1 ODD-EVEN TRAFFIC RESTRICTION CONCLUDES WWW.UBPOST.MN PUBLISHED:2025/09/15      2 MMC ANNOUNCES FIRST GOLD POUR COMPLETED AT THE BAYAN KHUNDII MINE IN MONGOLIA WWW.SG.FINANCE.YAHOO.COM  PUBLISHED:2025/09/15      3 MKE LAUNCHES CARTRIDGE PRODUCTION LINE IN MONGOLIA WWW.RAILLYNEWS.COM  PUBLISHED:2025/09/15      4 MONGOLIA’S LARGEST MINING EVENT HIGHLIGHTS INVESTMENT AND RESPONSIBLE MINING WWW.MONTSAME.MN PUBLISHED:2025/09/14      5 GENERAL MEETING OF ASIA SECURITIES FORUM OPENS IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2025/09/14      6 BUDGET 2026: MINISTRY REPORTS RAISING MINIMUM PENSION TO MNT 1.5 MILLION NOT FEASIBLE UNDER CURRENT BUDGET WWW.GOGO.MN PUBLISHED:2025/09/14      7 ULAANBAATAR AND JAPAN STRENGTHEN CLEAN ENERGY PARTNERSHIP WWW.MONTSAME.MN PUBLISHED:2025/09/14      8 730 BREEDING SHEEP WERE BROUGHT FROM MONGOLIA TO NAMANGAN UZBEKISTAN WWW.ZAMIN.UZ  PUBLISHED:2025/09/14      9 MONGOLIA RECORDS USD 16.6 BILLION IN TRADE WWW.MONTSAME.MN PUBLISHED:2025/09/11      10 GOVERNMENT REPORTS OPERATIONAL IMPROVEMENTS AT ERDENES TAVANTOLGOI UNDER SPECIAL REGIME WWW.MONTSAME.MN PUBLISHED:2025/09/11      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     ШАХМАЛ ТҮЛШНИЙ БОРЛУУЛАЛТ ӨНӨӨДРӨӨС ЭХЭЛЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2025/09/15     “МОНПОЛИМЕТ" ГРУПП ДОРНОГОВЬ АЙМГИЙН ӨРГӨН СУМАНД ЕБС БАРИХ ТӨСӨЛ ЭХЛҮҮЛЖЭЭ WWW.ITOIM.MN НИЙТЭЛСЭН:2025/09/14     ЗАСГИЙН ГАЗАР MINING AI САНААЧИЛГА ХЭРЭГЖҮҮЛЭХЭЭ ХӨРӨНГӨ ОРУУЛАГЧДАД ЗАРЛАЛАА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/09/14    

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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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Tradition And Technology: Lessons From Mongolia For Driving Inclusive Growth www.forbes.com

Mongolia’s vast steppes and nomadic heritage have long shaped the rhythms of life. Today, these traditions are evolving by the quiet revolution of digital finance. Where once nomads carried maps in their memory, now they navigate mobile apps.
Banks once meant distant branches, now they mean real-time access—even from remote pastures. According to our 2024 annual report, 99.4% of all banking transactions in Mongolia were conducted digitally in 2023. This is not just modernization; it is localization—technology woven into the cultural and geographic fabric of a nation.
The following lessons show how global banking leaders can use technology and tradition to drive real economic impact from remote communities to corporate boardrooms.
1. Use technology to connect and grow rural economies.
To extend business into remote areas, fostering digital literacy is crucial. Leaders should forecast infrastructure gaps and fluctuating demand cycles, and implement flexible risk management. This approach moves beyond simply delivering products to creating sustainable inclusion that drives growth well beyond the fields.
For example, Mongolia’s agricultural sector is central to both livelihoods and national growth. Khan Bank finances this sector with seasonal and investment loans, crop insurance and tailored products that meet the realities of herders and farmers.
Our reach—serving 2.9 million customers nationwide—ensures that even the most remote households are part of the country's economic story. Digital tools like mobile apps, SMS banking and digital wallets help users overcome geographic barriers, enabling even remote households to take part in the economy.
2. Build trust by designing financial systems around users.
According to the World Bank, about 1.4 billion adults globally were unbanked in 2021. Among the main reasons cited were lack of money, lack of documentation, lack of trust in financial institutions and distance to financial institutions.
Mongolia’s experience suggests that trust is the true currency of inclusion. AI-powered tools can reduce friction, but only if they speak your language. User-friendly interfaces are informed not by global UX trends, but by local user behavior: cash-heavy habits, seasonal incomes and intermittent connectivity.
In short, financial design is cultural design. And digital trust is earned when systems mirror the worldviews of those they serve.
3. Leverage green finance to drive sustainable growth.
Green financing is rapidly reshaping industries worldwide, offering businesses not just capital, but a competitive edge in a sustainable-driven market. Leaders looking to leverage it can start by aligning with global and national sustainability goals, as investors increasingly prioritize projects with measurable environmental and social impact.
For example, in 2024, Khan Bank broke new ground by securing financing from international sources, including green, social and gender-focused capital. These funds are now regenerating forests, powering homes with renewable energy and supporting women-led businesses across rural Mongolia.
By the end of the year, Khan Bank held over 52% of the country’s total green loan portfolio. Such initiatives reflect how green finance is not only transforming rural livelihoods but also advancing Mongolia’s broader national strategy for sustainable, inclusive growth.
Green finance isn’t just for environmental projects—it’s also a strategic tool for future-proofing businesses across sectors, from manufacturing to tech to agriculture. Those who move early position themselves not only as beneficiaries of change but as drivers of it.
4. Enable economic participation without forcing migration.
In Mongolia, “digital nomads” are not globe-trotting freelancers, but herders and farmers connected to solar-powered Wi-Fi. Mongolia’s solar-powered Wi-Fi and mobile payments allow herders to thrive economically without abandoning their way of life.
This illustrates how businesses can innovate in ways that respect culture while driving inclusion. Herders are using mobile payments for livestock sales. Teenagers in yurts are learning to code. Technology, in this sense, is not an escape. It is an anchor—a way for young Mongolians to stay rooted while still reaching outward. For banks, this presents a powerful opportunity to fuel economic participation without requiring urban migration or cultural loss.
Integrate measurable outcomes into your strategy. Governments and international partners increasingly prioritize projects that deliver tangible economic, social and environmental results. Demonstrate how your business contributes to job creation, productivity gains or carbon reduction to strengthen both your growth prospects and your license to operate.
When businesses align their ambitions with national progress, they stop being just market participants—they become growth partners. And in doing so, they can secure not only profitability but also relevance in a world where shared prosperity defines long-term success.
A Vision For The Future
Mongolia may be remote, but its experience offers global lessons:
• Design systems that work in low-connectivity, low-density areas.
• Let culture lead. Trust grows when technology adapts to users, not the other way around.
• Regenerate, don’t just grow. True leadership now demands more than profit—it demands stewardship of the land, the people and the generations to come.
In this era of transformation, the best banks will be those that ask not how fast they can grow, but how deeply they can serve.
A Legacy Beyond Ledgers
As Mongolia marks over 100 years of formal banking, a new story is unfolding—one that’s not measured in transactions alone, but resilience shared and futures shaped. For today’s banks, this means shifting focus from short-term returns to long-term resilience and financing industries that sustain communities, supporting inclusive economic growth, and designing technology that respects and uplifts its users. By asking harder questions—"Does our growth restore what matters?" "Does our innovation truly serve people?"—banks can build enduring trust.
Those who prioritize impact over image become institutions their societies rely on—not just for transactions, but for stability and generational progress. True progress isn’t measured by towering headquarters; it is seen in rural businesses flourishing, herders gaining access to credit, and digital tools reaching communities once beyond the financial system.
For global banking leaders, the long-term benefits of this approach are unmistakable: trust that endures through crises, loyalty that cannot be bought and a legacy that outlasts any product cycle. Leaders who embrace this mindset do more than command markets—they help shape a future in which finance becomes a force for shared prosperity.
By Munkhtuya Rentsenbat  is the CEO of Khan Bank.

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Edelman launches global brand film to elevate Mongolia on the world stage www.campaignbriefasia.com

A new national brand film for Mongolia, “Go Mongolia,” has been launched to international audiences and is now streaming on global news outlets and digital platforms. The 2.5-minute film, created by Edelman, is designed to elevate Mongolia’s global profile while fostering national pride, showcasing the country’s majestic landscapes, rich cultural heritage, and dynamic economic potential. It positions Mongolia as a compelling destination for tourism, trade, and cultural exchange.
The film reflects a strategic effort to unify Mongolia’s tourism, trade, and cultural sectors in a single narrative. “The challenge was to capture the energy and dynamism of a youthful nation re-emerging onto the world stage, while also rallying internal pride,” said Tim Green, Chief Creative Officer, APAC at Edelman.
The creative concept emerged from immersive cultural experiences in Mongolia. “It literally emerged from within Mongolia—it’s in the name. It’s a driven nation with ‘Go’ at its heart, both literally and figuratively,” Green added. It positions Mongolia as a place to go explore, go invest and go create, while also serving as a rallying cry to instill pride among Mongolians themselves.
To capture the nation’s essence with authenticity, the film’s production involved extensive collaboration with the Mongolian Ministry of Culture, Trade and Tourism, government ministries and local creator communities. From animators and bloggers to business leaders and cultural institutions like the National Theatre, Mongolian voices shaped the campaign’s narrative. Designers of the national Olympic uniforms, Michel and Amazonka, contributed all the wardrobe for the film, ensuring cultural authenticity with a modern edge.
“It was important for us to hand the concept over to the people of Mongolia and let them give it meaning,” said Green. “We launched across different fields—from fashion shows in Paris to international partnerships like Mongolia’s sponsorship of Fulham Football Club—showing how ‘Go’ works on the world stage and reflects who the people of Mongolia are.”
The film is part of a broader strategic campaign, a long-term nation-branding initiative launched in 2023. Edelman led the creative direction, scripting, and production, working closely with Mongolia’s ministries to ensure the film reflected both external ambitions and internal spirit.
“This is another example of how Edelman brings to life integrated thinking at the intersection of culture, commerce, and creativity,” added Green. “It’s a piece of work that instils trust in a unique country sitting at an interesting crossroads in the heart of Asia.”
Since Edelman launched the Go Mongolia brand, the country has seen a significant rise in global visibility. It climbed fourteen places in the Brand Finance Global Soft Power Index, recorded its highest-ever tourism revenues, and was named by Lonely Planet as the number one destination in its Best in Travel 2024 guide. The campaign has also driven cultural diplomacy, from Mongolia’s partnership with Fulham Football Club to its showcase at the Paris Olympics, while strengthening foreign investment and international connectivity through milestones such as United Airlines’ first-ever direct route from the United States.
The release of the nation branding film marks a new chapter in Mongolia’s long-term soft power strategy. By fusing cinematic craft with strategic storytelling, Edelman has helped the country project a unified national identity—one that celebrates its traditions while positioning it as an ambitious and globally engaged partner for the future.

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China, Russia, Mongolia step up security ties with border exercise www.reuters.com

China, Russia and Mongolia held their first joint border defence drills this week, the Chinese military said on Tuesday, underscoring closer security coordination among the three neighbours.
The exercise, called "Border Defence Cooperation - 2025", took place on Monday and Tuesday in an unidentified border region shared by the three countries, the People's Liberation Army said in a post on its official Weibo account.
The live drills aimed to "enhance strategic cooperation among the three sides, strengthen the ability to deal with border security threats, and further consolidate strategic mutual trust," the military said.
During the exercises, a joint command post was set up on Chinese territory operating under the principle of "whoever's territory, that side takes the lead, with multilateral consultation and parallel command," the Weibo post said.
The manoeuvres came on the heels of a trilateral meeting among leaders of the three countries in Beijing on September 2, a day after Chinese President Xi Jinping hosted more than 20 leaders of non-Western countries for the Shanghai Cooperation Organisation (SCO) summit as he pushed for a new global security and economic order.
Mongolia has refrained from joining the SCO, choosing to be an observer state since 2004 even as other nations such as India, Pakistan and Iran became full-fledged members.
Beijing has continued to nudge its smaller neighbour to take up membership in the grouping of 10 nations.
Reporting by Ethan Wang and Ryan Woo; Editing by Jamie Freed

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Mongolia and Uzbekistan consider cooperation in uranium mining www.akipress.com

General Director of Overseas Geology Company of Uzbekistan Khayitboy Omanov and Chief Geologist of the Institute of Uranium and Rare Metals Geology at Navoiyuran JSC Khusniddin Olovov held talks with representatives of Mon-Atom and Adamas Mining of Mongolia, Trend reportedjavascript:mctmp(0);.
The sides discussed synergies in the geological sector, specifically the feasibility of collaborative uranium extraction at the Adamas Mining-operated deposits in Mongolia, in conjunction with executing geological surveys in these locales and adjacent regions.
The stakeholders have reached a consensus to facilitate the reciprocal transfer of extant geological datasets and documentation, undertake a comprehensive evaluation of the materials, and formulate pertinent inferences.
Stakeholders articulated a robust assurance that collaborative initiatives would yield substantial advancements in the regional economic landscape and scientific innovation.
Across the fiscal continuum from 2019 to 2024, the bilateral trade turnover experienced an exponential escalation, amplifying from $1.9 million to $20.4 million.

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Khuvsgul province reports one death from bubonic plague and 88 quarantined www.gogo.mn

Authorities in Khuvsgul province have confirmed one death from bubonic plague and placed 88 people under quarantine. 
Murun and Tsagaan-Uul soums have been placed on high alert for one week starting from September 7 following the registration of plague cases. During this period, schools and kindergartens have shifted to online learning, and all public events have been suspended until September 14, 2025.
Movement out of the two soums has been restricted until September 10, with exceptions granted for health emergencies, official duties, charitable activities, and funerals, provided relevant documentation is submitted.
In addition, shopping centers, bars, and restaurants have been ordered to suspend operations for three days as part of the containment measures.

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Power of Siberia 2: Ulaanbaatar Gas Supply Project Highlighted at 10th Eastern Economic Forum www.montsame.mn

The 10th Eastern Economic Forum (EEF) in Vladivostok, the Shanghai Cooperation Organization (SCO) Summit in Tianjin, and the 80th anniversary of the victory in the Chinese People’s War of Resistance Against Japanese Aggression in Beijing were not only major geopolitical events but also strategically interconnected.
During these gatherings, the Heads of State of Mongolia, Russia, and China reached a landmark agreement on the construction of the “Power of Siberia 2” gas pipeline. In parallel, Russia’s Gazprom and China’s National Petroleum Corporation (CNPC) signed a legally binding memorandum to lay a gas pipeline through Mongolian territory, further cementing trilateral energy cooperation.
During the 10th Eastern Economic Forum (EEF) held in Vladivostok under the theme “The Far East: Cooperation for Peace and Development”, Mongolian Prime Minister Zandanshatar Gombojav met with Russian President Putin for a bilateral discussion. President Putin noted that energy cooperation had been a central focus during his earlier talks with Mongolian President Khurelsukh Ukhnaa in Beijing, underscoring the strategic importance of trilateral engagement among Russia, Mongolia, and China.
Both the EEF and the preceding SCO summit have proven highly beneficial for Mongolia, facilitating regional dialogue and advancing joint initiatives in energy infrastructure, including the Power of Siberia-2 gas pipeline and the Ulaanbaatar gasification project.
Mongolia, Russia, and China have reached a long-awaited agreement on the Power of Siberia 2 gas pipeline, representing a major advancement in trilateral cooperation. In addition, the three countries signed a memorandum of understanding in Vladivostok to jointly support the Ulaanbaatar gasification project.
The memorandum was signed by Mongolian Deputy Prime Minister Amarsaikhan Sainbuyan and Deputy Chairman of the Gazprom Management Committee Vitaly Markelov during Prime Minister Zandanshatar’s meeting with Gazprom executives. The agreement outlines a joint effort to study the feasibility of introducing natural gas infrastructure in Ulaanbaatar, a city currently struggling with air pollution and energy sustainability challenges.
The construction of the Power of Siberia 1 pipeline through China’s Heilongjiang province required the development of new gas fields on the Russian side, involving extensive infrastructure work and investment. In contrast, Power of Siberia-2 will utilize existing deposits. Eliminating the need for new extraction. A distinctive feature of this project is that the pipeline is planned to be laid underground across the Mongolian steppes, a region known for its harsh natural climate and challenging terrain.
During his bilateral meeting in Vladivostok, the legal framework of the Power of Siberia 2 gas pipeline project has been resolved, but an equally critical phase involves securing the investment for its implementation. Discussions are now focused on financing strategies and determining the ownership structure among Mongolia, Russia, and China. A joint working group with representatives will be formed to oversee these negotiations. According to sources, the group’s first meeting is expected to be held in Ulaanbaatar.
The Power of Siberia 2 gas pipeline is a strategic priority for Mongolia. The project is expected to generate substantial revenue for the state budget, create thousands of jobs, and help reduce air pollution in Ulaanbaatar – a persistent challenge for the capital. Additionally, access to the ports of Russia’s Far East remains vital for Mongolia, a landlocked country aiming to expand its trade and energy transit routes.
Professor Ulambayar Denzenlkham, Doctor of Science and Professor of International Studies at the University of Humanities of Mongolia, highlighted the long-term impact of the Eastern Economic Forum (EEF), which has been held annually in Russia’s Far East from 2015 to 2025. He noted that over 2,740 agreements were signed during this period, including 314 agreements in 2014 alone, valued at RUB 5.5 trillion, or approximately USD 68 billion. Participation also grew significantly, with over 1,500 delegates from 25 countries in 2016 and more than 7,000 delegates from 75 countries in 2025.
Professor Ulambayar emphasized the progress made in expanding port capacity in the Russian Far East, a point echoed by President Vladimir Putin during the forum’s plenary meeting. The president referred to infrastructure, including roads, railways, and energy systems, as the ‘main artery’ of economic growth, and credited the forum with driving development and connectivity in the region.  
The planned route of the Power of Siberia 2 gas pipeline through Mongolian territory is considered vital to Mongolia’s energy future and broader economic development.
Since 2016, Mongolia has actively participated in the Eastern Economic Forum, with four presidential-level attendances and seven high-level delegations led by the Prime Minister, Deputy Prime Minister, and key ministers. This consistent engagement reflects Mongolia’s growing interest in the forum’s role in promoting regional cooperation, investment, and strategic partnerships.
During the bilateral meeting at the 10th EEF, Russian President Vladimir Putin described Mongolia as “Russia’s most reliable partner in the Asia-Pacific region”. The statement, made shortly after the trilateral summit in Beijing, highlights the strategic importance of Mongolia in regional energy and infrastructure initiatives.

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Mongolia's exports fall 13.8 pct in 8 months www.xinhuanet.com

Mongolia exported goods and raw materials worth 9.1 billion U.S. dollars in the first eight months of 2025, down 13.8 percent from a year ago, official data showed on Monday.
Mining commodities, such as copper, iron ore and unprocessed or semi-processed gold, constituted 93 percent of Mongolia's total exports during the period.
Meanwhile, goods and raw materials worth 7.5 billion dollars were imported into Mongolia, down 0.3 percent year-on-year.
Some 18.3 percent of imports were petroleum products, and 11 percent were passenger cars, the data showed.

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New copper deposit with 357 million tons of ore discovered in Mongolia www.akipress.com

 A newly identified mineral deposit, known as 'Oyut', has been discovered within the territories of Bayan-Undur and Jargalant districts, located in Orkhon province, Mongolia, Montsame reported.
Preliminary geological exploration has revealed that the Oyut deposit holds an estimated 357 million tons of ore reserves. This positions it as a potential asset comparable in scale to Erdenet, Mongolia's largest copper and molybdenum ore mining operation.
Prime Minister of Mongolia Zandansahtar Gombojav attended the official opening and preparatory activities for the operational launch of the newly discovered Oyut copper deposit on September 7.
The Prime Minister has authorized a feasibility study for the construction of a concentrator designed to process 5 to 10 million tons of ore per year at the Oyut deposit.
Early estimates suggest the deposit could support operations for 30 to 35 years, marking it a long-term strategic resource. Initial geological exploration was independently conducted by specialists from the Erdenet Mining Corporation, whose senior engineers will oversee the project’s design and construction.
PM emphasized Mongolia's constitutional commitment to equitable resource distribution, stating that the benefits from subsoil resources shall be consolidated into the National Sovereign Wealth Fund and fairly allocated to all citizens.
The Oyut copper deposit is situated approximately 8 kilometers from the Erdenetyn-Ovoo deposit, the basis of the Erdenet Mining Corporation, and just 3 kilometers from the infrastructure of the Industrial and Technology Park near Erdenet city.
The launch of operations at the Oyut deposit is expected to make a substantial contribution to the Sovereign Wealth Fund. It will also serve as a key driver of socio-economic development in Erdenet city, Orkhon aimag, the Northern region, and Mongolia as a whole.

 

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Mongolia Exits SCO Observer Status, Draws Closer to China and Russia www.news.mn

In September 2025, amid the Shanghai Cooperation Organization (SCO) Summit in Tianjin, a pivotal geopolitical shift took hold for Mongolia: after two decades as an SCO “observer state,” the country formally stepped away from this neutral role. The move followed the SCO’s restructuring of its partner framework, which merged “observer states” and “dialogue partners” into a unified “SCO partners” category. Mongolia pointedly declined to transition to the new status.
Instead, Ulaanbaatar announced a “strategic focus on trilateral cooperation with China and Russia,” a pivot that reflects not just diplomatic recalibration, but the deepening gravitational pull of its two giant neighbors. For a nation long defined by its “multipillar” foreign policy – crafted to balance great powers and avoid overreliance – this shift is a symptom of a reshaped Eurasian order, where China and Russia’s economic, energy, and security networks are tightening around Mongolia.
From Observer Caution to Trilateral Alignment: A Calculated Pivot
Mongolia’s SCO observer status, granted in 2004, was once a cornerstone of its geopolitical survival. It allowed Ulaanbaatar to participate in the bloc’s economic dialogues and cultural initiatives (like anti-desertification efforts) without committing to binding security or infrastructure deals. As recently as 2024, President Khurelsukh Ukhnaa described the observer role as a “buffer” in a parliamentary address, stressing it let Mongolia “engage without being entangled” in great-power rivalries.
By 2025, that caution had evaporated. According to Mongolian diplomatic sources, China and Russia applied quiet but persistent pressure on Ulaanbaatar to “upgrade” its engagement. For Moscow – still reeling from a 40 percent drop in European gas demand since the 2022 Ukraine conflict – Mongolia’s neutrality hindered its goal of securing eastern energy export routes. For Beijing, the observer status slowed progress on the China-Mongolia-Russia (CMR) Economic Corridor, a flagship Belt and Road Initiative (BRI) project linking Chinese manufacturing hubs to Russian resource basins via Mongolian territory.
Mongolia’s response was a clear break from tradition. In a September 1 statement, its Foreign Ministry framed the “exit” from observer status as a choice to prioritize “tangible trilateral outcomes” over “broad regional forums.” Days later, at the Beijing trilateral summit, Khurelsukh explicitly aligned Mongolia’s “Steppe Road” infrastructure plan with China’s BRI and Russia’s Eurasian Economic Union (EAEU) – a far cry from the tentative language of observer diplomacy. He also highlighted domestic priorities tied to regional cooperation: the “Billion Trees” environmental campaign and plans to host the 2026 U.N. Convention to Combat Desertification (COP17) in Ulaanbaatar.
The SCO’s reaction underscored the shift’s significance. Russian President Vladimir Putin praised Mongolia’s “deeper engagement” as a sign of the bloc’s growing Eurasian influence, while Chinese President Xi Jinping commended its role in “safeguarding regional peace” – a nod to Ulaanbaatar’s pledge to join SCO counterterrorism exercises and avoid foreign military bases.
For Mongolia, however, the move was an admission: neutrality is no longer viable in a region where China and Russia set the terms of engagement.
The Pipeline That Binds: Power of Siberia 2 and Mongolia’s Double-Edged Bargain
If Mongolia’s SCO pivot was a political signal, the “Power of Siberia 2” (PoS2) natural gas pipeline is the economic mechanism cementing its integration with China and Russia. On September 2, 2025, the three countries signed a legally binding memorandum in Beijing to build the 3,000-kilometer pipeline, which will transport 50 billion cubic meters of Russian gas annually to China via central Mongolia. For Ulaanbaatar, the project is a double-edged sword: a lifeline for an economy recovering from COVID-19 and a coal price slump, yet a chain locking it into decades of dependence.
The short-term benefits are tangible. Over 30 years, PoS2 will generate more than $10 billion in transit fees for Mongolia – roughly a few hundred million annually, equivalent to a few percentage points of its 2024 GDP – and create 10,000 construction jobs. It will also provide Mongolia with affordable Russian gas, reducing its 90 percent reliance on coal for electricity generation and supporting its climate goals.
For China, PoS2 is critical to energy security. Amid China-U.S. tensions and uncertain Middle Eastern LNG access, the pipeline will meet 15 percent of China’s projected 2035 natural gas demand. For Russia, it offsets lost European markets. Combined with the expanded “Power of Siberia 1” (now carrying 44 billion cubic meters of LNG annually), PoS2 will make China Moscow’s largest gas export market by 2030.
Yet the costs to Mongolia’s sovereignty are steep. China and Russia will fund 85 percent of the $40 billion project with Russia’s Gazprom and China’s CNPC holding majority control. Mongolia contributes only land and labor – no ownership stake, and no role in pricing or maintenance. This deepens an already lopsided economic relationship: China buys 65 percent of Mongolia’s exports (coal, copper), while Russia supplies 90 percent of its gasoline and 70 percent of its electricity. Critics in Ulaanbaatar warn PoS2 will turn “multipillar” diplomacy into a “two-pillar” reality.
The imbalance was evident weeks before the SCO Summit, when Gazprom signed a separate transit deal with Mongolia, precluding Ulaanbaatar from seeking alternative partners. Khurelsukh has defended the project as a “win-win,” noting Mongolia retains control over its pipeline section and will use fees to fund renewable energy. But experts remain skeptical. “If Gazprom and CNPC dispute prices, Mongolia gets caught in the middle. We have no Plan B,” said a Mongolian government official familiar with cross-border energy cooperation negotiations.
Infrastructure, Security, and the Binding Web
Energy is just one thread in the China-Russia-Mongolia cooperation network. On the same day the PoS2 agreement was signed, the three countries extended the CMR Economic Corridor until 2031 and added 33 new infrastructure projects, including three cross-border railways. The Shiveekhuren-Ceke and Khangi-Mandula lines will link Mongolia’s coal-rich South Gobi region to China’s steel hubs. A modernized Central Railway Corridor, will connect Mongolia to Russia’s Trans-Siberian Railway. And then there’s the already operational Gashuunsukhait-Ganqimaodu line, streamlining coal exports to China.
Together, these projects will cut Mongolia’s reliance on road transport for mineral exports by 50 percent – but bind its economy all the more tightly to China’s manufacturing sector and Russia’s resource-driven growth.
Security cooperation is also deepening. At the Tianjin Summit, Mongolia pledged to join the SCO’s “Comprehensive Center for Countering Security Threats” and participate in 2026 joint anti-terror drills. While Mongolian officials frame this as a response to extremism, the SCO’s definition of the threat aligns with China and Russia’s agenda. Moscow focuses on countering “hybrid threats” (Western disinformation), while Beijing prioritizes fighting “separatism” in Xinjiang. For Mongolia – with 4,710 km of border with China and 3,485 km with Russia – such cooperation is a prerequisite for market access.
History as a Tool: Soft Power and the “Shared Struggle” Narrative
To legitimize this alignment, China and Russia have leveraged the 80th anniversary of World War II (China’s War of Resistance Against Japan, Russia’s Great Patriotic War). The symbolism was deliberate: On September 2, Khurelsukh traveled to Zhangbei County, Zhangjiakou city of Hebei, China, to lay a wreath at the Soviet-Mongolian Martyrs’ Cemetery, honoring soldiers who liberated northern China in 1945. The ceremony, broadcast live in all three countries, was framed by Chinese state media as a tribute to the “unbreakable bond” between the nations.
“Our grandfathers fought side by side against fascism; today we defend their legacy,” Khurelsukh declared. This narrative undermines Western criticism of the China-Russia partnership as an “authoritarian bloc” and lets Mongolia see itself as a “guardian of shared values” rather than a pawn.
Soft power extends beyond symbolism. China has expanded the number of Confucius Institutes in Mongolia from five (2015) to 15 (2025), focusing on trade-specific language training. Russia has doubled scholarships for Mongolian students to study engineering and energy – fields critical to PoS2. By 2025, over 10,000 Mongolian students were enrolled in Chinese and Russian universities, compared to over 2,000 in the U.S. and Europe.
The Fading “Third Neighbor” Policy
Mongolia’s pivot has raised doubts about its “third neighbor” policy, which for decades has seen Ulaanbaatar balance China and Russia with U.S., EU, and Japanese partnerships. The U.S. Department of State, U.S. Agency for International Development (USAID), and Millennium Compact Challenge have conducted multiple grants and programs to support Mongolia’s development of clean water and energy sources, and the EU pledged 79.67 million euros in financing aimed at enhancing Mongolia’s energy infrastructure. But these sums pale next to the $40 billion committed to PoS2 and the CMR Corridor. Western investment has also declined since 2022, as companies shift focus to the Ukraine war and the Middle East.
Mongolian officials reject the “pawn” label, emphasizing their transit leverage. “Without Mongolia, PoS2 and railways are logistically impossible or too costly,” one such official said. Ulaanbaatar has extracted concessions: China and Russia will fund PoS2-related environmental protections and build schools in rural Mongolia. Hosting COP17 in 2026 also lets Mongolia assert global environmental leadership.
Yet pressure to align with China and Russia will grow, from adopting Beijing’s “cyber sovereignty” model to avoiding Western sanctions on Moscow. Mongolia’s “multipillar” identity, once a strength, is increasingly rhetorical.
Conclusion: A Microcosm of Eurasian Geopolitics
Mongolia’s exit from SCO observer status in favor of expanded trilateral cooperation is more than a regional story; it mirrors Eurasia’s broader shift. As the United States focuses on Indo-Pacific alliances and Europe navigates energy transition, China and Russia are building a parallel order centered on the SCO, EAEU, and projects like PoS2. For smaller states like Mongolia, the choice is no longer “alignment vs. neutrality,” but “engagement vs. marginalization.”
In the short term, Mongolia gains stability: transit fees, infrastructure investment, and SCO market access. In the long term, it risks losing the autonomy that defined its foreign policy for decades. As Khurelsukh acknowledged in Tianjin, “Mongolia’s future is tied to the stability and prosperity of our neighbors.” The question is whether that tie becomes a lifeline – or a constraint.
For the West, Mongolia’s shift is a warning: post-Cold War unipolarity in Eurasia is over. Smaller states are increasingly choosing partners based on tangible benefits, not ideology. For China and Russia, it validates their vision of a Eurasian order built on “sovereignty, non-interference, and pragmatic cooperation.” For Mongolia, the tightrope walk between autonomy and dependence has never been more precarious. As PoS2 breaks ground and cross-border railways expand, its fate is increasingly shaped not in Ulaanbaatar, but in Beijing and Moscow.
By Sumiya Chuluunbaatar

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Rio Tinto dials up the diplomacy with Governor-General Sam Mostyn visiting Mongolian copper mine www.thewest.com.au

Australia’s Governor-General has visited Rio Tinto’s Oyu Tolgoi copper mine in Mongolia amid simmering tensions between the mining giant and the Asian country’s government.
Sam Mostyn was at Oyu Tolgoi this weekend as a key part of her trip to Mongolia — the first by an Australian Governor-General in more than 30 years.
The Governor-General was greeted by Rio’s new chief Simon Trott and chair Dominic Barton before venturing into the bowels of the massive underground copper mine.
“Earlier in my visit, the President of Mongolia and I spoke at great length about the strength of partnership between Australia and Mongolia. We agreed that Oyu Tolgoi is one of the greatest examples of that partnership,” Ms Mostyn said.
“The result of long-term and substantial investment by Rio Tinto, and benefiting from the expertise and ingenuity of hundreds of Australian mining and engineering companies, Oyu Tolgoi was also built by Mongolians for Mongolia’s future.
“The visit to Oyu Tolgoi was an extraordinary experience — we travelled 1.3 kilometres underground and saw first-hand the ingenuity and effectiveness of world class deep block cave mining, delivered with focus on safety and a strong, inclusive and enthusiastic workforce.”
Rio will be hoping Ms Mostyn’s diplomacy blitz can reset its strained relationship with key officials in Ulaanbaatar.
The Mongolian government in May reportedly filed a lawsuit against Rio in a UK court. The lawsuit accused the mining giant of corruption and political bribery.
A few weeks later, Rio was forced to overhaul its plans to grow Oyu Tolgoi after the Mongolian government delayed a decision to grant the company access to mining tenements.
Rio and Mongolia are also in a long-running legal battle over $US438 million ($665m) worth of disputed taxes.
Oyu Tolgoi, which produced first copper as an open-pit mine in 2013 and then as an underground mine in 2023, accounts for nearly 30 per cent of Mongolia’s gross domestic product.
Ms Moyston’s visit to Oyu Tolgoi comes days after the miner changed plans for one of its other copper projects thousands of kilometres away.
Rio on Wednesday cut the development envelope for its Winu copper-gold development in the East Pilbara by almost 14,000 hectares to 23,649ha.
This decision followed negotiations with the local Aboriginal corporation and concerns raised by environmentalists about the potential impact to habitat of a rare parrot species.
In May, Rio sold a 30 per cent stake in Winu for $430.4m to Japan’s Sumitomo Metal Mining.

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