Government Agrees on 60 Percent Benefit Sharing in Strategic Deposits www.montsame.mn

As part of the government’s initiative to streamline the mining and mineral resources sector, the government reached agreements with Achit Ikht LLC, Energy Resources LLC, Khangad Exploration LLC, and Usukh Zoos LLC on determining the state’s ownership share in strategic and derivative deposits, as well as how that ownership will be exercised and implemented. The agreements were signed on February 10, 2026.

The parties reached the agreement in expression of their commitment to implementing Article 6.2 of the Constitution, which stipulates that “the majority of the benefits from subsoil resources shall accrue to the people, with the legal basis to be determined by law.” Amendments to the Constitution adopted in 2019 introduced the principle that the majority of the benefits from subsoil resources should accrue to the people and be distributed equitably and fairly to present and future citizens through the National Wealth Fund, followed by the adoption of the Law on the National Wealth Fund.

To give effect to and implement Article 6.2 of the Constitution—ensuring that the majority of the benefits from natural resources accrue to the people and that citizens are rightful owners of their wealth—a working group mandated to negotiate with legal entities operating strategic and derivative deposits has been established by order of Prime Minister Zandanshatar Gombojav.

Since August 2025, the working group has been holding negotiations with entities exploiting the Erdenet derivative deposit and with license holders operating strategic coal deposits.

As a result, it was agreed that 60 percent of the benefits generated from derivative and strategic deposits—including those operated by MCS, Energy Resources LLC and Khangad Exploration LLC in the Tavan Tolgoi coal deposits, Usukh Zoos LLC at the Nariin Sukhait deposit, and Achit Ikht LLC at the Erdenet derivative deposit—will accrue to the Mongolian people and be accumulated in the National Wealth Fund.

In years when the benefits amount to less than 60 percent, the companies holding licenses for strategic and derivative deposits will pay an adjustment payment, as mutually agreed.

Going forward, the government will draft and submit to the State Great Khural (parliament) a resolution on the proportion of state ownership in strategically important mineral deposits, how such ownership should be exercised and implemented, and how the benefits derived from such ownership should be calculated, for parliamentary consideration and approval.

Mongolia Submits VAT Reform Package to Parliament www.vatcalc.com

The Mongolian Government has submitted a comprehensive package of tax law amendments to Parliament, including significant revisions to the VAT Law. The reforms are positioned as part of a broader effort to modernise tax administration, improve compliance, and ease administrative burdens for businesses.

1. Deductibility of reverse-charged VAT on foreign services
The amendments clarify that VAT reverse-charged on services received from non-residents will be deductible for Mongolian VAT-registered companies. This reduces potential cascading VAT costs and ensures neutrality where businesses procure cross-border services.

2. Deduction of Capital Expenditure VAT
One of the most material changes concerns capital expenditure. Under the current framework, input VAT on capital assets is deducted over a period of five to ten years. The proposed amendment would allow full and immediate deduction of input VAT on capital expenditure. This shift improves cash flow, reduces long-term tracking obligations, and aligns Mongolia more closely with international VAT best practice, where input tax recovery is typically immediate rather than spread.

3. Simplified VAT regime (MNT 400m Threshold)
The reform package introduces a simplified VAT regime for businesses with turnover below MNT 400 million. Eligible taxpayers would be permitted to apply a deemed purchase mechanism, allowing them to treat 90% of quarterly sales as deemed purchases. This effectively simplifies input VAT calculations and reduces documentary requirements.

4. VAT Payment Deferral for Compliant Taxpayers
To incentivise compliance, the government proposes allowing compliant taxpayers to defer monthly VAT payments — including import VAT — by one to two months. This measure acts as a liquidity support mechanism and introduces a behavioural compliance incentive into the VAT system. Import VAT deferral in particular may reduce cash flow pressure for trading businesses.

Mongolian VAT regime
Mongolia introduced Value Added Tax in 1998 and has undergone numerous modernisations. The highlights of the regime include:

 Single headline VAT rate (10%) on domestic supplies of goods and services and on imports.
VAT-registered businesses may recover input VAT against output VAT, with excess credits refundable subject to compliance conditions.
Reverse charge on imported services, requiring Mongolian recipients to self-account for VAT on services received from non-residents.
Import VAT collected at customs, forming part of the input credit chain for VAT-registered businesses.
Electronic reporting and invoice controls, with VAT administration increasingly digitised to strengthen compliance and audit capability.

Mongolia's inflation rate stands at 7.5 pct in January www.xinhuanet.com

 Mongolia's inflation rate, as measured by the consumer price index, was recorded at 7.5 percent in January, according to the latest data released by the National Statistics Office (NSO) on Tuesday.

This figure reflects a 1.2-percentage-point decrease compared to the same period last year, the NSO said in a statement.

Mongolia's central bank plans to keep inflation within 5 percent (±2 percentage points) starting from 2027 to ensure macroeconomic and financial stability.

According to estimates from international organizations such as the World Bank, Mongolia's economy is expected to grow by 5.5 to 5.7 percent in 2026.

Mongolia Economic Statistics and Trends for January 2026 www.montsame.mn

Mongolia's total foreign trade turnover reached USD 2.59 billion in January 2026, marking a 30.1 percent increase compared to the same period last year. The trade balance yielded a record surplus, with exports exceeding imports by USD 906.5 million.

A primary driver of this trade performance was the export of hard coal, which totaled 9.7 million tons in January—an 86.4 percent increase year-over-year. During this period, 100 percent of lead ore, iron ore, copper, molybdenum, zinc concentrate, crude oil, and coal exports, along with 63.5 percent of combed goat cashmere, were directed to China. These specific commodities accounted for 81.3 percent of the total export value.

Regarding domestic market conditions, the National Statistics Office reported that the national consumer price index (inflation) rose 7.5 percent year-on-year in January 2026, and 1.1 percent compared to the previous month. While prices increased across several sectors—including food (12.4 percent), services (8.9 percent), and non-food items (5.6 percent)—the overall inflation growth rate slowed by 1.2 percentage points compared to the 8.7 percent recorded in January 2025.

Key drivers of this inflation included an 18.4 percent rise in meat products (with beef prices up 25.8 percent and mutton/goat meat up 17.5 percent), as well as price hikes in flour (7.7 percent) and pasta (16.8 percent). Imported goods, which comprise 55.3 percent of the consumer basket (238 out of 430 items), accounted for 25.5 percent of the total inflation rate. Regionally, food prices saw the highest increase in the Central region at 13.8 percent, while service prices in Ulaanbaatar rose by 10 percent.

More Opportunities for Local Areas Supporting Mining www.montsame.mn

With the passage of the draft law on amendments to the Law on Minerals at the plenary session of the State Great Khural, the legal environment of the sector will become more transparent and stable, positively affecting long-term development and the rights and interests of local communities, the Ministry of Industry and Mineral Resources reported.

As a preliminary step, representatives of the government, private sector, and civil society organizations in the mining sector held a public discussion on the proposed amendments to the Law on Minerals, exchanging views, exploring solutions, and sharing challenges. The draft law, which is being prepared for submission to the spring session of the State Great Khural, includes a number of amendments.

Specifically, a competitive selection mechanism for granting exploration licenses will be introduced, along with regulations that impose higher costs on licenses held without conducting exploration. In incorporating regulations on critical minerals, Mongolia will approve its national list of critical minerals and define policies aligned with global trends.

In addition, plans are in place to revise the methodology for calculating mineral royalty payments (AMNAT) to increase local benefits. This includes setting AMNAT benchmarks based on prices on the Mongolian Stock Exchange, aligning incremental copper royalty rates with international standards, and determining royalties on products from beneficiation and processing plants to promote value-added production. Further measures under discussion include aligning royalties on associated elements in concentrates with international practices and allocating a greater share of AMNAT revenues to aimags and localities where mineral resources are exploited.

Regarding the draft law, Minister of Industry and Mineral Resources Damdinyam Gongor stated, “The concept of ‘processing rather than merely extracting’ has been incorporated. Under the current legal framework, increased processing is not economically advantageous. We will bring 47 idle plants nationwide back into operation, double their number, and support them through policy measures. Localities that support responsible mining production, exploration, and extraction will be provided with greater opportunities. Projects that engage in theft and then flee will be halted.”

Addressing participants in the discussion, he emphasized, “If we become divided, we will achieve no results. We must listen to one another and strive for a solution that is acceptable to all. There are instances where NGOs and citizens misunderstand and oppose certain fundamental principles. Although Mongolia has not yet achieved an economy independent of mining, change will begin from here.”

Between 2015 and 2024, Mongolia received a total of MNT 99.38 trillion in foreign investment, approximately 80 percent of which went to the mining sector. Mining accounts for more than 30 percent of the country’s GDP, USD 95 out of every USD 100 entering the economy, and over 70 percent of total industrial output. It also constitutes 95.4 percent of total export revenues, 74 percent of foreign direct investment, and 28.4 percent of consolidated budget revenues.

Since the Law on Minerals was first adopted in 1997 and comprehensively revised in 2006, it has undergone approximately 300 amendments across 16 revisions.

United States and Mongolia Joins to Achieve FAA Category 1 Status, Paving the Way for Direct Flights and Expanding Air Travel Connections Between the Two Nations www.travelandtourworld.com

The United States and Mongolia have forged a historic partnership to open direct air routes and enhance travel and trade between the two nations, marking a critical step toward stronger bilateral relations and economic growth. This collaboration, which focuses on Mongolia achieving FAA Category 1 (CAT 1) status, will allow direct flights between the U.S. and Mongolia, improving tourism, fostering business opportunities, and facilitating the export of critical minerals. With the backing of the U.S. Trade and Development Agency (USTDA), this agreement not only boosts aviation safety standards but also strengthens global supply chains in vital sectors like rare earth minerals.

In a groundbreaking development that promises to reshape the travel and trade landscape between the United States and Mongolia, the U.S. Trade and Development Agency (USTDA) has partnered with the Mongolia Civil Aviation Authority (MCAA) to push forward a new era of direct air connectivity. This collaboration, which will ultimately allow direct flights between the two countries, is set to have far-reaching impacts not only for tourism but also for global trade, particularly in critical mineral exports. By securing FAA Category 1 (CAT 1) status, Mongolia aims to enhance its aviation safety standards, while also tapping into the immense economic benefits that come with direct flights to the U.S.

This effort is not just about aviation; it marks a pivotal step in deepening bilateral relations and expanding the strategic partnership between the United States and Mongolia, all while facilitating stronger trade ties and improving supply chains in critical sectors like rare earth minerals.

The Path to FAA Category 1: What It Means for Direct Air Services Between the United States and Mongolia
At the heart of this collaboration lies the FAA Category 1 (CAT 1) rating, a prestigious designation that enables countries to operate direct flights to and from the United States. This rating is awarded to nations that meet the standards set by the International Civil Aviation Organization (ICAO) for aviation safety oversight.

For Mongolia, achieving CAT 1 status is a critical milestone. Without this certification, Mongolian airlines cannot legally operate direct flights to the U.S., which hinders the potential for tourism, trade, and investment. Direct flights would significantly reduce travel time and increase passenger capacity, making it easier for both business and leisure travelers to move between the two countries.

The Mongolia Civil Aviation Authority (MCAA) has been working diligently to meet these stringent FAA standards. This partnership with USTDA aims to streamline the process and provide the necessary technical assistance to bring Mongolia’s aviation safety standards up to par with the U.S. and international expectations.

USTDA’s Role: Funding Technical Assistance to Enhance Mongolia’s Civil Aviation Oversight
On February 5, 2026, the USTDA officially signed an agreement with the MCAA to fund technical assistance for the country’s aviation industry. This agreement comes with a significant commitment: USD 2.6 million in funding, of which USTDA will contribute USD 2.2 million.

The technical assistance package will involve several key steps to help Mongolia achieve CAT 1 status:

Gap Analysis: The U.S.-based consulting firm The Wicks Group Consulting, LLC will conduct a thorough gap analysis to identify discrepancies between Mongolia’s current aviation practices and international safety standards. This is a critical step to understanding where Mongolia needs to improve to meet ICAO and FAA requirements.
Corrective Action Plan: Based on the findings of the gap analysis, a corrective action plan will be developed, providing clear guidance on how to rectify existing safety shortcomings.
Training for MCAA Staff: MCAA will receive targeted training to improve the technical capacity of its personnel. This will include specialized courses on aviation safety regulations, compliance monitoring, and safety oversight procedures.
This assistance is expected to not only bolster the regulatory framework in Mongolia but also create an environment where the country can confidently meet the rigorous standards required to achieve FAA Category 1 status.

Aviation Safety Standards and the Global Supply Chain: The Strategic Significance of the Partnership
Beyond tourism, the partnership between the United States and Mongolia is of paramount importance for global trade, especially when it comes to the export of rare earth elements and other critical minerals. Mongolia is a key supplier of rare earth oxides, an essential component used in manufacturing a variety of high-tech products, including smartphones, electric vehicle batteries, and military technologies.

By securing direct air connections to the U.S., Mongolia will be able to streamline the transport of these minerals, reducing reliance on less secure routes that may involve transshipment or longer travel times. Direct flights will facilitate faster, more efficient logistics, allowing Mongolia to tap into the U.S. market and build stronger trade relationships with global manufacturers.

Additionally, with stronger aviation safety standards and the implementation of U.S. solutions for aviation infrastructure, Mongolia will have the opportunity to bypass state-subsidized foreign solutions, particularly those from competing nations. This is a step toward increasing resiliency in Mongolia’s supply chains, ensuring that critical minerals can be transported securely and efficiently to meet the demands of the global market.

Mongolia’s National Airline: MIAT and the Future of Direct Flights to the U.S.
Mongolia’s flagship carrier, MIAT Mongolian Airlines, has long been preparing for the possibility of direct flights between Mongolia and the United States. As part of its strategy to expand its long-haul network, MIAT has been acquiring new aircraft, such as the Boeing 787‑9 Dreamliner, which is suited for long-distance routes, including potential direct services to U.S. cities like New York, Los Angeles, and San Francisco.

MIAT’s expansion plans come at a time when global aviation is slowly recovering, and demand for international travel is on the rise. By securing the FAA Category 1 rating, MIAT would have the ability to launch non-stop flights, making travel between Ulaanbaatar and key U.S. destinations faster and more convenient. This move would also allow the airline to tap into the growing tourism and business travel market between the U.S. and Mongolia.

A Broader Strategic Partnership: The United States and Mongolia’s Growing Economic Ties
The partnership between the U.S. and Mongolia is not just about aviation; it is part of a broader geopolitical strategy aimed at strengthening ties between the two nations. The United States has long been a key partner for Mongolia, providing assistance across a wide range of sectors, including education, healthcare, energy, and trade.

The expansion of direct flights and the FAA Category 1 achievement will further enhance the economic and political cooperation between the two countries. This initiative aligns with U.S. foreign policy in the Indo-Pacific region, where strengthening aviation connectivity serves as a vital component of regional security and stability. Furthermore, the partnership provides opportunities for U.S. businesses to invest in Mongolia, fostering growth and access to Mongolia’s rich natural resources.

What’s Next? The Road to Direct Flights and Global Trade
As the Mongolia Civil Aviation Authority (MCAA) progresses toward achieving FAA Category 1 status, several milestones remain in place:

Completion of the Gap Analysis: The next steps will involve completing the gap analysis and identifying key areas that require improvement in Mongolia’s aviation regulations and safety standards.
Training and Development: MCAA staff will undergo training to meet the high standards set by the FAA and ICAO.
FAA Inspection: Once Mongolia’s aviation system has been upgraded, the FAA will conduct a final inspection and assessment to determine if the country is eligible for CAT 1 status.
Launching Direct Flights: After receiving FAA approval, MIAT Mongolian Airlines will be able to start operating direct flights to the U.S., marking a historic milestone for both nations.
This process is expected to take several years, but the long-term benefits are immense. The U.S. and Mongolia will not only achieve stronger trade ties but will also create new opportunities for tourism, business exchange, and investment.

The partnership between the United States and Mongolia is a game changer for both countries, opening up a new chapter in their strategic relationship. By facilitating direct flights, improving aviation safety standards, and enhancing global trade routes, this collaboration promises to benefit both countries for years to come.

Whether it’s increasing tourism, facilitating the export of critical minerals, or enabling new economic growth, the potential of this partnership is vast. As the U.S. and Mongolia work toward achieving FAA Category 1 status, both nations will continue to reap the benefits of stronger aviation and trade ties, cementing their positions as key players in the Indo-Pacific region.

United States and Mongolia are set to open direct air routes and strengthen travel and trade ties by working toward achieving FAA Category 1 status. This milestone will allow direct flights, boosting tourism and facilitating the export of critical minerals to global markets.

This partnership is not only a milestone in aviation history but also a stepping stone to a prosperous future built on the foundations of mutual cooperation, shared values, and a commitment to global economic growth.

EBRD and EU back URECA’s Coal-to-Solar project in Mongolia www.ebrd.com

In Ulaanbaatar, Mongolia, families who live in ‘gers’ (Mongolian yurts central to the nomadic way of life) wake throughout the night in winter to feed their stoves coal: at 01.00, 03.00, and again before dawn, just to survive freezing temperatures. The very fuel that keeps them warm also makes the city one of the most polluted capitals in the world, with each household on average responsible for 12 to 13 tonnes of carbon emissions.

URECA is a climate tech startup whose pilot Coal-to-Solar Initiative project pairs technology with carbon finance to direct capital into scalable, high-impact climate solutions while supporting low-income households to transition to clean energy and tackling severe air pollution.

They propose a new technology designed to restore trust and credibility in climate finance, making it more accessible to communities. With help from the EBRD’s Star Venture programme, URECA is now better positioned to scale its climate solution.

“The question that we posed ourselves was: ‘If other large-scale renewables are able to generate carbon credits on the premise that they’re reducing emissions and then sell those credits and get additional revenue, how does someone living in a traditional Mongolian yurt and transitioning away from coal energy towards solar achieve the same thing?’” says Orchlon.

Ureca's co-founders

The intrepid co-founder trio Orchlon, Amar and Unurbat, who see climate action as always having been a top-to-bottom approach, believe that the clean energy transition should start with the people most affected by it.

The sparkplug to entrepreneurship
Carbon markets – systems for trading carbon credits and offsetting greenhouse gas emissions – have often been criticised for their inefficiencies, driven by lack of information, transparency and other structural flaws.

“Getting carbon emission verified is notoriously bureaucratic. It's extremely costly and usually requires external experts flying in to monitor a project’s success. I was involved in a project that took us about US$ 100,000 (EUR 84.072,00) to get certified under the VERRA standard. So it's about a year's worth of work that needs to happen,” recalls Orchlon.

There are nearly 1 million families living in the more traditional and lower-income ger districts, burning coal in the winter. Beyond pollution, coal presents a more immediate danger to families: every month, carbon monoxide poisoning from improperly lit stoves causes overnight deaths. In this instance, negligence can prove fatal.

“The question that we posed ourselves was: ‘If other large-scale renewables are able to generate carbon credits on the premise that they’re reducing emissions and then sell those credits and get additional revenue, how does someone living in a traditional Mongolian yurt and transitioning away from coal energy towards solar achieve the same thing?’” says Orchlon.

Back when the EBRD was first introduced to URECA through the Bank’s Star Venture programme, the founders were developing a tech platform to connect local grassroots greenhouse-gas-reducing projects with investors, while making carbon credits more accessible and credible. Since then, their focus has shifted to helping households transition to clean energy through the Coal to Solar project, delivering tangible benefits for both families and the environment.

Climate finance + digital technologies

URECA's Coal-to-Solar project

Through two years of testing and piloting, URECA developed a plug-and-play system that enables coal-dependent households to switch to renewable energy while financing the transition.

As Orchlon explains, cost is a major factor in climate tech adoption. With that in mind, the team focused on making the technology reliable and affordable by researching and developing both their hardware embedded systems and software internally.

Their infrastructure combines an array of – as Orchlon puts it – “low-cost, dumb, but very high-quality devices” like solar panels, inverters and electric heaters, all integrated with URECA’s verification, monitoring and reporting technologies. The latter include IoT sensors, AI, and other tools that track energy use in real time once families switch to renewable energy.

In practice, these systems allow URECA to insulate a yurt, install solar panels and batteries, then deploy smart sensors that track air quality, humidity and other indicators at five-minute intervals to verify whether any coal burning occurs throughout the day. Emission reductions are automatically calculated, continuously verified, and monetised through URECA’s platform, enabling families to fund their transition to renewable energy with carbon credits they generate entirely on their own.

Since all of these devices are interconnected, each household effectively becomes a small virtual power plant that can be both monitored and controlled. Homes can operate in sync with the grid, ensuring no additional strain during peak demand, while remaining self-sustaining when the grid is under pressure.

By the end of 2025, the team had almost 200 households using their technology. Their goal is to transition over 100,000 households by 2030. That would mean about 1.3 million tonnes of CO2 removed from the air per year, and Ulaanbaatar’s air pollution reduced by more than 70 per cent. This would also represent the first truly ‘just’ energy transition at global scale: bringing the lowest-income households into clean energy markets in one of the coldest capitals in the world.

With help from the EBRD’s Star Venture programme and the European Union, URECA received the Gold Standard certification for carbon credits, one of the leading standards in the voluntary carbon market and a seal of approval that will help will attract global partners, enable carbon credit trading, and accelerate the adoption of clean energy solutions.

Nurturing behavioural change
Making the tech affordable and reliable was their first challenge. Next came getting families in Ulaanbaatar to adopt their technology, as they did not believe that they could survive -30°C temperatures on solar panels. “The key factor was giving families the option to switch and empowering them with the confidence that their homes would be safer at night, their air cleaner and their children safer,” adds Amar.

Orchlon says that cost was another important factor that he and his team needed to address: “The discourse around climate change is at times so far removed from the reality of these families, who don’t burn coal because they like coal, but rather to survive. Although they might recognise the benefits of renewable energy, they see it attached with a hefty price tag. We took a very pragmatic approach. Once we started framing the issue from their perspective and really bringing it down to the basics of how URECA could impact them positively day to day, we saw them start to let their guard down and accept our proposal.”

The impact they have seen on the ground has been remarkable. Hundreds of households have now gone through two or even three winters without burning a single lump of coal, dramatically improving quality of life.

Indoor air quality has improved significantly and there have been notable gains in health, particularly among children.

Families participating in the pilot report fewer illnesses, including a sharp decline in seasonal flu and improved overall well-being.

The shift has also delivered major productivity gains: households no longer need to wake several times each night to replenish coal stoves. 

What the future holds
Orchlon is optimistic about their potential: “If we are successful in securing large-scale carbon offtake volumes – which we believe we can – then the model relies on competitive market fundamentals rather than public budgets or philanthropy,” he asserts.
Mongolia’s evolving bilateral carbon cooperation with the likes of Singapore is creating practical pathways for governments and companies to access Mongolian carbon credits through trusted platforms, helping unlock financing for household clean energy transitions.

“What we’ve done is position thousands of low-income families as independent generators of those credits, able to sell directly into an existing global market,” concludes Orchlon.

And if families living in felt yurts can rely on solar power to survive -30°C degree winters for three to four months, it proves a broader point: a clean energy transition is possible anywhere. The model is inherently replicable.URECA is now focused on developing utility-scale renewable energy and commercial residential solar projects, showing how grassroots, community-based initiatives can have a global impact.

Epstein’s long ties extended to Mongolia, and its Rio Tinto stoush www.afr.com

Jeffrey Epstein was among six advisers, including former prime minister Kevin Rudd, engaged by the Mongolian president to help revive the economy and resolve an impasse with Rio Tinto over the development of an $11 billion copper project that was crucial to the country’s growth.

Mr Rudd told a conference call of the advisers, attended by the disgraced financier in 2014, that major mining companies could take a “ruthless approach” in disputes with governments, according to a trove of emails published by the Justice Department in the United States.

That correspondence is among the millions of documents published by the department that show Epstein acting as a ringleader for the world’s wealthiest and most powerful. Epstein was a convicted paedophile and was facing charges of sex trafficking when he died in a US prison in 2019.

The emails show the extent of Epstein’s influence in Mongolia, where he dined with then president Tsakhiagiin Elbegdorj in 2013 and was asked to join a high-level group to provide advice about the country’s economy.

The Mongolian economy was struggling in 2013 because a dispute with Rio over expansion of the country’s biggest private business – the Oyu Tolgoi copper mine – had scared away other foreign investors.
Epstein participated in a meeting with Mr Elbegdorj in January 2014 alongside other advisers including Mr Rudd, former Israeli prime minister Ehud Barak, former Norwegian prime minister Kjell Bondevik and former US Treasury secretary and Harvard University president Lawrence Summers.

Epstein and Mr Summers were in regular contact over their Mongolia work. When Mr Summers received an email invitation from the World Bank to visit Mongolia and speak on economic matters, he immediately forwarded the email to Epstein with the message: “Do I want to be doing this?”

At the 2014 meeting with Mr Elbegdorj, Mr Summers warned that foreign investors viewed Mongolia as a high-risk destination, adding its borrowing costs could be lowered if it struck a deal with Rio to proceed with an expansion of Oyu Tolgoi. At the time of the meeting, Rio had paused the expansion because the Mongolian government was seeking to revise an investment agreement struck for the mine in 2009.

“Investor confidence could be increased by resolving issues between Rio Tinto and the government of Mongolia in relation to the Oyu Tolgoi mine,” said Summers, according to a summary of the meeting, which was among the documents seized from Epstein.

“A solution should be found in line with international obligations and honouring contracts that have been signed. The government should make it clear that it expects others to do the same,” Summers said, according to the meeting summary. “Such a negotiated solution would improve Mongolia’s credit worthiness and bring down interest costs.”

Mr Rudd, whose first stint as prime minister ended in a 2010 fight with Rio and BHP over a resources tax, told the meeting that big miners could be “ruthless”, but it was best that Mongolia did not breach its agreements.

“[Rudd] stressed the importance of honouring contracts for the sake of the country’s international reputation, particularly for attracting [foreign direct investment],” according to the summary of the meeting.

“[Rudd] noted the sometimes ruthless approach of mining companies, and underlined the importance of effective legislation.”

A Rio spokesman said the miner had never hired Epstein to act as a lobbyist, nor had it had any dealings with him. Rudd, who is mentioned in the financier’s emails dozens of times, has previously said that he had “no reason to believe that he ever met with Jeffrey Epstein at any time”.

In correspondence revealed by The Sydney Morning Herald late last month, Epstein’s assistant writes that Mr Rudd had “also asked if he can bring his wife and son” to a September 2015 meeting with the then Mongolian president.

In a statement, Mr Rudd’s office said he had been invited to the event by the International Peace Institute, the think tank he chaired at the time, but did not attend and did not know if the dinner went ahead without him.

BY: Peter Ker covers resource companies for The Australian Financial Review, based in Melbourne. Connect with Peter on Twitter. Email Peter at pker@afr.com

Mongolia Ranks Among the Lowest in the Global Organized Crime Index 2025 www.open.kg

According to MiddleAsianNews, the crime index in Mongolia in 2025 was 52.1 points, indicating a moderate level of crime that has been decreasing over the past three years. Mongolia is considered relatively safe for travelers, while adhering to standard precautions remains important.

Compared to other countries, Mongolia ranked 153rd, behind Denmark (148), Latvia (149), Lithuania (149), and Australia (152).

In contrast, northern neighbor Russia ranks 22nd in the global crime index, demonstrating a high level of organized crime and serious issues with criminal markets, such as human trafficking and drug trafficking.

To the south of Mongolia lies China, which ranked 45th. In 2025, the crime rate in China was low: the index was 24.0, and by the beginning of 2026, this figure decreased to 23.1. Although there was a global increase in financial crimes in 2025, China demonstrated high stability and a low level of street crime.

The Global Organized Crime Index (GOCI) 2025 focuses on the increase in financial and cyber crimes, as well as smuggling.

In 2026, the crime index in Mongolia was 50.3 points, which is a decrease compared to 52.1 in 2025. Data from osindex.net shows that this figure in Mongolia has increased by 1.07 times since 2013.

Key statistics (2025-2026):

Crime index (2025): 52.1 (moderate level).
Crime index (2026 - forecast): 50.3 (decline continues).
Trend: A decrease in the overall crime rate has been observed over the last three years.
Context: Unlike countries with high levels of organized crime, such as Venezuela and Colombia, Mongolia has a low intensity of criminal markets.

The classification of the crime index is as follows: very low level - below 20; low - from 20 to 40; moderate - from 40 to 60; high - from 60 to 80; very high - above 80.

S. Maidar Tatar

‘Renewable heating targets 600 ger households by 2028’ www.ubpost.mn

A high-level discussion on strengthening partnership-based cooperation to reduce dependence on energy and oil products, promote renewable energy and develop energy storage systems and digital solutions was held on February 6 at the State Palace.

Opening the discussion, Speaker of Parliament N.Uchral emphasized that Mongolia must keep pace with global trends in green energy development, investment growth and financing, noting that green financing worldwide has increased 40-fold over the past decade and is expected to continue growing at an average annual rate of 21 percent.

Speaker N.Uchral stressed that the country’s development policy must fully align with the global transition to green financing. In this context, he highlighted that the state documents include clear goals to support the green economy, expand renewable energy sources, reduce energy dependence and strengthen national energy security. He also noted that concrete indicators are being established to measure implementation outcomes in line with international indices, with investment projects exceeding 30 billion MNT planned, including major green energy initiatives. 

Currently, 77 percent of Mongolia’s total energy production comes from thermal power plants, 22.3 percent is imported, and only seven percent is generated from renewable sources. Speaker N.Uchral warned that this level of renewable energy use is insufficient, adding that while the global average for electricity line losses is six percent, Mongolia’s rate stands at 14 percent. He further pointed out that annual fuel imports amounting to 2.2 billion USD, a low number of electric vehicles, and severe air pollution indicate inadequate preparedness for the green transition. 

The Speaker also introduced initiatives aimed at achieving energy independence for herder households, expanding carbon credit mechanisms, and implementing the “Sunny Mongolian Herder” program to support trade with Eurasian countries. He further noted that opportunities have emerged to reduce or exempt taxes on livestock products such as leather, wool and cashmere under a three-year agreement with the Eurasian Economic Union. He highlighted herders’ proposals to participate in carbon markets by improving pasture management and restoring approximately 30 million hectares of land, thereby reducing emissions and generating income through carbon credits. He emphasized the need to establish policy development, measurement, reporting, and verification systems to support this initiative.

Resident Representative of the UNDP in Mongolia Matilda Dimovska delivered welcoming remarks, describing the Parliament’s renewable energy resolution as a historic decision. She emphasized the importance of placing households and communities at the center of energy reform and making clean energy more accessible. She noted UNDP’s ongoing support to Mongolia in policy analysis, investment planning and risk assessment related to air pollution, energy poverty, and climate change. She also introduced a pilot project on renewable energy heating and insulation solutions for ger area households, currently covering 150 households and expected to reach 600 households by 2028.

Minister of Industry and Mineral Resources G.Damdinnyam highlighted the risks posed by Mongolia’s continued dependence on imported oil products to economic production and national security. He stressed the need to diversify energy sources and develop sustainable, environmentally friendly production systems based on domestic resources. He reported that the oil refinery is scheduled to commence operations in 2028 and emphasized the importance of intensifying oil exploration and improving fuel quality standards, including the transition to fuels meeting Euro 5 standards. He also noted that, under Resolution No. 119, plans are underway to install 100,000 solar lights, develop 100 MW solar projects in provinces and soums, and introduce 100,000 electric vehicles.

During the discussion, the governors of Bayankhongor, Bayan-Ulgii, Khentii, Uvs, and Dornod provinces signed a Letter of Expression of Interest with the Ministry of Energy. The document aims to support renewable energy projects through simplified procedures and improve the regulatory and legal framework for their implementation.