Mongolia’s next president? Race to succeed Khurelsukh reshapes political landscape www.intellinews.com

Mongolia's next election cycle begins in less than a year with the presidential poll. The parliamentary elections will follow in 2028.

Even before campaigning has officially begun, politicians are already jockeying for position in the race to succeed President Ukhnaa Khurelsukh. 

The growing field of potential candidates reflects widening divisions within the ruling Mongolian People's Party (MPP), with rival factions backing different contenders. Opposition party candidates are also beginning to emerge.

Divisions in the MPP are partly due to a turbulent period of leadership changes, including the resignation of two prime ministers in less than a year. Analysts say the current manoeuvring reflects competition for influence, which tends to spark populist decisions. 

Frequent leadership changes have complicated efforts to pursue long-term economic reforms and have contributed to investor concerns about policy uncertainty. 

However, the race to succeed Khurelsukh unfolds, it begins with the familiar framework, with the MPP in control of the government and the party organisation deeply rooted across the country. This time, however, divisions in the party have become more apparent. 

"Power within the MPP is becoming more diffuse as attention shifts toward the post-Khurelsukh era," said Amar Adiya, editor of Mongolia Weekly, a business intelligence newsletter. "Political actors are positioning themselves for the next transfer of power."

The MPP has undergone repeated leadership changes over the past year following the resignations of prime ministers Oyun-Erdene Luvsannamsrai and Zandanshatar Gombojav. Thirty-nine year old Uchral Nyam-Osor took over as PM earlier this year.

Amar said the changes reflected an internal realignment within the ruling party rather than instability in Mongolia's political system.

Attention is now turning to who the MPP will nominate for president. A recent analysis by Odriin Sonin newspaper identified several possible contenders from the ruling party.

Former PM Zandanshatar is widely viewed as the leading contender. He is followed by Deputy Prime Minister Enkhbayar Jadamba, Foreign Minister Battsetseg Batmunkh and Defence Minister Byambatsogt Sukhbaatar. 

An April poll by Ulaanbaatar-based research firm MEC showed Zandanshatar with the strongest voter support among potential MPP candidates.

Although Uchral has quickly become one of Mongolia's most influential politicians, he is constitutionally ineligible because presidential candidates must be at least 50 years old. Amar said he could nevertheless play an important role in shaping the party's eventual nominee.

Khurelsukh is widely expected to leave office at the end of his term. Constitutional amendments approved in 2019 limit Mongolia's president to a single six-year term, making another candidacy unlikely without significant constitutional changes.

"The more important question is how Khurelsukh manages his political influence after leaving office," Amar said. "His role in shaping the MPP's candidate selection process and the broader balance of power within the ruling party will probably matter more than speculation about a second term."

Julian Dierkes, a Mongolia expert and professor at the University of Mannheim in Germany, also expects a contested election rather than a constitutional change allowing Khurelsukh to seek another term.

"The MPP remains in factional turmoil," he said.

Looking back over Mongolia's recent presidents, Dierkes said the office can matter depending on who occupies it.

Former president Elbegdorj Tsakhia “had an agenda where he did add some strategic directions that I don't see in the other three [former] presidents, perhaps most notably democratisation efforts and a more active foreign policy," he said. "So my answer is, it depends on the candidates. I see one example of a president who made a difference and three where I don't see much of an impact."

The opposition Democratic Party (DP) is also preparing for the race, though analysts differ on whether it can capitalise on public frustration over inflation, rising living costs and economic concerns.

Mongolian daily Odriin Sonin identified party chairman Tsogtgerel Odon, former DP leader Gantumur Luvsannyam and former Prime Minister Altankhuyag Norov as possible contenders.

Amar said the Democrats' chances will depend less on personalities than on whether economic dissatisfaction grows over the coming months.

"The Democratic Party's greatest opportunity lies in public dissatisfaction over living costs and economic management rather than in any single candidate," Amar said.

Dierkes was less optimistic, saying he is not convinced the party currently has a candidate capable of mounting a serious challenge.

The smaller HUN Party could also influence the race, particularly among younger urban voters seeking an alternative to Mongolia's two largest parties.

Technology entrepreneur Enkhbat Dangaasuren, who finished second to Khurelsukh in the 2021 presidential election with about 20% of the vote, is among the party's potential candidates.

Amar said HUN is unlikely to seriously contend for the presidency but could influence the outcome by drawing support from reform-minded voters.

Dierkes said Enkhbat's strong showing in 2021 demonstrated demand for an alternative to the two traditional parties and said HUN could remain competitive if it again nominated a credible outsider.

A head-to-head poll conducted by MEC last month showed Khurelsukh remained Mongolia's most popular politician, followed by Tsogtgerel (DP) and Zandanshatar (MPP). Although relatively new on the political scene, Tsogtgerel’s popularity has grown quickly thanks to a pro-business agenda and an ability to unite factions in his party.

Despite strong copper and coal exports and healthy foreign exchange reserves, inflation, infrastructure bottlenecks, energy shortages and periodic fuel disruptions remain key voter concerns.

With nearly a year to go before the election, the campaign has already begun — not yet on the public stage, analysts say, but largely inside the ruling party, where the contest to succeed Khurelsukh is reshaping Mongolia's political landscape.

By Michael Kohn 

Request Submitted to Supply 12,000–15,000 Tonnes of AI-92 Gasoline Monthly from China www.montsame.mn

Prime Minister Uchral Nyam-Osor received Zhang Guangyan, General Manager of "PetroChina Dachin Tamsag" LLC, a subsidiary of China's state-owned China National Petroleum Corporation (CNPC).

At the start of the meeting, the Prime Minister expressed gratitude for the China's agreement to supply 6,000 tonnes of AI-92 gasoline to Mongolia in August this year. He also requested that the supply volume be increased and stabilized at 12,000–15,000 tonnes per month going forward.

Furthermore, noting that the price of gasoline scheduled for delivery this month is higher than international market rates, he requested that the company explore possibilities for a price reduction. Prime Minister Uchral expressed confidence that PetroChina Dachin Tamsag LLC would step up its involvement, as support from China—a Comprehensive Strategic Partner—in resolving Mongolia's current fuel situation was discussed during his meetings with Zhao Leji, Chairman of the Standing Committee of the National People's Congress of China, Li Qiang, Premier of the State Council, and Wang Yi, Minister of Foreign Affairs.

Specifically, he asked for concrete progress in supplying products refined from crude oil exported from Mongolia back to Mongolia at competitive prices, as well as increasing production and supply volumes.

He also announced during the meeting that Minister of Industry and Mineral Resources  Damdinnyam Gongor will be dispatched on an official working visit to China next week to intensify cooperation on this matter.

Zhang Guangyan, General Manager of PetroChina Dachin Tamsag LLC, expressed gratitude to Prime Minister Uchral and the Government for resolving a tax dispute that had remained unsettled since 2012. He stated that the company would focus on expanding cooperation with Mongolia at a time when global petroleum product supplies are tightening and prices continue to rise. He added that the company would fully support making the Minister of Industry and Mineral Resources' upcoming official visit to China effective.

PetroChina Dachin Tamsag LLC has been operating in Mongolia’s petroleum sector for 20 years. During the meeting, the company also expressed its interest in expanding its ongoing operations in Mongolia and elevating cooperation to a new level.

Directive Issued to Exchange 80 Percent of Government Data Digitally by Next Year www.montsame.mn

The Government is focusing on digitizing public operations and delivering services promptly by launching the "Chuluulye" national initiative.

The Secretariat of the Cabinet held a consultative discussion with administrative and IT unit leadership from various ministries and agencies to address pressing challenges in boosting national productivity and to outline future actions. As a result of the discussion, directives were issued to transition at least 80 percent of government data exchanges to digital format in 2027, and to take all necessary steps to fully enforce the "Once-only" principle - ensuring that government entities do not request information from citizens or legal entities that the state already possesses.

Currently, approximately 70 percent of the 311 laws, regulations, and resolutions enacted regarding the digital transition are being implemented. However, the fact that stationery expenses in the state budget have not decreased indicates that paper-based information exchange persists, according to the Press and Public Relations Department of the Cabinet Secretariat.

The legal framework for the national digital transition has been established through amendments to the Law on Public Information Transparency, the General Law on State Registration, and the Law on Procurement of Goods, Works, and Services with State and Local Property, following the Law on Economic Freedom enacted this year. Presenters during the discussion also noted that conditions have been created to utilize artificial intelligence and secure registration technologies.

Kazakhstan, Mongolia Strengthen Water Cooperation www.kt.kz

Kazakhstan’s Ambassador to Mongolia Almas Seitakynov, met with Zeneemyadaryn Batbayar Director of Mongolia’s Water Agency.

The two sides discussed prospects for expanding Kazakh-Mongolian cooperation in water resource management, the introduction of water-saving technologies and the sustainable use of water resources.

Particular attention was given to the exchange of expertise in water monitoring and protection, access to safe drinking water, drought and flood prevention, and efforts to address the consequences of climate change.

Ambassador Seitakynov briefed Mr Batbayar on President Kassym-Jomart Tokayev’s initiative to establish an International Water Organisation under the auspices of the United Nations. It was noted that such a body would help strengthen international coordination on water-related issues, promote the sustainable use of water resources and develop lasting solutions to global and regional water challenges.

Ahead of the 17th session of the Conference of the Parties to the United Nations Convention to Combat Desertification (UNCCD COP17), to be held in Ulaanbaatar from 17 to 28 August 2026, Ambassador Seitakynov invited Mr Batbayar to attend a thematic side event organised by Kazakhstan as part of the conference.

The two sides emphasised the importance of closer cooperation between the relevant government agencies and research institutions of Kazakhstan and Mongolia.

The meeting concluded with an agreement to maintain working-level contacts and further develop bilateral cooperation in the water sector.
 
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Bridge to the Persian Gulf: What the Agreement Between Golomt Bank and Mashreq Bank Means for the Citizens of Mongolia www.open.kg

Golomt Bank has opened a direct correspondent account in UAE dirhams (AED) at Mashreq Bank, one of the leading financial institutions in the Emirates. This innovation eliminates the need to use Western intermediary banks for international transfers between Mongolia and the UAE.

Now transactions can be conducted directly in the national currency of the UAE, significantly simplifying the process and increasing its efficiency. This means that conversions to US dollars or euros are no longer required, facilitating financial operations related to the Emirates.

Benefits for Citizens of Mongolia

Cost reduction: Eliminating intermediaries and currency conversions significantly reduces fees for transfers.

Faster operations: Direct settlements between Golomt Bank and Mashreq Bank facilitate quick payment processing — within hours.

Benefits for tourists: Mongolian citizens in Dubai or Abu Dhabi can easily transfer funds to local accounts without significant losses.

Support for businesses: Companies engaged in import and export with the UAE gain effective tools for settlements with partners.

Access to investments: The UAE is an important financial center, opening new opportunities for business and investment for Mongolian citizens.

Popularity and Rating of Mashreq Bank

Mashreq Bank, one of the oldest and most reliable banks in the UAE, is among the top five largest financial institutions in Dubai.

Credit Ratings (High Reliability)

Global rating agencies assign the bank high investment ratings of class "A":

Fitch: A (Stable)

S&P Global: A (Stable)

Moody's: A3 (Stable)

Popularity and Status

Top 5 in the UAE: The bank's assets exceed 335 billion dirhams, making it a significant player in the region's financial market.

Leader in digital technology: Recognized as the fastest-growing banking brand in the Middle East and the best digital bank thanks to the Mashreq Neo platform.

Choice of businesses and consumers: Successfully meets the needs of both business clients and private customers with advantageous programs.

MIAT to Expand Cooperation with Boeing www.montsame.mn

MIAT State-Owned Joint Stock Company and Boeing are set to expand their cooperation by flexibly addressing aircraft market pricing and payments and establishing a mutually beneficial financing structure.

Delgersaikhan Borkhuu, Minister of Roads and Transport, emphasized this commitment during a meeting with a delegation led by Jeff Edwards, Vice President of Commercial Sales and Marketing for North Asia at Boeing. During the meeting, the two sides exchanged views on the development of Mongolia's aviation market, the economic efficiency of aircraft, and financial terms, the Ministry of Roads and Transport reported.

Minister Delgersaikhan noted that Mongolia is developing its air transport sector as a leading economic priority, aiming to become a regional aviation hub by leveraging its advantageous geographic location connecting Asia and Europe. The parties discussed expanding relations between MIAT and Boeing, securing favorable financial terms for aircraft purchases, and strengthening technical collaboration. Specifically, the Mongolian side expressed interest in acquiring next-generation Boeing aircraft that feature low operational costs, eco-friendly designs, and high fuel efficiency.

MIAT has been operating Boeing aircraft for its international flights since 1992, maintaining a steadily developing partnership with the company.

Mongolia's forex reserves hit record high of 7.9 bln USD www.xinhuanet.com

Mongolia's foreign exchange reserves reached a record high of 7.9 billion U.S. dollars at the end of July, local media reported on Thursday, citing the nation's central bank, the Bank of Mongolia.

The reserves increased by 13.67 percent from the beginning of the year and 4.0 percent from the previous month, reflecting continued growth in the Asian country's forex reserves, according to the central bank.

The Bank of Mongolia said that an adequate level of foreign exchange reserves is generally considered sufficient to cover three to six months of the country's imports. It added that the current level of reserves is more than adequate to meet this benchmark.

According to the central bank, Mongolia aims to increase its foreign exchange reserves to 10 billion U.S. dollars over the long term.

IMF Executive Board Concludes 2026 Article IV Consultation with Mongolia www.imf.org

The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation[1] with Mongolia and endorsed the staff appraisal without a meeting on a lapse-of-time basis.[2] The authorities have consented to the publication of the Staff Report prepared for this consultation.[3]

Despite a sharp decline in coal prices, Mongolia’s macroeconomic outcomes in 2025 were better than expected. A strong recovery in agricultural output and solid mining production supported growth, while higher copper exports and softer import demand helped narrow the current account deficit. Buoyant mining activity underpinned strong GDP growth through April 2026 (7.8 percent y/y), although underlying growth momentum remained subdued. Inflation has risen since March 2026 following several months of moderation, driven by surging meat and energy prices and reaching 12.0 percent y/y in June.

Growth is projected to remain robust in 2026 despite headwinds from higher energy prices and global uncertainty. Strong mining activity is expected to help offset weaker non-mining growth and further improve the current account balance, although growth is projected to moderate from the high level recorded in 2025 as the boost from agricultural base effects fades. Inflation is projected to remain elevated at around 10 percent by year-end amid high food and fuel prices, before easing gradually thereafter. The outlook remains subject to significant downside risks, including domestic policy slippages amid social and populist pressures ahead of the elections, as well as Mongolia close links to developments in global commodity markets and external demand.

Executive Board Assessment

Despite multiple shocks, Mongolia’s economy has remained resilient. In 2025, economic activity benefited from a sharp recovery in agriculture and strong mining activity, notwithstanding declining coal prices. The current account deficit narrowed as surging copper exports and moderating imports more than offset weaker coal exports. Nevertheless, the external position in 2025 is assessed to remain weaker than implied by fundamentals and desirable policy settings. Strong growth continued into early 2026, supported by buoyant mining production, but is projected to moderate owing to base effects. Headline inflation started rising again amid higher food and fuel prices and is expected to remain elevated throughout the year.

Vulnerabilities remain elevated, with the balance of risks to the outlook tilted to the downside. Key downside risks stem from a potential deterioration in external financing conditions due to fiscal slippages and higher debt, given political pressures to further reduce non-mining taxes and increase current spending, especially wages and pensions. External risks include heightened geopolitical tensions, including adverse spillovers from the Middle East conflict and Russia’s war in Ukraine, as well as uncertainty about prospects for coal exports to China and commodity prices.

Fiscal policy should prioritize rebuilding buffers and safeguarding sustainability. The submission of a supplementary budget to Parliament is a priority, to avoid end-year cash shortages as in 2025. The recently approved tax package should be reconsidered given its adverse impact on non‑mining revenues. Efforts should instead focus on tax policy and administrative reforms to strengthen them. Higher non-mining revenue, together with greater efficiency in current spending, would create space for much-needed development spending and rebuilding buffers. Public financial management and fiscal transparency need to be strengthened to enhance the credibility of the budget, including through a well-defined MTFF, more realistic budget formulation, and stronger governance of mining funds. Mongolia has benefited from the fiscal rules, and policy measures that undermine their credibility should be avoided, including the selective exclusion of public investment projects. Fiscal measures in response to higher fuel prices should be temporary and well‑targeted, while preserving price signals. Reducing reliance on external financing would strengthen fiscal resilience.

The BOM should maintain a tight monetary policy stance while standing ready to tighten further if risks of unanchored inflation expectations and significant second-round effects emerge. Strengthening the BOM’s operational and legal autonomy, forbidding quasi‑fiscal activities, and addressing its weak balance sheet are critical to enhancing its effectiveness and credibility.

Higher FX reserves and greater exchange rate flexibility would strengthen Mongolia’s resilience to external shocks. While GIR have increased markedly, they remain below adequacy thresholds. The BOM should continue pursuing opportunistic reserve accumulation when market conditions allow. The BOM should also gradually phase out its role as a structural provider of FX to the market and reduce its dominance in providing FX hedging instruments to banks by fostering the development of the domestic FX derivatives market.

The macroprudential framework needs further improvement. The BOM should strengthen the institutional separation between macroprudential and monetary policy, expand its macroprudential toolkit, and enhance coordination with the FRC. Incorporating pension-backed loans into the DSTI framework would help prevent excessive indebtedness among pensioners. Continued progress in risk-based supervision, alongside reforms to credit information, insolvency, and resolution frameworks, would further enhance financial sector resilience. The proposed increase in bank shareholder limits, together with allowing international financial institutions to invest in multiple banks, is welcome and could facilitate bank shareholder diversification.

Structural reforms remain essential to achieving sustainable and inclusive growth. Priorities include improving the business environment to support investment and attract FDI, strengthening governance and the rule of law, and moving toward a more diversified and private sector-led growth model. The revised Foreign Investment Law, amendments to the SOE Law and the Mineral Law, and the draft Whistleblower Law should be finalized and enacted promptly.

Mongolia’s Fuel Crisis Is a Demand Problem, Not Just a Supply One www.thediplomat.com

As Mongolians prepare for the back-to-school season while tourists prepare for long road trips, the transportation sector is in limbo. Long lines of cars wait for hours for fuel, sometimes to find no fuel at all. The government was forced to impose restrictions on fuel sales by limiting the maximum amount that can be purchased on select days. 
The cause of the crisis can be attributed to both external geopolitical factors and internal country dynamics, highlighting Mongolia’s ongoing energy insecurity. The cure might be a path toward transportation electrification.
While Mongolia has proven crude oil deposits, the country is solely dependent on imported fuel, with 97 percent of it coming from Russia. The war in Ukraine and the conflict in the Middle East are creating instability in global energy systems, which could impact the supply side. However, despite the popular notion of delays in Russian fuel shipments to Mongolia, sources have not cited any “major” delays from Russia, which makes it harder to pinpoint the cause of the current situation. 
Internally, urbanization and a mining boom in Mongolia have pushed demand higher, by up to 14 percent annually. For instance, Mongolia imported roughly 500,000 tonnes of petrol and diesel fuel in 2005; however, this number jumped five times higher within 20 years, reaching close to 2.7 million tonnes in 2025.   
The strategic vulnerability caused by Mongolia’s fuel dependency is a well-established fact within energy security calculus. The government has been pursuing a diversification plan, including talks with Kazakhstan on fuel imports and, more recently, with South Korea. Last week, Mongolian Minister of Industry and Mineral Resources Damdinnyam Gongor was in South Korea, striking deals on petroleum products. The country is expected to receive the first batch of diesel, petroleum, and aviation fuel from South Korea as soon as this month, according to the Government of Mongolia’s social media page. However, this strategy of diversification does not address the fundamental question of Mongolia’s dependency on fuel imports.
As of August 5, the average reserve for petrol (AI-92 and AI-95) ranged from 11 to 13 days. The diesel reserve was enough for 18 days, and aviation fuel stood at 10 days, further showcasing the country’s unpreparedness for major fuel disruption. While previous governments aimed to secure and maintain three to six months of fuel reserve, a lack of proper infrastructure and implementation caused this target to be repeatedly missed. The current government vowed to expedite the reserve infrastructure, but it will not be operational until 2028.
Furthermore, the spike in global energy prices is likely to weigh heavily on average consumers and the state budget alike. In 2025, diesel and petrol alone accounted for roughly one-third of all imported products by value in Mongolia, and that’s was with discounted Russian fuel. Other fuel sources, including ones from China, could be economically challenging.
With a record high number of foreigners visiting Mongolia this summer, the current fuel shortages not only affect Mongolians. Many tourists are seeing disruptions to planned trips. On August 4, the U.S. Embassy in Mongolia advised Americans to delay or defer any non-essential travel to the country, citing the fuel shortage. This is a significant and unfortunate message to the rest of the world, as Mongolia has prioritized tourism as one of its key priority areas for economic diversification. Summer months are the peak season for tourists, and according to industry experts, the ongoing fuel shortage is forcing the tourism sector to stand still while undermining economic activity.  
While the government has been issuing press releases with its policy responses, there is one interesting point missing thus far: transportation electrification. While the policymakers seem to recognize the risk of fuel dependency, replacing one source of imports with another source (diversification) will not change the end calculus. Yes, the continued establishment of Mongolia’s first oil refinery is underway and is expected to be operational by 2028. However, Mongolia’s long-term energy strategy must move toward electrification and renewable energy expansion. 
There is a quiet but visible presence of electric cars in the streets of Ulaanbaatar. With their bright green license plates, they roam without “day restrictions” (conventional vehicles are required by law not to operate one day a week in an effort to curb Ulaanbaatar’s infamous traffic). Big Chinese EV producers like BYD are slowly establishing their dealerships in Mongolia’s capital city, perhaps waiting for the government to prioritize transportation electrification.
While almost every part of the global economy suffers from an energy crisis, including Mongolia, the country has the opportunity to craft a substantial long-term energy security policy that includes transportation electrification. Fuel as a whole accounts for the largest import commodity by value in the country; Mongolia’s untapped renewable energy capacity could point to a different future for its transportation needs.

AI-92 Petrol Imports from Russia Continue www.montsame.mn

AI-92 petrol imports from Russia are continuing, with 43 rail tank cars, or 2,580 tonnes, of AI-92 petrol entering through the Sukhbaatar border port on August 5 and an additional seven rail tank cars, or 420 tonnes, clearing the border on August 6.

The imported fuel is currently being transported to Tolgoit, Arshaant, Darkhan, Erdenet, and Ulaanbaatar railway stations, where it is being unloaded for distribution to gas stations.

Fuel imports from Russia are still coming into the country without interruption, according to the Ministry of Industry and Mineral Resources. A total of 10,017 tonnes of AI-92 petrol entered the country through the Sukhbaatar border port between August 1 and August 5.

Furthermore, 33 rail tank cars carrying 1,980 tonnes of AI-92 petrol, dispatched from Russia’s Angarsk Oil Refinery on August 2, are scheduled to be delivered to Mongolia.