Iran, Mongolia FMs meet in Bishkek for SCO Summit www.en.mehrnews.com

Iranian Foreign Minister Seyyed Abbas Araghchi and his Mongolian counterpart Battsetseg Batmunkh met in Kyrgyz capital of Bishkek on Monday on the sidelines of the Shanghai Cooperation Organization (SCO) Summit.

During the meeting, the two top diplomats exchanged their views on host of issues, including bilateral ties, recent developments in the region and the issues of mutual interest.

The 26th Summit of heads of state of the Shanghai Cooperation Organization (SCO) kicked off in Bishkek on August 31 and will run through September 1, 2026 as Kyrgyzstan is the organization's periodical chair in 2026.

The slogan of this year’s summit is entitled “25 Years of the Shanghai Cooperation Organization: Together for Peace, Development, and Sustainable Prosperity.”

President Masoud Pezeshkian arrived in Bishkek on Monday to attend the Shanghai Cooperation Organization and Shanghai Plus Summit, where he is due to deliver a speech and hold bilateral meetings.

Upon his arrival, Pezeshkian was welcomed by Kyrgyzstan's deputy cabinet chairman. His two-day visit will be focused on the summit of heads of state from the Shanghai Cooperation Organization and Shanghai Plus, where he will speak and hold bilateral talks with a number of participating leaders and the presidents of Kyrgyzstan, Russia and Tajikistan on the sidelines of the summit. 

At the invitation of the Kyrgyz president, the Iranian president will also attend the official opening ceremony of the sixth World Nomad Games during the trip.

On the ground in Mongolia www.asiaasset.com

At 10°C in June in Ulaanbaatar, it was an unusually cold summer for me, arriving from Hong Kong for a research trip. But the chill in the Mongolian capital was quickly offset by the warm welcome from government officials, banks and companies alike.

A common theme emerged across my meetings: Mongolia is actively seeking to expand its access to international capital markets.

Mongolia is classified as a frontier market, also known as a ‘pre-emerging’ economy, reflecting its high growth potential, along the elevated risks that makes primary research essential.

The country has enjoyed robust economic development over the past three years, underpinned by strong commodity-led export growth. This has been accompanied by rising US dollar bond issuance from Mongolian issuers.

Against this backdrop, it was an opportune time to be in the ‘Land of the Eternal Blue Sky’, speaking with bond issuers face-to-face, observing first-hand how the economy is changing and understanding where companies are prioritising their future growth.

We met with six commercial banks for a pulse check on the country’s financial system. Bank lending has grown significantly over the past two years, fuelled by economic expansion; we expect the growth rate to remain strong in the mid-teens in 2026, albeit slower than before.

Lending focus has shifted towards small and medium-sized enterprises, which have historically faced a disproportionate lack of access to bank financing despite their importance to the economy and now face rising funding needs to meet growing domestic demand.

We were encouraged to see major Mongolian banks partnering with international financial institutions to help close the financing gap, particularly in sustainable lending.

Digitalisation was a recurring theme, cited by the banks as a common area of development spanning all channels — branches, mobile banking and online transactions. We believe this digital transformation will help Mongolian banks lower their operating costs while improving productivity and customer experience.

Most of the non-performing loans appear to have remained relatively well controlled. It was reassuring to hear that most commercial banks have taken active measures to manage the high-risk segments of their loan books, alongside regulatory tightening on excessive retail lending.

Mongolia’s growth ambitions cannot be realised without infrastructure development. As one local company puts it: “In Mongolia, almost every project proposal begins with an energy project.” A fitting reminder that this is a country with a vast territory and a sparse population.

The Mongolian government has identified energy security as one of its critical challenges and is determined to address it.

A highlight of the trip was a site visit to a power plant project located a couple of hours’ drive from Ulaanbaatar, which operates under a long-term power purchase agreement with the government.

Mongolia faces a critical energy shortfall, driven by surging consumption and ageing Soviet-era infrastructure. Nothing illustrated this more than the two power outages we experienced at our hotel during our stay in June, well before the surging power demand in winter.

We toured Phase 1 of the project to observe its operations firsthand. We saw the turbine hall and control room, the heart and brain of the plant, where power is generated. We also examined the chemical water treatment systems and the surrounding infrastructure, the arms and legs that keep the plant running.

The plant was built through bilateral cooperation between Mongolia and China with key Chinese stakeholders involved in the construction work and daily operations.

We then visited Phase 2, which is still under construction. Our discussions with the local construction team confirmed that the project is on track for delivery between 2027 and 2028.

Phase 1 was commissioned in 2025 but cannot fully cover the rising energy needs of Ulaanbaatar. Once fully completed, the project is expected to supply over a third of energy demand in the capital, a vital step towards bridging Mongolia’s energy supply gap.

We remain optimistic about Mongolia’s commodity-driven growth outlook in the near term. As local companies of varying sizes across a range of sectors look to improve their access to international capital markets, we expect Mongolian issuers to remain active in dollar bond issuance and to form a larger share of the Asian credit market.

From an allocation perspective, we favour issuers in strategically important sectors with meaningful exposure to Mongolia’s growth story.

Being on the ground is key to investing in emerging and frontier markets, providing first-hand insights and granular data points that no phone call or video meeting can give. On this trip, we could see and experience Mongolia’s growth potential first-hand. Just like its rapidly developing rail network, Mongolia is a frontier market on the fast track.

*Colette Zhou is investment manager of fixed income – Asia, at Aberdeen Investment.

President Khurelsukh Arrives in Bishkek for SCO Summit www.montsame.mn

Khurelsukh Ukhnaa, President of Mongolia, has arrived in Bishkek to participate as an observer in the extended meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO) Member States, taking place in the Kyrgyz Republic from August 31 to September 1, 2026.

Upon landing at Manas-2 International Airport, the President was welcomed by U.E. Mamatkanov, Deputy Chairman of the Cabinet of Ministers of the Kyrgyz Republic and Chair of the Kyrgyz section of the Kyrgyz-Mongolian Intergovernmental Commission; Seitek Zhumakadyr uulu, Deputy Minister of Foreign Affairs of the Kyrgyz Republic; Tegshjargal Demchig, Ambassador of Mongolia to the Kyrgyz Republic, alongside other officials.

President Khurelsukh will deliver a speech at the extended meeting. Additionally, he will meet with the heads of state of SCO member and dialogue partner countries to exchange views on bilateral relations, cooperation, and issues of mutual interest.

Kosuke Mashiyama, Three-Time All-Japan Champion, to Represent Mongolia www.montsame.mn

 Kosuke Mashiyama, a Japanese judoka, has decided to compete for the Mongolian national judo team.

The 27-year-old Japanese athlete competes in the men's 90 kg category. Under Japanese judo regulations, an athlete must abstain from competing for three years before representing another country. Due to this rule, Kosuke Mashiyama will be eligible to participate in international competitions for Mongolia starting in April 2027. Therefore, he will not be able to represent Mongolia at this year's World Judo Championships. Mashiyama is the first Japanese judoka to change his citizenship.

The social media page "Judo cam" reported on the transition: “Yes, Japanese judoka Kosuke Mashiyama will now compete for the Mongolian national team. He is an Asian and Japanese champion, as well as a gold medalist at the Baku and Tokyo Grand Slams. This is not the first instance. Before Mashiyama, Kaihan Takagi also left the Japanese national team. However, in the recent history of Japanese judo, such a transfer might lead other new athletes to join foreign national teams in the future. It is understandable that any national team would want to include a top Japanese athlete in their roster. From this, it appears that the mindset and principles established by the founders of judo are no longer as strict as before.”

Kosuke Mashiyama won gold at the 2019 Asian Championships, the 2021 Baku Grand Slam, and the 2022 Tokyo Grand Slam. Furthermore, he is a three-time champion of the All-Japan Judo Championships. Having not stepped on the tatami since competing at the Asian Championships in Hong Kong in 2024, he is currently training in Mongolia.

Fuel Orders Confirmed to Meet September Demand www.montsame.mn

Fuel orders have been confirmed to meet nationwide September consumption, estimated at approximately 65 thousand tonnes of AI-92 gasoline and 150 thousand tonnes of diesel fuel.

Over the past 24 hours, 1,100 tonnes of gasoline were delivered to the capital and 681 tonnes to rural areas, according to the Task Force established by decree of the Prime Minister.

The Task Force reported that out of 74,780 tonnes of AI-92 gasoline ordered in August, 68,502 tonnes have arrived, while all 158,530 tonnes of ordered diesel fuel were imported in full. Work is ongoing nationwide to address supply disruptions caused by loading delays earlier this month and restore normal distribution.

Given the relatively severe shortages in Ulaanbaatar, priority was placed on supplying the capital first before distributing fuel to rural regions. Currently, 30 to 40 soums are experiencing shortages of gasoline and diesel. At the August 31, 2026 meeting, the Task Force will review nationwide fuel distribution, focus on delivering supplies to soums facing fuel shortages, and normalize supply in aimag centers and rural areas that have experienced multi-day queues.

Fuel imports from the People's Republic of China, the Russian Federation, and other sources remain stable. In connection with ongoing autumn harvesting activities in rural regions, fuel is being dispensed into designated containers that meet fire safety requirements. Reports and complaints regarding businesses withholding fuel are being received via hotlines at the Ministry of Industry and Mineral Resources and the Mineral Resources and Petroleum Authority.

N.Ganibal: Democratic Party will dismiss Premier N.Uchral’s government www.gogo.mn

On August 27, 2026, leaders of the Democratic Party (DP) held a press conference to comment on current political and economic issues.

DP Secretary General N.Ganibal said:

- The rising prices and fuel shortage are the result of the government’s wrong policies. The ministry and minister responsible for the sector, who should have properly calculated and managed the 45-day fuel reserve, contributed to the shortage through poor policy decisions.

After the Naadam Festival, citizens had a 10-day break. The minister responsible for the sector, G.Damdinnyam, confidently said, ‘Go to the countryside, relax, and leave the city. There will be enough gasoline.’

A vehicle traveling 500 kilometers outside the city uses up a significant portion of its fuel reserves, and a 1,000-kilometer trip consumes even more. The rise in fuel prices has been caused by the failure to properly calculate and regulate fuel reserves. Perhaps this was not a deliberate policy aimed at increasing fuel prices, but the government's failure to manage the reserves properly has led to the current situation.

The Mongolian government today has several senior officials who have been involved in major deals and ministers who approach problems in an evasive manner. As a result of the government's wrong policies, the lives and livelihoods of ordinary people are being disrupted.

Herders, especially those living in areas that depend on deep wells, have no gasoline to pump water for their livestock. Citizens who traveled to the countryside for vacation emptied the local filling stations before returning to the city. The shortage of gasoline for people who remained in rural areas continues to this day.

The Bank of Mongolia announced that inflation reached 13% in July, 2026. It is expected to increase further in August.

Therefore, the Democratic Party will seek to dismiss the government led by N.Uchral. The mistake of one minister is causing hardship for the Mongolian people. This government lacks the capacity to govern effectively. The government also failed to include all necessary expenditures in its budget amendment”. 

President Khurelsukh Departs for Bishkek SCO Summit www.montsame.mn

Khurelsukh Ukhnaa, President of Mongolia, departed today to participate as an observer in the extended meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO) Member States, scheduled to take place in Bishkek, Kyrgyz Republic, from August 31 to September 1, 2026.

In addition to delivering a speech at the extended meeting, President Khurelsukh will meet with the heads of state of SCO member and dialogue partner countries to exchange views on bilateral relations, cooperation, and issues of mutual interest.

Established in 2001 by countries including China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan, the SCO now encompasses 27 nations.

Initially founded to resolve border and territorial disputes and build mutual trust, the organization has expanded into an institution that promotes regional cooperation by:

Strengthening trust, friendship, and cooperation among member states;
Developing cooperation to ensure peace, security, and stability in the region;
Combating terrorism, separatism, extremism, and the illicit trafficking of drugs and weapons;
Supporting regional cooperation in politics, trade, economy, defense, environment, culture, science and technology, education, energy, transport, finance, and other sectors.
China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Pakistan, Uzbekistan, India, Iran, and Belarus are full SCO members, while Mongolia and Afghanistan hold observer status.

Fifteen countries, Azerbaijan, Armenia, Bahrain, Egypt, Nepal, Sri Lanka, Cambodia, Myanmar, Qatar, Saudi Arabia, Kuwait, the UAE, Türkiye , Maldives, and Laos, serve as dialogue partners.

The Council of Heads of State, the Council of Heads of Government, the Council of Ministers of Foreign Affairs, and the Council of National Coordinators convene annually.

At last year's Tianjin Summit, leaders approved the "SCO Development Strategy for 2026-2035," defining the priorities and objectives for cooperation over the next decade.

The SCO actively collaborates with international and regional organizations, including the UN and its specialized agencies, ASEAN, the Commonwealth of Independent States (CIS), the International Red Cross, and global tourism organizations.

Is Ulaanbaatar worth visiting? What to do in Mongolia’s capital – and beyond www.scmp.com

A sprawling metropolis that is home to almost half of Mongolia’s population, Ulaanbaatar is not the most tourist-friendly city in the world. Mongolia’s capital is international travellers’ first point of entry into the country before they move on to the deserts, grasslands, steppes and mountains that make the nation such a popular destination among nature lovers.

Most visitors to Mongolia are happy to spend a couple of days in town or skip the place altogether, but Ulaanbaatar still offers pockets of charm, especially in the summer months, when mild temperatures allow for leisurely walks in a place that is not necessarily pedestrian-friendly and lacks an easy-to-navigate transportation system.

Where to stay
For a city of such scale, Ulaanbaatar has surprisingly few high-end hotels. The most established and the only true luxury property is Shangri-La Ulaanbaatar, located in the heart of town and connected to Shangri-La Centre, a modern mall home to a few luxury boutiques, a great gym with an Olympic-size pool that hotel guests can access freely and plenty of eateries. Spanning 21 floors of a modern skyscraper, the hotel is popular with business travellers and tourists seeking convenience and all the trappings of a five-star property. Its well-appointed 290 guest rooms, familiar to those who have stayed at other Shangri-La properties in Asia, offer expansive views of the city’s concrete jungle and the surrounding mountains.
Eateries include Hutong Restaurant and Naadam Bar & Restaurant, which come alive at night, when seemingly every expat and tourist in town shows up to enjoy a variety of dishes and drinks in a fun, happening atmosphere.

What to eat
Heavy on the meat, Mongolian cuisine relies on the country’s traditional herding culture. Mutton, lamb, beef and goat are popular on menus, as are hearty starches like savoury pastries and dumplings.
For a great introduction to the local food, the Mongolian selection at Naadam Bar & Restaurant offers favourites such as beef or lamb tsuivan – chewy noodles with cucumber, carrot, onion and garlic – and mama’s khuushuur, deep-fried dough pastries filled with beef. More adventurous types can also order pan-fried beef liver with onion and mutton tail.
The nearby Choijin Temple Restaurant is a great option for Mediterranean dishes with a Mongolian twist. For something more exclusive, those with the right connections can book a table at Highland Park, a private members’ club located at the foot of Bogd Mountain and housed in a sleek chalet with beautiful views of the city.

What to do
Because public transport is limited, the best way to explore Ulaanbaatar is to book a guided visit with operators such as Gobi Tours. They offer options ranging from day-long group tours to private, tailored visits that cover key sites in town and natural attractions on its outskirts. Ulaanbaatar is home to many Buddhist temples. If you only have time to go to one, the Choijin Lama Temple is very centrally located near the city’s main gathering spot, Sükhbaatar Square.
Fans of Genghis Khan should check out the Chinggis Khaan National Museum, situated just off the square, and the Chinggis Khaan Statue Complex, the world’s biggest equestrian statue, which is a relatively short drive from the centre of town, depending on traffic. History buffs should also visit Bogd Khaan Palace Museum, an imperial residence known as “the winter palace of the Bogd Khaan”, a Mongolian king.
Outdoorsy types have plenty to see and do in Gorkhi Terelj National Park, home to the very Instagrammable Turtle Rock and one of the country’s most beautiful temple complexes, Aryapala Temple, a Tibetan-style meditation retreat shaped like an elephant in a valley surrounded by mountains.
Terelj offers activities such as horse or camel riding and falconry. A bit further from town but also worth exploring, Hustai National Park is a wonderful protected area, where you can admire Mongolia’s Przewalski’s horses (takhi) in the wild.

Where to shop
Cashmere is to Mongolia what maple syrup is to Canada, so to speak. The country is home to goats whose hair produces prized yarns from luxury brands such as Loro Piana.
For something more affordable, you should check out Gobi Cashmere, which has plenty of branches in the city. At its two-storey boutique on Sükhbaatar Square, you can find basics such as crew neck or turtleneck sweaters and cosy blankets. Surprisingly, the brand also makes very cool cashmere shoes such as slip-ons and sneakers that may not be super practical in rainy weather but are fashionable and chic.

Peace Avenue, one of the city’s main thoroughfares, is home to many souvenir shops selling everything from gold trinkets to sheep-shaped charms, as well as landmark destinations like the State Department Store. The mall, which isn’t actually state-owned, houses many international and local brands, including a branch of Michel Amazonka, one of the country’s top fashion labels. The brand famously designed uniforms for Mongolian athletes for the 2024 Paris Olympics, which drew a lot of attention on social media.
If you’d like to bring back traditional food, you can’t go wrong with pine nuts from HushKhan. The ubiquitous chain makes hand-picked natural pine nuts and organic pine nut kernels, and also sells pine nut-derived products like pine nut oil, which you can use for cooking or drizzle over salads.

Further afield
If you decide to extend your trip, Mongolia offers extraordinary environmental diversity and unique experiences.
Venturing beyond Ulaanbaatar and its immediate surroundings is an expedition in every sense of the word. Booking such excursions with a reputable provider is essential. Outside major hubs, much of the country lacks paved highways, public transport and cellular infrastructure – making independent travel dangerous and logistically impractical.
These guided itineraries span a wide spectrum of comfort. Upscale operators offer well-appointed tourist camps with modern creature comforts and transport in luxury SUVs. On the rugged end, immersive homestays welcome you into traditional gers alongside nomadic host families – facilities here are basic, but the hospitality is warm and the experience delightfully authentic.

Owing to Mongolia’s vastness, most travellers focus on a single region per trip. The central belt around Ulaanbaatar is lush, with rolling green steppes, roaming herds of livestock and smooth paved routes offering relatively easier access to ancient ruins.
The north and west are a realm of jagged peaks above pristine alpine lakes, traditional eagle hunters and noticeably cooler climes even in peak summer.
But it is the southern Gobi – often imagined as a boundless, endless expanse – that delivers Mongolia’s most dramatic variations. Beyond its famed sand dunes lie rich subregions featuring dramatic canyon walls, dinosaur fossil beds and otherworldly rock formations. The immense distances and complete absence of paved roads make for a profound escape from civilisation.

Whichever direction you choose, Mongolia offers rare encounters with untouched terrain and unforgettable journeys.

BY Vincenzo La Torre
Vincenzo La Torre
Formerly the fashion editor of the South China Morning Post, Vincenzo La Torre is the chief editor of Style, the South China Morning Post’s luxury monthly publication. Born and raised in Italy, Vincenzo started his career in journalism after graduating from Columbia University in New York, where he studied East Asian Languages and Cultures with a focus on Japanese and Chinese art. He has previously worked for Vogue Japan in Tokyo, Harper's Bazaar in Singapore and Prestige in Hong Kong. Before joining the Post as fashion editor in 2017, Vincenzo was a member of the launch team of Vogue Arabia in Dubai. He covers topics such as jewellery, watches, luxury, beauty, celebrity, entertainment and lifestyle, and has interviewed some of the most influential designers and CEOs in the luxury industry. Vincenzo speaks Italian, French, Japanese and Mandarin, and is a regular at high-profile events such as fashion week in Milan and Paris.

Mongolia’s H1 Balance of Payments Sees USD 566.6M Surplus www.montsame.mn

In the first half of 2026, Mongolia’s balance of payments recorded a surplus of USD 566.6 million.

The current account posted a surplus of USD 179 million, marking a year-on-year improvement of USD 1.9 billion, primarily driven by a surplus in the trade of goods. Officials reported that the goods account surplus reached USD 4.5 billion, increasing by USD 3.8 billion compared to the same period last year. This growth was largely due to increased exports of copper concentrate and coal, with the combined export revenue from these two commodities surging by USD 3.7 billion. Conversely, a USD 428 million increase in the services account deficit and a USD 1.4 billion increase in the primary income account deficit negatively impacted the overall current account.

The financial account saw a net inflow of USD 613 million, decreasing by USD 644 million year-on-year. This decline was mainly attributed to Oyu Tolgoi LLC repaying USD 2 billion of its external debt, a move that subsequently had a positive impact on reducing Mongolia's overall external debt.

Additionally, official foreign exchange reserves rose from USD 7.0 billion at the end of 2025 to USD 7.7 billion by the end of June 2026, reaching a level sufficient to cover 4.8 months of imports. The substantial growth in exports and the sharp increase in the goods trade surplus served as the primary factors in strengthening Mongolia's external payment position.

Mongolia Energy Advances Khushuut Mine Infrastructure With New Office Project www.tipranks.com

Mongolia Energy’s subsidiary MoEnCo has signed a construction contract with AGGS LLC for a three-storey office building at the Khushuut Coal Mine in Mongolia, covering masonry, insulation, heating, plumbing, fire protection and ventilation systems. The project, valued at MNT 4.75 billion (about HK$9.98 million), will be completed within 190 days and includes a 5 percent performance guarantee from the contractor.

The office building contract is aggregated with an earlier foundation contract for earthworks and structural framing at the same site, pushing the combined transaction above the 5 percent threshold under Hong Kong’s listing rules. As a result, the deal is classified as a discloseable transaction, underscoring ongoing investment in mine-site infrastructure and triggering reporting and announcement requirements for Mongolia Energy under Chapter 14.