Mena Finance Reports: Two Russian banks and a Czech bank have agreed to finance the construction of Mongolia's first oil refinery. The Russian banks are Gazprombank, a subsidiary of Russian natural gas extractor Gazprom, and Vnesheconombank, the state-owned foreign trade bank. On the Czech side is Czech Export Bank. The international project will cost $600 million, of which Czech Export Bank will provide half and the Russian banks will provide the other half, the banks said in a joint statement Tuesday, the RIA Novosti news agency reported.

There has been much talk about Mongolia opening the market for the "black gold", but no oil production was planned until this moment. The oil refinery in Mongolia is to refine 1.5 million metric tons of crude per annum. Its products will cover Mongolia's internal needs, with the rest being exported to China's northern provinces.

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