ULAN BATOR, Oct. 24Cashmere supplied to Russia from Mongolia will soon become cheaper — the governments of the two countries have agreed to cancel duties and remove logistics barriers, Deputy Prime Minister Victoria Abramchenko told reporters at Gobi, the largest cashmere factory in Mongolia.
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"As part of the agreement on the supply of cashmere to Russia, we visited the largest factory for the production of finished products: Mongolian cashmere, Gobi brand. We agreed right here at the factory that we would prepare a roadmap,” she said.
Abramchenko noted that the Ministry of Industry and Trade, the Ministry of Economic Development, the Federal Customs Service, the Central Bank, and border Russian regions where hubs will be created will take part in the development of the document.
«It is important for us to test the route; we must supply finished products to the Russian Federation duty-free. This is probably 50 percent of the cost of the finished product,» explained the Deputy Prime Minister.
According to her, high-quality cashmere is now sold in Russia, but for the average consumer its price is high.
“Our goal is to make high-quality Mongolian cashmere available on the Russian market. Now about 50 percent are costs due to the fact that there are barriers to mutual trade,” Abramchenko noted.
Answering the question, Whether cashmere will be half the price after tariffs and barriers are removed, she said: “We will try to do that.”
According to Gobi, Mongolia is the largest cashmere producer, occupying half of the world market.