Mongolian President Ukhnaagiin Khurelsukh on Monday, 12 October visited the Oil Refinery Construction site at Altanshiree Soum in Mongolia's Dornogobi Province and publicly thanked Prime Minister Narendra Modi for India's unwavering support for the strategically important project. The visit, conducted alongside senior Mongolian ministers and Indian Ambassador Atul Malhari Gotsurve, underscores the deepening bilateral partnership between the two nations.

What the President Said

According to the Indian Embassy in Ulaanbaatar, Khurelsukh expressed satisfaction with the progress of the refinery and described it as a project that 'will help Mongolia to have its own refined fuel.' In remarks shared by the Embassy, Khurelsukh referred to India and Mongolia as 'Spiritual Siblings' and thanked both the Indian and Mongolian workforce for 'bringing into reality this Mega Project.' He also specifically appreciated the role of Ambassador Gotsurve in ensuring the project's continuous progress.

Key Developments at the Site Visit

President Khurelsukh interacted directly with engineers and workers at the construction site. He was accompanied by Mongolian Minister of Industry and Mineral Resources G Damdinyaam, Minister of Road and Transport B Delgersaikhan, Minister of Finance Z Mendsaikhan, D Altansetseg, Executive Director of Mongol Refinery, O Batjargal, Governor of Dornogobi Province, and other senior officials. In a symbolic gesture, the President, the Ambassador, and other dignitaries planted a tree at the project site.

Background: India's ₹8,300-Crore Line of Credit

The refinery traces its origins to Prime Minister Modi's 2015 visit to Mongolia, during which India approved a Line of Credit (LOC) of US$ 1 billion for infrastructure development. The Mongolian government subsequently decided to deploy the entire credit line towards constructing its first-ever oil refinery in Dornogobi Province, with a designed capacity of 1.5 million metric tonnes per annum (MMTPA). The project is widely regarded as a flagship example of India's development diplomacy in Central and East Asia.

Growing Momentum: PM Visit Follows Earlier Site Inspection

This is not the first senior-level endorsement the project has received in recent months. In August 2026, Mongolian Prime Minister N Uchral also visited the refinery site in Dornogovi Province and thanked the Government of India for facilitating the construction. Uchral specifically recognised the contribution of the 3,700-strong Indian workforce — comprising engineers and workers — deployed at the site. The back-to-back site visits by Mongolia's top two leaders signal strong political commitment to completing the project.

What This Means for India-Mongolia Ties

Mongolia, a landlocked nation sandwiched between Russia and China, has historically relied almost entirely on fuel imports. A domestic refinery would materially reduce that dependence and strengthen Ulaanbaatar's energy sovereignty — a strategic outcome that aligns closely with India's broader interest in expanding its influence through infrastructure investment across the region. This comes amid India's increasingly proactive engagement with countries in its extended neighbourhood, using development finance as a tool of soft power. The refinery project stands as a tangible symbol of that approach.

With both the President and the Prime Minister of Mongolia having now visited the site and publicly endorsed the project this year, construction momentum appears firm — and a commissioning timeline is likely to be the next major announcement to watch.