According to the new law, overseas oil companies must negotiate terms for a sale through a juridical representative of the government. These companies will not be entitled to sell more than 30% of the oil consumed by the Mongolian domestic market.
The proposed law is a result of the price hike made by Russian oil company Rosneft. Rosneft, which supplies more than 90% of the oil consumed in Mongolia, has increased oil prices in Mongolia by 14 to 26% from March.
