Prime Minister Oyun-Erdene Visits Egiin Gol Hydropower Plant Project Site www.montsame.mn

 Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai visited the Egiin Gol Hydropower Plant Project site, located in Khutag-Undur soum of Bulgan aimag, on April 29, 2025.
The Egiin Gol Hydropower Plant, the fifth highest priority project in the list of 14 mega projects to be implemented by the Government of Mongolia, aims at reducing energy imports and addressing the growing energy demand of the Central Region of Mongolia.
The World Heritage Committee and the International Union for Conservation of Nature noted that “the one-sided implementation of the Egiin Gol Hydropower Project will not have a significant impact on the ecosystems of the Selenge River and Lake Baikal.” However, they have recommended that the Project’s environmental and social impact assessment should be developed in accordance with UNESCO’s methodology and international standards.
In this context, between 2025 and 2026, a study will be conducted to determine the possible changes in the ecosystem in the Selenge River Basin caused by the construction of the Egiin Gol Hydropower Plant, along with an environmental and social impact assessment, additional studies of the auxiliary port and the main feasibility study, and preparatory work will be carried out to begin construction of the Project. The Mongolian-Russian Expert Working Group agreed to issue the final conclusion within the first half of 2026.
Prime Minister Oyun-Erdene also reviewed the draft master plan for the “Khantai” Natural Tourism Complex for supporting local development.

‘I felt caught between cultures’: Mongolian musician Enji on her beguiling, border-crossing music www.theguardian.com

Growing up in the icy Mongolian capital of Ulaanbaatar, singing was as natural as speech for Enkhjargal Erkhembayar. “Every day after my parents came home from working in the local power factory, they would gather with a group of friends in our yurt to unwind and someone would always begin to sing,” she says. “Soon, we would all join in, singing old folk songs to keep warm and to express ourselves long into the night.”
As Enji, 33-year-old Erkhembayar is now taking this music into international concert halls, having forged a beguiling hybrid of Mongolian folk music with acoustic jazz improvisation. She anchors her performances in the circular-breathing vocal style of Mongolian long song – a folk tradition where syllables are elongated through freeform vocalisations – her delivery tender and delicate, full of yearning emotion.
Touring China and 11 countries across Europe last year, audiences were “applauding, laughing or crying” despite not understanding her Mongolian lyrics, she says by video call from her apartment in Munich, where she has lived for the past seven years. “It finally gave me a sense of confidence that people can hear this music without thinking it’s nonsense. I felt free to fully express who I am.”
That newfound self-belief takes root in Erkhembayar’s fourth album, Sonor, with confessional lyrics over some of her most wide-ranging music to date. Rather than employ long song vocals, Erkhembayar takes on a whisper-soft register on compositions such as Ulbar, singing wistfully about the beauty of sunset light over a jazz trio instrumental that wouldn’t feel amiss in Norah Jones’s repertoire. A sprightly cover of 80s Mongolian popular song Eejiinhee Hairaar rumbles through a funk-inflected groove of drums and Rhodes piano.
Those evening post-work singing sessions may have been a daily part of her childhood, but Erkhembayar only began learning long song formally while training to become a kindergarten teacher. “I heard about someone who was giving lessons locally and decided to sign up for fun. She explained the techniques to sound big and hone your resonance but said it was only possible to find a real sound if I had the ‘singing gene’, a muscle memory I could tap into,” she says with a smile. “Surprisingly, my sound came within 14 days, it was so natural. I then decided to keep learning for another year, since it felt so incredible to use my voice in that way.”
When bassist Martin Zenker arrived in Ulaanbaatar with a jazz education project from Munich’s Goethe-Institut, one of Erkhembayar’s teaching colleagues suggested she try out for his programme. She was accepted in 2014 and over the next two years Erkhembayar abandoned her teaching career in favour of jazz, her new obsession.
“There isn’t much of a jazz scene in Mongolia, as all the music I would encounter as a younger person was Mongolian artists making English-language pop, which is still largely the case there, or local hip-hop groups like Tatar,” she says. “When I began to learn about jazz with Martin, I fell in love with it because it’s so free and sophisticated – compositions last a lifetime. It’s all about being in the moment and trusting your instinct, which felt the same as singing long song to me.” She visited Munich where she met longtime collaborator Paul Brändle and recorded her 2017 debut, then moved to the city permanently the following year and put out two more acclaimed records, 2021’s Ursgal and 2023’s Ulaan.
Sonor features two spoken-word tracks in German – a language she learned at the Goethe-Institut programme in Mongolia, at the same time as she learned English: the group “communicated mostly through music”, she says. Meanwhile the guitar ballad Ergelt express Erkhembayar’s yearning for home: “Unfamiliar yet familiar, I am forgotten but still my own,” she sings in Mongolian, in a gentle falsetto, over Brändle’s finger-picked guitar lines.
“Ergelt means ‘return’ and it was written last autumn when I was back in Mongolia visiting family,” Erkhembayar says. “I had this bittersweet feeling where I realised how much I’d changed in the years since I’ve been gone. People saw me a little differently in the way I spoke but in Germany I’m also reminded that I’m foreign, since no matter how good my German is, I’m always asked where I’m from. I felt caught between cultures and unsure about where I could return to.”
Yet Erkhembayar’s music draws its beauty from her broad approach. “I still see myself as a jazz singer but I’d love to collaborate with a rapper or people with different voices,” she says. “I feel at my most confident and my music is becoming like my life, something that moves and doesn’t just stay in one place. Jazz, long song, Mongolia or Germany, I don’t know where I’ll end up – but I know I won’t stop singing.”
 Sonor is released via Squama Recordings on 2 May
By Ammar Kalia

Power of Siberia 2: Economic Opportunity or Geopolitical Risk for Mongolia? www.thediplomat.com

Discussions of the proposed pipeline often focus on the China-Russia dynamic, overlooking Mongolia’s critical role as a transit state.
In 2021, Russia’s state-owned company Gazprom recorded an historic profit of $29 billion, at a time when Moscow supplied approximately 45 percent of the European Union’s natural gas demand. By 2024, however, amid European sanctions stemming from Russia’s full-scale invasion of Ukraine, Russia’s share of EU natural gas supplies had dropped to around 20 percent. According to Gazprom’s official report, the company posted a loss of $7 billion in 2023. Although Gazprom has not yet published its 2024 international financial statement, the Financial Times reported that the company recently recorded its worst performance in modern history, with a $12.8 billion loss according to Russian accounting standards.
Following its withdrawal from the European market, Moscow reassessed its export strategy and initiated a “pivot to Asia” strategy, aiming to shift its focus toward eastern markets, particularly China.
The steady growth of China’s natural gas demand appears to offer new opportunities for Russian exporters. In 2024, China’s natural gas consumption reached 428 billion cubic meters, and experts project that it will exceed 600 billion cubic meters by 2040. Nonetheless, China’s strategy of expanding domestic production and diversifying its supply sources limits Russia’s leverage.
Among several options Moscow has proposed to expand gas exports to China, the Power of Siberia 2 (PoS-2) project is considered the most practically significant. The PoS-2 would complement the existing Power of Siberia 1 pipeline, which carries gas from fields in northeastern Siberia to China.
Notably, the PoS-2 would pass through Mongolia. In fact, the idea of the PoS-2 pipeline took shape in August 2020 when the government of Mongolia and Gazprom signed a memorandum of understanding to establish a feasibility study. Since then, what had long been a theoretical proposal has evolved into a tangible project, sparking extensive debate among policymakers, researchers, and the broader public.
For major powers, such energy infrastructure projects typically serve to expand export routes or reinforce supply networks. However, for Mongolia, this pipeline is a “mega-project” that demands the utmost caution and strategic foresight. In short, Mongolia must fully recognize that it is becoming entangled in the increasingly complex dynamics of the “no-limits” partnership between Russia and China – a partnership that, particularly in the current climate of shifting global order, is aimed at counterbalancing the West.
The Kazakhstan Alternative
In November 2024, during the “ROSTKI: Russia and China – Mutually Beneficial Cooperation” forum, Russian Deputy Prime Minister Alexander Novak raised the possibility of building a pipeline capable of supplying 35 billion cubic meters of gas annually to China – not via Mongolia and the PoS-2, but via Kazakhstan. He outlined three potential routes: constructing a new pipeline across certain regions of western Kazakhstan; connecting to China’s “West-East Gas Pipeline” network; or revitalizing the existing Central Asia–Center pipeline system, which links Russia to Turkmenistan’s gas fields.
Russia estimates that the project would require $10 billion in investment, with an expected operational launch in 2029 and full capacity to be reached by 2034. Moscow also emphasized that it remains committed to advancing the Sakhalin-Khabarovsk-Vladivostok and PoS-2 projects.
Russia’s active approach clearly reflects the high strategic priority Moscow places on expanding energy exports through every possible channel.
From Kazakhstan’s perspective, there is a relatively strong interest in serving as a transit country between Moscow and Beijing, driven by several factors. First, by facilitating Russian gas transit, Kazakhstan can secure cheap natural gas supplies for its western provinces, freeing up approximately 10 billion cubic meters of gas for export to Europe at higher prices.
Second, in exchange for allowing Russia to use its territory for transit, Kazakhstan could secure Moscow’s approval for constructing a pipeline across the Caspian Sea – a project crucial for diversifying and securing Kazakhstan’s own export routes.
However, earlier this month, China’s ambassador to Russia, Zhang Hanhui, stated in an interview with Interfax that the project to import natural gas via Kazakhstan was not feasible. He explained, “At present, the single pipeline between Kazakhstan and China is already heavily burdened. Building a new pipeline through Kazakhstan would require significant additional costs.”
From the ambassador’s remarks, it is clear that China prefers to advance the PoS-2 project. “We have agreed on the implementation of the project. The primary issue now is to finalize the route,” Zhang emphasized. “One option is through Mongolia, and the other is not. For us, the choice of route is less important than receiving the gas within a short timeframe.”
The ambassador’s comments make it evident that both Moscow and Beijing have reached a consensus on implementing the PoS-2 project. For Mongolia, which is embarking for the first time on a major trilateral project with its two neighbors, it is critical to carefully assess the strategic goals underpinning Moscow and Beijing’s cooperation, the evolving nature of their relationship, and the shifting dynamics of the external environment.
China’s rejection of the Kazakhstan route is not merely economic. Currently, China is connected to Turkmenistan through three major gas pipelines, and with the upcoming commissioning of “Line D,” annual imports could reach 65 billion cubic meters. Beijing’s energy strategy seeks to diversify suppliers while preserving control over supply channels in Central Asia.
China’s strategic behavior underscores its efforts to maintain influence in Central Asia while avoiding an overdependence on any single supplier, including Russia. Thus, Beijing’s support for PoS-2 is aligned with its broader geopolitical and energy security goals.
For Mongolia, participation in the PoS-2 project demands a careful balancing of the evolving dynamics between its two neighbors against its own long-term national interests. It is essential to recognize that once the pipeline is constructed, it would be virtually impossible to reverse or dismantle. Therefore, Mongolia must view the project not merely through an economic lens but as a complex undertaking intertwined with political, geopolitical, and national security considerations.
It is important to note that China’s 2019 National Defense White Paper explicitly states that one of the key roles of China’s armed forces is “to effectively protect the security and legitimate rights and interests of overseas Chinese people, organizations, and institutions.” Russia’s Foreign Policy Concept similarly emphasizes the protection of its interests beyond its borders. Thus, beyond focusing solely on project-specific contracts and negotiations, Mongolia must also thoroughly study and understand the strategic doctrines and policy documents of its two powerful neighbors.
The PoS-2 project could offer Mongolia an opportunity to foster mutual trust and launch a new era of constructive cooperation with its neighbors. Yet, from a broader theoretical perspective, a small, landlocked state’s vulnerability is often directly tied to the dynamics between its larger neighbors. If the “no-limits” partnership between Russia and China were to deteriorate, leading to a cooling of relations, Mongolia would find itself in an increasingly precarious external environment. In such a scenario, Mongolia’s ability to balance potential pressures from both sides could be severely constrained.
This project, while promising potential economic benefits such as increased investment, closer regional ties, and transit revenues, also carries the risk that Mongolia could become an arena for future geopolitical competition between major powers.
Ultimately, the unfolding great power dynamics surrounding the PoS-2 project place Mongolia at a critical crossroads, where decisions made today could shape the country’s fate for decades to come.
By Uyanga Uugankhuu

United Airlines to Launch Flights to Mongolia in May www.montsame.mn

United Airlines LLC of the United States will operate flights from Mongolia to the United States via Japan starting on May 1, 2025.
The National Civil Aviation Center of Mongolia and United Airlines LLC signed an Agreement on Providing Passenger Safety Services on April 28, 2025. The Agreement includes provisions on meeting international legal norms and U.S. air transport standards, as well as additional services.
United Airlines announced that it will expand its global network by launching flights to eight additional destinations, including Mongolia, in 2025. The Airline will conduct flights to Mongolia three times a week.
By order of the Minister of Roads and Transport of Mongolia, a Working Group in charge of preparing for the launch of direct flights between Mongolia and the United States was established in 2023.
A contract on conducting a technical assessment and providing consulting services for the Aviation Safety Audit (IASA) of the US Federal Aviation Administration was signed with the Wicks Group Consulting, as this law firm won the bid in accordance with the Law on Procurement of Goods, Works, and Services with State and Local Funds.

Signature of Oil Sales Agreement for Block XX Production www.research-tree.com

LONDON, 28 April 2025: Petro Matad Limited, the AIM quoted Mongolian oil company is pleased to announce the signature of an Oil Sales Agreement for Block XX crude oil.
On 28 April 2025, Petro Matad and PetroChina Daqing Tamsag, the operator of neighbouring Block XIX, signed the Oil Sales Agreement covering storage, processing, transport and export of Block XX crude oil production. Petro Matad's invoices for the production from the Heron 1 well for the period 24 October 2024 to 31 March 2025 have been submitted and, under the agreement, will be processed for payment during the month of May.
Point forward, Petro Matad is required to submit an invoice for each month's production on or before the tenth day of the subsequent month and payment will be made during the last week of the month based on the average benchmarked price of Daqing crude oil for the month of production. Custody transfer of Block XX oil takes place at the Block XIX processing facilities and PetroChina is responsible for processing, transport and export of the crude to the buyers in China.
Mike Buck, CEO of Petro Matad, said:
"We are delighted to have signed the oil sales agreement for the commercialisation of Block XX production. This involved a number of firsts for Mongolia and whilst the process was slow, we are grateful to the Mongolian authorities and to PetroChina for their support. We look forward to establishing a cooperative routine in the sales process in the same way that the field crews in Blocks XIX and XX have done in the production operations over the last 6 months and to receiving payment for all the oil produced to date during the month of May."
Further operational updates will be provided in due course.
About Petro Matad
Petro Matad is the parent company of a group focused on oil exploration, development and production in Mongolia. Currently, Petro Matad holds a 100% working interest and the operatorship of the Matad Block XX Production Sharing Contract with the government of Mongolia. Block XX has an area of 214 square kilometres in the far eastern part of the country. The Company also holds a 100% working interest and operatorship of the Borzon Block VII Production Sharing Contract with an area of 41,141 square kilometres in southern central Mongolia. 
Petro Matad Limited is incorporated in the Isle of Man under company number 1483V. Its registered office is at Victory House, Prospect Hill, Douglas, Isle of Man, IM1 1EQ.

Mongolia issues e-visas to 11,575 foreigners in Q1 www.xinhuanet.com

A total of 11,575 foreigners were granted Mongolian electronic visas (e-visas) in the first quarter of 2025, marking a 4.9 percent increase compared to the same period in 2024, local media reported on Monday, citing Mongolia's Immigration Agency.
During the same period, the country's immigration agency issued 3,629 residence permits in Mongolia, and extended 7,411 residence permits. The residence permit issuance decreased by 5.3 percent compared to the previous year.
Currently, Mongolia's economy relies most heavily on the export of mineral resources. Tourism promotion is considered one of the priority areas for diversifying the country's economy and increasing the competitiveness of the domestic tourism sector in the context of global competition.
According to Mongolia's Immigration Agency, e-visas for foreigners were officially launched on Oct. 1, 2021 in Mongolia. In 2024, Mongolia issued e-visas to almost 92,427 foreign citizens.
Mongolia has implemented this shift in a strategic move aimed at boosting tourism and attracting foreign tourists.

Korea an ideal partner to help Mongolia grow, Seoul's envoy says www.koreajoongangdaily.joins.com

Mongolia to Host the 30th Annual General Meeting of Asia Securities Forum www.montsame.mn

The 30th Annual General Meeting of the Asia Securities Forum will take place on September 10-13, 2025, in Ulaanbaatar, Mongolia.
The Mongolian Association of Securities Dealers will host the 30th Annual General Meeting of the Asia Securities Forum,  a key event in the Asia-Pacific securities industry.
The ASF Annual General Meeting is an important event as it brings together representatives of securities associations, regulators, and market leaders from the Asia-Pacific region, including Australia, the People's Republic of China, Japan, the Republic of Korea, and Singapore.
The General Meeting will be organized in Mongolia for the first time, and it offers opportunities to present the progress of the Mongolian stock market and its highlight projects to the participants.

Bagakhangai-Khushig Valley Railway Project launches www.ubpost.mn

On April 25, the government officially launched the Bagakhangai-Khushig Valley branch railway project, which marks the beginning of a major infrastructure initiative that includes building a new Transport Logistics Center 13 kilometers south of the Chinggis Khaan International Airport.  
At the opening ceremony, Prime Minister L.Oyun-Erdene declared, “Today, we have opened a new page in history. Since summer is short, if we miss one summer, it is like missing a whole year. We need to plan well in the winter and quickly carry out construction in the summer. Therefore, construction work should be started as early as possible.”  
The prime minister outlined an ambitious infrastructure agenda, announcing that work would begin next month on connecting the Gashuunsukhait-Gantsmod port border, followed by projects linking the Shiveekhuren, Bichigt, Khangi and Mandal ports. He confirmed the Erdeneburen hydropower station construction would commence in June as approved at the last cabinet meeting, with work on the Eg River station starting next week.  
In the capital region, major road projects including the Tuul highway and two ring roads will soon begin construction. The premier described the railway as “strategically important” and part of efforts to “revive” Hunnu city, noting that investment in the area over the next three years would equal the total investment in Tuv Province over the past three decades. “If we can connect, we will have money, and if we have money, we can build, and by building, we can improve our quality of life. If we can do this, we can also protect our independence,” L.Oyun-Erdene stated, framing the infrastructure push as crucial for national development.  
Minister of Road and Transportation Development J.Delgersaikhan provided technical details, revealing that the 150-kilometer railway would significantly reduce traffic congestion. “Every day, residents of the capital spend 144 minutes stuck and waiting at railway crossings. This time will be reduced to 40 minutes from next October,” he said.  
The Transport Logistics Center, to be built on 400 hectares of land allocated by Hunnu City officials, will serve as a hub for the new railway with a 25-ton carrying capacity. Private companies will be permitted to construct their own warehouses within the center.  
With an initial budget of 840 billion MNT, the project combines 100 billion MNT from Mongolian Railway’s existing funds with bridge financing arranged by the Development Bank in cooperation with five commercial banks. Officials expect increased coal exports through improved border connections to generate revenue for loan repayment. Construction challenges include building a one-kilometer columnar bridge, which is a complex undertaking given Mongolia’s limited pool of only seven qualified bridge construction companies. Some 2,500 domestic workers will build the lower structure, while 20,000 tons of rails will be imported.  
Preparatory work including geodetic and geological surveys is complete, with water wells already dug. The unique ridge-top location eliminates the need for land clearance, though a 32-meter excavation in deep land will require specialized mining equipment. Officials emphasized that all construction would use domestic capabilities except for rail imports. As the Mongolian Railway team begins round-the-clock work to complete the project within four months, the Road Development Center will monitor progress. 
Ulaanbaatar Mayor Kh.Nyambaatar highlighted how the new railway would solve long-standing urban logistics challenges, particularly the current practice of using the unsuitable and potentially hazardous Tolgoit station for unloading operations. By redirecting freight handling to purpose-built facilities along the new corridor, the project will significantly reduce congestion and safety risks in the capital while supporting broader efforts to decentralize Ulaanbaatar’s overcrowded infrastructure.  
Kh.Nyambaatar outlined comprehensive plans for Hunnu City’s development as an eco-friendly urban center, beginning with ambitious geothermal exploration set to commence in August. Drilling will reach 3,000 meters depth in the Sergelen soum area, where geological assessments suggest strong potential for tapping into sustainable heating solutions. “If successful, this initiative could allow Hunnu City to become Mongolia’s first major urban area completely free from coal dependence,” the mayor explained, noting this would represent a major breakthrough in sustainable urban development.  
Infrastructure preparations are already underway, with trunk line networks completed and tenders for branch line designs soon to be announced. The city plans to begin road construction next year while simultaneously developing a 300 MW renewable energy complex combining solar, wind and battery storage through innovative public-private partnerships.  
‘1.3 trillion MNT project secures funding through bank reforms’ 
Development Bank Executive Director Z.Narantuya provided financial details, revealing the project’s total 1.3 trillion MNT cost will be supported through enhanced bank capitalization and collaborative financing with five domestic institutions. “With 1.2 trillion MNT in receivables recently settled and plans for domestic and international securities issuance, we have established a robust financial framework for this transformative infrastructure,” Z.Narantuya stated.  
The railway itself, featuring 115 dedicated livestock tunnels and requiring 2.5 million cubic meters of earthworks, remains on track for August 25 completion. Its operational launch will initiate a phased transition of freight operations away from urban centers, with complementary highway projects to Dundgovi Province and Songinokhairkhan District already in planning stages.

The Mongolian business environment and FDI: Challenges and opportunity www.melvilledalai.com

Nietzsche’s aphorism of “What doesn’t kill you makes you stronger” is my optimistic view about Mongolian business environment,
including foreign investments, although several factors are nearly undermining foreign direct investment and general business environment. You may have encountered or heard about challenges such as corruption, crony capitalism, a weak legal framework, inconsistent law enforcement, and unstable policies and regulations. There are also economic and commercial
drawbacks, including a small market, high risk of currency depreciation, and costly logistics. Larger investors might worry about Mongolia’s geography—sandwiched between Russia and China—and the associated geopolitical risks. Meanwhile, existing investors often face daily hurdles like government bureaucracy, rising nationalism, and erratic application of laws. This list isn’t
exhaustive; it omits “surprises,” originally tied to major events like elections but now occurring more frequently. I’ll discuss a recent surprise later, but first, let’s focus on the key obstacle.
The above-mentioned issues are undeniable and have persisted since the 1990s. But which is the most detrimental? Opinions differ widely, though I’m not here to rank them. Instead, I ask: do these challenges share a common root or cause? I argue that “internal politics” is the primary cause. By this, I mean politically motivated actions, conflicts, inactions, and PR efforts within Mongolia. You might wonder why I focus on internal politics when Mongolia is a proud democracy—the only one
in Central Asia. Indeed, we cherish our democratic status, but as a young democracy, we’ve faced significant political turbulence.
1. THE RECENT SURPRISE: STRATEGIC DEPOSITS
What is the recent surprise? This relates to the interpretation and application of the concept of “Strategic Deposit”. This concept is not a new, but the Minerals Law was amended on 19 April 2024 to revise certain provisions related to Strategic Deposits, aligning them with the amendments to the Constitution. Pursuant to this new amendments under the Minerals Law, the state shall hold up to 34% or 50% of the entity holding the license, free of charge, and potentially without making any investment. Obviously, this creates various uncertainties and suprises, specially with respect to the companies which have been operating and mining. Some could argue this is potentially “expropriation” and others could argue that the state has this power under the Constitution. The both sides have their strong arguments as the relevant implementation, interpretation and process is vague and
subjective to the Parliamentary discretion.
The Objective of these amendments to the Constitution and Minerals Law were ultimately designed to maximize the benefits from natural resources for the benefits of its citizens. See the full article on the link https://www.melvilledalai.com/.../the-mongolian-business... 
BY Erdenedalai Odkhuu, Partner