1 JAPANESE IMPERIAL COUPLE ATTEND WELCOME CEREMONY IN MONGOLIA WWW.ENGLISH.KYODONEWS.NET  PUBLISHED:2025/07/08      2 CU MONGOLIA EXPANDS LOGISTICS HUB TOWARD 1,000-STORE GOAL WWW.KOREAHERALD.COM PUBLISHED:2025/07/08      3 KHAAN QUEST DEMONSTRATES ‘STRENGTH AND RESOLVE’ OF PARTNERS TO SEEK PEACE WWW.IPDEFENSEFORUM.COM PUBLISHED:2025/07/08      4 EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT TO INCREASE INVESTMENTS WWW.MONTSAME.MN PUBLISHED:2025/07/08      5 UCHRAL NYAM-OSOR: ECONOMIC IMMUNITY MUST BE OUTCOME OF LONG-TERM INTELLIGENT POLICY WWW.MONTSAME.MN PUBLISHED:2025/07/08      6 MONGOLIA HOSTS ASIA-PACIFIC AIR TRANSPORT FACILITATION FORUM WWW.MONTSAME.MN PUBLISHED:2025/07/08      7 TMK ENERGY SIGNS DRILLING CONTRACT FOR LF-07 PRODUCTION WELL IN MONGOLIA WWW.TIPRANKS.COM PUBLISHED:2025/07/08      8 JAPAN EMPEROR, EMPRESS ARRIVE IN MONGOLIA WWW.NIPPON.COM PUBLISHED:2025/07/07      9 KFAED SUPPORTS MONGOLIA AIRPORT EXPANSION WWW.KUWAITTIMES.COM PUBLISHED:2025/07/07      10 DIPLOMATIC TIES ESTABLISHED WITH ALL UN MEMBER STATES WWW.UBPOST.MN PUBLISHED:2025/07/07      МОНГОЛ УЛСЫН ЕРӨНХИЙЛӨГЧ У.ХҮРЭЛСҮХ, ГЭРГИЙ Л.БОЛОРЦЭЦЭГ БОЛОН ЯПОН УЛСЫН ЦОГ ЖАВХЛАНТ ЭЗЭН ХААН НАРҮХИТО, ЭРХЭМ ДЭЭД ХАТАН МАСАКО НАР АЛБАН ЁСНЫ УУЛЗАЛТ ХИЙЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/07/08     Г.ЗАНДАНШАТАР: ХӨРӨНГӨ ОРУУЛАГЧАА УРЬЧИХААД УРДАГГҮЙ, ЗАЛЧИХААД ЗААМДДАГГҮЙ УЛС БАЙХ ЁСТОЙ WWW.ZINDAA.MN НИЙТЭЛСЭН:2025/07/08     Н.УЧРАЛ: ҮҮСМЭЛ ОРДУУДЫН 50+1 ХУВИЙГ ТӨР, АРД ТҮМНИЙ ЭЗЭМШИЛД АВАХ ЗАРЧМЫГ БАРИМТАЛНА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/07/08     Г.ЗАНДАНШАТАРЫН ТЭРГҮҮЛСЭН ЗАСГИЙН ГАЗАР БАРИМТАЛЖ АЖИЛЛАХ БОДЛОГОО ТАНИЛЦУУЛЛАА WWW.ITOIM.MN НИЙТЭЛСЭН:2025/07/08     “МОНГОЛЫН ЭДИЙН ЗАСГИЙН ФОРУМ-2025”: ТӨР БОДЛОГО, ЧИГЛЭЛЭЭ ТОДОРХОЙ БАЙЛГАХЫГ ХУВИЙН ХЭВШЛҮҮД ИЛЭРХИЙЛЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/07/08     МОНГОЛЫГ СААРАЛ ЖАГСААЛТАД ОРУУЛЖ МЭДЭХ 7.3 ИХ НАЯДЫН АСУУДЛААР Д.ЗАГДЖАВ БИШ ЯАГААД С.МАГНАЙСҮРЭН АМ НЭЭВ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/07/08     ЗАСГИЙН ГАЗАР НЭН ТЭРГҮҮНД ЯМАР АЖИЛ ХИЙХ ЁСТОЙ ТАЛААР ИРГЭДЭЭС САНАЛ АВЧ ЭХЭЛЛЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2025/07/08     ЯПОН УЛСЫН ЦОГ ЖАВХЛАНТ ЭЗЭН ХААН НАРҮХИТО, ЭРХЭМ ДЭЭД ХАТАН МАСАКО НАР МОНГОЛ УЛСАД ТӨРИЙН АЙЛЧЛАЛ ХИЙХЭЭР ХҮРЭЛЦЭН ИРЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/07/07     МОНГОЛ УЛС НҮБ-ЫН БҮХ ГИШҮҮН УЛСТАЙ ДИПЛОМАТ ХАРИЛЦАА ТОГТООХ ЗОРИЛТОО БҮРЭН ХЭРЭГЖҮҮЛЛЭЭ WWW.ZINDAA.MN НИЙТЭЛСЭН:2025/07/07     ТЭТГЭВРИЙН ЗЭЭЛИЙН ЗОХИЦУУЛАЛТЫГ ЦУЦЛАВ WWW.NEWS.MN НИЙТЭЛСЭН:2025/07/07    

Category

Events

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

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Central bank purchases 2.4 tons of precious metal in September www.montsame.mn

In September, the gold purchase of the Bank of Mongolia (BoM) was 2,416.4 kg, raising the BoM’s total precious metal purchase of 2022 to 15.0 tons. The figure shows an increase of 1 percent as compared with the same period of the previous year.
Since the beginning of this year, the BoM branches in Darkhan-Uul and Bayankhongor aimags have bought 1,695.7 kg and 1,046.9 kg of precious metals respectively.
In September, the average price of BoM’s purchase of 1 gram of gold was MNT 184,565 last month.
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Central Bank to finance 80 percent of mortgage loan www.montsame.mn

Bank of Mongolia made the following amendments to the regulation on mortgage loans. Therein:
The Bank of Mongolia will finance 80 percent of the total funds for the mortgage program, and commercial banks will provide the remaining 20 percent starting this October.
The increased amount of a loan to be issued through the source of BoM does not exceed MNT150 million in Ulaanbaatar and MNT100 million in rural areas starting from October 1, 2022.
It was decided that If families moving to rural areas get a mortgage loan with an annual interest rate of 6 percent, the Loan Guarantee Fund can give a guarantee on a certain part of their 30 percent advance payments
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Mongolian Banks Curb FX Flows to Fight Worsening Cash Crunch www.bloomberg.com

Mongolia is facing a worsening foreign currency crunch following Russia’s war with Ukraine and a slump in China’s economy, forcing local banks to restrict the amount of dollars customers can buy.
Khan Bank, the country’s largest bank measured by total
assets, limited the daily amount of cash that can be converted
into foreign currencies to 1 million tugrik ($300) from this
month, Vice President of Wholesale Banking Uuganbayar Terbish
said in an interview on Thursday. That’s down from as much as
300 million tugrik under normal banking conditions and 100
million tugrik in June, he said.
Multiple bank customers who’ve tried to transfer funds at
four different commercial banks in recent weeks confirmed they
were limited to a daily foreign exchange amount of 1 million
tugrik.
“These are not capital controls, but market liquidity
issues,” said Uuganbayar, adding that the restrictions were a
response to the increased demand for dollars and to guard
against speculation. He said the bank wasn’t limiting payments
for the import of goods such as food and fuel, and exceptions
could be made with approval from the treasury department.
Golomt Bank, Xacbank and Trade and Development Bank of
Mongolia didn’t respond to requests for comment.
Mongolia is facing an increasingly serious foreign currency
crunch, with foreign exchange reserves down 40% in August from a
year earlier to $2.7 billion and the current account deficit
ballooning. In addition, the tugrik has taken a beating due to
interest rate hikes overseas, losing 16% of its value against
the dollar this year. The central bank has repeatedly hiked
interest rates this year in an attempt to rein in high inflation
and curb the currency outflows.
The nation’s economic problems stem in part from its two
huge neighbors: Russia and China. Beijing’s Covid Zero policies
have disrupted trade across the border, while the war in Ukraine
has not only driven up the price of imported fuel and goods but
also blocked access to some Russian banks, which had been an
important part of the nation’s financial system.
The situation is somewhat reminiscent of the crisis in
2016, when a slump in global commodity markets forced Mongolian banks to ration foreign currency and the country eventually had to ask the International Monetary Fund for a bailout.
“There’s always risk” of the country needing another
bailout from the IMF, according to Adrienne Lui, an economist at
Citigroup Inc. in Hong Kong, although there are many more
positives now. Commodity prices are still high, and the
government is stable, she said.
While Lui said she didn’t think the situation in Mongolia
was comparable to the crises in Pakistan or Sri Lanka, the
tugrik’s “depreciation will continue as long as balance of
payments stress remains,” she said.
Dollar bonds issued by Mongolia and due in 2023 and 2024
fell about 4 cents Friday, according to prices compiled by
Bloomberg, on pace for their biggest declines since March 2020.
The tugrik also weakened and was trading at 3,337.7 to the
dollar at 4:30 local time.
Rising costs combined with stagnant wages drove young
people to protest outside the parliament house in April,
although inflation has since moderated after hitting a high of
16.1% in June.
Currency Weakens
The central bank hasn’t instructed lenders to restrict
foreign currency transactions, according to Tumentsengel
Baterdene, a spokesman for the Bank of Mongolia. Pressure on the
local currency wasn’t unique to Mongolia, given the turmoil in
foreign exchange markets after the US Federal Reserve’s
aggressive interest rate hikes, he said.
The country’s balance of payments should return to pre-
pandemic levels by the end of the year “with exports regaining
momentum owing to easing of border restrictions” by China, he
added.
The Asian Development Bank approved a $100 million
emergency loan for the country in August to “help it weather the
impacts of severe economic shocks.”
However further risk could come toward the end of the year
when almost $140 million in sovereign debt will mature in early
December and need to be repaid, according to data compiled by
Bloomberg. That’s followed by more than $1.2 billion in debt
which is due next year.
The war has also damaged the country’s access to the
international financial system, with sanctions on Russian banks
after the invasion of Ukraine disrupting payments and blocking
access to the foreign exchange trading platforms they host,
according to Javkhlantugs Ganbaatar, the policy and advocacy
director at the American Chamber of Commerce in Mongolia.
Current Account Deficit
Mongolia posted a $2.2 billion current account deficit so
far this year, partly due to some state-owned companies taking
payment for exports before they’d actually shipped out the coal
and other goods. This has meant that even as exports have hit
records since May in the customs data, there’s little new
foreign currency coming into the economy.
In the spring, coal miners accepted early payments to
bolster the nation’s foreign currency reserves, Javkhlantugs
said. At the time, the central bank governor “spoke of a mass
exit of hard currency” following the invasion of Ukraine, and
the outflow of foreign currencies over three months exceeded
that of the last three years, Javkhlantugs added.
One example of this is state-owned coal producer Erdenes
Tavan Tolgoi, which was told by the government in March to pre-
sell coal to help finance an almost $400 million oil pipeline
development.
Another factor in the deficit is the jump in freight costs
due to the war in Ukraine pushing up petrol prices. Most coal is
exported via truck and the deficit in transport services jumped
to almost $260 million this year due to the increased cost of
foreign fuel. Mongolia recently signed a deal with Russia to cap
imported fuel prices and a new rail line from coal mines in the
Gobi desert to the border with China is expected to expand
export volumes and reduce costs.
How long the dearth of foreign currency lasts will depend
on the term-length of the coal deliveries paid for up front as
well as any further easing of restriction at the border to
China. In addition, as well as the rate cuts announced last
week, the central bank announced a loosening of the reserve
requirements on banks’ foreign-denominated assets, which should
free up some their holdings.
The Asian Development Bank this month lowered its growth
forecast for Mongolia this year to 1.7% from the 2.3% it saw in
April. The World Bank also cut its forecast for growth and noted
that Mongolia was one of the nations in Asia most vulnerable to
capital outflows and a falling exchange rate due to inflation
abroad.
--With assistance from Kevin Kingsbury.
To contact the reporter on this story:
Terrence Edwards in Ulaanbaatar at tedwards100@bloomberg.net
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The following measures to be taken to reduce traffic congestion in the capital city www.montsame.mn

At the Cabinet meeting on September 29, Minister and Chairman of the National Committee on Traffic Congestion J. Sukhbaatar presented some measures to reduce traffic congestion in the capital city. In connection with the presentation, corresponding ministers were given the following tasks;
- To draft a bill on reducing traffic congestion in Ulaanbaatar city and its negative impacts
- To develop and present a proposal on creating specific public transport lanes on carriageways and introducing short-turn routes of buses within the framework of public transport reforms,
- To not issue permits to construct residential and office buildings in the ‘Ikh Toiruu’ area (Big Ring Road) of the capital city until the general development plan of ‘Ulaanbaatar City 2024’ is approved.
- To ensure the implementation of the Law on Auto Transport, prohibit motor vehicles that have not undergone technical inspection for more than one year, have not passed the inspection, and have not paid fines and charges, from participating in the traffic.
- To organize the work of issuing electronic certificates that constitute the National Smart Transport System within the fourth quarter of this year, start its implementation from January 2023, as well as not to allow motor vehicles without electronic certificates to take part in the traffic from March 2023.
- And to approve the work plan for reducing traffic congestion in Ulaanbaatar city and take measures to ensure its implementation.
In brief
-The Cabinet discussed and supported a draft protocol to amend the ‘Memorandum of Understanding between the government of Mongolia and the government of the Kingdom of Thailand’ established on April 28, 2013 in Ulaanbaatar, and authorized Mongolia’s Ambassador to the Kingdom of Thailand to sign the protocol.
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Bill on state budget 2023 to be submitted to the Parliament www.montsame.mn

The Cabinet discussed at its last week’s regular meeting bills on the Budget Framework Statement for 2023 and Budget Assumptions for 2024-2025, 2023 State Budget Law of Mongolia, 2023 Budget Law of the Social Insurance Fund, 2023 Budget Law of Health Insurance Fund, 2023 Budget Law of the Future Heritage Fund and accompanying bills. As proposed by the Prime Minister and members of the cabinet, it was decided to reconsider the bills this week after including the policies and measures to be implemented in the next year. Accordingly, the Cabinet discussed bills again at this week’s meeting and decided to submit them to the Parliament.
Following the Cabinet meeting, Minister of Finance B.Javkhlan gave information about the cabinet’s decision. He said, “At a time when international organizations predict that the global economic crisis will continue until 2024, the Government aims to pursue strict monetary policy and fiscal austerity policy towards the reduction of the balance of payments deficit and protecting foreign currency reserves.
Therefore, the government's budget policy for 2023 is directed towards the following objectives, aiming to implement state austerity policy, promote the New Revival Policy, reduce the import pressure and stabilize macro economy through the optimal distribution of resources.
One. To implement legislations regarding state austerity,
Two. To intensify reforms in the budget financing system in health and education sectors aimed at the quality, performance, and outcomes of public services; to introduce the reform in other sectors; and to improve the civil service salary system in line with productivity,
Three. To implement debt management strategies optimally,
Four. To direct social protection to target groups within the framework of the policy ‘from-welfare-to-work’,
Five. And implement policies to decentralize by ensuring the balance of urban and rural development, reduce traffic congestion, as well as to carry out tax policies towards the creation of favorable environment for investment, jobs and doing business in rural areas.
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State Bank issues IPO www.montsame.mn

The trading ceremony of securities - issued as a public on the offering primary market by State Bank LLC – took place today. The event was attended by D. Bayarsaikhan (Chair, Financial Regulatory Commission), T. Tserenbadral (Vice-Chair, FRC), B. Javkhlan (Minister of Finance), H. Altai (CEO, Mongolian Stock Exchange), B. Tsengel (Head, Department of State Property Policy and Regulation), O. Gantor (Executive Director, State Bank LLC) and other officials.
In his opening speech, D. Bayarsaikhan highlighted that the FRC had updated the regulatory environment of the capital market, in line with international standards. The Commission had also implemented comprehensive policy measures to increase the variety of products and services in stages and on a timely basis. All this was accomplished within the framework of ‘Developing the capital market and reducing financing costs by promoting competition’ as reflected in Parliament’s ‘Strategy to Reduce Loan Interest Rate’.
As a result of taking measures to reduce financing costs (by creating a regulatory environment and creating fair competition in the financial market) the capital market has progressed significantly. Parliament's approval of the Law on Amendments to the Banking Law (in 2021) will provide impetus for the establishment of proper governance of commercial banks, and the creation of an open and transparent banking sector under public control. The Law will also ensure stability of the entire financial sector; and not just the banking sector.
Implementation of the Law was important for the development of the stock market. Banking reform will mean the following:
operations will become transparent and open,
the control system will be more sophisticated,
the capital market value will increase,
the number of new products and services (with high liquidity) will increase,
the activity and participation of foreign and domestic investors will improve, and
long-term financing will be provided to banks.
In addition to creating resources, it will be an important step in creating a multi-pillar financial system. Accordingly, the FRC has devoted increased attention to:
reorganization of banks in the form of joint-stock companies,
directions, advice and information to implement the process of offering shares to the public, and
creation of conditions required for successful organizations.
As a result, today State Bank LLC is leading the work of becoming an open joint-stock company; among influential banks in the banking system within the framework of the reform of the banking sector. It is important to remember that duties and responsibilities are greatly increased, starting with the expectations of the public.
Finally, D. Bayarsaikhan congratulated State Bank LLC and wish them success in the primary market trading.
State Bank LLC plans to raise a total of MNT22.1 billion, by offering 37,475,000 (5%) of its total shares at MNT 590 each; of which 70% will be sold to strategic investors and 30% to the general public.
Source: Financial Regulatory Commission
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Commitment expressed for intensification of public and private cooperation www.montsame.mn

Prime Minister L. Oyun-Erdene held an official meeting with Prime Minister of Japan Fumio Kishida.
The parties exchanged views on the current state of relations between Mongolia and Japan, future goals, as well as on a wide range of international and regional issues.
Prime Minister L. Oyun-Erdene thanked the Japanese government for its continued support and reiterated its commitment to expanding strategic partnership and cooperation with Japan, the "third neighbor" with common democratic values.
Japanese Prime Minister Fumio Kishida expressed his gratitude for the participation of the Prime Minister of Mongolia in the state funeral for former Prime Minister Shinzo Abe. He also expressed satisfaction with the progress made in strengthening political relations between the two countries, deepening mutual understanding, strengthening cooperation in the regional and international spheres.
During the meeting, the parties stressed the importance of building strong political relations between Mongolia and Japan, advancing cooperation in the economic, trade and investment fields to a new level, and intensifying public-private partnership.
“Mongolia is working to develop new environmentally friendly energy sources using advanced technologies and to get out of energy dependence, at a time when countries around the world are pursuing a policy to reduce or eliminate carbon dioxide emissions,” said L. Oyun-Erdene, expressing Mongolia’s desire to participate in a pilot project for the extraction and use of hydrogen from brown coal, which is jointly being implemented by the governments of Japan and Australia.
In addition, the parties discussed issues such as the development of tourism, regular flights of Japanese airlines to Mongolia, and visa facilitation for Mongolian citizens traveling to Japan.
This year marks the 50th anniversary of the establishment of diplomatic relations between Mongolia and Japan. During the meeting, the prime ministers exchanged views on high-level visits to be carried out in this context. They also commended the successful accomplishment of the 2017-2021 Mongolia-Japan Mid-term Action Plan for a Strategic Partnership and expressed that the next Mid-term action plan will be a document that will enrich bilateral relations and cooperation of the next 50 years with new contents, and strengthens the partnership which will be mutually beneficial in many fields, especially in terms of economy and business.
The parties also reiterated that they would actively cooperate within the UN and other international cooperation organizations.
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Rio Tinto-Turquoise Hill takeover vote set for November 1 www.mining.com

Turquoise Hill Resources (NYSE:TRQ) announced on Friday the receipt of an interim court order for its proposed plan of arrangement with Rio Tinto (NYSE:RIO), which would see the Anglo-Australian giant acquire the 49% of shares of TRQ that it does not already own.
The order calls for a special meeting of TRQ shareholders to be held on Nov 1 with shareholders of record as of the close of business on September 19 entitled to participate and cast their votes.
Under the sweetened deal, which has the blessing of the TRQ board, Rio Tinto will pay C$43 per share in cash, a more than 19% premium to the stock’s end-of-August closing price and a 67% premium from the day before the initial offer was made.
The deal, valued at $3.3 billion, gives Rio Tinto a 66% stake in the giant Oyu Tolgoi mine in Mongolia, one of the world’s largest known copper and gold deposits. The remaining 34% is owned by the Mongolian government.
Rocky road to expansion
Rio Tinto has had a rocky relationship with the Montreal-based miner, particularly over how to fund Oyu Tolgoi’s expansion. Rio has also drawn criticism from some of Turquoise Hill’s minority shareholders about the control it exerts over the company.
Rio Tinto, which has mined copper from Oyu Tolgoi’s open pit for a decade, and the Mongolian government ended earlier this year a long-running dispute over the $7 billion expansion of the mine.
Once completed, the underground section of Oyu Tolgoi will lift production from 125,000–150,000 tonnes in 2019 to 560,000 tonnes at peak output, which is now expected by 2025 at the earliest. This would make it the biggest new copper mine to come on stream in several years.
Rio Tinto chief executive Jakob Stausholm has said the proposed takeover would simplify governance, improve efficiency and create greater certainty of funding for the long-term success of the Oyu Tolgoi project.
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Forests in the desert: Why Mongolia is banking on a billion new trees to halt desertification www.channelnewsasia.com

DALANZADGAD, Mongolia: The greenery appears like an oddity in the distance. In the featureless expanse of Mongolia’s southern Gobi, this is a literal oasis.
There is nothing out here to cast a shadow, but the sun and skulls of fallen livestock. And for the past two decades or so, the growing forest of 82-year-old Baraaduuz Demchig.
Elm trees stretch towards the broad sky, and beneath them fruit plantations and sea buckthorn bushes grow in soil enriched by years of care and attention.
Just metres away, on the other side of a steel perimeter fence, lies the realities of the Gobi desert. No plant could grow there in the rocky plains, at least not without more dedicated efforts from the mastermind of this green refuge.
The patch of desert surrounding Baraaduuz’s property increasingly resembles a wasteland, struck by frequent droughts, overgrazed by hungry livestock and pillaged by mining companies.
This is where the continent’s regular dramatic and damaging yellow sandstorms are born, before moving across the region and blanketing cities.
The 16-ha greenery will not stop any of that, but it does give some immediate refuge from the elements.
“In that spot you can’t just plant vegetables as it is a windy spot. I needed cover from the elements. That is why I planted trees and made the trees cover for the vegetables I planted,” Baraaduuz explained.
“The first year (1992) was difficult: it was a windy and sandy year. But in the second year, the trees were tall enough to protect my vegetables. I became a believer in trees and started to love trees. And people started to notice and asked me to give them trees and I started to plant more.
“And now from Ulaanbaatar to eastern provinces, my trees are growing,” he said.
Overall, he estimates that he has helped plant more than 400,000 trees over three decades. That is a proud legacy. But it might just be a fraction of the trees that eventually get planted throughout Mongolia, as the government looks to sharpen its response to worsening impacts of climate change.
Desertification - where land degrades, becomes arid and loses its fertility - is now affecting more than 76 per cent of Mongolia’s total land territory. Climate change and human activity are both to blame and the situation has serious implications for the lives of nomadic herders as well as the nation’s food and water security.
Earlier this year, the country’s president Ukhnaa Khurelsukh officially launched the One Billion Tree movement, an ambitious plan to reverse the relentless spread of the Gobi.
Mongolia aims to achieve the target by 2030, as part of its commitments to the United Nations Sustainable Development Goals. Various incentives will encourage more people, as well as mining companies and corporations, to be involved.
The province of Ömnögovi has pledged to plant 70 million trees and provide financial packages to individuals for maintaining new trees in the area. Specialists there have designated 900,000 ha of land for forestation.
According to climate scientists, the idea has strong merits. In a special summary by the Intergovernmental Panel on Climate Change (IPCC) released in 2019, it was reported that “native and other climate resilient tree species with low water needs, can reduce sand storms, avert wind erosion, and contribute to carbon sinks, while improving micro-climates, soil nutrients and water retention”.
The Mongolian government sees the economic potential on top of the environmental benefits.
“The billion tree movement we should understand as a regional movement and we should understand it is an economic hinge. Just think about how many people we can provide with jobs,” said Bat-erdene Bat-Ulzii, Mongolia’s minister of Environment and Tourism.
“People can have additional income. Say if they are a herder they can plant trees in their native land and can get incentives from planting the tree.
“We will try to have a billion dollars circulating through the project. Not only do we need to look at it as an economic benefit but also as a way to increase Mongolia’s GDP,” he told CNA.
But there are red flags about national and international schemes to plant large numbers of new trees without proper processes.
AVOIDING PITFALLS
One only needs to look across Mongolia’s southern border to China to see how mass tree planting can be problematic.
The Great Green Wall program was an enthusiastic climate change solution enacted in 1987 to help prevent desertification in areas around the country’s own Gobi region.
A lack of understanding about which trees to plant and where has led to disease outbreaks and wide scale forest failures.
Tree monocultures have added extra forest cover but without the benefits of a considered planting of mixed species, including the ability for trees to remove carbon from the atmosphere.
The concept has not been abandoned though. This year, President Xi Jinping committed the country to plant 70 billion trees to “green our planet, combat climate change and increase forest carbon sinks.”
In Africa, another ambitious project to build an 8,000 km green wall across the width of the continent, from Senegal to Sudan, has been beset by problems.
For Mongolia, projects like this should not come at the expense of decarbonisation, according to experts. They also said that there is a need to avoid past pitfalls, which in some cases have actually caused ecological harm.
“Yes it is important to plant trees, but we must do it in a mindful and considerate way,” said Ganchudur Tsetsegmaa, a leading desertification expert at the Mongolian Academy of Sciences.
“We need to plant trees that are resilient during droughts, trees that grow in the Gobi, so that the plants can grow with very little effort and can grow on their own when they mature. And we also need to introduce technology that uses minimal water. Without these solutions, we will waste our water.
“The region doesn’t have many springs and 80 per cent of the water comes from underground aquifers. If they dig 100m deep to get water and if we use that water for planting trees, we will have an ecological disaster,” he said.
Baraaduuz’s health now means it is increasingly difficult for him to travel to his desert oasis to tend to the trees. His grandson now cares for the forest, which has become a healthy business for the family.
But he remains an active advocate for adopting a green thumb attitude in the middle of the desert.
“To avoid making mistakes when planting trees, listen to specialists who know how to do it. There is a Mongolian proverb that goes, ‘Rather than listen to a monk who reads a formula, listen to a hag who went through adversity’.”
He added: “The ravine that I am in, in the winter it reaches -30 degrees Celsius, and in the summer it reaches 30 degrees Celsius. Two extremes, one very cold and one very hot. So if a tree is growing there, it proves a tree can grow anywhere.
“The only way to protect from desertification is to plant trees. So all that remains is to incentivise people who plant trees on their own.”
Additional reporting by Anand Tumutogoo.
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Why Mongolia Is Steering Clear of Full Membership in the SCO www.thediplomat.com

Samarkand, Uzbekistan, became the center of world attention in mid-September as leaders of the Shanghai Cooperation Organizations (SCO) states gathered to discuss the organization’s goals, challenges, and how to tackle pressing global issues. During the 22nd Meeting of the Council of Heads of State of the SCO, Mongolia reiterated Ulaanbaatar’s position to maintain its observer status; however, Mongolia will still be active in regional trade and economic activities.
In 2004, Mongolia became the first observer state in the SCO during the Tashkent Summit, followed by India, Pakistan, and Iran in 2005. All three of the latter states have chosen to accede to full membership. Although relations between the SCO and Mongolia have developed in the past decade, Ulaanbaatar has been hesitant to become a full member. Mongolia’s concerns stem not only from Ulaanbaatar’s foreign policy outlook but trends in regional international relations.
When the SCO first began in 2001, member states focused on keeping the security status quo and counterterrorism. The SCO has the scope and potential to be a crucial contributor to global peace and security as two of its member countries (China and Russia) are also part of the U.N. Security Council, and four are nuclear weapons states.
However, fulfilling this potential heavily depends on the leadership of each member state, financial contributions, and, most importantly, whether the strategic interests of each member state are aligned. By the same token, however, its member states’ potential and capabilities are causing competition for resources and partnerships.
Since Mongolia joined the SCO as an observer state in 2004, geopolitical dynamics and the general outlook of international relations have changed. Bilateral ties between SCO member states have changed dramatically – in some cases for the worse. Since India joined the SCO in 2017, the China-India border issue has escalated, and India and Pakistan’s historical conflicts continue.
Moreover, the world is watching Russia’s annexation of Ukrainian territories, which is causing serious concerns among its fellow SCO member states. Meanwhile, Kyrgyzstan and Tajikistan – two original SCO members – were engaged in active conflict along their disputed border at the time of the Samarkand summit.
And the SCO could become even more complicated in the future, with Iran set to officially gain membership status in 2023, while its rivals in the Middle East – Turkey, Saudi Arabia, Bahrain, Egypt, and the UAE – are either currently or in the process of becoming SCO dialogue partners, and possible future members.
These internal geopolitical conflicts surely do not bestow confidence in the future activities of the organization.
The discussion on whether Mongolia should accede to SCO membership has been primarily dominated by analysts positioning Ulaanbaatar in the periphery of the Moscow-Beijing orbit. However, these views diminish and undermine Mongolia’s independent foreign policy.
Mongolia’s multi-pillared foreign policy and non-nuclear weapons states status (NNWS) are significant reasons for Ulaanbaatar to abstain from joining certain organizations and security alliances. Based on the combination of these two foreign policy mechanisms, Ulaanbaatar consciously chooses diplomacy and strong bilateral relations versus depending on regional security groupings – whether the U.S. alliance network or the SCO.
Moreover, it is not in Ulaanbaatar’s interest to willfully bar itself from the freedom to pursue a multi-pillared foreign policy as a democratic nation. This allows Ulaanbaatar to freely establish and strengthen bilateral relations with all parties. For example, Mongolia has strategic partnerships (some comprehensive strategic partnerships) with Russia, China, Japan, India, and the United States.
In the eyes of Mongolian policymakers, diplomacy and bilateral relations must prevail over regional security alliances, which carry more risk due to the many political, economic, and security factors that have the potential to create a rift if and when there is a clash of strategic interests.
In 2021, during Foreign Minister of Mongolia Battsetseg Batmunkh’s official visit to Moscow, she gave an interview with Strana Industriya. Battsetseg stated Mongolia’s position to remain as an observer state in the SCO.
On the sideline of the Samarkand summit, Mongolian President Khurelsukh Ukhnaa met with the secretary general of the SCO, Zhang Ming. During their conversation, Khurelsukh reiterated Ulaanbaatar’s position to maintain its observer status, while noting that Mongolia will cooperate with trade and economic activities.
Indeed, for Mongolia, the sideline meetings are arguably more important than the SCO summit itself. During the Samarkand summit, one of many important meetings for Mongolia was the Russia-Mongolia-China heads of state trilateral summit. This year’s meeting was headed by Russian President Vladimir Putin. The Mongolian president will lead the trilateral meeting in 2024.
During the Russia-Mongolia-China trilateral meeting, the head of states discussed the economic corridor and a gas pipeline project currently under development. In his remark, Khurelsukh stated, “Russia and Mongolia have been cooperating in the feasibility study of the gas pipeline project that would go through Mongolia. If implemented, this project would be the second major infrastructure that connects our three nations since 1955. And Mongolia is wholeheartedly hopeful to continue the trilateral dialogue and make progress on this major development.”
Mongolia’s observer status in the SCO remains a hot topic in the policymaking arena. However, given the current geopolitical environment, the Mongolian government has decided to pursue its own course of foreign policy and strengthen bilateral relations – an example of far-sighted policymaking.
Bolor Lkhaajav
Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.
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