India is playing a crucial role in Mongolia’s energy security by helping construct the country’s first oil refinery. This project is part of India’s broader strategic engagement with Mongolia, often seen as part of the “Necklace of Diamonds” strategy, which counterbalances China’s “String of Pearls” in the Indo-Pacific.
Mongolia’s First Oil Refinery: India’s Contribution
- India has provided $1.2 billion in Line of Credit for the refinery’s construction in Dornogobi province.
- The refinery, expected to be operational by 2025-26, will reduce Mongolia’s dependence on Russia for refined petroleum products.
- Engineers India Limited (EIL) is overseeing the project.
Necklace of Diamonds: India’s Counter to China
- This strategy involves strengthening ties with like-minded nations surrounding China through economic, military, and diplomatic partnerships.
- Mongolia is strategically significant, located between China and Russia, making it an important partner for India.
- India has expanded its influence through projects like the oil refinery, defense cooperation, and cultural ties (Buddhism links).
By BHARAT GLOBAL TIME
