Japan to lend Mongolia ¥150 billion for airport expansion www.japantimes.co.jp

Japan will provide Mongolia with about ¥150 billion in soft loans to expand Chinggis Khaan International Airport in Ulaanbaatar, government officials said Saturday.
The loans are expected to be agreed on between Prime Minister Sanae Takaichi and her Mongolian counterpart, Nyam-Osor Uchral, at a summit Tuesday, when the two governments are also likely to exchange notes, the officials said.

The Mongolian parliament has already approved the loans, while Takaichi’s Cabinet is preparing to make a decision Tuesday.

After the exchange of notes is signed, the government-backed Japan International Cooperation Agency and the Mongolian government will conclude a loan agreement.

Japan has so far provided ¥65.657 billion in loans to develop the airport, which opened in 2021.

But passenger traffic has far exceeded initial projections. The airport’s parking aprons for large aircraft and the terminal building are too small to handle demand.

The two governments have determined that the airport needs to be expanded.

While it has not been decided when construction work will start, a Mongolian official has high expectations for the expansion.

The expanded airport would attract more visitors, the official said, adding that it would be ideal if the construction begins next year.

Sandwiched between Russia and China, Mongolia relies on the airport as a key hub for people-to-people and economic exchanges with Japan and other countries it regards as “third neighbors.”

Through the expansion, the Japanese government aims to strengthen air connectivity and support Mongolia’s independence and resilience.

On Sept. 3, the two countries effectively agreed on the airport expansion at a meeting between Foreign Minister Toshimitsu Motegi and his Mongolian counterpart, Batmunkh Battsetseg.

European Press Criticizes Mongolia's Energy Dependency and Business Environment www.open.kg

International political risk analyst Maximilian Hess published an article in the online newspaper Brussels Morning, examining the connection between the energy crisis in Mongolia and domestic business conditions. He emphasizes that the real impact of the global energy crisis is felt not only on international shipping routes but also at gas stations in Ulaanbaatar. Hess states: “To see how the global energy crisis affects life, one should pay attention to the gas stations in the capital of Mongolia.” A translation of this article is available on the MongolianNews website.

Last year, on August 3, the government of Mongolia imposed restrictions on fuel sales: drivers could refuel every other day depending on the last digit of their vehicle's license plate, and the amount purchased was limited to one-third of the tank. For two weeks, the U.S. embassy monitored the fuel shortage in the country and recommended avoiding unnecessary trips. These measures became a serious test for a state that has sought to position itself as an attractive tourist destination over the past decade.

The restrictions were lifted on August 18 after Russia agreed to an emergency supply of 25,000 tons of gasoline and 5,000 tons of aviation fuel. However, this is only a temporary solution, considering that ongoing attacks on Russian oil refineries threaten the stability of supplies in the future. The Angarsk refinery, which historically provided nearly all fuel for Mongolia, has not yet been affected, but the situation could worsen. Additionally, Russia's assistance may not be free, and it remains unclear under what conditions it will be provided.

Mongolia's dependence on fuel imports raises serious concerns. Last year, the import of gasoline and diesel accounted for one-third of the country's total imports, and consumption is growing at 14% per year. The Mongolian economy, largely dependent on the mining sector, heavily relies on diesel fuel, which is used to operate heavy machinery and generators at mines. Fuel supply issues directly impact exports and, consequently, the economic situation in the country.

Mongolia does not have its own oil refineries, and a new plant financed by India is not expected to start operations until 2028. Until then, about 97% of fuel will come from Russia, making the country vulnerable to external factors. In response to the crisis, the government is seeking alternative supply sources, including cooperation with South Korea and Kazakhstan. However, these solutions are not cheap and may create new dependencies.

Mongolia's problems extend beyond the economy and touch on geopolitics. As a small democratic country, it faces challenges related to dependence on two major neighbors. The U.S. expresses support for Mongolia and is increasingly activating cooperation in the fields of mining and infrastructure development each year. However, issues arising from dependence on China and political risks continue to be relevant.

Securities Trading Reaches MNT 1 Trillion www.montsame.mn

During the first 8 months of this year, trading volume on the Mongolian Stock Exchange reached MNT 1 trillion, according to the National Statistics Office.

This represents a 73.4% (MNT 437.1 billion) increase compared to the same period last year.

Primary market trades accounted for 62.6% (MNT 646.9 billion) and secondary market trades made up 37.4% (MNT 385.7 billion). Corporate bonds made up 51.1% of transactions, followed by corporate stocks (18.6%), government bonds (16.1%), asset-backed securities (13.9%), and investment fund units (0.2%).

A total of 345.6 million securities were traded, down 47.7% year-on-year, with the vast majority (98.6%) traded on the secondary market.

In August 2026, the TOP-20 average index rose to 56,038.4 units (up 7,224 year-on-year). Total market capitalization reached MNT 14.9 trillion, marking a 21% increase from the previous year.

Ministries meet ICC delegation www.ubpost.mn

A delegation from the International Criminal Court (ICC), led by Rod Rastan, Head of the Court Cooperation Support Unit, paid a working visit to Ulaanbaatar from September 22 to 25. During the visit, the delegation held bilateral meetings with senior officials of the Ministry of Foreign Affairs, the Supreme Court and the Prosecutor General’s Office. It also conducted training sessions for officials of the Ministry of Justice and Home Affairs, the National Police Agency and the General Executive Agency of Court Decision Enforcement. In addition, the delegation held a joint seminar with students, faculty members and researchers of the School of Law at the National University of Mongolia.

Supreme Court Judge and Presiding Judge of the Criminal Chamber Ch.Khosbayar and Judge B.Battseren met with Rod Rastan, Head of ICC’s Court Cooperation Support Unit, and Rufina Khusniyarova, an officer responsible for court cooperation within the unit. The sides discussed potential areas of cooperation between the ICC and Mongolia in the short and medium term, as well as opportunities for sharing experience and expertise.

Judge Ch.Khosbayar emphasized that the Supreme Court of Mongolia has consistently taken a leading role in cooperation with ICC and encouraged other state institutions to strengthen their cooperation with the Court. He highlighted the importance of expanding exchanges of experience between courts, organizing regular training sessions and seminars, identifying solutions to cooperation-related challenges arising in criminal proceedings, and strengthening knowledge of international courts and international law. The meeting also underscored the importance of strengthening Mongolia’s domestic legal mechanisms, procedures and regulatory framework necessary for cooperation with ICC in accordance with the Rome Statute.

The sides further exchanged views on developing direct communication and experience-sharing between national courts, raising public awareness of international criminal justice, and incorporating more international law content into legal and judicial education programmes. Rod Rastan highlighted the contributions of Mongolian judges and judicial officials who have worked at ICC, as well as the diplomatic and political support provided by Mongolia to the Court and their contribution to the development of international criminal law. He said that strengthening relations with Mongolia and the Supreme Court was among the key objectives of his visit.

During the meeting, Judge B.Battseren emphasized the importance of involving ICC experts in training and other events organized in Mongolia and expanding cooperation and experience-sharing in areas including witness protection, evidence, digital technologies, transnational crime, money laundering and asset freezing. Representatives of ICC’s Court Cooperation Support Unit expressed support for opportunities to include Mongolian legal professionals in the Court’s Visiting Professional Programme and other relevant programmes. The sides also agreed that the areas proposed by Judge B.Battseren could make a significant contribution to expanding cooperation in the Asia-Pacific region.

Verification demanded over citizenship of contestant representing Mongolia at Miss Grand International www.gogo.mn

The participation of contestant Amber Yuhan under the Mongolian flag at the ongoing Miss Grand International 2026 pageant in Thailand has ignited public controversy in Mongolia, prompting calls for an investigation into her citizenship and national selection credentials.

Concerns arose after it was revealed that no preliminary national selection rounds were held in Mongolia this year. According to her profile on the official Miss Grand International website, the 24-year-old contestant stands 177 cm tall and is listed as a resident of Ulaanbaatar. However, during the competition's introduction round, Yuhan stated her birthplace as Qingdao, China. While she subsequently posted on Chinese social media claiming to be of "Mongolian ethnicity," her legal citizenship and residency status in Mongolia remain unverified.

When asked to clarify the selection process, a representative from the Miss World Mongolia organization stated, "We have no information regarding this matter."

Formal inquiry demands transparency

Kh.Badamgerel, founder of ANDRA Academy and a veteran beauty industry mentor who has trained Mongolian pageant contestants since 2015, publicly addressed the issue and submitted a formal demand to the Miss Grand International organization.

"The individual representing Mongolia on the international stage must be selected through a process that is lawful, transparent, and verifiable," Kh.Badamgerel stated. "The name 'Mongolia,' our national flag, and the right to national representation are not marketing tools to be bought, negotiated, or irresponsibly transferred."

In her formal petition to event organizers, Kh.Badamgerel demanded the following:

Immediate disclosure of the official contracts authorizing Amber Yuhan to represent Mongolia.
Documentary evidence verifying her citizenship, residency status, and legal ties to Mongolia.
Public disclosure of the name, authority scope, and license validity period of the National Director and franchise-holding organization for Mongolia.
A detailed explanation of the procedures and standards used to select the representative.
Immediate suspension of the use of the name "Mongolia," the national flag, and the official sash pending the conclusion of the review.
Cancellation of the "Miss Grand Mongolia 2026" registration, confiscation of the sash, and legal accountability for responsible parties if eligibility requirements were violated or false information was submitted.
Kh.Badamgerel added, "This cannot be dismissed merely as an issue concerning a single pageant or contestant. We demand this be treated as a matter of state policy aimed at protecting Mongolia's reputation, cultural integrity, and national representation."

Kh.Badamgerel announced plans to meet with officials from Mongolia's Ministry of Culture, Sports and Tourism, as well as the Ministry of Foreign Affairs, to clarify the legal status of the representation.

The controversy has also brought attention to Article 15.24 of Mongolia's Law on Violations, which prohibits the unauthorized, improper, or illegal use of the State Flag, the Soyombo symbol, and the State Emblem.

About Miss Grand International

Miss Grand International (MGI) was founded in Thailand in 2013 by entrepreneur Nawat Itsaragrisil and is organized by Miss Grand International Public Company Limited. The pageant evaluates contestants through preliminary showcases, national costume rounds, and closed interviews assessing communication skills, knowledge, and personal views.

Under official MGI guidelines, contestants aged 17 to 30 enter through the organization holding the franchise license for their respective country. Mongolia previously sent representatives to the competition in 2013, 2014, 2015, 2017, and 2018. In 2022, Elena Egorova, Miss of Yakutia, represented Mongolia. 

Ulaanbaatar designates eight sites for autumn tree planting www.gogo.mn

Residents of Ulaanbaatar are invited to take part in the city’s autumn tree-planting campaign, “Plant Trees and Create a Green Future,” from September 26 to October 11.

Starting September 26, residents can join their families, colleagues, and friends at eight designated tree-planting sites across the capital:

- Bayangol District, 20th Khoroo: “Bayangol Park”
- Songinokhairkhan District, 21st Khoroo: “Incheon Dream Grove”
- Chingeltei District, 16th Khoroo: “Khoimor Khairkhan” planting site
- Bayanzurkh District, 28th Khoroo: “International Eco-Park”
- Bayanzurkh District, 20th Khoroo: “Tree Nursery”
- Nalaikh District, 7th Khoroo: “New Nalaikh Park”
- Khan-Uul District, 14th Khoroo: “Aitsiin Am” planting site
- Khan-Uul District, 14th Khoroo: “Green Wall” zone along the Turgen River
The opening ceremony of Autumn Tree Planting Day will be held at the National Park on September 27 at 10:00 AM. Residents are encouraged to participate in the campaign and contribute to expanding the capital’s green spaces and protecting the environment.

Outstanding Bank Loans Rise 14.3 Percent www.montsame.mn

The total outstanding balance of bank loans reached MNT 48.4 trillion in August 2026, up 14.3 percent from the same period of the previous year.

Bank lending is a key indicator of how money circulates through the economy, providing financial resources to individuals and businesses with an obligation to repay within a specified period. Mortgage loans and loans transferred to the Mongolian Mortgage Corporation (MIK) increased by 18.8 percent, while the growth of consumer loans and loans secured by savings deposits slowed to 4.7 percent.

Experts noted that the slowdown in annual loan growth over the 18-month period was mainly driven by slower growth in consumer lending. Meanwhile, business lending grew by 17.9 percent year-on-year, indicating relatively stable economic activity.

According to the Bank of Mongolia, non-performing loans accounted for 5.3 percent of total loans, while loans classified as requiring attention accounted for 2.5 percent. The share of loans requiring attention declined by 2.0 percentage points, while the share of non-performing loans remained stable.

Central Asia and Mongolia growth to remain robust www.ebrd.com

Growth across Central Asia and Mongolia remained strong, at 5.9 per cent year on year, in the first half of 2026, according to the latest Regional Economic Prospects report published by the European Bank for Reconstruction and Development (EBRD).

The Bank forecasts growth in Central Asia and Mongolia to remain robust at 5.8 per cent in 2026 and 5.3 per cent in 2027. It warns that weakening demand among key trading partners, elevated global energy prices linked to the Middle East conflict, disruptions to Russian fuel supplies and trade routes, and lower global commodity prices could all weigh on future economic expansion.

The fastest rates of GDP growth in the six months to June were recorded in the Kyrgyz Republic, Tajikistan and Uzbekistan, driven by the construction and manufacturing sectors, as well as domestic demand. Mongolia benefited from rising mining output and exports. Kazakhstan’s growth moderated due to lower oil production following export disruptions, while Turkmenistan continued to expand at a stable pace, supported by services, construction and state-led investment.

Economic growth in the region’s largest economy, Kazakhstan, slowed to 4.1 per cent year on year in the first half of 2026. Disruptions along the Caspian Pipeline Consortium export route and incidents at the Tengiz field resulted in the contraction of oil and gas output. At the same time, manufacturing output increased, supported by a strong performance in the machinery, food-processing and chemical industries. The construction sector expanded, too, driven by large-scale infrastructure projects. The Bank projects Kazakhstan’s GDP growth to reach 4.7 per cent in 2026 before moderating slightly to 4.5 per cent in 2027. The main downside risks stem from further disruptions to oil export routes, weaker external demand and lower commodity prices.

In the Kyrgyz Republic, real GDP expanded by 11.1 per cent year on year, driven by strong investment activity. Fixed capital investment rose significantly and was largely directed to transport, mining and energy infrastructure projects. Solid growth was also observed in the construction and manufacturing sectors. The EBRD projects GDP growth of 8.7 per cent in 2026 and 7.0 per cent in 2027. The key downside risks are linked to the Kyrgyz Republic's dependence on Russia for remittances and fuel imports.

Mongolia’s economic growth remained strong in the first six months, at 7.7 per cent year on year, mainly driven by mining. Coal production increased 52.4 per cent year on year, while copper output rose 20 per cent on the year as production at the Oyu Tolgoi mine continued to ramp up. These developments translated into stronger exports, with external demand emerging as the main driver of growth. The economy is forecast to grow by 6.3 per cent in 2026 and 5.5 per cent in 2027. Key downside risks include weaker demand from China and Mongolia’s dependence on fuel imports from Russia, which leaves it vulnerable to supply disruptions and higher global energy prices.

Tajikistan’s real GDP growth of 8.2 per cent year on year in the first half of 2026 was boosted by an expansion in services, manufacturing and agriculture. Household consumption remained resilient, supported by rising real wages and strong remittance inflows. Fixed capital investment grew 35.9 per cent year on year, reflecting continued infrastructure development. Exports increased significantly, by 57.2 per cent year on year, on the back of rising shipments of mineral products and precious and semi-precious metals and stones. According to the Regional Economic Prospects report, Tajikistan’s economic growth is likely to moderate to 7.9 per cent in 2026 and 7 per cent in 2027. The key downside risks stem from the country’s dependence on Russia as its main source of remittances and fuel. Prolonged disruptions to fuel supplies could weaken growth, particularly in the agricultural, trade and industrial sectors.

Turkmenistan’s economy continued to expand in the first six months of 2026, with official GDP growth of 6.3 per cent year on year. This growth was broad-based, driven by strong performances in the transport and communications, trade and other service sectors. Construction activity also grew, underpinned largely by continued state-led investment and the ongoing implementation of large-scale infrastructure and industrial projects. Turkmenistan’s growth is projected at 6.3 per cent in both 2026 and 2027. Downside risks lie mainly in weaker demand in China, lower energy prices and rising inflationary pressures from higher food and import costs.

Uzbekistan’s GDP growth accelerated to 8.5 per cent year on year in the first half of 2026, driven primarily by services and manufacturing. This growth also reflected strong investment in the manufacturing, construction and agricultural sectors. The EBRD projects real GDP to grow by 7.5 per cent in 2026 and 6 per cent in 2027. The main downside risks include a slowdown in Russia and prolonged disruptions to Russian fuel supplies, which could amplify the effects of elevated global energy prices caused by the conflict in the Middle East.

A new oil storage facility with a capacity of 16,000 cubic meters has been put into operation in Mongolia www.open.kg

A new fuel storage tank complex has been completed in Mongolia, marking a significant step towards strengthening the country's energy independence as part of the government's program for 2024–2028. The project, implemented by San Petroleum LLC, received state support and now includes a storage facility with a capacity of 16,000 m³, as reported by Zogii.mn.

The new facility has a high throughput capacity, allowing for the simultaneous unloading of 14 railway tank cars. The opening of the storage facility is expected to significantly improve the processes of procurement, placement, and distribution of petroleum products, as well as minimize the risks of disruptions in the domestic market.

The government's long-term plan includes a phased expansion of fuel storage capacities aimed at creating a strategic reserve of petroleum products that will meet the country's needs for 3–6 months. The launch of this facility serves as a practical example of state policy aimed at ensuring energy security and reliable fuel supply for both the economy sector and citizens.

Russia, Mongolia Form Working Group To Examine Feasibility Of A Western Rail Corridor www.russiaspivottoasia.com

Mongolia and Russia have agreed to establish a working group, including representatives from China, tasked with finalizing the design details and financing terms for the Russia-Mongolia-China western railway corridor. The decision came after a meeting between Mongolian Deputy Prime Minister Nyamtaishiryn Nomtoibayar and Russian Deputy Prime Minister Alexei Overchuk.

The Mongolian government stated that “Minister Nomtoibayar expressed interest in advancing the western railway corridor project, a matter previously discussed by the two countries’ leaders during the Shanghai Cooperation Organization (SCO) summit. The railway project should be a key hub for regional trade, investment, and transport logistics.”

Overchuk emphasized the great importance of the trade and economic sphere for expanding and developing cooperation between the two countries.

Mongolia proposed constructing a railway from the northwestern border with Russia to the northwestern border with China as part of efforts to develop cooperation with the Eurasian Economic Union and China in June this year. The planned corridor is intended to link Russia with Mongolia’s Uvs Province via the Arts Suuri checkpoint on the border with Tuva, the Bulgan checkpoint in Khovd Province, and the Takshiken checkpoint on the border with China’s Xinjiang Province.

China has responded positively to the initiative, as the intensification of railway construction is part of the country’s development plan for the upcoming five-year period. Mongolian President Ukhnaagiin Khurelsukh discussed the project with President Vladimir Putin during the SCO summit in early September.

Russia, China, and Mongolia are currently implementing a project for another railway corridor linking the three nations from Altanbulag, the largest border crossing in Mongolia, on the border with Buryatia, to Zamyn-Uud on the southeastern border with China. Constructing the railway is part of the program to establish an economic corridor running from Russia through Mongolia to China. The line should be completed in 2031.