1 14TH MBD MISSION FOR MBCC'S "DOING BUSINESS WITH MONGOLIA SEMINAR & CHRISTMAS RECEPTION" AND BUSINESS PROGRAM DEC 08- 14. 2025 LONDON, UK WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2025/09/16      2 IMF WRAPS UP 2025 ARTICLE IV TALKS WITH MONGOLIA WWW.IMF.ORG PUBLISHED:2025/09/16      3 POSCO INTERNATIONAL TO LAUNCH WASTEWATER HEAT DISTRICT HEATING PROJECT IN MONGOLIA WWW.CM.ASIAE.CO.KR  PUBLISHED:2025/09/16      4 MONGOLIA'S EXTERNAL DEBT UP 12.7 PCT IN Q2 2025 WWW.NEWS.AZ PUBLISHED:2025/09/16      5 2025 AUTUMN SESSION OF THE STATE GREAT KHURAL COMMENCES WITH STRUCTURAL REFORMS WWW.MONTSAME.MN PUBLISHED:2025/09/16      6 MONGOLIA SURPASSES 617,000 TOURIST ARRIVALS BY MID-SEPTEMBER 2025 WWW.MONTSAME.MN PUBLISHED:2025/09/16      7 ODD-EVEN TRAFFIC RESTRICTION CONCLUDES WWW.UBPOST.MN PUBLISHED:2025/09/15      8 MMC ANNOUNCES FIRST GOLD POUR COMPLETED AT THE BAYAN KHUNDII MINE IN MONGOLIA WWW.SG.FINANCE.YAHOO.COM  PUBLISHED:2025/09/15      9 MKE LAUNCHES CARTRIDGE PRODUCTION LINE IN MONGOLIA WWW.RAILLYNEWS.COM  PUBLISHED:2025/09/15      10 MONGOLIA’S LARGEST MINING EVENT HIGHLIGHTS INVESTMENT AND RESPONSIBLE MINING WWW.MONTSAME.MN PUBLISHED:2025/09/14      14 ДЭХЬ УДААГИЙН MBCCI’S “ DOING BUSINESS WITH MONGOLIA SEMINAR & CHRISTMAS RECEPTION” B2B NETWORKING БОЛОН БИЗНЕС ХӨТӨЛБӨР 2025 ОНЫ 12 САРЫН 08 -13 ЛОНДОН ХОТ, ИХ БРИТАНИ WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2025/09/16     ЭДИЙН ЗАСГИЙН ТӨРӨЛЖИЛТИЙН ИНДЕКСЭЭР МОНГОЛ УЛС 145 ОРНООС 139-Д БИЧИГДЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2025/09/16     ӨНӨӨДӨР: “СЭЛБЭ 20 МИНУТЫН ХОТ”-ЫН ДАРААГИЙН ЭЭЛЖИЙН ОРОН СУУЦНЫ ТӨСЛИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/09/16     ШЭНЬ МИНЬЖУАНЬ: БНХАУ МОНГОЛ УЛСЫГ ШХАБ-ЫН ГЭР БҮЛД НЭГДЭЖ, ХАМТЫН АЖИЛЛАГААГАА ӨРГӨЖҮҮЛЭХИЙГ УРЬСАН WWW.ITOIM.MN НИЙТЭЛСЭН:2025/09/15     Г.ЗАНДАШАТАР: ТӨРИЙН ДАНХАР БҮТЦИЙГ ХУМИХ АЖИЛ ИРЭХ ОНД Ч ҮРГЭЛЖИЛНЭ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/09/15     Ц.ТУВААН: НҮҮРСНИЙ ҮНЭ 3 САР ТУТАМ ШИНЭЧЛЭГДЭНЭ. ГЭРЭЭНД ЯМАР Ч НУУЦ БАЙХГҮЙ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/09/15     ХАНЫН МАТЕРИАЛД 1800 АЙЛЫН ОРОН СУУЦ БАРИХ ТӨСЛИЙН ГҮЙЦЭТГЭГЧ ШАЛГАРЛАА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/09/15     "ТАТВАРЫН ХЭТ ӨНДӨР ТООЦОО БИЗНЕС ЭРХЛЭГЧДИЙГ ХААЛГАА БАРИХАД ХҮРГЭНЭ" WWW.NEWS.MN НИЙТЭЛСЭН:2025/09/15     ГАДААД ХУДАЛДААНЫ НӨХЦӨЛИЙН ИНДЕКС ӨМНӨХ ОНООС 4.1 ХУВИАР БУУРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/09/15     ЭХНИЙ НАЙМАН САРЫН БАЙДЛААР 600 МЯНГАН ЖУУЛЧИН ИРЖЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/09/15    

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MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

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Mongolia’s Climate Transition: Empowering Citizens for a Just and Sustainable Future www.devdiscourse.com

A new study by the World Bank and the Independent Research Institute of Mongolia (IRIM), with support from the Climate Investment Fund, provides an urgent and revealing look at how Mongolian citizens, especially rural herders, are experiencing and responding to climate change. Drawing on the country’s first nationally representative Knowledge, Attitude, and Practice (KAP) survey on climate change, the report explores how Mongolians perceive the climate crisis, what actions they are taking, and where policy and governance must improve to support a more resilient, inclusive transition.
A Nation Warming Fast, With Rural Communities on the Frontline
Mongolia is warming at a rate three times the global average, and the consequences are being felt most acutely by rural communities. More than 75 percent of the land is affected by desertification, and nearly a quarter is classified as severely degraded. Dzuds, brutally cold winters with heavy snow, have become more frequent and destructive, while droughts, floods, and heat waves have also intensified. These climate pressures are driving a wave of internal migration, as rural families, unable to sustain traditional herding livelihoods, move toward urban areas. Ulaanbaatar alone now houses over half the nation’s population, placing enormous strain on infrastructure and services, and contributing to social fragmentation.
The agriculture sector, which includes livestock breeding, is not only highly vulnerable to these climate shocks but is also a major contributor to emissions. Despite accounting for nearly half of Mongolia’s greenhouse gas emissions, livestock’s role in climate change remains underrecognized by the public. Only 16.5 percent of survey respondents associated livestock methane with global warming, compared to 56.7 percent who identified fossil fuel use and 43.7 percent who pointed to deforestation. This gap between perception and reality underscores the need for better education and outreach, particularly among herders.
Citizens Are Concerned, But Misconceptions Still Run Deep
The survey, which reached 1,426 respondents across rural and urban settings, revealed that a solid majority (76.6 percent) believe climate change is real and primarily caused by human activity. Yet, only 39 percent of participants were able to reject all three widely circulated climate misconceptions, such as the belief that climate change only affects polar regions or that small temperature changes have no impact. Misconceptions were more common among rural populations, especially herders, where just 32.3 percent demonstrated accurate climate understanding compared to over 50 percent among urban respondents.
Worry about climate change was closely tied to life experience. Herders and older citizens, those who have lived through severe weather events, were far more likely to express concern. For example, 41.3 percent of herders said they were more worried about climate change than the year before, compared to 35.6 percent of urban residents. Experience with disasters, such as floods or drought, was also a predictor of greater awareness and readiness to act. Yet many people still view climate change as a future issue or something occurring in faraway places, even though over 57 percent said they had already experienced its effects.
Herders Are Willing to Act but Need Tools, Knowledge, and Support
Herders, who form the backbone of rural Mongolia, are already adapting in important ways. Many reported adopting practices like building better shelters, stockpiling fodder, and shifting to more resilient livestock breeds. However, more complex strategies, such as water resource management, pasture rotation, or collective pasture agreements, remain less common. These require technical knowledge, coordination, and often government support, which are often lacking in rural areas.
Only 27 percent of herders surveyed were part of cooperatives or associations, limiting their ability to manage shared resources or advocate for support. Trust issues, unequal distribution of benefits, and limited leadership capacity were frequently cited as barriers to joining such groups. Nonetheless, the appetite for collaboration is strong: nearly three-quarters of citizens said they would participate in collective climate adaptation efforts if others did too, suggesting that peer influence and leadership could help spark broader behavior change.
Local Governments Trusted but Underpowered
Citizens named local governments and the National Emergency Management Agency as the most trusted institutions when it comes to climate adaptation. Yet these institutions often lack the resources and authority to fulfill their mandates. Soum-level administrations are responsible for regulating pasture use, collecting livestock head taxes, and promoting environmental stewardship, but with limited staff, low technical capacity, and little coordination between regions, these responsibilities are difficult to implement effectively.
Only one-quarter of respondents believed they had any way to express their needs to government authorities. Participation in climate-related decisions is rare, especially in remote areas where in-person meetings are hard to organize. Digital platforms and community-based organizations remain underused, highlighting a missed opportunity for more inclusive policy development.
Behavior Is Changing, But Big Gaps Remain
Most citizens have already adopted several sustainable daily practices. Over 70 percent reported actions like using energy-efficient appliances, conserving water, or reducing waste. However, fewer had embraced behaviors such as planting trees, switching to renewable energy, or reducing meat consumption. The latter is especially difficult in a society where meat is deeply embedded in cultural and dietary traditions. While urban residents showed strong interest in renewable energy, they often lacked access to infrastructure or financial means to make the switch.
The most frequently cited barriers to adopting sustainable practices were lack of information (40 percent), inadequate financial support (33 percent), and limited technical skills (25 percent). In the western region, where climate impacts are most severe, citizens expressed the highest need for diverse types of support. Notably, 44 percent of all respondents said financial incentives would help them make more sustainable choices, and 38 percent emphasized the importance of disaster preparedness and insurance.
While climate change is already reshaping Mongolia’s landscapes and livelihoods, the public, especially in rural areas, is willing and ready to act. What’s missing is targeted, inclusive support to empower citizens with the knowledge, tools, and resources they need to adapt effectively. As Mongolia develops its new climate laws and regional development strategies, it must center the voices of those most affected. Only then can a just, locally grounded, and sustainable transition take root.

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Mongolia renewable energy target: Powerful 2030 Vision www.pvknowhow.com

Mongolia Renewable Energy Target: Transitioning from Coal
Mongolia is aggressively pursuing a cleaner energy future, aiming to generate 30% of its electricity from renewable sources by 2030. This marks a significant shift from its current heavy reliance on coal, which accounts for approximately 94% of its electricity generation. This transition is not just an environmental imperative but also a strategic move to diversify its energy sources and boost economic development.
The Mongolian government has taken concrete steps to facilitate this transition, including a ban on the construction of new coal-fired power plants. Efforts are underway to actively reduce coal’s dominance in the national energy mix. According to CNE, Mongolia’s current installed renewable energy capacity stands at 257 MW. Reaching the 2030 target requires a substantial increase, adding approximately 1,200 MW of wind power and 1,300 MW of solar power. Mongolia’s abundant natural resources and vast open spaces, coupled with an average of 3,000 sunlight hours per year—making it one of the sunniest countries globally—create an ideal environment for renewable energy projects. A recent report highlights some of the critical challenges facing renewable energy development, including grid infrastructure and policy frameworks (Renewable Energy Barriers: 5 Critical Challenges Revealed).
Mongolia Renewable Energy Target: Strategic Development Plans
Mongolia has outlined ambitious plans to significantly expand its renewable energy sector. The government’s roadmap targets 1,200 MW of installed renewable energy capacity by 2025, increasing to 2,300 MW by 2030, and further scaling up to an impressive 8,300 MW by 2050. These goals are supported by active pursuit of investments in renewable energy projects, forging partnerships with international organizations and private companies to develop large-scale wind and solar initiatives. More insights into Mongolia’s renewable energy market can be found in this report: Mongolia Solar Panel Manufacturing | Market Insights Report.
A prime example of Mongolia’s commitment is the Tsetsii wind farm, a 50 MW facility located in the Gobi Desert, capable of powering approximately 30,000 homes. Beyond reducing reliance on coal, renewable energy development is a catalyst for economic growth, with the potential to create thousands of jobs, particularly in rural areas with limited opportunities. Furthermore, Mongolia is exploring the potential of exporting renewable energy to its neighbors, China and Russia, both of which have significant clean energy demands. This strategy could generate revenue and strengthen regional economic ties. Mongolia renewable energy exports: 5 Extraordinary Projects explores this potential further.
Overcoming Challenges to Achieve Mongolia’s Renewable Energy Target
Despite the promising progress, Mongolia faces challenges in achieving its renewable energy ambitions. A major hurdle is the lack of adequate infrastructure to support large-scale renewable energy projects. Investments in new transmission lines and energy storage systems are crucial for efficient distribution of renewable energy. Mongolia renewable energy 2025: 5 Essential Steps for Success outlines some key strategies.
A stable and encouraging regulatory environment is also essential to attract investment. While the government has implemented policies and incentives to attract foreign investors, creating a robust long-term framework to support sustainable growth in the renewable energy sector remains a priority.
Mongolia’s transition to renewable energy represents both an environmental necessity and an economic opportunity. By striving to achieve its 30% renewable energy target by 2030, Mongolia serves as an example for other nations seeking to reduce their dependence on fossil fuels. While the journey is ongoing, the progress to date is encouraging, and with continued investment and government support, Mongolia is poised to become a leader in the global renewable energy landscape.

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Minister for Foreign Affairs of Mongolia Batmunkh Battsetseg to visit Finland www.valtioneuvosto.fi

Minister for Foreign Affairs Elina Valtonen will meet with Minister for Foreign Affairs of Mongolia Batmunkh Battsetseg in Helsinki on 1 August.
The foreign ministers will discuss bilateral relations between Finland and Mongolia, regional issues, including the role of the OSCE, and the current international situation.
Minister Batmunkh Battsetseg will be in Finland from 30 July to 1 August and will take part in the Helsinki+50 Conference.
“This is the first visit to Finland by a Mongolian foreign minister. It is a pleasure to get to know Foreign Minister Battsetseg. We have many things in common, such as our strong focus on promoting the rights of women and girls through multilateral cooperation. I look forward to hearing Mongolia’s views on China, Russia and the situation in the Korean Peninsula,” says Minister for Foreign Affairs Elina Valtonen.

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MIAT’s New “Irves” Aircraft Arrives in Mongolia After Covering 12,265 km www.montsame.mn

A Canada-manufactured Bombardier CRJ-700 aircraft arrived in Mongolia on July 30, 2025, having covered 12,265 kilometers from Johannesburg, the Republic of South Africa.
According to the National Flag Carrier MIAT Mongolian Airlines, the company has expanded its fleet with a second CRJ-700 aircraft. The airline has been operating its first CRJ-700, named Mazaalai, since 2024 on routes to Hohhot, Inner Mongolia Autonomous Region of the People's Republic of China, and other domestic destinations. The newly arrived aircraft has been named "Irves" and will also be used for short-haul operations.
The Bombardier CRJ-700 aircraft consumes an average of 1.5 tonnes of fuel per hour, with a per-seat fuel consumption rate of 21.4 liters per seat. The cabin is designed with spacious legroom, wider seating, and expanded overhead storage, offering enhanced passenger comfort.
Equipped with advanced aerodynamic design and modern GE CF34 turbofan engines, the aircraft delivers up to 61.3 kN of thrust during takeoff. In addition to its geographical adaptability, long-range capability, and fuel efficiency, the aircraft features low greenhouse gas emissions, aligning with MIAT’s commitment to environmentally responsible operations.

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5th China-Mongolia Expo to boost regional cooperation www.xinhuanet.com

The 5th China-Mongolia Expo, scheduled from Aug. 25 to 29 in Hohhot, capital of north China's Inner Mongolia Autonomous Region, will focus on deepening mutually beneficial cooperation and promoting win-win collaboration, Vice Minister of Commerce Yan Dong told a press conference on Wednesday.
Yan noted that the biennial expo is an international event jointly organized by the governments of China and Mongolia, welcoming participants from across the globe.
This year's expo will highlight regional development, openness and diversity, striving to create a new platform for China's northward opening, a new link for regional industrial chain and supply chain cooperation, and a new fulcrum for regional cooperation in northeast Asia, according to Yan.
Data shows that trade volume between China and Mongolia reached a record high of 18.62 billion U.S. dollars in 2024, marking a 10.1 percent year-on-year increase, Yan said.
Through joint efforts from both sides, the scope of bilateral investment has continued to expand, covering not only traditional areas such as mining, manufacturing and livestock processing but also emerging sectors like the digital economy and green energy.
The two sides have jointly promoted the upgrading of the cross-border economic cooperation zone, cross-border railways, and border infrastructure, achieving positive progress.
Over the years, China has helped Mongolia in building numerous infrastructure, production and livelihood projects, while also providing training to more than 9,700 professionals across various fields, contributing to Mongolia's economic and social development.
Over 3,000 enterprises from 35 countries and regions attended the 4th China-Mongolia Expo.

 

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Five Aimags Classified as High-Risk for Drought www.montsame.mn

According to a nationwide general assessment for drought risk, Uvurkhangai, Bayan-Ulgii, Umnugobi, Khovd, and Dornogobi aimags were identified as high-risk for drought.
The National Emergency Management Agency (NEMA) conducted the assessment based on this year’s summer weather forecasts, drought outlook, statistics, and other data. As a result of the comprehensive assessment, the following aimags were evaluated as low-risk: Uvs, Zavkhan, Arkhangai, Gobi-Altai, Bayankhongor, Tuv, Uvurkhangai, Dornod, Dundgobi, Darkhan, Selenge, central Khentii, Bulgan, Khuvsgul, and Orkhon.
For 330 soums across 21 aimags, the risk for drought was classified as follows:
25 soums – very high;
52 – high;
130 – medium;
29 – low;
2 – very low.

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SEACEN forum focuses on future-ready central bank workforce www.ubpost.mn

The Seventh Southeast Asian Central Banks (SEACEN) Human Resources Conference and the 45th SEACEN HR Directors’ Meeting were held in Ulaanbaatar from July 21 to 25, bringing together HR leaders and experts from central banks across the region.
This year’s event focused on the theme “Human Resources 2030: Shaping the Future of Work - Central Bank Workforce Capacity Development and Future-proofing Policies in the Era of Digital Transformation”. The discussions centered on how central banks can adapt their human resource strategies to a rapidly evolving digital landscape and prepare their institutions to lead in the future of work.
The conference featured two main panel sessions and four breakout discussions, addressing key topics such as capacity building, talent retention, leadership in the digital age, and aligning workforce strategies with technological innovation.
Participants examined what policies and practices are needed to build resilient, agile, and future-ready central bank workforces. By sharing insights and experiences, the SEACEN member institutions aim to identify common challenges and develop coordinated recommendations.
Beyond fostering dialogue, the meeting served as a platform to strengthen regional cooperation in central banking HR development. Delegates worked to formulate actionable conclusions that can support the joint implementation of progressive human resource strategies across SEACEN countries.

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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.

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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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