The Angarsk vulnerability www.midstreamiq.com

Ukraine has hit every major Russian oil refinery except one. Mongolia's mining industry runs on that one.

On 6 July 2026, Ukrainian drones struck the Gazprom Neft Omsk refinery in southwestern Siberia. Roughly 2,500 kilometers from the Ukrainian front line, with actual drone flight path estimated near 3,000 kilometers. The deepest strike on Russian territory since the invasion began. Reuters reports the CDU-10 and CDU-11 crude distillation units are offline, accounting for roughly 75 percent of the refinery’s processing capacity. Ukraine’s General Staff described Omsk as “the last of Russia’s 11 largest gasoline producers” to be hit.

By processing capacity, one refinery in Russia’s top ten remains untouched. Angarsk Petrochemical Company. Rosneft subsidiary since 2007. Irkutsk Oblast. Design capacity 10.2 million tons per year. The largest oil refinery in East Siberia. Anchor of Mongolia’s fuel supply.

The single-line dependency

Mongolia imports 100 percent of its refined petroleum. Around 90 to 95 percent comes from Russia. Rosneft has historically supplied above 90 percent of the total, with Angarsk as the primary source. Delivery is by rail through the Trans-Mongolian line, connecting the Russian border to Ulaanbaatar and continuing south to China.

The architecture is a single line. One refinery. One rail corridor. One supplier country. There is no seaborne alternative. Kazakhstan supply has been discussed at ambassadorial level in Ulaanbaatar since October 2025 without infrastructure to deliver it. Chinese refined product imports have been raised at Mongolia-China ministerial level without cleared quotas. Mongolia’s fuel supply on 8 July 2026 is the same fuel supply it was on 8 July 2025.

What breaks first

Mongolian coal moves from mine gate to the Chinese border on diesel trucks. Ganqimaodu, Shiveekhuren, Ceke, and Bichigt are trucked distances. Rail hauling on the Trans-Mongolian line is diesel. Mine site support equipment is diesel. There is no substitution timeline for any of it.

Coal exports through 6 May 2026 reached 40.5 million tons. Annualized: 117 million tons. The government’s 2029 target of 110 million tons assumes trucking capacity scales with mine capacity. The one variable that has to hold constant is diesel.

Copper concentrate follows the same route. Oyu Tolgoi trucks concentrate to Ganqimaodu. Erdenet moves concentrate by rail. Cashmere and livestock exports depend on the same fuel base. Domestic power runs on Mongolian thermal coal. Its delivery to power plants is railed and trucked. Both run on diesel. A prolonged diesel shortage does not just cap coal export volume. It caps the fiscal system.

The reserve gap

In October 2025, after fuel shortages produced petrol station queues in Ulaanbaatar and rationing in ten provinces, the Mongolian government mandated a 30-day strategic fuel reserve by decree. Public reporting since has cited actual reserves closer to 20 days than the 30-day mandate. The reserve is held by private-sector companies under law. Concessional financing to complete the reserve build was still under negotiation as of late 2025.

The Omsk repair curve provides the reference. When Omsk suffered two attacks in 2024, roughly half of its processing capacity was offline for months. The Angarsk repair curve would be similar or longer given East Siberian logistics and the Rosneft supply chain for catalytic units. The gap is not close: 20 to 30 days of buffer against 60 to 180 days of restoration.

Russia’s autumn 2025 response to Mongolian shortages was to redirect supply from other refineries. But every one of the alternative top-tier refineries in Russia has now been struck. There is no undamaged surplus to redirect from.

Nalaih, Ulaanbaatar outskirts, 8 July 2026, 23:00 local. Word in Mongolia’s oldest coal mining township: fuel depot operators are imposing container fill limits and declining jerry can sales. The rationing is informal, not yet government-declared. The hoarding is already structured — those with permitted storage are managing allocation. Those without are being turned away.

This is before Angarsk is struck.

The margin arithmetic

Angarsk has not been struck. Russian diesel supply to Mongolia has not been formally interrupted. Mongolian mining margins are already compressing.

Retail diesel in Ulaanbaatar has moved from around 2,400 tugriks per liter in late 2025 to approximately 4,200 tugriks per liter by early July 2026. A rise near 75 percent in seven months. The price-control regime that had kept retail flat through most of 2025 has given way to import scarcity. Corridor reporting indicates hoarding by consumers, prioritized allocation by fuel importers holding permits and rail tanker capacity, and premium margins captured by traders with storage tank access. Between the border delivery price and the retail pump sits the differential. That differential is currently theirs.

Diesel is not a secondary cost for a Mongolian coal producer. Industry benchmarks for open-cast operations place diesel at 20 to 40 percent of total operating expense, weighted toward the higher end for mines with long haul distances to the border. Mongolian Mining Corporation’s UHG operation trucks coal 245 kilometers from mine to the Gashuunsukhait crossing on a fleet of roughly 450 double-trailer trucks. Tavan Tolgoi producers face similar or longer haul routes. Ultra-class haul trucks consume 300 to 500 liters of diesel per hour under load.

The arithmetic is straightforward. A 75 percent diesel price rise against a 30 percent diesel share of operating cost implies a total opex rise near 22 percent. Against a 2025 realized coal price of $64.09 per ton and Wood Mackenzie’s observation that Mongolian coal was already clearing to Chinese steel mills at considerably low margins, the outcome is a squeeze on producers who were breakeven at the pre-shortage cost curve. Three options remain. Absorb losses and accumulate debt at Mongolian commercial lending rates. Slow production to reduce fuel burn and forgo revenue. Suspend operations and carry high restart cost, including permit renewal exposure.

None of these options preserve the fiscal system’s coal export projections. The 2026 State Budget assumes 90 million tons at $70 per tons. Producer-level economics under the current diesel curve support the tonnage target only if the ambient coal price rises materially. Chinese domestic supply policy determines whether that happens.

This is the operating environment before Angarsk is struck. The Angarsk scenario is not the moment the crisis begins. It is the moment the crisis becomes visible in the trade data.

The fallback

If Russian supply degrades below usable levels, Mongolia’s realistic alternative at scale is one country. China. Kazakhstan has been discussed at ambassadorial level for eight months without a signed contract. Chinese refined product export licenses to Mongolia have been raised in bilateral meetings without cleared quotas. Of the two neighbors capable of moving diesel volumes into Ulaanbaatar within thirty days, one is the country with the damaged supply chain, and the other is the country that already receives 91 percent of Mongolia’s exports.

The architecture completes itself. Mongolia’s mining revenue is a residual of Chinese domestic coal policy. In the Angarsk scenario, Mongolia’s mining survival becomes a residual of Chinese refined petroleum policy. Both sides of the fiscal system converge on the same counterparty. Any negotiating leverage Ulaanbaatar retains today with Beijing on coal pricing, coking blend acceptance, transit terms, or license renewals is absorbed the moment diesel supply becomes a bilateral request rather than a Russian commercial contract.

Mongolia does not lose a supplier in this scenario. Mongolia loses a hedge.

Korea, Mongolia agree to start 'golden era' in ties, cooperate on supply chain in summit www.koreajoongangdaily.com

Korean President Lee Jae Myung and Mongolian President Ukhnaa Khurelsukh declared a shared vision for a “golden era” of bilateral relations through cooperation in trade, critical minerals and supply chains at a summit in Ulaanbaatar on Thursday.

“The most significant achievement of this summit is that we two leaders reaffirmed a shared vision of ushering in the “Golden Age of Korea–Mongolia Relations” and adopted a joint declaration setting out the future direction of bilateral relations,” Lee said during a joint press conference after their summit talks at the government palace.

The two countries agreed to expand economic, trade and investment cooperation and to strengthen collaboration on supply chains, including critical minerals, Lee said. Mongolia holds the world's second-largest rare earth reserves after China, with 31 million tons. 

Lee also said the two sides agreed in principle on the comprehensive economic partnership agreement (CEPA) and will join hands to achieve an annual bilateral trade volume of $1 billion by 2030.

Korea and Mongolia elevated their bilateral relationship to a strategic partnership in 2021, but there was no trade agreement to institutionally support the expansion of trade and investment. The two sides have been negotiating to close a CEPA since November 2023.

"Our two countries agreed to further solidify political and diplomatic trust, while deepening our strategic partnership.," Lee said.

The two sides will also broaden the scope of mutually beneficial and sustainable cooperation in various fields, including AI and the digital transformation, advanced science and technology, logistics and infrastructure, agriculture and livestock farming, health care and medical services and development.

On the occasion of the summit, the two sides also signed 21 memorandums of understanding (MOUs) in fields including energy transition, climate change response, distribution and logistics, science and technology and cultural heritage.

Korea also agreed to contribute to improving the health and quality of life of the Mongolian people through related cooperation, including the construction of Mongolia’s National Cancer Center II.

Lee said he reiterated Seoul’s initiative for peace and cooperation on the Korean Peninsula to Khurelsukh and thanked the president for “reaffirming his steadfast support for our government’s efforts to establish lasting peace” on the peninsula.

Stating that he will attend Naadam — Mongolia’s largest national festival — on Saturday as a guest of honor, Lee said, “I hope this serves as an opportunity for the people of Korea and Mongolia to unite as one.”

In the joint press briefing, Khurelsukh described South Korea as a “third-neighbor country” and an important strategic partner.

He said Lee’s visit will “make a valuable contribution to further strengthening the political trust between the two nations, increasing practical economic cooperation and deepening the friendship between the peoples of both countries.”

Khurelsukh pointed toward the growth of bilateral relations over the past 36 years based on shared values of democracy, human rights, freedom and a market economy.

The two sides also agreed to people-to-people exchanges in various fields such as tourism, education, employment and culture.

On Thursday, Lee began a three-day state visit to Mongolia, the first by a South Korean president in 15 years. Lee and first lady Kim Hea Kyung are on a five-day tour that first took them to Turkey for the NATO summit.

Khurelsukh received the presidential couple in an official welcome ceremony at Sukhbaatar Square with a 21-gun salute. The two leaders then held bilateral talks and took part in an MOU signing ceremony.  

Later, Lee, joined by Khurelsukh, took part in a South Korea-Mongolia business forum attended by business executives and officials of both countries. 

Korean companies included LS, Posco, GS Retail, E-Mart and LG CNS and represented sectors including critical minerals, distribution and consumer goods and digital technology. Major Mongolian companies included MCS Group, Tavan Bogd Group and Mongolyn Alt (MAK), representing sectors like critical minerals, distribution and finance.

Lee called for the two countries to “join forces as trusted partners in the critical-mineral supply chain” in a speech at the forum.

“Mongolia is richly endowed with critical minerals — including copper, molybdenum, tungsten and rare earth elements — while the Republic of Korea possesses advanced technology, capital and logistics capabilities,” Lee said. “Together, our two countries can create powerful synergies in the supply chain sector.”

The Korea–Mongolia Rare Metals Cooperation Center in Ulaanbaatar, which launched last December, can serve as a platform for cooperation and exchanges between businesses from both countries, Lee said. He further called for growth in infrastructure investment and legal and institutional frameworks.

Lee also noted that young Koreans call Ulaanbaatar “Mongtan,” a portmanteau of Mongolia and Dongtan, a rising affluent satellite city of Seoul in Hwaseong, Gyeonggi.

The “Mongtan model,” Lee said, started with hypermarkets and convenience stores and can be applied more broadly to Korean consumer goods such as food, beverages and cosmetics, as well as the finance, health care, education and AI sectors. 

Under this model, Lee said “a Korean retail company provides its technology and expertise, while a Mongolian company makes a direct investment, operates the business and gains its own expertise.

Korea and Mongolia each possess distinct strengths in fields such as resources, technology, the workforce and capital, Lee said, underscoring the two countries have "limitless potential for cooperation."

Lee said in an interview with Mongolia's state-run Montsame news agency published on Thursday that Seoul seeks a “phased approach to denuclearization” on the Korean Peninsula while comprehensively pursuing normalization of ties with Pyongyang.

"Our government seeks to end the era of hostility and confrontation between South and North Korea, and to build a new era of peaceful coexistence and shared growth on the Korean Peninsula," Lee said.

He added that he hopes Ulaanbaatar will contribute even more to peace and stability, not only on the Korean Peninsula but across Northeast Asia as a whole, noting that the country has “maintained balanced relations not only with China and Russia, but with other key countries of the region.”

BY SARAH KIM [kim.sarah@joongang.co.kr]

President urges Korea, Mongolia to join forces for critical mineral supply chain www.koreatimes.co.kr

President Lee Jae Myung urged Korea and Mongolia to join hands to build a resilient supply chain for critical minerals, stressing that Mongolia's abundant natural resources and Korea's industrial know-how could create strong synergy.

In his congratulatory speech at the Korea-Mongolia Business Forum on the sidelines of the bilateral summit in Ulaanbaatar, Lee called on the two countries to create more models of shared growth by expanding cooperation beyond retail and consumer goods.

“Let us join forces as reliable partners in critical mineral supply chains,” the president said during the forum attended by about 300 entrepreneurs from the two countries.

Business representatives from major Korean companies, including LS Holdings, POSCO Holdings, SK Group, LG CNS, GS Retail, Emart, BGF Retail and Hanwha Investment & Securities, attended the forum.

Mongolia was represented by officials from MCS Group, Tavan Bogd Group and other leading companies.

Lee pointed to Mongolia's abundant reserves of critical minerals such as copper, molybdenum, tungsten and rare earth elements, as well as Korea's strengths in technology, capital and logistics, saying the two countries could "create powerful synergy in supply chains by working together."

To advance that goal, Lee proposed making full use of the bilateral rare metals committee, jointly operated by the two governments, as well as the rare metals cooperation center, which opened in Ulaanbaatar in December 2025.

As for models of shared growth, the president pointed to the Mongolian capital where Korean retail companies provide technology and expertise, while Mongolian companies operate the business through direct investment and build their own experience.

He said the successful model will be expanded into Korean consumer goods such as food, beverages and cosmetics, as well as finance, health care, education and artificial intelligence (AI).

The president also urged to capitalize on Mongolia’s economic growth to lay the foundation for shared growth through infrastructure investment and stronger institutional frameworks.

Mongolia's economy has been growing by more than 5 percent annually, driven by its abundant natural resources, resulting in higher demand for infrastructure, including transportation, logistics and energy.

“With world-class construction and engineering capabilities and extensive experience in infrastructure development, Korea is an ideal partner for Mongolia's urban and industrial development," Lee said.

The president noted some Korean companies already have been taking part in Mongolia’s first urban railway project and smart city development initiatives.

“For this cooperation to expand further, the two countries need to establish an institutional framework that enables businesses to trade and invest more freely,” he said.

In particular, the president viewed the Korea-Mongolia Comprehensive Economic Partnership Agreement, for which the two countries announced their agreement in principle, will mark a new turning point in bilateral economic cooperation.

BY Yi Whan-woo
Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.

yistory@koreatimes.co.kr

Lee calls on Mongolia to play greater role in spurring dialogue with North Korea www.nknews.org

South Korean President Lee Jae Myung called on Mongolia to play a greater role in facilitating dialogue with North Korea, saying the country’s longstanding diplomatic ties across the region make it well positioned to help revive the stalled diplomacy on the Korean Peninsula.

In an interview published Thursday by Mongolia’s state-owned Montsame news agency, Lee highlighted Ulaanbaatar’s significance as a “unique” regional partner that maintains friendly relations with North Korea while also sharing democratic and free-market values with South Korea. 

Lee, who arrived in Mongolia on Thursday for a three-day state visit, added that the country’s balanced relations with China, Russia and other regional powers have made it an important contributor to peace and stability in Northeast Asia.

“Our government seeks to end the era of hostility and confrontation between South and North Korea and to build a new era of peaceful coexistence and shared growth on the Korean Peninsula,” Lee reportedly said.

To this end, Seoul intends to pursue expanded inter-Korean exchanges, normalize relations with Pyongyang and pursue a phased denuclearization approach, the South Korean president added.

With U.S.-DPRK and inter-Korean dialogue at a standstill, Lee called on the international community to preserve channels of communication with Pyongyang and support platforms for discussing regional peace.

In particular, he said Mongolia could play a significant role as a trusted intermediary.

“I hope that Mongolia, drawing on the diplomatic trust it has built … will contribute even more to peace and stability — not only on the Korean Peninsula but across Northeast Asia as a whole,” Lee said.

Mongolia has long been a relatively neutral diplomatic actor in Northeast Asia, hosting multilateral security discussions and maintaining working relations with countries that often have strained ties with one another, including North Korea, South Korea, the U.S., China and Russia.

Mongolia became only the third country after China and Russia to rotate embassy staff in the DPRK in Jan. 2024, after North Korea began easing pandemic-related border restrictions.

North Korean delegations have also made regular visits to Mongolia for bilateral and multilateral discussions since 2024, underscoring Ulaanbaatar’s importance as a neutral venue for engagement with the DPRK.

However, Mongolia’s willingness to host North Koreans has also sparked concern that it may be enabling the DPRK’s sanctions evasion, including through a restaurant with suspected ties to Pyongyang that was found to be operational last year.

Lee’s visit has also led to speculation about his possible intervention in the case of a North Korean interpreter who reportedly sought asylum at the South Korean Embassy in Ulaanbaatar last year.

South Korea’s Foreign Ministry told NK News that it cannot confirm details about the case.

Erdeneburen Hydropower Plant will guarantee energy independence for western provinces www.gogo.mn

Following a Cabinet meeting on July 8, Minister of Energy B.Naidalaa announced a major expansion of Mongolia's renewable energy infrastructure, aimed at addressing chronic power shortages across the country.

Building on the successful July 1 launch of a 220 MW solar power and battery storage project spanning five provinces, the government has approved a new round of open tenders. The upcoming projects will include solar and battery facilities in Bayan-Olgii, Uvs, Bayankhongor, Sukhbaatar, and Dornod provinces. Additionally, the government will host an auction for a 100 MW wind power plant in Saintsagaan soum, Dundgovi province, and has issued expressions of interest for three new substation-connected sites in the Gobi region.

Minister B.Naidalaa highlighted the urgent need for these developments, noting that 144 of Mongolia's 330 soums currently experience inadequate power quality and supply shortages. Furthermore, he emphasized that the eventual commissioning of the Erdeneburen Hydropower Plant will be a transformative milestone, officially making Mongolia's western provinces completely energy independent.

New flood reserve fund to save Ulaanbaatar MNT 2.4 trillion in damages www.gogo.mn

Capital Governor and Mayor B.Purevdagva inspected the construction of a flood water storage reservoir under the "Selbe Sergelt" project, highlighting that the five-stage reserve fund system will protect the city from an estimated MNT 2.4 trillion in potential flood damage.

Currently, earthworks for the reservoir structure are 30% complete, and the production of reinforced concrete slabs for the dam stands at 80%. However, officials noted that undocumented households lacking land certificates are stalling necessary land acquisition and slowing construction progress.

Identifying eight high-risk flood zones across the capital, Mayor B.Purevdagva ordered district governors to immediately accelerate land acquisition. Emphasizing that the reluctance of a few households cannot endanger the entire city center, the Mayor reaffirmed that the city will take all necessary measures to complete the first phase of the reservoir project before the end of the year. 

President Khurelsukh and President Lee Jae Myung Hold Official Meeting www.montsame.mn

President of Mongolia Khurelsukh Ukhnaa held an official meeting with President of the Republic of Korea Lee Jae Myung.

President Khurelsukh expressed confidence that the visit, the first by a President of the Republic of Korea to Mongolia in 15 years, would not only consolidate the achievements of bilateral cooperation but also further strengthen and expand relations between the two countries, opening a new chapter in their partnership. The President also noted that the people of Mongolia highly appreciated President Lee and First Lady Kim Hea Kyung's attendance as honoured guests at the National Naadam Festival, a celebration that symbolises the cultural heritage of humanity, as well as the unity and independence of the people of Mongolia.

President Lee Jae Myung reaffirmed his commitment to further strengthening relations with Mongolia, the Republic of Korea's Strategic Partner, and expressed his sincere gratitude to President Khurelsukh, First Lady Bolortsetseg Luvsandorj, and the Government and people of Mongolia for their warm hospitality. He also said he was pleased to attend the opening ceremony of the Naadam Festival together with First Lady Kim Hye Kyung and looked forward to learning more about the history, culture, and traditions of the people of Mongolia.

The two Presidents expressed confidence that the State Visit would further reinforce political trust between the two countries, enrich economic cooperation with tangible outcomes, and make a valuable contribution to strengthening the friendship and ties between their peoples.

Khaan Quest 26 ends with closing ceremony in Mongolia www.army.mil

The multinational peacekeeping exercise Khaan Quest 2026 officially ended with a closing ceremony at the Five Hills Training Facility near Ulaanbaatar as soldiers from the Mongolian Armed Forces hosted United Nations participants from 18 different nations on July 3, 2026.

Opening remarks were given by Minister of Defense of Mongolia Gürsediin Saikhanbayar and Major General Gavin Gardner, commanding general, 8th Theater Sustainment Command.

“The Khaan Quest exercise once again proves the importance of cooperation among nations and strengthening peace and security. It also provides us the opportunity to work together in unity for our shared values. At the same time, this exercise has become an important event that has put military cooperation at the global and regional level into practical action,” said Saikhanbayar.

Since 2003, Khaan Quest has been a peacekeeping operations exercise hosted annually by the Mongolian Armed Forces and co-sponsored by U.S. Army Pacific. Khaan Quest 2026 is a multinational, multilateral and multicomponent training exercise designed to promote peace and security throughout the Indo-Pacific region.

"Over the years, Khaan Quest has grown into a premier event that not only strengthens interoperability, deepens regional security cooperation, and advances our shared interests," said Maj. Gen. Gardner.

This year marked the 23rd iteration of Khaan Quest. Approximately 1,300 participants from Australia, Canada, Egypt, Germany, Indonesia, Israel, Italy, Japan, Kuwait, Mongolia, the Philippines, Singapore, South Korea, Thailand, the United Kingdom, the United States, and additional partner nations took part in the exercise. The event featured both command post and field training exercises focused on peacekeeping, disaster relief, civil unrest response, and enhancing interoperability through cross-cultural communication.

“I am deeply appreciative of what our Soldiers across all nations have accomplished together. The skills they have gained not only deepened our people-to-people relationships but also strengthened our collective capacity to respond swiftly and effectively to future peacekeeping missions, humanitarian assistance, and disaster relief operations,” said Maj. Gen. Gardner.

During the exercise, participants were encouraged to partake in multicultural events and forge friendships. Each night after training, a participating nation performed a cultural demonstration to build relationships and foster cultural appreciation.

“Our people-to-people relationships, forged through exercises like Khaan Quest, demonstrate the profound value we place on our allies and partners,” said Maj. Gen. Gardner. “As I look across the parade field and into the stands, I see a remarkable diversity of military uniforms and individuals from around the world. Though our uniforms may differ, we are united for a common purpose and a shared commitment to peace and stability.”

The closing ceremony featured traditional Mongolian music and Mongolian soldiers in ceremonial garb.

“May the friendship of all the peacekeepers of the world and the blue helmets of the peacekeepers, who have united under the common goal of establishing peace throughout the world and who have met and built bonds of friendship under the blue skies and vast open lands of my beautiful homeland, remain strong,” said Saikhanbayar. “May our world be filled with peace and tranquility.”

Healthilife — British Vitamins now available in Darkhan www.britishbusinesscentre.com

We’re pleased to announce Healthilife (UK) vitamins are now on sale in Darkhan. Available at the Darkhan‑Uul Provincial Health Office and Olzii Amgalan Pharmacy.

Erdenet outlets opening soon.

• Certified to Mongolia’s Ministry of Health standards
• Official distributor: British Business Centre

Official locations & retail partners:

British Business Centre (Baruun 4 Zam, Golomt Complex)
British Shop (Organic Market, River Garden)
Buy Mart (50‑mangat)
Hospitals & pharmacies:

Europharma pharmacy network
Songdo Hospital pharmacy
National Third Central Hospital (3rd hospital)
“Bayar” Neurology Clinic (Misheel M1 Tower)
Darkhan‑Uul Provincial Health Office — Olzii Amgalan Pharmacy (free delivery)
Contact: +976 7755 2002
www.britishbusinesscentre.com
management@britishbusinesscentre.com

Mongolia’s ambassador sees Lee visit opening new 'golden era' in Seoul-Ulaanbaatar ties www.koreajoongangdaily.com

President Lee Jae Myung arrives in Ulaanbaatar on Thursday for the first state visit by a South Korean leader to Mongolia in 15 years — a trip Mongolian Ambassador Sukhee Sukhbold has spent much of his post in Seoul quietly lobbying for.

"[Since the last state visit,] exchanges continued, but most of them came from Mongolia. There had been no return state visit from South Korea," Sukhbold said during an interview with the Korea JoongAng Daily three days before the visit at Seoul Nomad, a newly-opened Mongolian restaurant in eastern Seoul. "That was my main focus."
It's a visit that underscores an unusual balancing act.

Mongolia has been one of South Korea's closest partners in the region for over three decades. But its ties with the North run even longer, and remain unbroken.

Mongolia’s embassy in Pyongyang, Sukhbold said, "has operated continuously without disruption, even through the pandemic," a legacy stretching back to the 1950-53 Korean War, when Mongolia took in and fed North Korean evacuees as other countries shuttered their missions. Kim Il Sung, Kim Jong-un's grandfather, visited the country twice.

That history has made Mongolia something of a diplomatic bridge — a role it has tried to formalize through the annual Ulaanbaatar Dialogue, multilateral talks on regional security held since 2014, which South Korea's unification minister attended this year. It's also why Mongolia is periodically floated as a possible venue for a potential summit between North Korean leader Kim Jong-un and U.S. President Donald Trump.

While nothing is set yet, Sukhbold said cautiously that if anything becomes more concrete, his government will stand ready to provide “logistics” or “whatever is needed” to host such talks.

That position hasn't stopped Mongolia from embracing the South just as closely.

"Maybe it's because we are connected by blood, or reconnected through culture," he said. "You will not see so many Chinese restaurants, even in the capital" — this in a country wedged between China and Russia.

Sukhbold, a career diplomat who began as a junior official at the United Nations — and, before that, a child jockey — arrived in Seoul in 2024 as his first bilateral posting.

Below are excerpts from the interview, edited for length and clarity.

Q. This will be President Lee's first trip to Mongolia, and a Korea leader's first state visit there in 15 years. How did it come about?
A. President Lee's visit will come 15 years after Lee Myung-bak paid a state visit in 2011. Since that time, exchanges have continued, but most of them came from the Mongolian side. We really appreciate that your president's office has accepted our invitation. Not only that — after 15 years, we also marked the 35th anniversary of our diplomatic relations last year.

The "Golden Era of Korea-Mongolia Relations" Joint Declaration is expected to present a shared vision for Mongolia-Korea relations and provide a roadmap for advancing our strategic partnership in the years ahead. Traditionally and historically, in our own expression — even in Korean — when we have something unique, a different historical moment, we always compare it with gold. It's like a new era for cooperation, and it will be intensified.

What's on the agenda?
Our two leaders will meet and discuss bilateral relations, strengthening cooperation in trade and investment, especially in rare earths, as well as in education, health and environment. 

Why is Mongolia positioning itself as a partner in critical minerals and rare earths specifically?
Mongolia offers abundant natural resources, while Korea brings advanced technologies, industrial expertise and innovation. Together, we can build resilient supply chains that benefit both economies. Your government has just announced a very ambitious plan — in the next four years, Korea is going to be one of the top three countries in AI. That means you will require certain mineral resources. Nowadays you are heavily dependent on China, so Mongolia can be one of the partners in the supply chain.

The Second National Cancer Center is a flagship medical initiative leveraging Korean expertise. What concrete progress has been made ahead of the summit?
The Mongolian government has allocated specific land for the hospital. We are now building up the infrastructure — not the hospital itself yet. Last year, we proposed financing to the Korean government. This year, Korea's Finance Ministry will conduct a feasibility study for the cancer center. Once that comes back, we will talk about the next step for financing.

You mentioned environment is also on the agenda. What's the main initiative there?
One of our most successful cooperation efforts is the Greenbelt Project, launched in 2007 with Korea's forest service, which has supported afforestation and helped fight desertification and yellow dust across the region for nearly two decades. We expect the two sides to launch its fourth phase during President Lee's visit.

What role can Mongolia play in easing tensions on the Korean Peninsula?
Since 1992, when we declared our nuclear-weapon-free status at the UN, we have been trying to be the mediator, or a platform for engaging all stakeholders discussing peace and security in Northeast Asia.

Since 2014, we have hosted the Ulaanbaatar Dialogue on Northeast Asian Security, bringing together government officials, scholars and experts from both Koreas, the United States, China, Russia, Japan and other countries to discuss regional security and confidence-building measures. We were particularly pleased that Unification Minister Chung Dong-young participated at this year's forum and shared his proposal to revive dialogue on the Korean Peninsula.

Our role is not to produce dramatic breakthroughs, but to help keep channels of communication open. Especially during times of heightened tension, maintaining dialogue is itself an important contribution to regional peace and security.

Mongolia is often floated as a potential venue if U.S. President Donald Trump and North Korea's Kim Jong-un were to meet again. What's your reaction to that speculation?
If we are the big potential candidate for hosting a summit, then we could look at our logistics or preparations, whatever is needed. But I can't say now.

Given Mongolia's position between Russia and China, how do you explain its "Third Neighbor" foreign policy?
You could read our foreign policy concept in English — it clearly lists who the third neighbors are, but it doesn't mean we are lining them up or numbering them. South Korea is one of them, but South Korea is very unique, very close.

Multilateralism has become a real buzzword lately, but some argue that it doesn't work anymore. Does this affect how Mongolia, as a small country, approaches its overall diplomacy?
The first reason for the UN's establishment was to build peace and security — that was the main mandate. Unfortunately, the UN has taken on its own broader mandate, and it doesn't have sufficient human and financial resources to maintain peace and security, which was the main aim. But for Mongolia, as a small country, we always rely on the UN and a rules-based international order. That's why my government's policy concentrates on a multi-pillar foreign policy — we have to communicate with everyone, including the UN, because it's also our platform for engaging with others.

Where do you see the deepest cultural connections between Mongolia and Korea?
We have many common senses, and historically we've been connected for a long time. During the Silla Dynasty (57 B.C. to A.D. 935), around ten Korean students were sent to Mongolia to study the Mongolian language. Later, during the Yuan Dynasty (1271–1368), Korean crown princes had to go to Mongolia to be trained and endorsed before they could be proclaimed king. Even Andong soju was made using a methodology from Mongolia. And all Mongolians are born with the Mongolian spot, as are Koreans — so we're connected by blood, language and culture.

What are the characteristics of Mongolian food?
Because we're nomadic, we move at least four times a year, following our animals. That's why we don't really make banchan (side dishes) the way you do in Korea — our food is simple, but always tied to nature. In winter we mostly eat meat, but in summer, we mostly eat yogurt and drink milk.

For khorkhog, we put everything in a pot, heat stones, add a small amount of water and meat, and vegetables if you like. You have to feel the stone with your fingers to check if it's hot enough — it's almost medicinal. If your fingers can just barely stand the heat, your blood circulation speeds up, which is considered good, like a form of traditional medicine. Making it properly takes a lot of preparation work, which is why it's treated as a special welcome dish for guests. Even now, when I go back home, I go out to the countryside with friends to do this.

Horseback racing is considered a universal experience for most Mongolian kids growing up. What about your own experience?
I grew up as a child jockey. I spent many years around our livestock. Herders would sometimes ask me to ride for them, and I'd say yes. I rode for three years, then I was "fired" because I was too heavy! At ten years old I was already about 24 kilograms (52 pounds), which is too heavy for long-distance horse racing. Some kids can keep riding even at twelve, if they stay small enough.

What's your favorite Korean dish?
I already have it in my mind — I like samgyetang. I arrived two years ago, just in the middle of the cold season — I didn't know that Koreans eat samgyetang during the hot weather. A friend invited me to a restaurant for the first time, and I tasted it, and I loved it. Every summer, I go almost every week — even yesterday, I went.

BY SEO JI-EUN   [seo.jieun1@joongang.co.kr]