 billion of investment into the massive Oyu Tolgoi mine.  Back on the steppes, Indian prime minister Narendra Modi traveled to Ulaanbaatar this to announce the opening of a US$ 1 billion credit line for Mongolia.  The financing will be tied to the purchase of Indian goods.  The deal is similar to what India’s Export-Import Bank provided to Nepal last November.

Both countries struck the deal with one eye on China – this is Modi’s first stop on a tour of China’s periphery in an effort to boost India’s ‘soft power’.  Mongolia, ever mindful of its southern neighbor’s outsize influence, is actively seeking new trading partners.

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