ULAN BATOR, June 8 (Xinhua) -- Mongolia and Russia have signed an intergovernmental agreement on terms for rail freight transit transportation.

The agreement was signed here on Friday by Jadamba Bat-Erdene, Minister of Road and Transport Development of Mongolia, and Yevgeny Dietrich, Transport minister of Russia, the Mongolian government press office said in a press statement.

Under the agreement, the two countries will cooperate to implement flexible tariff policy on freight transit through the territory of two countries, improve railroad infrastructure quality and increase freight flow constantly.

The agreement will create new opportunities for the landlocked Mongolian exporters to export their products overseas without any hindrance, the statement said.

Within the framework of the agreement, the Mongolian side will enjoy tariff discount on the transit transport of its export goods through Russia for 25 years.

It took nearly 10 years to sign the agreement. The agreement will take effect after completing necessary legal procedures in each country.