Events
Name | organizer | Where |
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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK | MBCCI | London UK Goodman LLC |
NEWS

39 Mongolian Students to Study in Germany Under “President's Scholar - 2100” Program www.montsame.mn
The Ministry of Education has reported that, starting from the 2025–2026 academic year, 39 students will study in the Federal Republic of Germany under the "President's Scholar - 2100" program, initiated by President of Mongolia Khurelsukh Ukhnaa.
Ambassador of the Federal Republic of Germany to Mongolia Helmut Rudolf Kulitz and Foreign Policy Advisor to President of Mongolia Odbayar Erdenetsogt received the students and wished them academic success in their studies abroad.
The students will pursue bachelor’s degrees in the German language in fields that are in high demand in Mongolia. Upon completion of their studies, they are required to return and work in their home country for a minimum of five years.
The Government is working to send 296 students abroad this year to study in the Federal Republic of Germany, the People's Republic of China, the Republic of Hungary, the Republic of Türkiye, Japan, and the United Kingdom of Great Britain and Northern Ireland.

Mongolian flag carrier to start non-stop flights between Singapore and Ulaanbaatar from Nov 4 www.straitstimes.com
SINGAPORE – Travellers will be able to fly directly between Singapore and the Mongolian capital of Ulaanbaatar from Nov 4, with the launch of a non-stop service between the two cities by MIAT Mongolian Airlines.
The state-owned national carrier announced the new route on social media on July 22, adding that the flights will operate twice a week – on Tuesdays and Saturdays – strengthening the airline’s network.
The flight from Singapore will leave at 7.25pm and arrive in Mongolia at 2.55am. The return flight from Ulaanbaatar will leave at 10.35am local time and arrive in Singapore at 6pm.
Tickets are on sale, and checks by The Straits Times show that economy-class seats are priced as low as $385.60. However, the flights are available only during winter until March 26, 2026, for now.
According to its website, MIAT will use a Boeing 767 plane for the 7½-hour flight. The twin-aisle jet has 15 business-class seats and 237 seats in economy.
Booking information indicates that the airline will operate out of Changi Airport Terminal 1, but ST understands that this has not yet been finalised.
MIAT previously flew between Singapore and Ulaanbaatar in 2014 via Beijing, but the service was short-lived.
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When China sneezes, Mongolia catches a cold www.intellinews.com
The US–China trade war has slowed China’s economic outlook, with direct knock-on effects for Mongolia.
Although China’s economy grew by 5.3% y/y in the first half of 2025, several key indicators showed signs of strain. Imports fell by 2.7%, signalling a weakening of domestic demand, particularly for raw materials. Coal imports dropped 11.1% to 221.7mn tonnes, while real estate investment plunged 11.2% amid continued housing market weakness.
The slowdown in construction has reduced demand for key raw material imports, including coal and metals from Mongolia. Private investment declined by 0.6% and foreign direct investment fell 13.2% compared to the same period in 2024. Profits for large industrial enterprises also slipped 1.1%, suggesting fewer new construction projects in the near future.
Mongolia's economic fortunes have boomed in recent years thanks to Chinese demand for its natural resources, but, particularly where coal is concerned, the boom times could be over (Credit: US Library of Congress, public domain).
This contraction in Chinese demand poses a serious risk to resource-exporting Mongolia, which relies heavily on China as its primary market.
Mongolia's economic structure represents one of the world's most dangerous concentrations of risk. With over 90% of exports destined for China, and mining accounting for 92.1% of total exports, 31.6% of state revenue and 28.7% of GDP, Mongolia has essentially become an economic satellite of its southern giant neighbour. This dependency means that any downturn in Chinese industrial activity translates almost immediately into Mongolian economic distress.
Even worse, not only have export volumes decreased, but coal prices have also fallen. Coal dropped to $110.40 per tonne on July 18, 18.28% lower than a year ago.
Going into 2025, the World Bank projected Mongolia’s economy would grow by 6.3%, driven by rising copper production and a gradual agricultural recovery after a harsh winter dzud (the deadly freeze particular to Mongolia) that killed millions of livestock. However, early indicators suggest a significant deterioration. The country’s 1Q25 growth dropped to 2.4%, the weakest reading seen in three years.
Overall, exports fell by 17.2% y/y, while the manufacturing expansion slowed across all key sectors.
Mongolia is heavily dependent on imports from China and to a lesser extent from Europe and Russia, for finished goods and daily necessities, including shampoo, vegetables and many food items. As a result, imports outpaced exports, with Mongolia recording a trade deficit of $521.9mn in January, and inflation climbing to 9.1% by March.
The medium-term outlook (2026–2027) forecasts stable growth averaging 5.2%, though consumption is expected to slow due to weaker income growth and persistent inflation.
Household debt is also rising rapidly, particularly in urban areas, prompting authorities to increase reserve requirements to 11% and 16% to contain risks.
Mongolia's external debt reached $37.1bn in 4Q24. That represented 157.4% of GDP. With the country’s population standing at around 3.5mn, the debt translates to approximately $10,600 per capita, one of the world's highest ratios.
Despite Mongolia’s well-executed external debt refinancing and awarded credit rating upgrades, the IMF warns that Mongolia's external vulnerabilities, high external debt and weak external buffers leave it vulnerable to external shocks.
Currently, the central bank, the Bank of Mongolia, only has enough foreign exchange reserves to cover 3.3 months of imports. At the same time, foreign debt has to be serviced in US dollars, and the main source of dollars for Mongolia is exports. However, with exports declining, there will be fewer dollars available to pay off the debt. Compounding the problem, the Mongolian currency, the tughrik, or MNT, is losing value against the dollar, making it increasingly expensive to service the interest on Mongolia’s foreign debt.
In an attempt to mitigate the financial pressures and diversify export markets, Mongolia signed a draft three-year trade agreement with the Russia-led Eurasian Economic Union (EEU) in March. The EEU represents a $14.5bn market comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, and this partnership is part of Mongolia's broader strategy to reduce economic dependence on China and diversify beyond mining.
The deal covers 375 goods, allowing Mongolia to export primarily agricultural and animal-based products while importing fruits, chemicals and manufacturing components.
The EEU initiative aligns with Mongolia’s Vision 2050 strategy, which aims to transform the country into a leading Asian economy by improving quality of life, boosting economic growth and shifting away from raw material exports. The agriculture sector, despite employing a large share of the population, contributes minimally to both GDP and trade. Expanding agricultural exports is seen as a key step toward value-added production and economic resilience.
However, political instability poses challenges to long-term economic planning. In June, Prime Minister Oyun-Erdene Luvsannamsrai and his coalition government were ousted following youth-led protests demanding transparency. While internal party dynamics played a role, the unrest highlighted growing public frustration with corruption and elite disconnect.
The ruling Mongolian People’s Party (MPP) now controls both parliament and the executive branch, raising concerns over accountability. The government’s collapse may delay industrial projects, including mineral processing facilities, and spook foreign investors.
Still, the EEU deal presents a strategic opportunity for Mongolia to broaden its trading partners, reduce its reliance on China amid global trade realignments, and move toward a more diversified, export-driven economy. However, it is not a complete solution. The overall size of the EEU market is not sufficient to compensate for the potential loss of China as a major export partner or a severe decline in Chinese imports.
BY
Antonio Graceffo, PhD, China-MBA, is an economist and analyst. He has spent over 20 years living in Asia, including seven years in China, three in Taiwan and four in Mongolia. He conducted post-doctoral studies in international trade at the School of Economics, Shanghai University, and holds a PhD from Shanghai University of Sport and a China-MBA from Shanghai Jiaotong University. Antonio has authored seven books on Asia, with a focus on the Chinese economy
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Mongolia–Japan International Business Innovation Forum to Be Held on August 18 www.montsame.mn
The Japan International Cooperation Agency (JICA) will organize the “Mongolia–Japan International Business Innovation Forum” under the theme “Creating the Future Together” on August 18, 2025, at the Mongolian National Chamber of Commerce and Industry (MNCCI).
The forum, aimed at strengthening bilateral investment and human resource development, advancing technological innovation and agricultural machinery, and expanding new business opportunities between Mongolia and Japan, will be organized for the fourth year. The event annually draws over 400 participants from Mongolia and more than 150 delegates and business representatives from Japan.
The forum will serve as a platform for domestic entrepreneurs to present their businesses, establish connections with Japanese and Mongolian partners, and explore potential cooperation.

Greenhouse Propagation Technology for Coniferous Trees Under Testing www.montsame.mn
Minister of Environment and Climate Change Batbaatar Bat has worked at the ‘Green Wall’ tree nursery site in Uvurkhangai aimag.
The ‘Green Wall’ Project, being jointly implemented by the Government of Mongolia and the Government of the Republic of Korea since 2007, is a long-term initiative to combat climate change. During its first phase from 2007 to 2016, a total of 3,046 hectares of land were afforested. In addition to Uvurkhangai aimag, dedicated project units were established in Umnugobi, Tuv, Khuvsgul, and Selenge aimags to carry out afforestation activities.
At the nursery site, afforestation and tree propagation are being carried out, alongside pilot testing of greenhouse propagation technology for coniferous species adapted to Mongolia’s climate. The greenhouse method has proven to produce saplings up to eight times higher in quality than traditional open-field propagation.
Beyond tree cultivation, the site has also entered a subsequent project phase over the past three years aimed at domesticating medicinal plants and selected varieties of vegetables.
To ensure risk-free, effective, and sustainable implementation of the project, a complex of facilities has been established in Uvurkhangai aimag. The facilities include a training and information center, a warning tower capable of detecting wildfire threats within a 40-kilometer radius, a smart irrigation system, and a soil and fertilizer storage.
Moreover, Korean experts have been conducting training and research, as well as preparing local professionals, creating employment opportunities in the region.
The ‘Green Wall’ project, implemented through intergovernmental cooperation, is scheduled to transfer the developed project sites to the Mongolian side by 2026. Project managers stressed to Minister Batbaatar that the active involvement of the Ministry is critical to ensure the long-term sustainability of the initiative.

Direct flights from Korea to Mongolia's Khuvsgul launched www.akipress.com
Direct charter flights from Jeonju (South Korea) to Murun district of Khuvsgul province have been launched. The first international flight landed today at Murun airport.
In particular, the Air-E190 aircraft of Hunnu Air, flying on the route Jeonju-Murun, successfully landed at Murun airport today at 9:46 am.
The project was initiated by the company "Chandman Travel". The company ordered the national air carrier Hunnu Air to perform a direct international flight from Jeonju (Republic of Korea) to Murun. The flight will be carried out on a 98-seat aircraft, and the flight duration between the two countries will be 4 hours 10 minutes.
8 killed, 41 injured in road accidents in Mongolia over Naadam festival www.xinhuanet.com
At least eight people were killed and 41 others got injured in road accidents in Mongolia during the holiday of the traditional Naadam Festival, according to the country's National Police Agency (NPA) on Tuesday.
During the July 10-16 period, over-speeding, unpermitted overtaking, and driver fatigue were the main causes of the accidents, the NPA said in a statement.
Road accidents in Mongolia happen more often during summer and vacation seasons due to a dramatically increasing number of people who travel to the countryside, said the NPA, urging drivers to strictly comply with road traffic regulations to protect themselves and their loved ones.
In 2024, a total of 21,485 road traffic accidents were recorded across Mongolia, killing 83 people and injuring 1,528 others, according to the traffic police department.

Consolidating Parliamentary Democracy in Mongolia www.verfassungsblog.de
In May 2025, Mongolia witnessed peaceful youth-led protests in Sukhbaatar Square reacting to the Government’s handling of corruption and a perceived lack of transparency. The demonstration led to the Government’s resignation after a failed vote of confidence. Such governmental crises are not unprecedented in Mongolia, but the reaction to it is: the current political episode stands for an emerging constitutional culture in which civil society is reclaiming constitutional mechanisms for a more participatory and responsive democratic system.
Mongolia’s constitutional system
Mongolia’s current political regime emerged from the peaceful democratic revolution that unfolded at the end of the 1980s, when the new generations mobilized to demand change. Following the 1924 Constitution, which was the first pro-communist constitution proclaiming the independence of Mongolia – postulating that Mongolia is a free country and would remain independent from other powers – the country was ruled under the socialist constitutions of 1940 and 1960. This transition culminated in the 1992 Constitution, which scholars often describe as representing a move towards liberal democracy, establishing a parliamentary republic and the protection of fundamental rights. Within the new regime, the government is politically accountable to Parliament and the President is directly elected. The system could thus be defined as a hybrid semi-presidential regime. Mongolian scholars, however, emphasize its predominantly parliamentary nature. The President holds limited autonomous powers, mostly of influence rather than of decision-making, while real governing authority rests with the State Great Khural (unicameral Parliament) and the Government of Mongolia. Notably, the lack of dissolution power – such as the one held by the French President – renders the Mongolian President “somewhat weaker than the French” (p. 67).
Under Articles 38 and 39 of the 1992 Mongolian Constitution, the executive branch is composed of a Prime Minister and a cabinet, forming the Government of Mongolia. The Prime Minister is nominated by the political party (or coalition) that holds the majority of seats in the State Great Khural following general elections. While the Constitution lays out the broader framework, the nomination process is also governed by the Law on Government (Article 4.1). Although the Constitution allows for an alternative procedure in case no majority is reached (in Article 39 par. 2), this mechanism has been rarely activated. For the most part, the Government has emerged from either a clear majority or a post-electoral coalition.
The Prime Ministerial candidate must be proposed to the State Great Khural within five days of legislative elections, following consultation with the President. Once appointed, the Prime Minister then proposes the remaining cabinet members, again in consultation with the President. This constitutionally mandated collaboration between the President and the Prime Minister can prove complex, especially in cases of cohabitation – when the two officeholders belong to different parties. Unlike France, where the three experiences of cohabitation have not led to a deadlock, in Mongolia such situations have proven more complicated. However, if disagreements persist, the Great Khural has the authority to resolve the deadlock.
Since 1992, Mongolia’s political life has been dominated by two major parties – the Mongolian People’s Party (MPP) and the Democratic Party (DP). The MPP, originally the Mongolian Revolutionary Party, later split into two factions, with the MPP remaining dominant in Parliament today. The DP, formed out of the 1990s democratic movement, serves as the main opposition, alongside a growing number of smaller parties that are progressively gaining seats in Parliament. Political parties in Mongolia are powerful and highly centralized, making it difficult for the general population to gain access to party membership and influence. In 2023, a constitutional amendment approved by a large majority (62-6) increased the number of parliamentary seats from 76 to 126 to overcome legislative deadlock and to improve pluralistic representation, introducing a new electoral system, combining majoritarian and proportional elements. Though some criticize the enlarged parliament as more costly, proponents and constitutional law specialists argue it broadens access to political participation. Subsequently, debates on reforming the Law on Political Parties have gained momentum, until it was amended in 2024. An OSCE’s opinion acknowledged significant improvements, particularly regarding the creation of new political parties and access to existing ones.
Constitutional accountability in action
After the resignation of Ukhnaa Khurelsukh, who later became President, Luvsannamsrain Oyun-Erdene was appointed Prime Minister in 2021. After the MPP won the 2024 parliamentary election, he was able to continue his tenure.
A prominent figure in national politics, Oyun-Erdene had previously served as Head of the Cabinet Secretariat. He holds a strong academic profile, including legal training and studies at Harvard University, and is the youngest head of government in recent Mongolian history. Upon taking office, he formed a cabinet composed largely of young, U.S.-educated professionals, signaling a generational shift in Mongolia’s political leadership. In contrast to his predecessors, many of whom had been shaped by the socialist era, Oyun-Erdene represented a new, internationally oriented generation – an image that attracted attention from foreign media.
Between May 13 and May 27, 2025, Mongolia witnessed youth-led protests in Sukhbaatar Square. The demonstrators, largely from younger generations, expressed deep frustration with the Government’s handling of corruption and a perceived lack of transparency. These protests revived an old public outcry over earlier scandals – in particular, unresolved cases from 2023 involving corruption in the coal mining industry and abuse of resources from national funds. Those protests were violent, culminating in an attempt to occupy the Parliament building and force the cabinet to resign. The attempt ultimately failed. Despite promises made by the government at the time – which involved the Prime Minister as well – to bring those responsible of corruption to justice, progress stalled.
By contrast, the 2025 protests were entirely peaceful: there were no instances of violence or aggression, neither from the protesters nor from the police. The immediate trigger for the recent protests was a scandal involving the Prime Minister’s son, whose luxury lifestyle sparked widespread outrage. Protesters demanded that the Prime Minister clarify the source of the wealth, raising questions about financial impropriety. While some local media praised the civic engagement and peaceful nature of the protests, others noted signs of political instrumentalization, as the scandal unfolded amid rising tensions within the ruling coalition over the budget, anti-corruption efforts, and internal party divisions.
A vote of confidence
The mounting pressure from both protesters and coalition members led the Prime Minister to ask for a vote of confidence, according to Article 44 of the Constitution. The Democratic Party – part of the broad governing coalition that also included smaller parties – chose to protest the process, with its members walking out of the parliamentary chamber prior to the vote. The vote was held on June 2, 2025: out of 82 votes cast, 44 supported the Prime Minister (53.6%) while 38 voted against. However, the confidence motion required the majority of all 126 members of the Great Khural, at least 64 votes in favor, to pass. As this threshold was not met, Speaker D. Amarbayasgalan announced that Prime Minister Oyun-Erdene was officially dismissed from office. On June 13, 2025, Gombojavyn Zandanshatar was appointed Prime Minister by the President.
In Mongolia’s constitutional system, the popularly elected President is expected to embody the unity of the nation. As head of state and commander-in-chief, the President has significant constitutional prerogatives but is not meant to intervene directly in parliamentary confidence votes. In the 2025 political crisis, President Ukhnaa Khurelsukh – a former Prime Minister with extensive parliamentary experience – maintained a neutral stance. Rather than siding with any political faction, he delivered a speech before Parliament emphasizing the importance of resolving the crisis through democratic institutions, not in the streets. He called on lawmakers to respond to public discontent with a vote of confidence, framing the protests as an opportunity to strengthen democratic accountability rather than disrupt institutional order.
With the departure of the Democratic Party from the governing coalition, Mongolia now has a more clearly defined parliamentary opposition. Previously, the broad coalition government had drawn criticism for weakening parliamentary oversight and blurring the lines between majority and opposition. While some smaller parties remain represented in the cabinet, the Democratic Party – now functioning fully as an opposition force – has reestablished a more balanced institutional dynamic. This development strengthens democratic accountability by restoring the essential role of parliamentary scrutiny in government affairs.
Mongolia’s emerging constitutional culture
Mongolia’s political culture today is shaped by a unique blend of influences. Decades of Soviet collaboration left a legacy of Western institutional thinking, while Buddhist traditions and recent Asian models (especially Japan and South Korea) have introduced new social expectations. The growing role of social media – especially among young, globally connected citizens – has increased public scrutiny and demands for transparency. For example, scandals tied to personal displays of wealth, reminiscent of controversies in neighboring countries, now resonate strongly with Mongolian youth.
The 2025 episode reflects a broader shift in Mongolian constitutional culture. While scandals are not new, what was different in this case was the institutional response: both popular protests and the use of constitutional mechanisms to challenge or remove a government stand in stark contrast to the authoritarian practices of the socialist regime. Although some interpreted the events through a partisan lens, especially within internal party divisions, the process itself followed constitutional norms.
The involvement of civil society in the recent resignation of the government illustrates the growing public interest in the Constitution and its mechanisms – an interest largely driven by the perception of widespread political corruption. As Mongolia does not have direct democracy mechanisms like referenda or recall mechanisms for government dismissal, parliamentary votes remain the primary tool for expressing democratic accountability. While cabinets often change – sometimes even due to policy disagreements, as during the COVID-19 crisis –, the increasing activism of young citizens and their ability to mobilize around corruption cases mark a new and more participatory phase of Mongolian democracy.
The active role of civil society in reclaiming the Constitution is also evidenced by the increasing — and, in some cases, excessive — use of actio popularis before the Constitutional Court. This legal avenue has become a crucial outlet for frustrations that cannot be addressed through conventional democratic processes. The Constitutional Court is more and more active, and a reform of its functioning is currently being examined in Parliament. A few months ago, at the request of the President of the Court, the Venice Commission published an opinion on the Draft Law on the Constitutional Court.
A new constitutional culture is thus emerging in Mongolia, one marked by a growing reliance on the Court, which is increasingly perceived as the only effective check on the entrenched power of political parties. In this context, peaceful popular protests have become also an essential means for citizens to express their demands and influence parliamentary behavior. The political transition of 2025 stands as a clear illustration of this new dynamic.
By Eleonora Bottini
Eleonora Bottini is a Professor of Public Law at the University of Caen Normandie.
Antonia Baraggia
Antonia Baraggia is an Associate Professor of Comparative Public Law at the State University of Milan, Italy.
Uyanga Myagmar
Uyanga Myagmar is Associate Professor of law at the National University of Mongolia.
Nicoletta Perlo
Nicoletta Perlo is a Professor of Public Law at the University of Burgundy, France.
Authors’ note: This article was written in the framework of the existing collaboration between the University of Milan, the University of Caen and the National University of Mongolia (Erasmus+ Capacity Building in Higher Education project “COMP-LAW”). We would like to thank Geser Ganbaatar for his comments on an earlier draft.

Mongolia’s New Challenge: Illegal Drugs www.thediplomat.com
Two weeks ago, the Mongolian public was shocked by a video showing the violent assault of a civilian by four men who were believed to be under the influence of illegal drugs. The case is now being investigated by police. The incident touches on larger issues in Mongolian society today, including inequality, corruption, and the fight against nontraditional threats including drug trafficking and usage.
On the night of July 18, a fight broke out outside of a night club. The fight involved men with ties to executives at three Mongolian firms: Gobi Cashmere, Tavan Bogd Group, and Erel Group. The assault was so severe that the victim was sent abroad for emergency care. The altercation was caught on video and quickly went viral on social media, stoking anger over the perception that business elites were taking advantage of their wealth.
Three of the four alleged perpetrators were arrested and are being held for 30 days, pending formal charges. The fourth suspect – Amarsaikhan Baatarsaikhan, the CEO of Gobi Cashmere and the son of the CEO of Tavan Bogd – fled Mongolia, most likely to avoid drug tests and charges relating to the incident.
It’s been reported that Amarsaikhan returned to Mongolia on July 27, but the father of the victim announced that Amarsaikhan had not returned and demanded that he be held responsible for his actions.
Drug trafficking (with the intent to sell or consume) and usage is illegal in Mongolia. Current law stipulates a five- to 12-year prison sentence. In 2024, the Mongolian police registered 254 cases relating to substance abuse and illicit drugs, involving 197 males and 27 females, ages ranging in age from 13 to 56 years old.
Mongolia is facing a new challenge for its young population. The country is a party to the 1988 U.N. Drug Convention and has implemented a national program to combat drug addiction and related crimes, as well as raise public awareness. Mongolia is actively engaged in combating narcotics trafficking and use through legislation, national programs, and international cooperation. However, challenges remain, especially regarding enforcement, border control, and a need for a more comprehensive approach to drug trafficking and usage.
Given Mongolia’s landlocked position between Russia and China, it doesn’t require Sherlock Holmes to locate the transit hubs. While Russia and China remain world’s largest drug markets, the original sources of these trafficked drugs are as diverse as Thailand, South Korea, Turkiye, Malaysia, Malawi, and Czechia.
The usage of illicit drugs and especially synthetic drugs has consistently grown in Mongolia. According to the Global Initiative Against Organized Crime, methamphetamine, primarily coming in from China, poses the most significant drug-related challenge in Mongolia. In recent years, meth labs have also been dismantled in Mongolia itself.
In the last several years, more people have been arrested at the Mongolian border for drug smuggling. In June, a Mongolian airline passenger was caught with 181.8 grams of an unspecified illegal substance hidden in her body. She had been on a direct flight from Istanbul to Ulaanbaatar. Multiple cases have evidenced Turkiye as a one source of methamphetamine and cocaine coming into Mongolia.
While combating drug related crimes at home, Mongolia is seeking international cooperation in its efforts. In May 2024, Mongolia and the U.N. Office for Drug and Crimes launched an initiative to combat transnational organized crime, including drug trafficking. South Korea has also cooperated with Mongolia’s capacity building in forensics and drug crime.
As for border security and screening, as comprehensive strategic partners, China and Russia will need to step up their cooperation. Following the recent cases, Mongolia’s Deputy Minister of Internal Affairs Altangerel paid a working visit to Russia and met with Russian Minister of Internal Affairs Vladimir Kolokoltsev. One of the topics under discussion was the possibility of having Moscow oversee and train the police force in its effort in drug law enforcement.
In 2017, Mongolia and China agreed to cooperate in combating drug trafficking. But given the current escalation of drug-related cases, Beijing and Ulaanbaatar need to implement new policies. In June of this year, the Mongolian Embassy to China announced that more and more Mongolian citizens are being arrested in China due to attempted drug trafficking.
Drug trafficking cases have even impacted the Mongolian diplomatic community. In 2019, two Mongolian diplomats were arrested in Germany after a routine check resulted in the discovery of 70 kilograms of heroin in a vehicle with diplomatic plates. The Foreign Ministry and Mongolia’s General Intelligence Agency quickly acted, but ultimately no legal actions were taken against the accused, other than losing diplomatic privilege and being barred from serving in the government.
Moreover, there are indications that some drug traffickers are involved in larger networks in Asia. China lists the Golden Triangle – which spans over Thailand, Laos, and Myanmar – as a primary source of drug trafficking, from which drugs make their way to China and then on to Mongolia.
Whatever the source of the drug shipments, Mongolia’s border security and screenings are its first line of defense. Cities along the border with China and Russia are vulnerable, as thousands of Mongolians and foreigner travel through.
Over the last decade, the number of cases involving both drug smuggling and drug use have skyrocketed, from just 62 in 2014 to 405 in 2024. These numbers are expected to rise another 47 percent by 2030.
Worryingly, 86.6 percent of drug-related arrests involve young people between the ages of 13 and 35. Government officials have previously warned that Mongolia has moved from a drug transit hub to a consumer hub.
In Mongolia’s larger effort to combat drug trafficking, introducing modern technologies, screenings, and K9 support will be imperative. Allocation of such financial and law enforcement resources will also be crucial.
On July 24, Mongolia’s new prime minister, Zandanshatar Gombojav, urged the authorities to regularly patrol streets for safety and public order, and called on the legislature to finalize and present the revised draft laws on trafficking illicit drugs. The Mongolian government is planning to establish an independent agency to combat drug trafficking. Parliament member Amgalanbaatar Ochirbat also presented a proposed revision to the Law on Narcotic Drugs and Psychotropic Substances, which will likely included strict penalties.
Minister of Internal Affairs Monkhbaatar Lkhagva also instructed police authorities to conduct anti-drug raids.
On the weekend of July 25-27, multiple night club and bars were raided. In the span of those two days, 1,043 people tested positive for having taken some sort of an illicit drug.
As Mongolia seeks to boost its tourism industry, the recent raids also serve as a clear warning for foreign tourists. If caught carrying or using recreational drugs in the country, foreigners could face up to 12 years in prison.
Mongolia’s increasing exposure to drugs and illicit activities carries its own socioeconomic risk. However, it also intersects with persistent questions about inequality, the lavish wealth of Mongolia’s elites, and the potential to use corrupt means to shield themselves from legal accountability. High profile cases have involved former President Khaltmaa Battulga’s son, a former health minister, and the son of a supreme justice, s well as the children of CEOs implicated in the latest assault. To the Mongolia public, the preferential treatment given to these elites is a clear sign of corruption.
These issues raise a major warning for lawmakers and decisionmakers. Despite the government’s effort to establish a drug enforcement agency, with corruption upending judicial procedures, cynicism among the public remain high.
By Bolor Lkhaajav

President of Mongolia Partially Vetoes Parliamentary Resolution on the Implementation of “Gold-3” National Campaign www.montsame.mn
President of Mongolia Khurelsukh Ukhnaa has partially vetoed Resolution No. 85 of the State Great Khural (Parliament) on the Implementation of the “Gold-3” National Campaign.
The veto is based on two main grounds: the need to pursue a policy of increasing state special protected areas and the importance of aligning the Resolution with the principles of the Constitution of Mongolia.
Clause 5 of the 2025 Resolution No. 85 of the State Great Khural instructs the Government to urgently submit a draft amendment to the 2020 Resolutions No. 46 and 47, in order to bring primary gold deposits into economic circulation. However, those 2020 resolutions had designated certain lands as protected areas and adjusted boundary lines to expand special protections. The President warned that modifying these previous decisions to bring primary gold deposits into economic circulation would undermine legal protections and potentially shrink the nation’s protected lands.
The President stressed that while it is important to increase the National Wealth Fund, this must not come at the cost of reducing special protected areas, which are key to ecological balance and national security. Mongolia's state policy aims to protect areas of unique natural, scientific, historical, and ecological importance for current and future generations to live in a healthy and safe environment. President Khurelsukh also pointed to the National Security Concept of Mongolia, which identifies environmental protection, including forests, water resources, and biodiversity, particularly combating desertification, as a component of national security.
In addition, Clause 3 of the Resolution states that the resolution becomes effective from the date the Amendment Law to the 2025 State Budget Law takes effect. The President noted this could infringe on his constitutional right to veto, as decisions must be made within five working days of receiving a law.
Therefore, the President called for strict adherence to the principle of increasing state special protected areas and ensuring full compliance with the Constitution.
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