In the Khovd and Bayan-Ulgii provinces of Mongolia, the 745-km long road of the Asian Highway (AH-4), which connects the Russian Federation with the People’s Republic of China, has been put into full operation. The road was built to expand international cooperation in the transport sector and develop international transit transport by joining the regional infrastructure and transport integration.
The construction was funded by Mongolia with loans from the Chinese government, grants, and concessional loans from the Asian Development Bank. The road connecting Asia and Europe is vital for supporting large-scale production and services in the region and increasing trade turnover.
Mongolia has intergovernmental road transport agreements with over 20 countries. Therefore, transporters from other countries will have the opportunity to make international transit through the new road.
Mongolia is a strategic hub for freight transport between the Russian Federation and China. 90% of freight transport between the two countries relies on the Mongolian national railway network. The three countries signed a program to develop the China-Mongolia-Russia economic corridor, including four rail and three road corridors through Mongolia. Mongolia also invested heavily in its national road linkage, which tripled over the past two decades. Most of the current transport projects in Mongolia are aimed at transporting coal and other minerals from various mines to China and its seaports.