How the New Gulf War Is Impacting Mongolia www.thediplomat.com

Countries like Mongolia, despite being distant from the conflict, are already feelings its impact on their economic activities, not to mention how the war disrupts future possibilities. 

The new Gulf War, which started on February 28 with the United States and Israel attacking Iran, is sending geopolitical shockwaves across continents. The actions of large state actors in situations like these severely limit the capacities and the opportunities of small states that rely on stability and soft power. Countries like Mongolia, despite being distant from the conflict, are already feelings its impact on their economic activities, not to mention how the war disrupts future possibilities.
Most immediately, the war has impacted Mongolians living in the Middle East. When the Israeli-U.S. strikes began, the Foreign Ministry of Mongolia urged Mongolian nationals in the region to get in touch with the Mongolian embassies in Egypt, Kuwait, Turkiye, and the United Arab Emirates (UAE). 
On February 28, Mongolia’s Foreign Minister Battsetseg Batmunkh stated publicly that there were total of 281 Mongolian citizens currently residing in  the Middle East, specifically in the UAE (80), Egypt (45), Israel (40), Kuwait (38), Bahrain (33), Saudi Arabia (23), Qatar (19), Oman (2) and Jordan (1). The Office of the Foreign Ministry also highlighted there were no Mongolian citizens known to be in Iran. 
As the war escalated with Iran’s counter-strikes on U.S. allies in the Middle East, Mongolian nationals in the region sought to return home. 
On March 6, the Foreign Ministry of Mongolia released an official statement:
Mongolia is deeply concerned that the situation in the Middle East has severely deteriorated, with armed conflict escalating and resulting in the loss of many precious lives. These developments not only seriously undermine the norms of international law but also pose a grave threat to regional and global peace and security. As tensions intensify, the space for diplomatic engagement between the parties continues to narrow, and prospects for constructive dialogue are reaching an impasse.
Mongolia called for a peaceful and open dialogue. 
Following the official statement, on March 10, the Zandanshatar Gombojav government announced an effort to safely bring Mongolian citizens home via Dubai-Ulaanbaatar flights conducted by Mongolian Airlines or MIAT. As of March 11, the government announced that 91 Mongolian citizens had returned home safely. 
In the last several years, Mongolia has been strengthening its bilateral relations with the Middle Eastern countries, particularly with the Gulf states. To Mongolia, the region represents a new frontier of partners with financial and investment capabilities. These relationships mean diversified investment options for Mongolia. 
On the bilateral level, Mongolia and Iran’s historical ties were just recently refreshened. During talks between their respective foreign ministries in May 2025, Ulaanbaatar and Tehran expressed the desire to expand their relations, particularly in the economic field. Mongolia was seeking deeper connectivity with Tehran via the North-South Transport Corridor (INSTC), which would allow Mongolia  to send its exports to the Persian Gulf using Russia and Central Asian connections. 
The current war interrupts those possibilities. While Mongolia is not expected to alter its diplomatic approach to any of the countries involved, certain economic engagements – not only with Iran, Israel, and the Gulf states, but presumably with a newly distracted United States – will need to be placed on the backburner, and not by Mongolia’s choice. 
As a small state with limited military power, Mongolia has refrained from becoming involved in most of the Middle East conflicts and complications. However, when the Israel-Hamas war escalated in 2023, Mongolia’s position became more clear: its foreign policy and global engagements support peaceful dialogue and negotiations. 
Mongolia has voted in the United Nations in favor of demanding ceasefire in Gaza as well as offering full support to the UNRWA, the United Nations Relief and Works Agency for Palestine Refugees. Watching the escalation of the humanitarian catastrophe in Palestine, Mongolia voted in favor of demanding that Israel uphold its legal and humanitarian obligations. In 2024, Mongolia voted in favor of the U.N. General Assembly resolution ES-10/23, which included Palestine’s bid for full membership. Mongolia views these actions as part of its own international obligation to speak up for and support peace and security around the globe.
The current Gulf War certainly dampens Mongolia’s optimism in the Middle East, especially as the conflict escalates. Surely when Mongolia joined the Trump-led Board of Peace as founding member in Davos in January the government did not expect the United States and Israel to start a war with Iran. 
As of now, Mongolia is carefully watching how each nation is responding to the geopolitical shockwave and will continue to support the end of the conflict through dialogue. 

By Bolormaa Lkhaajav

Two Interpol-wanted suspects arrested in Kazakhstan www.gogo.mn

Two suspects wanted under Interpol Red Notices were located and detained in Kazakhstan during a special operation on March 10, 2026.

The suspects, identified as M and Ts, were wanted internationally for separate criminal cases. M had previously been convicted multiple times and is accused of intentionally causing serious bodily harm in 2024. Ts allegedly fled abroad while under investigation for large-scale fraud.

Their location was identified through international police cooperation, and they were detained in a joint operation involving Mongolian authorities and Kazakhstan Interpol. 

Mongolia in $500 Million Debt Offering and Concurrent Tender Offer www.clearygottlieb.com

Cleary Gottlieb represented the government of Mongolia in a Rule 144A/Reg S offering of $500 million 5.95% bonds due 2032 and its concurrent tender offer for its outstanding dollar-denominated 5.125% bonds due 2026, 8.65% bonds due 2028, and 7.875% bonds due 2029.

HSBC, Morgan Stanley, and Standard Chartered Bank were joint lead managers and dealer managers for the transactions. The transactions closed on March 9, 2026, and the new bonds were listed on the Singapore Stock Exchange.

The issuance allowed Mongolia to refinance a substantial portion of its debt maturing in 2026 and 2028, and also extended the maturity profile of a portion of its indebtedness.

The Cleary team included partner Shuang Zhao, counsel Robert Williams and Daisy Yan, and associate Jitong Liu. Partner Matthew Brigham and associate Michael Hughes advised on tax matters.

Battushig Reelected President of Mongolian National Olympic Committee www.montsame.mn

The regular 9th General Assembly of the Mongolian National Olympic Committee convened on March 12, 2026, at the Shangri-La Ulaanbaatar.

The assembly began with 136 of the 171 eligible members in attendance. Opening remarks were delivered by Battushig Batbold, member of the International Olympic Committee and President of the Mongolian National Olympic Committee. Kirsty Coventry, President of the International Olympic Committee, also sent a message wishing success to the participants.

During the assembly, participants discussed a report on activities carried out over the past period and elected the new leadership of the Mongolian National Olympic Committee. For the position of president, IOC member Battushig Batbold ran as the sole candidate and was re-elected with 96.7 percent of the votes, securing another four-year term to lead the committee. With this result, he becomes the 13th president of the organization.

First Vice President Naranbaatar Choijgavaa and Vice President Gantulga Tsendsuren, President of the Mongolian Table Tennis Association, were also elected. For the Executive Council, 14 candidates were nominated. Of them, seven candidates who received the highest number of votes were approved as members of the Executive Council. They include Yeroolbat Galbadrakh, Secretary General of the Mongolian Gymnastics Federation; Sodbaatar Yangug, President of the Mongolian Wrestling Federation; Buyandelger P, member of the Board of Directors; Myagmarjav L, President of the Mongolian 3x3 Basketball Federation; Bolormaa D, President of the Mongolian Skating Federation; Sandui Ts, President of the Mongolian Triathlon Federation; and Enkhtur D, member of the Board of the Mongolian Cycling Federation. Meanwhile, Members of Parliament Nomin Chinbat and Ganbaatar A, who had been nominated for the Executive Council, withdrew their candidacies.

Notably, among the participants at the assembly, the oldest attendee is 100 years old, while the youngest is 29. The gathering also includes five recipients of the titles Hero of Labor and People’s Teacher, 11 honored title holders, 37 International Masters of Sport, 16 Masters of Sport, and five athletes who have won Olympic or world championship medals.

Coal Export Increases www.montsame.mn

 Mongolia’s coal export increased during the first two months, the Ministry of Economy and Development reported.

Specifically, Mongolia exported 10 million tonnes of coal in January, which represents a 73 percent increase compared with 5.8 million tonnes during the same period of last year. On average, about 326 thousand tonnes of coal were exported per day during the month.  

In February, Mongolia exported 6.4 million tonnes of coal, up by 11 percent from 5.7 million tonnes in February last year. The export volume declined somewhat due to overlapping Lunar New Year holidays in Mongolia and China and relatively shorter number of days in the month. However, excluding the holiday period, the country still exported an average of around 320 thousand tonnes of coal per day.

As of March 10, Mongolia had exported 3 million tonnes of coal, which is 2.6 times higher than the 1.3 million tonnes exported during the same period last year. The country is currently exporting an average of about 330 thousand tons of coal per day.

Government Approves Agreement on Second Railway Line at Zamiin-Uud–Erenhot Crossing www.montsame.mn

The Government of Mongolia discussed and approved the draft intergovernmental agreement with China on jointly constructing a second 1,435-mm gauge railway line at the Zamiin-Uud–Erenhot Border Crossing during its session on March 11, 2026. The Cabinet also decided to issue a prime ministerial order authorizing the signing of the agreement.

The two sides have gradually increased the capacity for train crossings at the border point. However, the volume of cross-border freight transport has now reached the full capacity of the two border stations, limiting further growth in transportation.

As of 2025, an average of 16 broad-gauge trains and 7.5 standard-gauge trains are exchanged daily through the Zamiin-Uud–Erenhot railway border crossing, handling a total of 15.5 million tons of cargo.

According to the Media and Public Relations Department of the Government of Mongolia, further expansion of the border crossing’s capacity will require the construction of a second cross-border standard-gauge railway connection, as well as the expansion of Zamiin-Uud Railway Station, the standard-gauge railway line, and cargo transshipment facilities.

Asian Battery Metals Acquires Maikhan Uul Project in Mongolia www.discoveryalert.com.au

Asian Battery Metals (ASX: AZ9) has completed a significant strategic acquisition, exercising its option to acquire 100% of the Maikhan Uul Copper-Gold Project in southwestern Mongolia. The deal, valued at US$890,000, adds a promising copper-gold asset with a mining licence valid until 2045 to the company's growing Mongolian portfolio.

The acquisition represents more than just another exploration play. Located just 8 kilometres from ABM's existing Oval Cu-Ni-PGE discovery, Maikhan Uul creates immediate operational synergies and strengthens the company's foothold in Mongolia's established copper province. Recent due diligence drilling has validated the project's potential, returning impressive results including 14.5 metres @ 2.23% copper and 0.73 g/t gold from 132.5 metres depth.

Deal Structure Reflects Confidence in Asset Quality
According to the announcement, ABM's acquisition terms demonstrate the company's measured approach to growth. The US$890,000 purchase price is structured with an initial US$89,000 tax payment due within 10 business days, followed by the remaining US$801,000 upon satisfying standard conditions precedent.

Key Transaction Terms:

Total Consideration: US$890,000
Initial Payment: US$89,000 (tax obligations)
Balance: US$801,000 on completion
Completion Timeline: 45 days maximum
Asset: 100% ownership of Mining Licence MV-019681 (~79.14 hectares)

The conditions precedent are largely administrative, focusing on licence transfer formalities and tax compliance. This suggests ABM has already completed its technical evaluation and expressed satisfaction with the asset's potential.

Investment Week Discusses Business, Legal Environment www.montsame.mn

On the second day of the Investment and Trade Agency Week, Member of Parliament Munkhsoyol Baatarjav emphasized the need to improve the stability and transparency of the investment environment and to accelerate decision-making.

Within the framework of the Investment and Trade Agency Week, key economic and legislative issues to be discussed at the spring session of Parliament, starting next Monday, are being highlighted. In particular, the session is expected to deliberate on matters such as the package of tax laws and the Law on Value-Added Tax, among other issues.

Member of Parliament Munkhsoyol noted that investors typically make decisions by assessing which countries have stable macroeconomic indicators and a favorable, fair investment environment. Therefore, she emphasized that Mongolia needs to intensify its economic policy and reform efforts. She further stated, “The discussion around the Law on Economic Freedom represents one step in this direction. International researchers and investors often stress the need to increase transparency, reduce excessive state involvement in the economy, and ease the pressure and bureaucracy faced by the private sector. Therefore, improving the business environment and refining legal regulations is essential. At the same time, the most important factor in attracting foreign direct investment is a stable and predictable legal environment. The longer decision-making is delayed, the greater the uncertainty becomes, which weakens investor confidence. For this reason, we need to enhance the stability and transparency of the investment environment, as well as the speed of decision-making. On the other hand, when discussing tax policy, the state budget revenue must also be considered, since taxes are the main source of government income. If tax rates are to be reduced, their impact should be determined based on solid calculations and research.

For example, lowering tax rates may reduce the burden per individual, but it could also increase the number of taxpayers and generate greater efficiency for the economy. It is also important to bring groups that previously did not pay taxes into the tax system to ensure fairness.”
 
Meanwhile, Myagmardorj O., Head of the Macroeconomic Policy Department of the Ministry of Economy and Development, explained that agriculture and the mining sector are the main drivers of economic growth, according to preliminary estimates. Export performance has shown noticeable fluctuations throughout the year. In the middle of the year, exports declined somewhat due to a drop in coal prices. However, toward the end of the year, export volumes improved, with coal exports reaching 90 million tons. He added that although coal export revenue tended to decline compared to the previous year, copper and gold exports helped offset the decrease. This was largely due to significant increases in global prices for copper and gold, which supported export revenues.

As of February this year, export revenues have increased by around 50 percent compared to the same period last year. Imports, however, have shown a slight decline compared with the previous year.

The primary factor behind this decrease has been a decline in investment-related goods imports. This suggests that domestic demand and economic activity related to imports may weaken to some extent in 2026.

Additionally, a public discussion on the fiscal framework statement will be held later this month. A presentation outlining Mongolia’s economic outlook and fiscal projections for the next three years will be submitted to the State Great Khural (Parliament) in May 2026.

Mongolia’s trade surplus widens as exports surge www.qazinform.com

For the first two months of this year, Mongolia’s exports rose to 3,046.4 million US dollars, while imports declined to 1,575.9 million US dollars, Qazinform News Agency cites MONTSAME.

That brought the country’s trade surplus to 1,470.5 million US dollars in January-February this year.

The General Administration of Customs said on Wednesday the country’s foreign trade turnover reached 4,622.3 million US dollars in the first two months of the year, rising by 906.5 million US dollars or 24.4 percent year on year.

In the reporting period, the top five purchasers of Mongolian goods were China ($2,778.1mln), Switzerland ($172.6mln), the U.S. ($54mln), Brazil ($9.1mln), and Russia ($6.7mln).

Earlier, it was reported China’s exports jump in January-February despite a drop in the U.S. trade. 

BY Adlet Seilkhanov

Mongolia demands Rio Tinto change “unfair” terms of deal on giant Oyu Tolgoi copper mine www.intellinews.com

Mongolia has informed Anglo-Australian mining giant Rio Tinto (ASX: RIO) that it wants a renegotiation of “unfair” commercial terms of the contract that applies to the development of the huge $18bn Oyu Tolgoi copper and gold mine in the Gobi desert.

Mongolia’s official news agency Montsame reported that Prime Minister Zandanshatar Gombojav on March 9 met with Katie Jackson, head of copper at Rio, and presented demands.

In early December last year, bne IntelliNews reported on how Mongolia was calling public hearings ahead of a likely push to obtain better Oyu Tolgoi terms from Rio.

At the meeting, Jackson presented Rio’s proposals on issues including management fees and interest rates on shareholder loans, according to Montsame.

The media outlet’s report added that Zandanshatar said that while it was commendable that Rio had shown respect for negotiations with the government of Mongolia and arrived with certain progressive proposals, the suggestions were insufficient for Mongolia and could not be accepted.

He was reported as reiterating that he remained steadfast in his position, first expressed as far back as 2009, that the principle of “mutual benefit” was not being adequately upheld in the Oyu Tolgoi project.

“There is a principle that the Mongolian people are the rightful owners of their natural wealth. Under the current arrangement, Mongolia would receive dividends from the Oyu Tolgoi project only after 20 to 30 years, which does not align with the principle of mutual benefit. The idea that Mongolians should own their natural wealth is a right guaranteed to the people under the Constitution,” Zandanshatar was quoted as saying at the meeting with Jackson and other Rio representatives.

The Financial Times reported video footage as showing that the prime minister at the meeting warned Rio executives that “this whole situation feels like the Mongolian people and the parliament are being deceived”.

He was also reported by Montsame as outlining demands, including:

Raising Mongolia’s share of benefits from the Oyu Tolgoi project to more than 60%.
Significantly reducing the interest rate on shareholder loans.
Lowering management fees and ensuring that Oyu Tolgoi LLC becomes operationally independent in terms of management from 2030.
Distributing dividends to Mongolia by 2026.
Resolving issues related to licences of Canadian project partner Entrée Resources (TSE: ETG) in accordance with Article 6.2 of the Constitution. This stipulates that the majority of benefits from natural resources must accrue to the people.
Rising prices for copper and growing support for resource nationalism in Mongolia have contributed to strong political momentum to change the terms of the 17-year-old mine development deal. Politicians are conscious that the issue will play a role in elections due next year.

Under the terms of the original Oyu Tolgoi agreement, the government of Mongolia owns 34% of the mine, held through state-owned mining company Erdenes Mongol Group.

To fund its share of the capital expenditure required to develop the mine, the government took out a multibillion-dollar loan from Rio. It was provided at a floating interest rate that is presently more than 11%.

There have been repeated project cost overruns and delays. These have pushed back the time when the government will start to receive dividends from mine profits from 2017 to around 2037.

The Mongolian proposal would cut the loan interest rate to less than 6%, on par with the interest rate for Mongolia’s other sovereign lending, according to the FT.

Rio’s plan is to make Oyu Tolgoi the world’s fourth largest copper mine by 2030, with production to run at around 500,000 tonnes of the metal a year.

“We are engaged in active negotiations with the Mongolian government,” Rio said in a statement reported by the FT, adding: “These discussions reflect our continued commitment to working together to achieve Oyu Tolgoi’s full potential for the benefit of all partners.”

At present, the mine produces copper from its open pit. Its underground operations are being built out.

On March 10, JPMorgan downgraded Rio from 'overweight' to 'neutral'.