Abstract

The article examines Mongolia - a landlocked country located between its neighbors, the Russian Federation and the PRC. Due to the lack of direct access to the sea, limited geographical opportunities, as well as due to certain historical aspects, Mongolia faces challenges that are directly related to its foreign and domestic policy initiatives. These include the need to diversify natural resources to accelerate the country's socio-economic development and increase its influence on the world stage. During its socialist existence, Mongolia was oriented towards the Union of Soviet Socialist Republics. After the collapse of the socialist bloc, Mongolia followed the path of democratic transformations, defining integration with Northeast Asia as a foreign policy priority. The geographical location of Mongolia, the remote distance from the seas and the location between two large neighbors make its external transport links very important from the point of view of international trade for the country. In this regard, the development of transport infrastructure will help economic diversification and sustainable development of Mongolia. The regional cooperation and integration are Mongolia's main goals to maximize the benefits of its geographic location. Mongolia currently uses Chinese ports for almost all its imports and exports and has a small volume of freight traffic through Russian Pacific ports to ship goods to and from North America. In this regard, to reduce economic dependence on China, the Mongolian side interested in expanding cooperation with Russia in the development of transport communications to create a competitive pricing of exported products. At the same time, the implementation of a successful foreign policy is hampered by the country's internal political processes associated with an unfair distribution of power, government instability, high level of corruption, and the absence of a unified and consistent resource policy■丨n addition, as noted by Mongolian experts, to solve the problem of diversifying the economy it is necessary to improve the legal environment for investment, and to increase the transparency of the work of foreign mining companies

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