In the article the author analyzes the period of growing of Soviet Russia political influence in Mongolia due to the revival of trade and economic relations and the regaining ground in the Mongolian market. The publication is aimed to show the image of Soviet Russia in Mongolia, the attitude towards new authorities, the Soviet cooperative system which superseded the Russian merchant capital. The author focuses on the fact that the development of Russia-Mongolia trade and other business relations could not be suspended because of political events in Russia due to frontier trade, the Siberian cooperative societies and their branches in Mongolia. The initial period of the Soviet trade organizations activity in Mongolia was accompanied by a number of obstacles connected with the contradictory policy of the Mongolian authorities and distrust of the Mongolian population which was subjected to continual propaganda against new authorities spread by foreign competitors (including the Chinese competitors). It had an impact on the image of Soviet Russia and its policy in Mongolia, on the social and cultural interaction. Based on the analysis of little-known archival documents, the article describes the relations between the Soviet political, economic and trade structures and the Mongolian population, touches upon the Soviet policy to create its image in the neighbouring region, the transformation of the image of Soviet Russia in Mongolia.