Fuel shortage sparks protests in Mongolia www.news.mn

Months of fuel shortages and rising prices have fueled public frustration in Mongolia, prompting hundreds of people to gather at Sukhbaatar Square in the capital, Ulaanbaatar, on Oct. 1 to protest. Cars lined both the eastern and western sides of Sukhbaatar Square as drivers stepped out of their vehicles and stood still in protest. Some repeatedly sounded their horns to express their anger.

The demonstration drew not only drivers but also students, elderly people and representatives of different age groups.

Participants voiced a wide range of grievances. While the fuel shortage was the immediate trigger, many protesters also expressed concern over taxes, rising food prices, increases in electricity, heating and water tariffs, declining household incomes and what they described as excessive government spending. Some demonstrators said the fuel shortage could partly be explained by the international situation, but argued that external factors alone could not justify the current crisis.

Since the shortages began, many drivers have spent nights sleeping in their vehicles or waiting in long queues at filling stations. Others said they had been forced to buy fuel at inflated prices from resellers. Although the government has repeatedly said it is taking all necessary measures to address the situation, prices of everyday consumer goods have continued to rise, while inflation has placed increasing pressure on household finances.

Brown bears kill 162 head of livestock in northern Mongolia www.xinhuanet.com

At least 86 brown bear sightings have been reported in residential areas of Selenge province in northern Mongolia since the beginning of spring, with the animals killing and eating 162 head of livestock, the provincial department of environment said Wednesday.

"These figures are based on reports submitted by nomadic herders. We cannot rule out the possibility that there have been additional incidents that have not been reported or registered," the department said.

In recent months, there have been multiple reports of bears being spotted in or near residential areas in several provinces across Mongolia. In particular, several bear sightings have been reported in the capital, Ulan Bator, in recent days, prompting authorities to urge the public to remain vigilant and take precautions to protect themselves and others from potential risks.

Experts said encounters between bears and livestock, as well as bear sightings in residential areas, have increased in recent years. They cited several contributing factors, including climate change, food shortages in bears' natural habitats, the overexploitation of natural resources, and forest fires.

India's SAIL flies in Mongolian coking coal as it seeks new supplies, sources say www.reuters.com

Steel Authority ​of India (SAIL) (SAIL.NS), opens new tab has airlifted coking coal from Mongolia for the first time, testing the landlocked ‌nation as a potential new supplier as India seeks to reduce its dependence on Australia, two sources said.
The state-backed steelmaker flew in a 1-metric-ton sample earlier this month and will assess whether the coal meets its steelmaking requirements, the sources said, declining ​to be identified because the development has not been made public.

SAIL, one of India's largest steelmakers, ​planned the trial last year, in a move first reported by Reuters.
India, the world's second-largest crude ⁠steel producer after China, imports about 95% of its coking coal needs, with Australia supplying at least ​half. Coking coal accounts for nearly 40% of steel production costs.
The trial is aimed primarily at diversifying supplies, though ​transporting coal from Mongolia to India remains a major challenge, the sources said.

Indian authorities ​have previously said they favour the Russian route because of strategic concerns involving China.
Relations between India and China ​have remained tense since a deadly clash along their disputed Himalayan border in 2020, despite recent steps to improve ties, ‌including the ⁠resumption of direct flights and easier visa procedures for Chinese professionals.
SAIL will decide whether to pursue long-term supplies from Mongolia based on the suitability of the coal, and the cost and feasibility of transporting it, the sources said.
Shipping the coal via Russia would make it significantly more expensive than competing supplies, although its quality is ​superior, a metallurgical coal analyst ​said.
SAIL and Mongolia's Ministry ⁠of Mining and Heavy Industry did not respond to requests for comment.

India and Mongolia agreed, opens new tab last year to work towards securing coking coal and copper supplies for Indian ​companies.
India's coking coal imports are expected to rise 3% to 5% in 2026/27 from ​64 million ⁠tons a year earlier, commodities consultancy BigMint has said, as domestic coal does not fully meet steelmakers' requirements.
Australia is expected to remain India's largest supplier, although imports from Russia, Mozambique and the US are also forecast to increase, analysts ⁠said.
As ​India expands steel production, it will require substantially more coking coal, most ​of which will need to be imported, increasing pressure on global supplies.
Indian steelmakers have raised prices in recent weeks as coking coal costs ​increased and domestic demand revived, Reuters reported earlier this month.

Reporting by Neha Arora. Editing by Mayank Bhardwaj and Mark Potter

Mongolia eyes C919s for national carrier MIAT www.ch-aviation.com

Mongolia is interested in introducing C919s as part of the renewal of its national carrier's fleet. Following talks with COMAC in Shanghai on September 24, 2026, transport minister Borkhuu Delgersaikhan said any introduction of the aircraft into the fleet of MIAT - Mongolian Airlines (OM, Ulaanbaatar) would depend on factors including airworthiness certification, safety, operational suitability. Previously this year, MIAT expressed interest in purchasing ten Airbus jets and acquiring additional Boeings, while also preparing for future network growth to the United States.

Cable car offers small hope for Mongolia's gridlocked capital www.afp.com

Mongolia's capital Ulaanbaatar has long been plagued by notorious traffic jams and suffocating winter smog -- the result of breakneck urban growth and infrastructure that has struggled to keep up.

Developers now hope that a 4.2-kilometre (2.6-mile) cross-river cable car might help on the margins, cutting a three-hour journey to just minutes.

Weary residents, however, have long wished for a more ambitious response to the city's heavy traffic and pollution problems.

"I think (the cable car) might improve things a bit," 68-year-old Narantsetseg Aleksandr told AFP in one of Ulaanbaatar's sprawling northern suburbs.

"For families living up on these -remote hillside areas, cable cars could be very beneficial since they wouldn't have to rely entirely on buses," he said.

Authorities have long touted various plans to reduce pollution and traffic, which sound "effective on paper" but ended up being "mostly talk", he said.

"There isn't much actual work or real tangible progress being made."

For more than a decade, an underground metro system has been touted for the city to tackle congestion -- but work has yet to begin.

For 25-year-old truck driver Enkhbayar Myanganbayar, metro promises always seemed "far beyond realistic expectations" as congestion in the capital has worsened.

"Ever since I was a child, various ministers have promised to build a metro," he told AFP.

"It was obvious from the start that it was untrue."

In contrast, the Tuul River cable car -- spearheaded by French firm Poma with a concessional loan from the French government -- is already under development and expected to be completed by the end of the year, potentially followed by more lines.

"The project's cost is low and construction is very fast compared with a metro," project manager Cecile Broi told AFP.

Mongolia's capital has expanded significantly since the end of the Soviet-allied communist era.

In 1990, it was home to around half a million people. Now, Ulaanbaatar's population exceeds 1.5 million.

While the city centre is nestled in the Tuul River valley, its sprawling suburbs stretch into the surrounding mountainous areas.

The project is a "perfect illustration of a situation where cable transport makes a lot of sense", Broi said.

By car, getting between the line's two stations can take as long as three hours when traffic is at its worst, she said, while a ride on the cable car will take just 12 minutes.

Construction on the electric cable car, which Poma says will be capable of transporting 2,300 passengers per hour, began last March.

The line will soar over a major thoroughfare, as well as the wide Tuul River floodplain and the Trans-Mongolian Railway.

During cold winters, Ulaanbaatar is frequently ranked as one of the world's most polluted cities and regularly exceeds World Health Organization recommendations for air quality.

For 42-year-old resident Erdenejargal Khorolsuren, solutions could not come fast enough.

She told AFP that the city's incessant traffic has negatively impacted her son's education.

Five years ago, when he began attending a school across the city, "he was full of energy and enthusiasm, but over time the long commute exhausted him", she said.

"His motivation to attend school plummeted and he became constantly fatigued and sick with frequent headaches."

Narantsetseg said that air pollution severely affects quality of life, particularly during the frigid winters when residents in the "ger" districts -- named after traditional nomadic dwellings -- burn coal or other solid fuels to heat their homes.

"Schoolchildren cough a lot from the smoke and catch frequent colds... Buying medicine when (they) get sick puts a real financial strain on us," he said.

Broi, the project manager, acknowledged that a single cable car line will not be a panacea for all of Ulaanbaatar's longstanding woes.

"The usual model is to build a cable transport system that... allows the public to discover the technology, understand how it works and become familiar with this mode of transport," she said.

"Of course, the idea afterwards is to build more of them."

From Rome to the Steppe: Raphael and Bernini Masterpieces Make Historic Asian Debut in Mongolia www.montsame.mn

A landmark art exhibition titled “The Wind of the Great Ocean Across the Steppe: Raphael and Bernini” opened Wednesday at the Chinggis Khaan National Museum in Ulaanbaatar, bringing iconic Italian masterpieces to Mongolia for the first time.

Jointly organized by the Chinggis Khaan National Museum of Mongolia and the Borghese Gallery of Rome, the exhibition marks the first time these works are being displayed anywhere in Asia. It features a portrait attributed to High Renaissance master Raphael Sanzio and a small bronze edition of Gian Lorenzo Bernini’s celebrated marble sculpture "Neptune and Triton."

The exhibition explores the concept of power through contrasting artistic expressions. Raphael’s piece conveys strength through composure, symmetry, and inner peace, while Bernini’s work embodies power through fluid motion, physical intensity, and outward energy. The museum’s spatial design guides visitors on a sensory transition from the dramatic dynamism of the Baroque period into the quiet contemplation of the Renaissance.

"We named this exhibition the Wind of the Great Ocean Across the Steppe to symbolize the historic arrival of artistic masterpieces originating from the shores of the great ocean into the vast Mongolian steppes for the first time. That is why these two magnificent Italian works of art are visiting the homeland of nomads today," said Chuluun Sampildondov, Director of the Chinggis Khaan National Museum.

Chuluun noted that despite being established just four years ago, the museum has rapidly expanded its international reach, including an exhibition in Italy earlier this year that showcased works by the 17th-century renowned sculptor and spiritual leader Undur Gegeen Zanabazar.

Presenting these artworks in Asia for the first time, and specifically in Mongolia, is an extraordinary event. This joint project is a tangible result of professional cooperation between the Chinggis Khaan National Museum and the Borghese Gallery, serving as a vivid expression of cultural relations between Mongolia and Italy.

Professor Francesca Cappelletti, Director of the Borghese Gallery, emphasized the emotional depth of the selected pieces. "Artists of that era sought to capture not just physical appearances, but internal human emotions," Professor Cappelletti said, adding that Bernini's 17th-century innovations in movement continue to resonate across time and borders.

Giovanna Piccarreta, Ambassador Extraordinary and Plenipotentiary of Italy to Mongolia, called the exhibition a modern continuation of the legacy of the Silk Road. She noted the initiative stems from bilateral discussions held between the President of Mongolia, Khurelsukh Ukhnaa, and the Prime Minister of Italy, Giorgia Meloni, in December 2025 to deepen cultural ties between the two countries.

"Art remains one of the most effective tools for building cross-border understanding and connecting peoples through shared human values," Ambassador Giovanna Piccarreta said.

The exhibition will remain open to the public through November 1, 2026.

CAREC ministers gather to adopt regional declaration www.ubpost.mn

Ministers and senior officials from the Central Asia Regional Economic Cooperation (CAREC) program’s member countries met in Ulaanbaatar on September 28 for the program’s 25th anniversary Ministerial Conference. It is the centerpiece of a week of events hosted by Mongolia, this year’s CAREC chair, running from September 28 to October 2. The conference was set to produce the Ulaanbaatar Declaration, which reaffirms the CAREC 2030 strategy and lays the groundwork for cooperation toward the CAREC 2050 vision. 

The conference brought together government officials, ministers and high-level representatives of member countries, along with Asian Development Bank (ADB) leadership and representatives of international and regional organizations and development partners. First Deputy Prime Minister and Minister of Economy and Development J.Enkhbayar delivered the opening remarks, and ADB President Masato Kanda gave the keynote address. The conference reviewed 25 years of cooperation and discussed next-generation priorities: implementing CAREC 2030, the post-2030 vision, green and digital economic corridors, private sector participation, regional public goods, and sustainable, resilient and inclusive growth. Bilateral meetings took place between Mongolian government members and ministers from member countries, development partners and international organizations.

The week opened on Monday with a Development Partners’ Dialogue under the theme “Boosting Trade, Tourism, and Regional Competitiveness”, It was jointly organized by the Ministry of Economy and Development, the ADB and the United Nations Development Programme (UNDP). Deputy Minister of Economy and Development S.Davaasuren delivered remarks on the first day’s proceedings. He highlighted that since joining CAREC in 2003, Mongolia has implemented major projects in regional transport connectivity, as well as infrastructure for roads, border crossings, ports, trade and logistics.

Participants discussed trade facilitation, cross-border transport and logistics, customs cooperation, “Single Window” systems, regional value chains and investment. Tourism was singled out as a new growth driver. CAREC members share Silk Road heritage, the history of nomadic and sedentary civilizations, and distinctive landscapes, and could market them as a unified regional brand with joint tourism products. CAREC’s tourism policy identifies clusters that include Mongolia, such as the “Altai,” “Gobi” and “Steppe” zones.

Business Forum opens 

The CAREC Business Forum opens on September 30 and runs through October 1. It is the first time Mongolia has hosted the event. About 400 delegates from 10 countries have registered, representing governments, international organizations, entrepreneurs, investors, chambers of commerce, business associations and development partners. Pre-event trade coverage had put expected attendance at around 250.

CAREC cooperation has focused mainly on intergovernmental dialogue and infrastructure, but the program is shifting toward private sector participation, investment, innovation and business-to-business (B2B) and business-to-government (B2G) collaboration. Today’s sessions, themed “Scaling Up Investment - Accelerating Infrastructure Transformation,” cover clean energy and regional energy connectivity, smart transport and logistics, and value chains for critical minerals and manufacturing.

A memorandum of understanding to establish the CAREC Chamber of Commerce and Industry Alliance (CCA), an initiative of the Ministry of Economy and Development, is to be signed at the opening. Its inaugural meeting is scheduled for Thursday. The alliance would be a permanent mechanism linking chambers of commerce and business organizations across member countries. 

Trade publication Highways Today reported that CAREC’s current work reaches beyond physical infrastructure into digital logistics, border modernization, energy interconnection, critical minerals value chains and the financing structures needed to draw in private capital. It noted that preparations included a senior officials’ meeting in Ulaanbaatar in June, followed by August discussions on border upgrades, a CAREC Digital Corridor and a Critical Minerals to Manufacturing Financing Partnership Facility. The same outlet cautioned that a wide gap remains between presenting a project pipeline and turning those projects into reality.

Mongolia signaled its aims for the chairmanship early. In December 2025, State Secretary of the Ministry of Finance J.Ganbat said Mongolia was committed to working with all members to build a stable, prosperous and investment-friendly region. ADB set out its own direction at last year’s conference in Bishkek on November 20, 2025, where Kanda announced more than 10 billion USD in ADB financing through 2030 and described the vision as a region that is “economically resilient, environmentally sustainable, socially inclusive, and digitally connected”.

Launched in 2001, CAREC unites 11 countries: Afghanistan, Azerbaijan, China, Georgia, Kazakhstan, Kyrgyzstan, Mongolia, Pakistan, Tajikistan, Turkmenistan and Uzbekistan, along with development partners. Between 2001 and 2025, some 57.9 billion USD was invested in 300 regional projects: 19.7 billion USD from the ADB, 26.5 billion USD  from other development partners and 11.7 billion USD from member governments. The money supported transport corridors, energy connectivity, and border crossing, port and trade facilitation infrastructure. The region is home to 1.8 billion people and an economy of about 20.6 trillion USD, or 16.3 percent of global GDP. Intra-regional trade rose from 1.9 percent in 2001 to 4.9 percent in 2024, and mutual investment from 0.5 to 3.3 percent. The share of people living on less than three USD a day fell from 54.5 percent in 2001 to 17 percent in 2025.

U.S. Department of State Releases 2026 Investment Climate Statement for Mongolia www.mn.usembassy.gov

The U.S. Department of State today announced the publication of the 2026 Investment Climate Statements (ICS), a comprehensive annual report analyzing the business and investment environments of more than 170 countries and economies, including Mongolia. The full report is available HERE https://www.state.gov/reports/2026-investment-climate-statements/mongolia/  

Prepared by economic officers at U.S. embassies and consulates around the world, the Investment Climate Statements help U.S. companies make informed decisions when considering overseas markets. The reports identify potential barriers and market distortions, assess risk, and highlight opportunities to support high-quality investment. They are also a resource for host governments seeking to build business environments that ensure fair treatment for U.S. companies and investors.

The Mongolia chapter reflects the U.S. Embassy’s ongoing assessment of the country’s business climate, an issue the Embassy has prioritized in its engagement with the Government of Mongolia and the private sector. Speaking earlier this year to the American Chamber of Commerce in Mongolia, U.S. Ambassador Richard L. Buangan underscored the urgency of translating reform pledges into concrete results:

“Mongolia needs to move past quick fixes and bandage solutions,” he said. “It must deliver a predictable legal environment where contracts are fiercely protected.”

The Embassy continues to work closely with the American Chamber of Commerce in Mongolia and other stakeholders to advocate for a transparent, predictable, and fair investment climate that benefits both Mongolian and American businesses.

Please see the executive summary below.

EXECUTIVE SUMMARY

Mongolia’s government and Parliament delivered no substantial improvement to the investment climate in 2025. While this frontier market continues to offer potentially lucrative opportunities in the natural resource sector, caution is warranted due to:

Vulnerability to external economic and financial shocks

Ineffective dispute resolution

Lack of input from stakeholders during rulemaking and

Increased risk of expropriation

Investing in such potentially lucrative but politically sensitive sectors as mining and energy carries substantial political risks. More positively, Mongolia imposes few market-access barriers, and investors face few investment restrictions, enjoying mostly unfettered market access. Franchises such as fast food and convenience stores have outperformed expectations, suggesting that investors can bring successful international business models to Mongolia. The agricultural and livestock sectors also show strong promise. Mongolia attracts investor attention but has trouble converting interest into investment. Unless and until Mongolia embraces a stable business environment that transparently creates and predictably implements laws and regulations, investors may find Mongolia too risky and opt for more competitive countries. Businesses face substantial and unpredictable regulatory burdens at every level and state that officials across ministries and agencies routinely contravene existing laws and regulations. Investors cite long delays obtaining court judgments, followed by equally long delays enforcing decisions, and report that such administrative bodies as the General Tax Authority are so chronically unable and unwilling to resolve disputes that their behavior is an indirect expropriation risk. Investors are particularly concerned about a tax process that effectively lets officials issue excessive, confiscatory tax assessments to coerce settlements. The perception that the government favors its own state-owned entities over private sector companies discourages existing investors from expanding, and new investors from coming. Finally, Mongolia passed a 2024 package of laws aimed at reestablishing its sovereign wealth funds by, among other steps, limiting each private sector owner to no more than 34 percent of mining assets designated by Parliament as strategic deposits and requiring private owners to transfer no less than 34 percent to the state without compensation. Investors consider these requirements expropriatory and fear the government could apply them to all mining projects and potentially to sectors outside resource extraction. Investors have asked government and legislative leaders to amend these provisions while ensuring a balanced sharing of mining benefits, including revenues. Businesses and investors state that the government’s public demands for 60 percent of all mining revenues, if enacted into law, would drive exploration and mining entities away from Mongolia. In 2026, Parliament passed legislation to streamline permitting and licensing processes and remove other bureaucratic burdens. However, these laudable efforts come without any commitment to improve implementation, making government and Parliament actions more symbolic than practical.

Cable Car Transport to Be Commissioned on December 15 www.montsame.mn

 The "Cable Car Transport" project is being implemented to diversify public transportation in Ulaanbaatar, improve service standards, increase accessibility, and reduce traffic congestion.

Construction and assembly work for the project is fully complete, with overall progress currently reaching 90 percent. The cable car line is scheduled to open on December 15. Running along the Yarmag–Kharkhorin route, the 4.2-kilometer system with two stations will transport 2,320 passengers per hour using 98 cabins.

Munkhbayasgalan B., Project Manager at Monnis Engineering, stated, "The mechanical assembly of the cable car transport is fully finished. Safety testing and calibration are currently underway. Under our subcontracting agreement with France's Poma Group, our company is executing its assigned work on schedule. By December 15, the cable car will be ready for public use. A team of 56 personnel is currently working on-site."

Additionally, 48 rules and regulations necessary for starting passenger operations have been received from the main contractor, the Poma Group of France, and translated into Mongolian.

Japan, Mongolia agree on airport, energy cooperation www.nhk.or.jp

The leaders of Japan and Mongolia have agreed on support for the expansion of Chinggis Khaan International Airport near the Mongolian capital and to cooperate in the field of energy.

Japanese Prime Minister Takaichi Sanae met with her Mongolian counterpart Nyam-Osor Uchral at the Prime Minister's Office in Tokyo on Tuesday.

At the outset of the summit, Takaichi said Japan will continue to support Mongolia's freedom to decide for itself and resilience under the updated "Free and Open Indo-Pacific" vision as a peace-loving nation as well as Mongolia's most important "third neighbor."

The leaders have agreed that Japan will provide assistance through the yen loan to expand the international airport near Ulaanbaatar. They also concurred that the two countries will actively work together in the fields of oil reserves and renewable energy, in light of Mongolia's dependence on Russia for oil products.

Both sides affirmed that they will advance discussions on cooperation in other fields, including security and artificial intelligence. They also confirmed that the Japan External Trade Organization, or JETRO, will work to open a Mongolian office.

Additionally, Takaichi expressed her gratitude for Mongolia's understanding and cooperation on the abduction issue of Japanese nationals, as the country has friendly ties with North Korea.