140 million trees planted under Mongolia’s Billion Trees national movement www.gogo.mn

A total of 140 million trees have been planted as part of Mongolia’s Billion Trees national movement, an initiative aimed at combating desertification and improving the country’s environment.

A new information system has been launched to provide comprehensive data on the progress and results of the Billion Trees national movement.

The system provides detailed information on tree-planting projects and programs implemented across Mongolia, including where and how many trees have been planted, the provinces and enterprises with the highest levels of participation, available planting stock, and the survival and growth of planted trees. The information is available in five United Nations official languages.

The platform was developed using more than five years of data collected by the Forest Agency under the government. The system is being continuously improved and updated in cooperation with the Forest Agency and young members of the “Billion Trees Movement” NGO.

Viet Nam seeks fresh momentum for relations with RoK, Mongolia www.en.qdnd.vn

The official visits to the Republic of Korea (RoK) and Mongolia by President of the National Assembly (N.A.) Tran Thanh Man reaffirm Viet Nam’s commitment to further developing its Comprehensive Strategic Partnership with the RoK and Comprehensive Partnership with Mongolia in an increasingly substantive, effective and sustainable manner, Standing Deputy Minister of Foreign Affairs Nguyen Minh Vu has said.

Talking to the press ahead of the visits, Vu said the trips, scheduled for September 6–11, are significant to implementing the foreign policy set out by the 14th National Party Congress and Politburo Resolution No. 06-NQ/TW, while concretizing the orientations and agreements reached by Viet Nam's senior leaders with the two partners.

Vu said the fact that N.A. President Man is making his first official visits to the two countries in his current capacity demonstrates Viet Nam’s high regard for relations with the RoK and Mongolia, as well as the important role of parliamentary diplomacy.

The visit to the RoK, five years after the previous trip by a Vietnamese N.A. leader, will help implement the high-level commitments, including the joint statement on further enhancing the Viet Nam–RoK Comprehensive Strategic Partnership. At the same time, the two sides are expected to promote cooperation in defense, security, the economy, trade, investment and labor, and expand ties into emerging fields such as strategic technologies and renewable energy.

For Mongolia, the visit is the first by a Vietnamese N.A. leader since 2003 and is expected to inject fresh momentum into the Comprehensive Partnership, particularly in areas with substantial potential, including trade, renewable energy, science – technology, culture, tourism, education and people-to-people exchanges, he added.

During the trips, the top legislator of Viet Nam and Korean and Mongolian leaders will discuss ways to strengthen substantive cooperation between the legislatures, including their specialized committees, parliamentary friendship groups, and young and women lawmakers. They are set to encourage their respective countries' governments to effectively implement the signed agreements, and bolster cooperation as well as mutual support at multilateral parliamentary forums.

Vu noted that the RoK and Mongolia are both important partners of Viet Nam in Northeast Asia, with relations enjoying a solid political foundation and flourishing across various fields.

Viet Nam–RoK relations are currently at their best, he said. The two countries upgraded their ties to a Comprehensive Strategic Partnership in 2022. Political trust has been continuously strengthened through high- and all-level exchanges, including General Secretary of the Communist Party of Viet Nam Central Committee and President To Lam’s state visit to the RoK in 2025 and the Korean President’s state visit to Viet Nam in April 2026.

The RoK is among Viet Nam’s leading trade, investment, labor and tourism partners. Their parliamentary ties have also grown strongly, with regular exchanges between NA leaders, specialized committees, parliamentary friendship groups, and young and women parliamentarians. A memorandum of understanding on cooperation between the two legislatures was signed in November 2025.

Vu expressed his hope that the visit will improve the quality and effectiveness of bilateral ties, particularly in economic, trade and investment cooperation, and help leverage new growth drivers through science – technology, innovation and strategic technologies.

Regarding Mongolia, the deputy minister described it as a traditional friend and partner with longstanding ties with Viet Nam. The relationship reached a major milestone with General Secretary and President Lam’s visit in 2024, when the two countries upgraded their ties to a Comprehensive Partnership.

However, economic cooperation and ties in other fields have yet to match the two sides' potential and sound political relations, he said, expressing his hope that the coming trip will create a new and more substantive impetus for bilateral and multilateral parliamentary cooperation, along with the development and future of both countries.

The official also expected stronger connections following the trip in such fields as mining, education – training, trade, tourism, people-to-people exchanges and, especially, renewable energy. The visit is also anticipated to facilitate the sharing of legislative and governance experience and help translate the signed high-level agreements into concrete projects, programs and benefits for businesses and people.

It is set to expand bilateral cooperation at multilateral parliamentary forums, contributing to the responses to regional and global issues such as sustainable development, desertification prevention, climate change response, peace and security, the protection of women and children from the adverse impacts of technology, and other non-traditional security challenges.

Vu expressed his confidence that N.A. President Man’s visits will significantly help consolidate and expand the partnerships with the RoK and Mongolia, meeting the interests of the countries' peoples and contributing to peace, stability, cooperation and development in the region.

Source: VNA

V. Putin: Russian-Mongolian Relations are Cemented by the Blood of Our Ancestors www.open.kg

At the Eastern Economic Forum in Vladivostok, a meeting took place between the President of Russia, Vladimir Putin, and the Prime Minister of Mongolia, Ukhnaagiin Khurelsukh. The main focus of the negotiations was on deepening strategic partnership, expanding trade ties, and modernizing infrastructure projects.
President Putin noted that the historical connections between the two countries remain strong:

“Our traditional friendly relations have grown into a full strategic partnership. Diplomatic relations have existed for 105 years, and their foundation was laid by the joint efforts of our ancestors who fought for Mongolia's freedom during the Great Patriotic War and at Khalkhin Gol. The Mongolian economy has developed with the active participation of our country,” said Putin.

Putin also expressed hope that the participation of the Mongolian delegation in the EEF-2026 would be an important step for further cooperation, adding that both sides would participate in the plenary session of the forum.

Ukhnaagiin Khurelsukh confirmed Mongolia's commitment to deepening strategic relations with Russia. He emphasized the importance of implementing previously reached agreements, particularly those signed at the SCO summit in Bishkek. As an example of successful interaction, he mentioned the modernization of the Ulaanbaatar Railway and expressed readiness for new joint investment projects.

Furthermore, the parties noted a positive trend in trade: mutual trade turnover increased by 4.5% in the past year and by 18.1% in the first half of the current year. One of the factors contributing to this was the Temporary Trade Agreement between the EAEU and Mongolia, which came into effect in July.

Mongolia’s President at the SCO Summit www.thediplomat.com

For Mongolia, the highlights were the bilateral meetings held on the sidelines with Kyrgyzstan, China, and Russia.
Mongolian President Khurelsukh Ukhnaa is attending the Shanghai Cooperation Organization (SCO) Council of Heads of State in Bishkek, Kyrgyzstan as the organization recognizes its 25th anniversary. While the SCO spent much of its existence focused on security and regional cooperation, the Bishkek Declaration demonstrates a much larger global agenda. Mongolia, in the new partner state status, is seeking deeper ties with SCO member states in emerging sectors via robust bilateral links.
For example, Khurelsukh and Kyrgyz President Sadyr Japarov, the summit’s host, held bilateral talks to accelerate political, economic, and trade relations under the Comprehensive Partnership Agreement that was signed during Khurelsukh’s state visit to Bishkek in 2025.  
Mongolia and Kyrgyzstan are aiming to boost regional trade turnover to $100 million. During Khurelsukh’s remarks, he noted the trade volume between the two countries had grown from $2.6 million in 2023 to $19 million as of 2025. The Mongolian side expressed interest in further Kyrgyz investments and joint projects in developing industries, minerals exploration, transport and logistics, and direct flights. 
Mongolia’s interim free trade agreement with the Eurasian Economic Union (EAEU) creates additional trade opportunities for the two countries. Kyrgyzstan will be chairing the EAEU in 2027.
But there were more leaders in Bishkek than just Japarov. For Mongolia, the SCO Summit was a valuable opportunity for face-to-face diplomacy as the world faces major geopolitical and economic challenges. 
On August 31, Khurelsukh held bilateral talks with Chinese President Xi Jinping. During their meeting, Xi reiterated Beijing’s long-term support for Mongolia as close neighbors and promised to support “win-win cooperation.” 
Mongolia and China discussed opportunities to expand cooperation in emerging sectors such as green minerals, AI, digital economy, and supporting Mongolia’s efforts in combating desertification and climate issues. According to the Mongolian presidential office, Khurelsukh and Xi discussed several projects that are underway, including China’s support for the operation of the Erdeneburen Hydropower Plant, a long-stalled mega-project that received new life in 2022.
Xi and Khurelsukh also discussed the need to make progress on constructing the Shiveekhuren-Sekhee, Bichigt-Zuunkhatavch, Khangi-Mandal railways which are crucial to the countries’ bilateral economic activities.
Moreover, one of the most important discussion points was China’s willingness to continue exporting petroleum product supplies to Mongolia amid fuel shortages triggered by supply disruptions from Russia. The two sides are currently aiming for Mongolia to import 71,000 tons of petroleum product per month from China. 
More broadly, Xi promised to support Mongolia’s fuel industry, and cooperate in the exploration of oil and gas, a key priority for Mongolia as it seeks to address its energy dependencies. 
While China is a leading investor in Mongolia’s mining sector, it has yet to allocate investments into the renewable energy sector. Considering Mongolia’s push to transition to renewable energy and diversify its energy sources, Beijing’s contribution will be crucial in the coming years. 
Khurelsukh also met with Russian President Vladimir Putin while in Bishkek. During the meeting, Putin reiterated the historic links between Mongolia and Russia. He expressed hope that Ulaanbaatar’s interim free trade agreement with the EAEU will provide “preferential treatment for Mongolian traditional exports across the customs territory of our association.” 
Moreover, Putin highlighted that Mongolia – previously an observer in the SCO – now will receive “partner state” status. Last year, the SCO streamlined its various levels of participation to just two: full members and partner states. Mongolia thus became a partner state along with other states previously recognized as observer states. The debate on whether Mongolia should join the SCO as a full member has been a hot topic among scholars and policymakers in the last decade. 
The Khurelsukh-Putin summit was also attended by the Russian energy minister and president of Rosatom, Russia’s nuclear power corporation. Rosatom’s leader reportedly met with Mongolian partners to discuss small modular nuclear reactors as a way to diversify Mongolia’s energy mix.
According to Russia’s Pivot to Asia official website, “Mongolia is reviewing a proposal from the Russian state nuclear corporation to build a small modular nuclear reactor in the country, which may be built near New Kharkhorum, a planned new capital city located about 230 kilometers west of Ulaanbaatar.”
Following Khurelsukh’s high-level meetings with both Xi and Putin, separately, Xi and Putin resumed high-stakes negotiations on the construction of Power of Siberia 2, a long-discussed gas pipeline that would bring LNG from Russia’s Yamal gas fields to China via Mongolia
According to Pipeline Technology Journal, “Kremlin foreign policy aide Yury Ushakov confirmed Friday that the flagship energy project will feature prominently during talks in Bishkek.” Ushakov added that discussions will continue at the Eastern Economic Forum currently underway in Vladivostok, where Chinese Vice Premier Ding Xuexiang will meet with Russian officials. 
Russia is keen to export more gas to China, and Mongolia has welcomed the construction of the pipeline. However, China has been driving a hard bargain on pricing, especially as it moves away from fossil fuels toward renewable energy.
There was no China-Mongolia-Russia trilateral meeting scheduled in Bishkek. However, Mongolian Prime Minister Uchral Nyam-Osor is in Vladivostok through September 4, so trilateral talks might be resumed there
The three heads of state gathered last year in Beijing shortly after the 2025 SCO summit in nearby Tianjin. At that meeting, Mongolia emphasized the importance of trilateral cooperation and reaffirmed its commitment to jointly implementing the projects and programs outlined in the Economic Corridor Construction Program. 
As evidenced by the Bishkek Declaration, the SCO is setting itself up as a much larger player in global political, economic, and security arenas. As SCO member states encompass approximately 42 percent of the global population, SCO-linked global governance, multipolarity, and economic and trade are set to expand in the organization’s next 25 years. 
While Mongolia’s participation in this year’s SCO in Bishkek has been primarily economically motivated, Ulaanbaatar is aware of the shifts in global geopolitics. Mongolia engagement in the SCO is underpinned by its bilateral relationships: comprehensive strategic partnerships with Russia, China, Kyrgyzstan, and Uzbekistan, coupled with strategic partnership frameworks with other SCO members such as India and Kazakhstan. In all of these relationship, Mongolia envisions greater cooperation in emerging critical sectors and seeks to strengthen the country’s political, economic, and cultural capital. Ulaanbaatar can achieve that through robust bilateral links without having to a commit to the SCO as an organization.

By Bolor Lkhaajav

Mongolia, Russia Agree to Boost Fuel, Energy, Infrastructure Ties www.montsame.mn

 Uchral Nyam-Osor, Prime Minister of Mongolia, is taking part in the 11th Eastern Economic Forum, currently underway in Vladivostok, Russia. On the sidelines of the forum, he paid a courtesy call to Vladimir Putin, President of the Russian Federation, yesterday.

Opening the meeting, President Putin thanked Prime Minister Uchral for accepting the invitation to the Eastern Economic Forum and for making the trip. He noted that relations between the two countries have a long history and that Mongolia is an important strategic partner for Russia in the Asia-Pacific region.

He also highlighted his meeting with Khurelsukh Ukhnaa, President of Mongolia on September 1, held on the sidelines of the expanded meeting of the Council of Heads of State of Shanghai Cooperation Organisation (SCO) member states in Bishkek, the capital of the Kyrgyz Republic, where the two leaders exchanged views on a wide range of issues related to further deepening and enriching the Comprehensive Strategic Partnership between the two countries.

“Trade turnover between our two countries grew by more than 4% last year. The Interim Agreement on trade between Mongolia and the Eurasian Economic Union (EAEU) and its member states came into force in July. This will create favorable conditions for Mongolia to supply its goods and products to the EAEU market,” President Putin said.

While serving as First Deputy Prime Minister and Minister of Economy and Development, Prime Minister Uchral led the work on the Interim Free Trade Agreement with the EAEU, which set out key positive economic terms, including the elimination, reduction, and lowering of customs tariffs on Mongolian goods and products.

In his remarks, Prime Minister Uchral noted that developing good-neighbourly, friendly relations and mutually beneficial cooperation with Russia remains one of the priority directions of Mongolia’s foreign policy. He expressed satisfaction with the increasingly regular high-level talks and meetings between the two countries and said that, as Prime Minister, he would place particular importance on translating into concrete action the issues discussed at the level of the two heads of state.

The two sides discussed expanding cooperation in strategically important sectors such as energy, transport, infrastructure, mining, and agriculture, ensuring Mongolia’s fuel and energy security, the stable supply of petrol, fuel, and petroleum products, and developing the railway corridor linking Mongolia, Russia, and China, reaching a number of concrete decisions.

They also agreed to accelerate the implementation of specific bilateral economic cooperation projects and programmes awaiting resolution in the two countries’ fuel, energy, and mining sectors, including the joint study on Thermal Power Plant No. 3 and the Asgat mine, the project to supply natural gas to China via Mongolian territory, and fuel supply.

In addition, to ensure the successful implementation of the Interim Free Trade Agreement with the EAEU, the two sides agreed to cooperate on combating highly contagious animal diseases and on vaccination, issues that have been hindering growth in livestock-based exports.

The two sides agreed to continue working together to carry out practical cooperation projects going forward.

Mongolia bears brunt of Russia's fuel crunch, official says www.reuters.com

Mongolia, Russia's long-term trading partner, is ‌feeling the pinch of fuel shortages in its neighbour, the dominant supplier of gasoline and diesel, a Mongolian official told Reuters.
Media and Reuters witnesses reported long queues at petrol ​stations across the nation, which put curbs on sales of the ​fuel last month.
The gasoline and diesel shortages have spilled over from ⁠Russia, where Ukrainian drone attacks on oil refineries and high seasonal demand ​led to a fuel crunch.

"I know about the problem in Russia. However, the ​fuel price is rising for Mongolia," Bolorchuluun Tsendgombo, the director of the policy and planning department in Mongolia's food ministry, told Reuters.
Prices had risen to nearly $1.5 to $2 a litre, ​he added, from the rate during the spring, of roughly a dollar ​per litre, he added.
Russia's export ban on gasoline and diesel exempts countries, such as Mongolia, with ‌which ⁠it has inter-governmental pacts on fuel supplies.
Traders said Russian diesel fuel supplies to Mongolia rose by 7% to 1,05 million metric tons between January and July. Gasoline exports increased to 515,000 tons from 450,000 tons, while supplies of ​jet fuel fell 40% ​to 32,000 tonnes.

In ⁠July alone, Russia's motor fuel exports to Mongolia declined to 173,000 tons from 186,400 tons in June.
Mongolia may reduce ​imports of Russian grain due to a bigger expected ​harvest, after ⁠buying about 100,000 tons of its wheat last year, Tsendgombo added in remarks on the sidelines of the Eastern Economic Forum in Vladivostok.
On Wednesday President Vladimir Putin ⁠met ​Mongolian Prime Minister Nyam-Osoryn Uchral in the Russian ​far eastern city, hailing "traditional, friendly and neighbourly" ties as having now reached the level of a ​comprehensive strategic partnership.

Reporting by Vladimir Soldatkin and Olesya Astakhova; Editing by Clarence Fernandez

Bank of Mongolia Purchases 3,058 kg of Precious Metals www.montsame.mn

The Bank of Mongolia purchased 3,058.0 kg of precious metals in August this year, according to the central bank.

Since the beginning of the year, the Bank of Mongolia has purchased 11.9 tonnes of precious metals from 93 licensed enterprises and 39 individual precious metal traders on a cumulative basis, representing a 54.4% increase compared to the same period last year. Of this, the Bank of Mongolia's branch in Darkhan-Uul aimag purchased 616 kg, while the branch in Bayankhongor aimag purchased 2,130.4 kg of precious metals.

Mongolia Receives 737,338 Tourists as Arrivals Rise 54.1% www.montsame.mn

Mongolia had received 737,338 tourists as of September 1, 2026, an increase of 258,886, or 54.1 percent, compared with the same period last year.

Tourist arrivals during the same period over the past four years were:

364,594 in 2023
435,037 in 2024
478,452 in 2025
737,338 in 2026
The number of tourists has more than doubled compared with the same period in 2023, according to the Mongolia Tourism Organization.

The number of tourists arriving in Mongolia from Japan has also increased for four consecutive years. As of September 1, arrivals from Japan stood at:

14,396 in 2023
19,246 in 2024
24,579 in 2025
31,980 in 2026

This year’s figure represents an increase of 7,401 tourists, or 30.1 percent, from the same period last year, and a 122.1 percent increase compared with 2023.

Mongolia Establishes Nationwide Air Quality Monitoring System www.montsame.mn

 Mongolia has established a nationwide system to continuously monitor and process air quality data and deliver information to the public in a timely manner.

The system was developed through the “Installation of Automatic Air Quality Monitoring Stations in Ulaanbaatar and the Centers of 21 aimags” project, which was successfully implemented from 2023 to 2026 with USD 8.9 million in assistance. The project was jointly implemented by the Ministry of Environment and Climate Change of Mongolia, the Korean Ministry of Environment and the Korea Environment Corporation.

Under the project, automatic air quality monitoring stations were fully installed in Ulaanbaatar and the centers of all 21 aimags. The stations can continuously monitor sulfur dioxide, nitrogen oxides, PM2.5 and PM10 particulate matter, ozone, carbon monoxide and meteorological indicators. The public can access the monitoring data through agaar.gov.mn.

At the project closing ceremony, Sandag-Ochir Tsend, Minister of Environment and Climate Change, emphasized that air pollution is not merely an environmental issue but one that directly affects public health and quality of life. He stressed that accurate and reliable monitoring data provide the basis for sound policymaking.

He also noted that while Mongolia had previously been able to analyze weather conditions, the project now enables the public to access air quality forecasts. This will contribute to more effective policies aimed at ensuring people’s right to a healthy and safe environment, protecting the environment, and reducing air pollution, he said.

Battulga E., Director-General of the National Agency for Meteorology and Environmental Monitoring, noted that a mobile laboratory for measuring air quality indicators had been handed over to the Central Laboratory of Environment and Metrology under the project. The project also developed the MAMIS software for data processing, results assessment and reporting, while around 240 officials received training in Mongolia and the Republic of Korea to strengthen human resource capacity.

Russia, Mongolia Presidential Meetings: September 2026 Update www.russiaspivottoasia.com

The Russian President, Vladimir Putin has met with the President of Mongolia, Ukhnaagiin Khurelsukh in Bishkek. The meeting took place on the sidelines of the SCO summit.

The Russian delegation included Foreign Minister Sergei Lavrov, Deputy Prime Minister Alexei Overchuk, Deputy Chief of Staff of the Presidential Executive Office Maxim Oreshkin, Deputy Chief of Staff of the Presidential Executive Office – Presidential Press Secretary Dmitry Peskov, Presidential Aide Yury Ushakov, Minister of Natural Resources and Environment, Russian Co-Chair of the Russia-Mongolia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation Alexander Kozlov, Transport Minister Andrei Nikitin, Economic Development Minister Maxim Reshetnikov, Energy Minister Sergei Tsivilev, CEO – Chairman of the Management Board of Russian Railways Oleg Belozerov, and Director General of the State Atomic Energy Corporation Rosatom Alexei Likhachev.

This is what Putin had to say:

“Mr President, friends, I am very pleased to meet with you again. Russia and Mongolia’s strategic partnership is based on long-standing traditions of good-neighbourliness, friendship, and understanding of each other’s interests. This year, specifically on November 5, we will celebrate the 105th anniversary of diplomatic relations. That’s a momentous timeframe.

In 2025, our trade increased by 4.5%. We are also seeing positive results this year: it grew by more than 18% over the first six months. This is a good number.

The Russia-Mongolia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation is working actively, and, in my opinion, it is working hard and with success. I hope that the interim trade agreement between the EAEU and Mongolia that entered into force in July 2026 will provide preferential treatment for Mongolian traditional exports across the customs territory of our association.

We cooperate constructively within multilateral organisations and forums, as our positions on many pressing international issues are aligned or close.

Today, the Shanghai Cooperation Organisation summit was held successfully and productively. Mongolia participated in it as an observer, and now, in accordance with the decision adopted, it will receive partner state status.”

Natural Resources and Environment

Russia’s Natural Resources Minister attended the meeting, while Mongolia has been hosting COP17 with land degradation a specific theme. Mongolia’s natural resources and energy policy regarding Russia centers on balancing deep economic dependence for fuel and electricity with a strategic “third neighbor” foreign policy. The two countries actively cooperate on joint mineral exploration and energy supply, with Mongolia relying heavily on Russian petroleum imports while offering vast untapped natural resources. Mongolia possesses immense reserves of copper, coal, gold, uranium, fluorspar, and critical rare earth elements, with the two targeting their  border regions to explore for ferrous, nonferrous, and noble metals, coal, and fluorspar.

In terms of the environment, they cooperate closely on cross-border environmental policy, focusing heavily on water resource management, climate adaptation, and the protection of shared ecosystems like Lake Baikal and the Selenga River basin.

Energy
The Russian Energy Minister and Rosatom’s CEO both attended the meeting.  Mongolia imports nearly all of its refined gasoline, diesel, and aviation fuel from Russia. Around 90% of Mongolia’s electricity relies on domestic coal-fired plants, but the country still imports supplemental power and works with Russia on infrastructure upgrades like the TPP-3 reconstruction in Ulaanbaatar. Rosatom and Mongolian partners have discussed small modular nuclear reactor (SMNR) development to offset Mongolia’s aging coal infrastructure. Mongolia is reviewing a proposal from the Russian state nuclear corporation to build a small modular nuclear reactor in the country, which may be built near New Kharkhorum, a planned new capital city located about 230 kilometers west of Ulaanbaatar. 

Transport
Rail Mongolia
The Russian Minister of Transport, and the Head of Russian Railways also attended the meeting. Mongolia and Russia are actively expanding their transport cooperation through the upgrade of the Ulaanbaatar Railway and the development of the trilateral economic corridor with China. Officials from both countries are working on the technical plans for the central railway line. This includes plans to build a new branch railway from Bagakhangai to the Khushig Valley,  a strategic development area located in Töv Province south of Ulaanbaatar. This is the home of Mongolia’s International Airport and the site of Mongolia’s planned new satellite city, Hunnu City.

The 2026–2030 technical railway upgrade targets the central railway line (Ulan-Ude – Naushki – Sükhbaatar – Ulaanbaatar – Zamyn-Uud – Erenhot) to boost regional transit. This route forms the backbone of the broader economic corridor linking Russia, Mongolia, and China for expanding Eurasian trade, with a target for it to handle 50 million tonnes of freight annually by 2030. The route carried 33.4 million tonnes in 2025, used by a record 3,850 freight trains crossing Mongolian territory. The upgrade will increase Mongolia’s freight traffic capacity by just under 50%.     

New kharkhoram
Mongolia is building New Kharkhorum as a planned new capital city in the Orkhon Valley to ease severe overcrowding, traffic, and pollution in Ulaanbaatar. It will cover about 189,000 hectares across Uvurkhangai and Arkhangai provinces, roughly 230 to 300 kilometers southwest of Ulaanbaatar, near the historic ancient capital of Kharkhorin. It is designed to accommodate an initial population of approximately 500,000 residents. President Ukhnaagiin Khürelsükh issued a decree to restore Kharkhorum as capital in 2022. In mid-2025, a development law was submitted to the Mongolian Parliament and approved.

Estimated to cost around US$30 billion, the master plan features a 4E-class international airport, a transport and logistics hub, extensive green spaces, and potential small modular nuclear reactors for clean energy. Russian and Chinese property developers are highly likely to be involved in construction and the supply of materials once the plans are finalised. 

The project does not have a single final completion date, but broader developmental milestones extend toward 2050 and 2065 under long-term national frameworks like Vision-2050.

Economic Development
EAEU Mongolia
The Russian Economic Development Minister was present, as Mongolia has an interim Free Trade Agreement with the Eurasian Economic Union (EAEU) which entered into force in July. The two sides will have discussed how best to utilise this new agreement. The FTA eliminates or reduces customs duties on 367 product categories for both sides, covering about 90% of bilateral trade. Set for an initial three-year period, with automatic renewal for another three years unless terminated or objected to by either party. These are the main considerations:

Mongolian Exports

Agricultural and livestock goods (meat, cashmere, finished leather, wool) make up 97.5% of covered Mongolian exports, gaining preferential or zero-tariff access to the EAEU market.

EAEU Exports

EAEU member states (Russia, Kazakhstan, Belarus, Armenia, and Kyrgyzstan) gain better access to Mongolia for dairy, beverages, confectionery, cars, trucks, and cosmetics.

Protections

Sensitive domestic sectors are shielded; dairy and alcohol are protected, while Mongolia applies specific quotas on items like milk powder, eggs and wheat.

Although the FTA has only been in operation for a few weeks, it can be expected to have a significant impact on Mongolia’s trade with Russia and Kazakhstan especially. Mongolian cashmere stores have already opened in luxury malls in Moscow and St. Petersburg.

Summary
Mongolia is poised for an extensive transformation. Sited between Russia and China, its interconnecting rail network between the two countries is set increase by 50%, the Power of Siberia 2 pipeline is set to transit the country (and supply energy) while armed with a new Free Trade Agreement, Mongolian entrepreneurs can access an EAEU market of 185 million. Mongolia’s population is 3.5 million.

That shortly to be created wealth is already being put to use – a new capital city, and a move to cleaner nuclear energy after decades of polluting coal powered stations. While bilateral trade remains relatively modest at US$2.7 billion, that is a reflection on the smaller Mongolian population. Nevertheless, the bilateral figures, boosted by transit operations and free trade should boost the Mongolian economy in the coming years.