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The visa-free regime between the two countries existed until 1994 when it was suspended by Mongolia.
The new agreement that was signed in the presence of Russian and Mongolian leaders, Vladimir Putin and Tsakhia Elbegdorj, will boost "the development of mutually beneficial business, cultural and tourist contacts," said Yuri Ushakov, an aide to the Russian president.
Under the agreement, the nationals of both countries can enjoy a visa-free stay in Russia or Mongolia for 30 days in a row. The total period of stay should not exceed two months within 180 days.