State budget recorded a MNT 1 trillion deficit in 2025 www.gogo.mn

On June 30, the Budget Expenditure Oversight Subcommittee of the Parliament met to hold the second reading of the draft parliamentary resolution approving Mongolia's 2025 consolidated budget performance and the Government's 2025 consolidated financial statements.

The report was presented by Minister of Finance Z.Mendsaikhan.

According to the report, the 2025 consolidated budget recorded balanced revenue and grants totaling MNT 30.3 trillion, equivalent to 33.7% of gross domestic product (GDP). Total expenditure and net lending reached MNT 31.3 trillion, or 34.8% of GDP.

As a result, the consolidated budget posted a balanced deficit of MNT 1.03 trillion, equivalent to 1.1% of GDP.

For the state budget alone, balanced revenue and grants totaled MNT 19.0 trillion, achieving 95.9% of the planned target, while total expenditure and net lending amounted to MNT 20.4 trillion, representing 90.5% of the approved budget.

The report also noted that MNT 2.14 trillion, or 73%, of planned domestic investment was allocated to 613 projects and programs during 2025. In addition, MNT 1.87 trillion, or 96%, was invested in 116 projects financed through foreign loans and grants.

Overall, MNT 4.01 trillion was invested in 729 development projects and programs.

As part of these investments, contracts were signed with approximately 1,800 business entities, around 110,000 jobs were sustained, and 490 projects and facilities were completed and commissioned nationwide.

Japan to Supply Diagnostic Equipment to National Cancer Center www.montsame.mn

Minister of Finance of Mongolia Mendsaikhan Zagdjav and Ambassador of Japan to Mongolia Igawahara Masaru signed an Exchange of Notes and a Record of Discussions yesterday for the "Project for the Provision of Diagnostic Equipment to the National Cancer Center." The project is being implemented under the "Economic and Social Development Programme," funded by a non-refundable grant from the Government of Japan.

During the signing ceremony, Minister Mendsaikhan highlighted the year-on-year increase in non-communicable diseases in Mongolia, particularly cancer. He expressed gratitude to the Government of Japan and the Japan International Cooperation Agency (JICA) for stepping in to implement the grant project to help address this pressing issue. The Minister noted his satisfaction that the project will expand the National Cancer Center's diagnostic and treatment capacities, creating vital opportunities for the early detection, diagnosis, and treatment of the disease. He also expressed confidence that the initiative will make a significant contribution to improving the overall quality and accessibility of the country's healthcare services.

Financed by a Japanese government grant of JPY 980 million (MNT 21.9 billion), the project will modernize the technical capacity of the National Cancer Center, Mongolia's specialized national referral hospital for oncology. Under the agreement, the center will be supplied with state-of-the-art medical technology, including CT scanners, X-ray machines, mammography systems, ultrasound diagnostic devices, and patient monitors.

Enkh-Od.G

MIAT - Mongolian Airlines mulls 10 Airbus jets www.ch-aviation.com

MIAT - Mongolian Airlines (OM, Ulaanbaatar) is looking to purchase ten Airbus aircraft, road and transport minister Borkhuu Delgersaikhan told local media during an event on June 25, 2026. The move is part of a multipronged strategy to improve the country's air transport sector.

"As the national carrier, MIAT has decided to acquire ten aircraft. We are taking this step with confidence," Delgersaikhan said. He explained that the airline's heavy reliance on leased aircraft has driven up costs, with nine of its ten aircraft currently under lease.

"While we are transporting both international and domestic passengers, the high lease payments mean the airline is not generating sufficient returns," he added.

The aircraft will be acquired through long-term finance leases or other financing arrangements. Delgersaikhan said the ministry is in talks with two financial institutions, including the Trade and Development Bank of Mongolia, which is prepared to provide financing guarantees, as well as an undisclosed French party.

Describing the acquisition as "a very important milestone" for Mongolia, Delgersaikhan said the government intends to select an Airbus type best suited to MIAT's operational requirements.

MIAT last operated an Airbus aircraft in 2011 when it retired its sole A310-300 after 13 years of service. According to ch-aviation fleets data, the carrier currently operates one B737-8, three B737-800s, one B757-200(PCF), one B767-300ER, two B787-9s, and two CRJ700s.

MIAT, which did not indicate the plans during a recent interview with ch-aviation, did not respond to a request for comment.

By Dirk Andrei Salcedo

Mongolian president hails China-aided central sewage treatment plant www.news.cgtn.com

Mongolian President Ukhnaa Khurelsukh on Tuesday described the new central wastewater treatment plant in Ulan Bator, built with assistance from China, as a symbol of the Mongolia-China comprehensive strategic partnership and the friendship between the two peoples.

Khurelsukh made the remarks while visiting the facility, which officially commenced operations in mid-June.

He thanked everyone involved in the project, saying the new plant will improve the living environment for residents of the Mongolian capital, help protect the ecological balance, and support the city's long-term development.

Construction of the facility began in 2019. With a daily treatment capacity of 250,000 cubic meters, which is twice that of the previous plant commissioned in 1964, it significantly expands the city's wastewater treatment capacity, according to the presidential press office.

The new plant can fully process sludge generated during wastewater treatment and produce electricity to meet about 35% of its own energy needs, reducing annual electricity costs by an estimated 7 to 8 billion Mongolian tugriks ($1.95 million to $1.96 million), it said.

Meanwhile, Tsogtsaikhan Turkhuu, director of the Water Supply and Sewerage Authority of Ulan Bator, said the project was completed despite challenges posed by the COVID-19 pandemic. He added that around 70 employees have been trained in China since 2023 to operate the facility.

Ulan Bator is home to more than half of Mongolia's population of 3.5 million.

Rio Tinto and Government of Mongolia agree to adjust Oyu Tolgoi shareholder loan interest rate www.marketscreener.com

Rio Tinto and the Government of Mongolia have reached an agreement to adjust the shareholder loan interest rate for the Oyu Tolgoi project1, in line with the requirement under the Shareholders Agreement to periodically review the appropriateness of the rate.

Rio Tinto and the Government of Mongolia have also agreed to work together to resolve matters relating to the Entrée mine lease areas in a timely manner and bring forward distributions to shareholders.

Rio Tinto Copper Chief Executive Katie Jackson said: "This agreement, along with the agreement in principle on management fees reached in May, demonstrates Rio Tinto's ongoing commitment to the long-term success of Oyu Tolgoi and our partnership with the Government of Mongolia. The adjusted rate reflects a forward-looking assessment of Oyu Tolgoi's risk profile as the project matures to a lower risk, steady-state operation that will achieve its full potential for the benefit of all parties."

The ramp-up of production at Oyu Tolgoi remains on track to deliver an average of around 500ktpa2 of copper from 2028 to 2036. As the largest-ever foreign direct investment made in Mongolia, Oyu Tolgoi employs around 17,000 people, 97.8% of which are Mongolian, and has returned $6.1 billion in taxes, fees, and other payments since 2010.

1 Oyu Tolgoi LLC is jointly owned by Rio Tinto, which holds a 66% interest, and the Government of Mongolia, through Erdenes Oyu Tolgoi, which owns 34%.

2 100% basis and stated as recoverable metal.

Central Wastewater Treatment Plant Supports City Expansion, Cuts Pollution www.montsame.mn

President Khurelsukh Ukhnaa expressed his gratitude to everyone involved in the construction of the new Central Wastewater Treatment Plant (WWTP), which aims to provide a healthy living environment for Ulaanbaatar’s residents and ensure ecological balance.

The President thanked the project leaders, relevant organizations, enterprises, engineers, and technical staff from both countries who participated in this massive development project. He noted that the facility is designed to meet the growing needs of the city for the next 20 to 30 years-making it a milestone project of a scale unseen in Ulaanbaatar for decades.

He recalled his time serving as Prime Minister, during which he made the decision to build the new WWTP, laid its foundation stone, and initiated the construction.

President Khurelsukh expressed his satisfaction that the WWTP, which consolidates the “Comprehensive Strategic Partnership” between Mongolia and China and serves as a symbol of friendship and cooperation between their peoples, is establishing the core conditions required for the city’s expansion and the reduction of environmental pollution.

The new plant, consisting of 55 buildings and facilities, can treat 250,000 cubic meters of wastewater per day, which is twice the capacity of the current facility. The facility will fully process its sewage sludge to generate electricity, covering 35% of its own internal energy needs. It means an annual energy savings of MNT 7-8 billion.

A complementary Water Recycling Plant, which integrates technologically with the main treatment facility, was also recently commissioned through a grant from the Millennium Challenge Corporation (MCC).

The feasibility study of the plant was developed by the French company Artelia Ville & Transport under a contract commissioned by the Governor's Office of the Capital City. General contractors were a joint consortium of China Tiesiju Civil Engineering Group and Beijing Construction Engineering Group.

The project involved 400 to 650 personnel from 17 domestic subcontracting companies, alongside more than 60 Chinese engineers and technical specialists.

"Despite facing major difficulties and obstacles such as the global pandemic, we are thrilled that the Central Wastewater Treatment Plant has been successfully commissioned thanks to the decisive actions taken by the government at that time. We have been training around 70 employees in China since 2023 to operate this facility," stated Turkhuu Ts., Head of the Ulaanbaatar Water Supply and Sewerage Authority.

The old Central Wastewater Treatment Plant, commissioned back in 1964, had a design capacity to receive 160,000-170,000 cubic meters of water per day.

Although it underwent three expansions and upgrades over the years, the city's rapid population growth caused pollution levels to spike by 3 to 5 times above acceptable limits. This severely degraded its treatment capacity and led to frequent technical and technological breakdowns.

Mongolia Secures USD 545 Million in Investment Agreements and MoUs www.montsame.mn

More than 120 foreign investors, along with representatives of the Bank of Mongolia and Mongolia's private sector, participated in the expanded "Unlock Mongolian Economy" meeting of the Economic Council under the Prime Minister of Mongolia.

Key outcomes of the meeting include:

Six investment agreements and memorandums of understanding worth a combined USD 545 million were signed.
Phillip Capital, a Singapore-based investment management firm overseeing USD 65 billion in assets, announced plans to open an office in Mongolia.
Hungary's OTP Bank formally submitted its application to establish a branch in Mongolia to the Prime Minister.
Addressing the meeting, the Prime Minister of Mongolia said the discussions held during the Summer Davos Meeting in Dalian on policy stability, economic diversification, and Mongolia's development opportunities had now been translated into more detailed talks. He briefed investors on the country's efforts to improve its legal and investment framework, including the government's "Liberate" reform agenda, emphasizing that the meeting had already produced tangible results in attracting investment to Mongolia.

During the discussion, László Wolf, Member of the Board of Directors of OTP Bank, said that if the bank enters the Mongolian market, it would be prepared to finance large-scale projects and is also interested in offering mortgage products. He noted that Mongolia's current legal framework is not yet particularly favorable for foreign banks but welcomed the Prime Minister's commitment to legal reforms and market liberalization. "The government's reforms and planned liberalization will create greater opportunities for us to invest in Mongolia. Investors highly appreciate the reforms that have been implemented and those currently being planned."

Meanwhile, Luís Santos, co-founder of European investment management company Alpac Capital, which specializes in technology and renewable energy investments, said Mongolia has established the necessary conditions to attract Western investors.

"Mongolia has moved beyond being a destination primarily for tourists and is now becoming an attractive destination for international investors. We see the country strengthening investor confidence, creating a stable business environment, and consistently reinforcing the foundations of good governance. It gives us confidence to return to Mongolia and pursue long-term cooperation," Santos said.

Country ranked among Asia’s most peaceful nations www.ubpost.mn

Mongolia has been recognized as one of Asia’s most peaceful countries, climbing four places in the latest Global Peace Index (GPI) and strengthening its position among the region’s safest and most stable nations. The 2026 Global Peace Index was released by the Sydney-based Institute for Economics and Peace (IEP), which has published the influential global assessment annually for the past two decades. According to this year’s report, Mongolia ranked 34th out of 163 countries and territories worldwide, marking a notable improvement from the previous year and reflecting the country’s relatively stable security environment.

Within the Asia-Pacific region, Mongolia secured seventh place, ranking behind New Zealand, Singapore, Japan, Malaysia, Australia, and Timor-Leste. The result places the country among the region’s leading examples of peace and stability at a time when many parts of the world continue to face growing uncertainty and conflict.

At the global level, Iceland maintained its status as the world’s most peaceful country for the 19th consecutive year. New Zealand, Switzerland, Slovenia, and Ireland rounded out the top five positions. In contrast, Russia remained at the bottom of the rankings, while China’s position slipped slightly compared with the previous assessment.

The report also drew attention to rising political tensions in the United States, noting that political instability and social polarization have reached their highest levels in nearly 60 years. Researchers warned that increasing geopolitical rivalries, armed conflicts, and domestic unrest in various parts of the world continue to pose significant challenges to international peace and security.

According to the study, the global average level of peace has declined for the 12th consecutive year. The report attributes this trend to the persistence of armed conflicts, political crises, and the growing militarization of many countries. These developments have weakened both regional and international stability, creating an increasingly complex global security landscape.

The Global Peace Index is one of the world’s most widely cited measures of peace. It evaluates countries using 23 qualitative and quantitative indicators that assess levels of peace, safety, and security. These indicators are grouped into three key categories: societal safety and security, ongoing domestic and international conflict, and the extent of militarization.

Among the factors examined are crime rates, prison populations, perceptions of criminality, military expenditure, the size and structure of armed forces, and the impact of both internal and external conflicts. By analyzing these indicators, researchers are able to compare the overall peacefulness of nations across different regions.

According to the report, Mongolia achieved relatively stable scores across all three major categories. The country’s consistent performance in maintaining social stability, public safety, and a low level of conflict contributed significantly to its improved ranking. These factors helped secure Mongolia’s place among Asia’s most peaceful nations and underscore its reputation as a country that continues to foster stability despite an increasingly turbulent global environment.

Multinational military gathering in Mongolia trains as UN peacekeepers www.stripes.com

An annual peacekeeping drill that brings American and other multinational troops close to China and Russia wraps up Friday near Mongolia’s capital. Khaan Quest kicked off June 20 as part of the United Nations Global Peace Operations Initiative, a program that provides pre-deployment training to nations preparing to support U.N. peacekeeping missions. “What began as a bilateral training event between the Mongolian Armed Forces and U.S. Marine Forces Pacific has grown into the premier peacekeeping exercise in the Pacific region,” U.S. Ambassador to Mongolia Richard Buangan said at the drill’s opening ceremony, according to remarks posted on the U.S. Embassy’s website. The exercise takes place at the Five Hills Training Area near Ulaanbaatar, about 200 miles south of Mongolia’s border with Russia and less than 200 miles north of the border with China. Mongolia has close ties to its much larger neighbors, which are its primary sources of energy and many other products. Mongolia abstained on a U.N. General Assembly vote condemning Russia’s invasion of Ukraine in 2022. However, the landlocked democracy of 3.4 million people has expanded ties to other nations in the region such as Japan and South Korea, which also sent troops to Khaan Quest. Australia, Canada, Egypt, France, Germany, India, Turkey, the United Kingdom, Vietnam and the Philippines are also participating. The last significant U.N. peacekeeping mission in the Pacific, in East Timor, ended in 2012. However, Pacific nations contribute peacekeepers to missions in Africa and the Middle East. The objective of the Khaan Quest, hosted by U.S. Army Pacific and the Mongolian military, is to develop a strategic partnership between the two countries, according to Army Sgt. Austin Riel, a spokesman for the Hawaii-based 8th Theater Sustainment Command. The Mongolians started the drill for their own troops in 2003, but it has been a multinational exercise for 20 years, he said by phone Monday from Mongolia. There are 149 American active duty, Reserve and National Guard soldiers training in Mongolia as part of a multinational contingent of 1,300 troops, Army Lt. Col. Andrea Matthiew, the exercise director, told Stars and Stripes during the phone call. “It’s not preparing troops for a particular peacekeeping mission, but it’s training units to U.N. standards for peacekeeping deployments,” Matthiew, the commander of the Hawaii-based 125th Finance Battalion, said of Khaan Quest. U.S. troops in Mongolia include Guard troops from Idaho, Nevada and Virginia, military police from Hawaii and Colorado, and medical personnel from Hawaii, according to the finance battalion’s senior enlisted leader, Command Sgt. Maj. Natasha Hunt, also on the phone from Mongolia. During Khaan Quest troops did a brigade-level command post exercise, then battalion-level counter drone and cordon-and-search training. At company level, they did counter roadside bomb and medical training, Matthiew said. The training included a multinational company with troops from different nations, with American personnel training Mongolians and Mongolians training Americans, she said. The U.S. soldiers are getting to know Mongolia, tasting local food and checking out horse riding, archery and falconry, Matthiew added. 

BY SETH ROBSON 
Seth Robson is a Tokyo-based reporter who has been with Stars and Stripes since 2003. He has been stationed in Japan, South Korea and Germany, with frequent assignments to Iraq, Afghanistan, Haiti, Australia and the Philippines. 

Mongolia, EU Hold 24th Joint Committee Meeting www.montsame.mn

Mongolia and the European Union held the 24th meeting of the Mongolia–EU Joint Committee in Brussels on June 29.

During the meeting, the participants exchanged views on recent political, social, and economic developments, as well as key international issues of mutual concern. They also reviewed the implementation of ongoing cooperation projects and programs and explored prospects for closer cooperation in infrastructure, renewable energy, trade and investment, education, and agriculture.

The two sides reaffirmed their commitment to strengthening cooperation under the Forest Partnership Memorandum of Understanding to enhance joint efforts in addressing climate change. They also discussed the upcoming 17th Conference of the Parties (COP17) to the United Nations Convention to Combat Desertification (UNCCD), which will be held in Ulaanbaatar.

The committee reviewed the outcomes of the regular meetings of the Human Rights Dialogue and the Development Cooperation Working Group under the Joint Committee. The two sides also agreed to convene a meeting of the Trade and Investment Subcommittee in the near future.

A joint press statement was issued following the meeting. The meeting was co-chaired by Munkhtushig Lhanaajav, State Secretary of Mongolia's Ministry of Foreign Affairs, and Dominic Porter, Deputy Managing Director for Asia and the Pacific at the European External Action Service.

Ooluun.B