Mongolia’s budget projections prioritise recurrent spending over strategic development www.asianews.network

Parliament has commenced deliberations on the 2027 budget framework and the fiscal projections for 2028–2029. These foundational documents will define Mongolia’s economic outlook for the next three years and set the stage for the formal adoption of the 2027 state budget this autumn.

While the state budget is theoretically designed to catalyze development through investments in energy, infrastructure, innovation, and technology, the majority of government spending remains concentrated on recurrent expenses. For the 2026 fiscal year, total expenditure is set at MNT 33 trillion. However, MNT 24.9 trillion, the vast majority of the budget, is allocated to operational costs, such as civil service salaries, bonuses, and utility maintenance.

Social welfare remains a dominant fiscal priority, with MNT 9.2 trillion earmarked exclusively for social insurance, child benefits, and pensions. In contrast, capital investment for development projects accounts for only MNT 8.5 trillion of the total budget.

This spending pattern is expected to persist in the coming years, even as the government faces pressure to fund critical infrastructure. Despite these fiscal constraints, Ulaanbaatar city officials have maintained a commitment to addressing the shortage of educational facilities by 2027 through the construction of new schools and kindergartens.

Foreign Financing Remains Significant in Mongolia’s Budget Policy www.montsame.mn

MONTSAME National News Agency, in cooperation with MICC Mongolia International Capital Corporation LLC, is delivering weekly updates on Mongolia’s domestic capital markets and economic developments to its readers.

Weekly Capital Markets and Economic Review

(2026.05.04–2026.05.10)

MONGOLIAN STOCK EXCHANGE
During the week, a total of 6.06 million securities worth MNT 16 billion were traded on the Mongolian Stock Exchange. Among them, Tavilga JSC, Khan Bank JSC, Ard Financial Group JSC, APU JSC, and Mongolian Stock Exchange JSC led in terms of trading value. A total of two block trades were executed during the period.

Ard Financial Group (AARD): 121,000 securities traded at MNT 2,944 per unit, totaling MNT 357 million
Tavilga JSC (TVL): 26,000 securities traded at MNT 142,000 per unit, totaling MNT 3.7 billion
 
Last week, the main stock market indices closed with mixed performance, reflecting a short-term correction following previous gains. The TOP-20 index fell by 1.00%, and the MSE A index declined by 0.66%, indicating increased profit-taking and caution among investors in large- and mid-cap stocks. In contrast, the MSE B index rose slightly by 0.13%, suggesting continued selective buying activity in the small-cap segment. Overall, market movements indicate a transition from broad-based growth toward a consolidation phase, with investors reassessing risk after recent gains. While activity in the small-cap segment remains, overall market momentum shows signs of weakening.

BALANCE OF PAYMENTS SURPLUS IN Q1 2026, SUPPORTING TRADE GROWTH

According to the Bank of Mongolia, the country’s balance of payments recorded a surplus of USD 95.5 million in the first quarter of 2026, improving by USD 697.6 million year-on-year. The current account also posted a surplus of USD 412.5 million, up by USD 1.4 billion compared to the same period last year.
Key indicators:

Current account surplus: USD 412.5 million
Overall balance of payments surplus: USD 95.5 million
Exports: +68.3% YoY
Imports: -7.8% YoY
Goods trade surplus: USD 2.4 billion
Services account deficit: USD 1.0 billion
Primary income deficit: USD 1.1 billion
The improvement was mainly driven by the strong performance of the goods trade balance, which reached a surplus of USD 2.4 billion, nearly nine times higher than the previous year. Exports increased by 68.3% to USD 4.8 billion, while imports fell by 7.8% to USD 2.4 billion, significantly widening the trade surplus.

However, pressures remained in services and income accounts. The services deficit increased by 26.7% to USD 1.0 billion, while the primary income deficit doubled to USD 1.1 billion, mainly due to rising dividend and interest payments to foreign investors.

The financial account recorded a deficit of USD 85.8 million, driven largely by outflows in other investment categories. Nevertheless, net foreign direct investment increased 2.4 times year-on-year, indicating sustained investor interest.

Key risks:

High service imports
Rising outflows of profits, dividends, and interest payments
Continued financial account deficit
Heavy reliance on mineral and commodity exports
Although Mongolia’s external position improved significantly, the gains remain largely driven by commodity exports and import contraction, while structural vulnerabilities persist due to persistent service and income deficits.

TRADE TERMS IMPROVE, EXPORT PRICES OUTPACE IMPORTS

According to the National Statistics Office, Mongolia’s terms of trade index reached 97.1 in March 2026, up 19.3% year-on-year and 0.8% month-on-month, indicating that export prices have increased faster than import prices, improving overall trade conditions.

Key indicators:

Terms of trade index: 97.1
YoY change: +19.3%
MoM change: +0.8%
Export price index: 100.4
Import price index: 103.4
Export prices rose by 16.3% year-on-year, driven mainly by increases in gold and copper prices:

Gold: +86.2%
Copper: +56.7%
Import prices declined by 2.5% year-on-year, easing cost pressures. As a result, purchasing power of export revenues improved, strengthening external trade conditions. High commodity prices—especially for gold and copper—continue to support export revenues and foreign currency inflows, providing short-term support for the balance of payments, reserves, and the tugrik exchange rate.

However, the index remaining below 100 suggests that despite improvements, long-term equilibrium has not yet been reached. Mongolia’s trade conditions remain highly dependent on global commodity price fluctuations.

GOVERNMENT PRESENTS REFORMS TO IMPROVE FOREIGN DEBT EFFICIENCY AND REDUCE TAX BURDEN

At a meeting of the MPP parliamentary group in the State Great Khural, Minister of Finance Z. Mendsaikhan presented updates on foreign debt utilization and proposed tax reforms. As of last year, government external debt reached MNT 35.4 trillion, equivalent to 39.4% of GDP, highlighting the continued importance of external financing.

Allocation of foreign debt financing:

 26% – Transport sector
22% – Ulaanbaatar infrastructure and housing
14% – Water supply, sanitation, and health
11% – Energy
9% – Education and emergency services
18% – Other sectors
The government stated it will focus future borrowing on high-impact economic and social projects, improve efficiency, reduce wasteful spending, and strengthen fiscal discipline. It also noted that approving small annual borrowing amounts has led to project delays of 5–10 years, increasing overall financing costs, and plans to urgently submit legislation to improve loan utilization efficiency.

 Proposed tax reforms include:

1% tax on individual entrepreneurs with annual revenue below MNT 1 billion
Exemption from property tax on sale of owner-occupied housing
Introduction of a 15% tax bracket for firms earning MNT 6–10 billion profit
Reduction of tax rate to 1% for ~180,000 SMEs with income up to MNT 2.5 billion
Raising VAT withholding threshold from MNT 50 million to MNT 400 million
Tax incentives for IT and virtual zone companies
Allowing firms with tax arrears to use 20% of incoming cash flow instead of full account freezing
Capping penalties at 50% and extending tax reporting correction periods

The proposed reforms aim to reduce tax burdens on individuals and businesses, support SMEs, and improve economic activity while enhancing the efficiency of public borrowing and fiscal sustainability. Given the still-high level of external debt, debt efficiency and fiscal stability are expected to remain key market considerations going forward.

The Steppe Is Not a Fortress: What Mongolia Can Learn from Iran’s Mosaic Defense (opinion) www.smallwarsjournal.com

The most dangerous moment in a modern war is not the first strike. It is the silence that follows—when the center goes dark, communications fail, and everyone waits for orders that never come. That is the moment most states are least prepared for.

There is a persistent illusion in small-state defense planning: that survival lies in cohesion. Tighten command, centralize authority, harden the capital, and protect the center. It is a comforting idea, but it is also wrong. If the emerging contours of the current confrontation involving Iran and US/Israeli pressure demonstrate anything, it is this: modern war punishes cohesion under pressure. Precision strike regimes, cyber disruption, and intelligence penetration are designed to locate the center—and disable it quickly. A state that depends on its center is a state that can be paralyzed quickly.

Iran’s answer to this problem is not elegance or efficiency. It is not even, in the conventional sense, effectiveness. It is survivability— not as an abstract concept, but as a design principle.  Critical capabilities are deliberately dispersed across geography and institutions. Command authority is duplicated and layered. Logistics networks are redundant and localized. The system is built so that no single strike, or even a sequence of strikes, can halt its ability to function. And that is precisely why Mongolia should be paying attention.

It is worth noting that the relevance of Iran here is not geopolitical alignment, but structural design. Iran has spent decades preparing for conflict with technologically superior adversaries. Mongolia faces a different strategic environment—defined primarily by its position between Russia and China—but the underlying problem is similar: how to endure pressure from more powerful actors without relying on a vulnerable center.

What analysts often describe as Iran’s “mosaic defense” is better understood as a rejection of the fortress model altogether. In practice, it means a patchwork of semi-autonomous military and paramilitary units—particularly within the Islamic Revolutionary Guard Corps (IRGC) and the Basij—organized at provincial and local levels. These units are trained and structured to operate independently if cut off from central command, drawing on pre-positioned resources, local knowledge, and pre-defined operational intent. The result is not efficiency, but persistence. In this way, it trades efficiency for survivability, clarity for redundancy, and control for endurance. Instead of concentrating authority and capability, Iran disperses both—geographically, institutionally, and operationally.

The premise is brutal: in a high-end conflict, central command will be degraded or destroyed early. Communications will fail. Senior leadership may not survive the opening phase. The system must therefore function not despite this reality, but because it anticipates it. Authority is pushed downward. Provincial and local commands are expected to act on intent, not instruction. Logistics are dispersed. Redundancies are built not as backups, but as primary pathways. Units are designed to continue operating even when cut off, isolated, or partially degraded.

This is not decentralization as a management philosophy. It is decentralization as a warfighting necessity. For Mongolia, this should be a deeply uncomfortable insight. The Mongolian state remains highly centralized—not just politically, but functionally. Critical infrastructure, decision-making authority, and crisis response capacity are concentrated in and around Ulaanbaatar. Energy distribution, communications networks, and command structures all rely heavily on the capital’s continuity. In peacetime, this is efficient, but in crisis, it is a liability. A Mongolia that cannot function without its center is a Mongolia that can be strategically paralyzed.

The most radical element of Iran’s approach is not dispersion, it is pre-authorization. Units are not simply given autonomy; they are expected to operate without real-time guidance. Command intent is established in advance, and decision rights are delegated downward, so that local commanders can act without waiting for permission. The system assumes that waiting for orders is, in itself, a form of failure. However, this strategy runs counter to the instincts of many modern bureaucratic states, where control is equated with effectiveness. But in a degraded environment, control is often illusory. Communications delays, uncertainty, and disruption make centralized direction not just difficult, but dangerous.

Mongolia’s defense and governance structures are not currently designed for this reality. Decision-making authority remains tightly held. Crisis scenarios often assume continuity of communication and leadership. The implicit model is one of managed disruption—not systemic degradation. Iran’s model begins from a different premise: what if disruption is not an exception, but the baseline condition? And what if the system must function precisely when coordination breaks down? For Mongolia, this would require more than doctrinal adjustment. It would demand a cultural shift—from obedience to initiative, from hierarchy to intent, from control to resilience.

Iran complements its internal resilience with an external strategy of horizontal escalation, expanding the battlefield across domains and geographies to impose costs on adversaries. Mongolia cannot replicate this model directly; it lacks proxy networks, regional reach, and the geopolitical posture to project force outward in the same way. But the underlying logic still applies. A state that cannot win symmetrically must change the structure of the conflict. It must transform a localized confrontation into a broader strategic problem. For Mongolia, this means leveraging what it does have: its geographic position between two great powers, its critical mineral resources, and its well-developed “third neighbor” diplomatic framework.

In practice, this could involve rapidly engaging international institutions, invoking multilateral agreements, and mobilizing economic and diplomatic stakeholders to raise the cost of escalation for any adversary. The objective is not escalation for its own sake, but rather expansion of the cost calculus. The question is not how Mongolia can defeat a stronger adversary. It is how Mongolia can ensure that conflict with it cannot remain contained. In other words, a conflict involving Mongolia must become international before it can be contained.

But there is a catch—and it is here that history offers a warning.

Operation Valkyrie (German: Unternehmen Walküre) was not originally a coup plan, but a World War II German contingency plan, designed for the Territorial Reserve Army to restore order in the event of internal unrest—whether caused by Allied bombing or uprisings among forced labor populations. In other words, it was a continuity mechanism: a system designed to preserve state control under crisis conditions. Its vulnerability lay in its strength. Authority had already been pre-delegated, orders were pre-written, and chains of command were pre-established. This made the system efficient, but also exploitable.

A group of insiders, led by Claus von Stauffenberg, was able to attempt to redirect that system following the failed assassination attempt of Adolf Hitler on July 20, 1944. The plan ultimately collapsed, but the lesson remains clear: any architecture designed to function without central control is also susceptible to manipulation without central control. Iran mitigates this risk through ideology, parallel institutions, and internal surveillance. Mongolia will not—and should not—replicate those mechanisms. But it cannot ignore the underlying problem.

In other words, this is not an argument against decentralization. It is an argument about how to design it. Any decentralized system must still be a coherent system. For Mongolia, this means that resilience design must include:

Robust authentication of orders under degraded conditions
Clear boundaries on delegated authority
Redundant but cross-checking chains of command
Institutional trust and professional norms strong enough to substitute for ideology
In other words, the system must be able to survive not only decapitation, but impersonation. The core insight Mongolia can draw from Iran then is not tactical, but philosophical. Most states design their systems to function when things go right. Even contingency planning often assumes partial disruption within an otherwise intact framework. Iran designs for failure—systemic, cascading, and immediate. This does not make it invulnerable, but it does make it difficult to collapse quickly. For Mongolia, the challenge is not to emulate Iran wholesale. The political, cultural, and geopolitical contexts are too different. But the underlying design principles are transferable:

Fragment the system deliberately to avoid single points of failure
Pre-authorize action to ensure continuity under disruption
Expand conflicts beyond the immediate battlespace
Balance autonomy with safeguards against internal misuse
Above all, it requires abandoning the illusion that the state can be protected by protecting its center.

The steppe is not a fortress. It never has been. Its strength has always been in dispersion, mobility, and endurance. The question is whether Mongolia’s modern institutions are prepared to rediscover that logic deliberately—or whether they will be forced to rediscover it under fire.

By Siamak Naficy

Siamak Tundra Naficy is a Senior Lecturer in the Department of Defense Analysis at the Naval Postgraduate School. An anthropologist by training, he brings an interdisciplinary perspective to the study of strategic culture, conflict resilience, and the human dimensions of security. His work draws from both naturalist and classical realist traditions, emphasizing how power, interests, the history of ideas, and human nature shape conflict. His research interests span conflict theory, wicked problems, leadership, sacred values, cognitive science, and animal behavior—viewed through an anthropological lens. The views expressed are his own and do not represent those of the Department of Defense, the U.S. Navy, the U.S. Army, or the Naval Postgraduate School.

Mongolia plans to advance cooperation with France to strategic partnership level www.akipress.com

Prime Minister of Mongolia Nyam-Osor Uchral received Ambassador of France to Mongolia Corinne Pereira on May 11, mono.mn reported.

During the meeting, Prime Minister N. Uchral emphasized that France is one of Mongolia's "third neighbors" and a close and trusted partner in Europe. He noted that strengthening mutually beneficial cooperation with France — a permanent member of the United Nations Security Council and one of the founding members of the European Union — is one of the key objectives of Mongolia's foreign policy.

The Prime Minister highlighted that bilateral cooperation has expanded rapidly in recent years and reaffirmed Mongolia's commitment to elevating relations with France, built on mutual trust and shared values, to the level of a strategic partnership.

He also stressed that Mongolia's position remains unchanged regarding the implementation of the National Satellite Network Project in cooperation with France. The Prime Minister expressed appreciation for the decision to fully finance the project through concessional loans from the French side. He added that the government is preparing to take several related measures by June this year and submit them to the Parliament for approval.

Ambassador Corinne Pereira reaffirmed France's commitment to further strengthening bilateral relations and cooperation, noting that the French side attaches great importance to advancing Mongolia–France relations to a strategic partnership level.

During the meeting, the two sides also exchanged views on a wide range of issues, including the significance of the investment agreement signed between the Government of Mongolia and Orano Mining, the initiative to establish the French Development Agency in Ulaanbaatar, the project to establish a Regional Air Traffic Control Center, and comprehensive projects to combat desertification

Government Launches First Renewable Energy Bidding Process for Solar, Battery Projects www.montsame.mn

The Government of Mongolia has adopted a resolution on reducing fuel and energy dependence aimed at lowering reliance on imported fuel and energy, meeting the growing electricity demand in the central region through domestic renewable energy sources, and supporting the stable operation of the energy system.

Under the resolution, solar power plants combined with battery energy storage systems will be developed at five locations across the country. The projects include 50 MW solar power plants and 30 MW/100 MWh battery storage facilities in Sumber soum of Gobisumber, Saikhan-Ovoo soum of Dundgobi, Orkhon soum of Bulgan, and Kharkhorin soum of Uvurkhangai aimag. In addition, a 20 MW solar plant and a 15 MW/40 MWh battery storage system will be constructed in Kherlen soum of Khentii aimag.

The renewable energy facilities are scheduled to be commissioned before the winter peak demand period, with completion targeted by December 1, 2026.

The projects will not be financed through the state budget. Instead, the Government has announced Mongolia’s first competitive bidding process in the renewable energy sector aimed at supporting national companies and businesses. The tender process will be conducted openly, transparently, and online. The Ministry of Energy has published the auction notice on its website, with registration open until June 15.

Prime Minister Uchral Nyam-Osor met with officials of the Ministry of Energy on May 12 to review progress on the implementation of the government resolution. He emphasized that Mongolia, as a country with vast renewable energy potential, should make full use of its opportunities and instructed officials to ensure the solar power projects are completed within the planned timeframe.

Direct Flights Between Astana and Ulaanbaatar to Launch in June www.montsame.mn

Direct flights between Astana and Ulaanbaatar will begin operating in June. The route will be operated by SCAT Airlines, an international airline that has maintained stable operations since 1997.

According to the Tourism Professional Association of Mongolia, the launch of the new route reflects the implementation of agreements reached during the state visit of President Khurelsukh Ukhnaa to Kazakhstan aimed at expanding bilateral cooperation between the two countries.

The opening of direct Astana–Ulaanbaatar flights is expected to strengthen people-to-people exchanges, business partnerships, and tourism flows between Mongolia and Kazakhstan. The new route will also improve travel conditions and create opportunities to elevate regional cooperation and economic relations.

The regular flight schedule will operate as follows:

Tuesdays: Astana–Ulaanbaatar, 23:40–06:15

Wednesdays: Ulaanbaatar–Astana, 07:30–09:00

Fridays: Astana–Ulaanbaatar, 21:10–03:30

Saturdays: Ulaanbaatar–Astana, 04:30–06:00

TMK Energy reports increased gas output at Mongolian operations despite setbacks www.petroleumaustralia.com.au

TMK Energy Ltd. has announced that daily gas production continues to increase at its Mongolian operations despite technical hurdles.

The company has reported an average daily gas production of 663 cubic metres per day for the month.

This represents a 13 per cent increase over February’s figures and stands as the second-highest monthly rate on record for the project, surpassed only by a spike in March.

A major driver of this performance is the LF-07 well, which continues to see increasing gas rates following a period of managed curtailment.

Operators are currently balancing pump speeds and fluid levels to return the well to its peak performance without compromising the reservoir’s long-term integrity.

TMK CEO Dougal Ferguson said: “Gas production continues to be a focus, but ensuring we are positioned for much higher production in the coming months is of equal importance.

“Our immediate focus is the upcoming pilot well drilling program, as well as the important need to have the beneficial use of gas initiative in place as soon as possible, to not only reduce the flaring of gas, but also to lock in our own permanent power supply for the pilot project.”

To ensure technical excellence, TMK recently completed an independent technical review (ITR). The review, which included global coal seam gas (CSG) experts, validated the current reservoir management plan while identifying new optimisation techniques to be trialled in both new and existing wells.

The company is also prioritising the beneficial use of its gas to solve local infrastructure issues. Currently, short-term power outages have disrupted continuous production.

By utilising produced gas to generate permanent on-site power, TMK aims to eliminate flaring, stabilise operations, and potentially provide excess electricity to local Mongolian users.

Broader discussions with the Mongolian government and private consortiums indicate growing interest in the Gurvantes XXXV Project as a solution to the nation’s energy shortages.

TMK continues to work closely with the Australian Embassy and Austrade to promote Australian CSG expertise within the region.

When 1,500m of fencing was removed from the Trans-Mongolian Railway, a long-lost animal reclaimed its native lands www.discoverwildlife.com

East of the Trans-Mongolian Railway, hoofbeats now compete with the sound of trains rumbling down the tracks. Long excluded from this region of the Gobi Desert, the khulan (Equus hemionus) is making a comeback.
 
The Trans-Mongolian Railway was constructed between 1940 and 1956. To reduce the likelihood of livestock collisions, large stretches were fenced. This had the unintended effect of reducing wildlife movement as well. The khulan was last seen east of the railway in the 1950s. 

“This fragmentation effectively isolated habitats east and west of the railway, preventing the khulan from accessing seasonal grazing areas, water sources and dispersal routes,” said lead author Buuveibaatar Bayarbaatar, a senior scientist with Wildlife Conservation Society (WCS) Mongolia.

“Over time, this loss of connectivity likely contributed to the disappearance of khulan east of the railway by limiting recolonisation opportunities and reducing long-term population resilience.”

In 2019, a conservation initiative led by WCS Mongolia led to the removal of some 1,500m of fencing between May 2019 and December 2021. The fencing was later replaced due to livestock-related train delays and collisions. The khulan appear to have availed themselves of these temporary passages, though. Surveys found four groups of the wild asses east of the railway in 2024 – totalling 384 individuals. 

Additional observations noted that khulan also cross at informal gaps in the fences, indicating a need for continuous access to the eastern regions. The conservationists visited one such site in Dornogovi Province and installed camera traps. 

“Many khulan attempted to use it, particularly during harsh winters when animals were searching for forage and better conditions,” Bayarbaatar claimed.

What's the difference between zebras and horses?
WCS worked with Mongolian government and railway authorities to institute a safe passage zone at the Zamyn-Üüd border crossing in May 2025. However, the animals may encounter new challenges in this territory.

“In some areas, local communities and authorities have had little prior experience with khulan, creating risks of disturbance, or illegal hunting, particularly where awareness of the species’ protected status is limited,” Bayarbaatar said. “Competition around water and pasture resources with livestock may also emerge, especially as eastern areas can be more vulnerable to drought and have fewer places where khulan can access water.”

ADB calls for deeper regional cooperation as Asia faces new crossroads www.ubpost.mn

The 59th Annual Meeting of the Asian Development Bank (ADB), held from May 3 to 6 in Samarkand, Uzbekistan, opened with a strong call for deeper regional cooperation, as ADB President Masato Kanda urged Asia and the Pacific to move beyond fragmented approaches and build a more connected and resilient future. Speaking at the opening session and subsequent press conference, the president warned that the region is facing a new era of interconnected crises, where shocks, particularly from the on-going Middle East conflict, are spreading rapidly through energy markets, supply chains, and financial systems. “What we are seeing is not only a security crisis, but a stress test of the global order," he said, noting that rising costs in fuel, food, and transport are placing increasing pressure on vulnerable economies. He stressed that traditional and isolated development models are no longer effective in such an environment. Instead, countries must work together to develop integrated systems that can withstand disruptions and sustain long-term growth. “To survive and thrive in this new era, we must build deeply connected and resilient systems,” Kanda emphasized.

A central highlight of his remarks was ADB’s expanded financial commitment to the region. The bank provided 29.3 billion USD in support in the past year and is now mobilizing a 70 billion USD investment program through 2035. This includes 50 billion USD dedicated to the development of a Pan-Asia Power Grid, aimed at connecting national energy systems, scaling up cross-border electricity trade, and accelerating renewable energy integration. In parallel, ADB is launching a 20 billion USD Asia-Pacific Digital Highway initiative to strengthen digital connectivity across the region. The program will invest in fiber networks, submarine cables, data centers, and internet exchange infrastructure, aiming to reach 650 million people by 2035. Of these, around 200 million are expected to gain broadband access for the first time, while 450 million will benefit from faster and more reliable connections. He added that the bank will continue to support its members through immediate crisis response tools, including trade and supply chain financing, budget support, and longer-term resilience programs.

In addition to ADB leadership, the host country also played a central role in setting the tone of the meeting. Shavkat Mirziyoyev, President of Uzbekistan, addressed the opening ceremony of the 59th Annual Meeting, underscoring Uzbekistan’s commitment to strengthening regional cooperation and connectivity.

As host, Uzbekistan positioned the forum as a key platform to advance dialogue on economic development, green transition, digitalization, and investment across Asia and the Pacific. In his remarks, Shavkat Mirziyoyev highlighted the importance of expanding regional partnerships, improving infrastructure links, and fostering sustainable growth through closer cooperation among countries. He also emphasized that the meeting in Samarkand, historically a major hub along the Silk Road, symbolizes a renewed effort to reconnect the region through modern economic corridors and shared development initiatives. The meeting, held under the theme “Cross-roads of Progress: Advancing the Region’s Connected Future,” has brought together nearly 5,000 participants, including over 3,000 official delegates such as finance ministers, central bank governors, business leaders, and development partners from ADB’s 69 member countries. Hosted at the Silk Road Samarkand complex, the annual gathering serves as a major platform to discuss solutions in regional connectivity, digital transformation, and sustainable development financing. Mongolia is among the countries actively engaging in the discussions. B.Khulan, Deputy Minister of Finance, participated in the ADB seminar titled “CAREC–ASEAN Pathways and Lessons for the Region,” where experts examined ways to strengthen regional capital markets and mobilize investment for sustainable development. The session highlighted ADB’s initiative to establish a more structured and cooperative framework for capital market development within the Central Asia Regional Economic Cooperation (CAREC) program. Discussions focused on institutionalizing the CAREC Capital Markets Development Forum, improving regulatory harmonization, and developing key tools such as a regional roadmap, sustainable finance taxonomy, and shared data platforms.

Participants also drew lessons from the ASEAN Capital Markets Forum and Japan’s leadership in sustainable finance, emphasizing the importance of policy alignment and cross-border collaboration to attract investment, particularly for green infrastructure and climate-related projects. Strengthening private sector participation and expanding access to financing for small and medium-sized enterprises were also identified as key priorities. As Asia and the Pacific stand at what Masato Kanda described as a “new crossroads,” this year’s ADB Annual Meeting underscores a clear direction that the region’s future growth will depend not only on national efforts, but on its ability to connect, cooperate, and invest collectively in shared systems that drive resilience and inclusive prosperity.

The Person who Put Mongolia’s image on the world stage: Interview with Foreign Affairs Minister Battsetseg Batmunkh www.montsame.mn

Battsetseg Batmunkh has served as Mongolia's Foreign Affairs Minister longer than any other woman in recent memory. We asked her about her journey to become Foreign Affairs Minister and what it means to represent Mongolia on the world stage. This interview with Minister Battsetseg was first published in MONTSAME's English quarterly magazine "Mongolia Today" in the 2026 issue No.1.

-You dreamed of becoming a diplomat since childhood, yet your path took you through the private sector before returning to public service. Looking back, how did those years as a businesswoman shape the kind of diplomat and minister you became?

-Childhood dreams do not always come true on demand, and there is rarely a straight road leading to them. The path to any goal is winding, full of obstacles and detours. Along the way, the dream sometimes fades — and sometimes it transforms into something deeper: a conviction. Once a dream becomes a conviction, it never strays from its course. Over a long journey, it only gains more meaning.

For me, working in the private sector was an enormous real-life test with consequences. Success is measured not by good intentions alone, but by execution; not by lofty aspirations, but by results. The ability to negotiate, to build trust, to bear responsibility, and to reconcile short-term challenges with long-term goals — all of that is forged in business. In diplomacy, those capabilities are not merely useful. They are essential.

Foreign affairs is not only about our position on the international stage — it is an inseparable part of the future opportunities of Mongol people,

Working in the private sector helped me understand how state policy and decisions affect the lives of ordinary citizens. It helped me see why foreign policy and international relations are directly connected to the life of an ordinary herder. Foreign affairs is not only about our position on the international stage — it is an inseparable part of the future opportunities of Mongol people, the space for Mongolia’s development, and the country’s economic independence. When I think of it that way, the objectives of foreign policy become much clearer.

That is why I believe my business experience taught me that foreign affairs must be deeply pragmatic. As Foreign Affairs Minister, I have had one guiding principle: “Toward Mongolia.” I apply it in every situation. If I had to express our diplomatic work in a single word, that would be it.

-You are the third woman — after Tuya Nyam-Osor and Oyun Sanjaasuren — to serve as Foreign Affairs Minister of Mongolia, and now one of the longest-serving. What does it mean to you personally to hold that record, and what do you hope it signals to the next generation of young Mongol women?

-For Mongolia, a woman serving as minister or holding a senior leadership position for an extended period is not particularly remarkable. The two women ministers you named who preceded me in this role — their journeys and the standards they set opened the broad possibilities that exist for us today. Mongol women have dedicated their labor, strength, and minds to their country across generations.

The reason I have served in this role for so long is likely because the country’s leadership recognized that stability and trust are essential in this field today. Implementing the long-term objectives of foreign policy, measuring responsibility and outcomes — these require continuity. Diplomatic work is built on consistency, continuity, and long-term trust. Time, then, becomes a measure of responsibility rather than of position.

High office in the Mongol state, participation in international politics, and involvement in decision-making are not closed spaces for Mongol women. I hope the next generation — girls and young women — will come to see all of this not as a rare exception, but as a natural possibility. I have developed a habit of expressing my aspirations in a few words, in symbolic form. What I wish for Mongol women, and especially for young girls, I have come to call “Khatan Ukhaan” (Khatan Wisdom)— not the wisdom of a queen or a lady in the formal sense, but the resilience to rise after falling in life’s trials, to find the logic and the way through any situation, to learn from mistakes and grow better. In English, I would simply call it resilience.

I hope the next generation — girls and young women — will come to see all of this not as a rare exception, but as a natural possibility.

-Mongolia maintains diplomatic relations with all 193 UN member states. How do you actively manage and deepen such a vast diplomatic network, particularly with countries that are not immediate neighbors or “third neighbors”?

-Maintaining diplomatic relations with every UN member state is the clearest expression of Mongolia’s peace-loving, open, independent, and multi-pillar foreign policy. But it is worth remembering that establishing diplomatic relations is not the final goal — it is only the beginning of a broader partnership.

In managing this wide network, we follow three core principles: first, to sustain political dialogue consistently; second, to enrich our relations through economic, trade, investment, educational, cultural, scientific, and humanitarian cooperation; and third, to build alignment around shared values and common goals within the UN and other international frameworks.

Once those principles are established, we can measure our relationships not by geographic proximity but by proximity of opportunity — identifying where the strategic rationale for cooperation exists, where there is complementary capacity, and where trust can be built for the future. The essence of modern diplomacy is that it always keeps open the possibility of productive engagement, not only with nearby neighbors, but with distant partners as well.

Mongolia’s foreign policy is three-dimensional. It is easiest to understand by imagining it on a coordinate plane. The two horizontal axes represent our relations with our two neighbors. Rising vertically from those — pointing toward the sky — is the axis of our third-neighbor relations. The factors on that vertical axis should equal the sum of the values on the two horizontal ones. In other words, the soul of our foreign policy is balance. We must maintain balanced relations with both neighbors and with our third neighbors. We must also keep our relations with the two neighbors balanced with each other. That is the guarantee of our national security — the continuum of our foreign policy.

-Mongolia’s recent state visits have included both Russia and China at the highest levels. How do you personally navigate Mongolia’s “balanced, multi-pillar” foreign policy in an era of growing great-power and global tensions?

-The world is at war today. In these conditions, the peace-loving, independent, multi-pillar, balanced, and open foundational principles of our foreign policy have taken on deeper meaning, and many events have shown that the foreign policy we have pursued was the right one.

Our two neighbors are strategic partners bound together by history, geography, economics, infrastructure, and trade in ways that are inseparable. Our relations with Russia and China are not a matter of choice so much as a principal direction of state policy — one that manages reality with wisdom. Above that foundation, Mongolia continuously strengthens its ties with third neighbors, expands its multilateral diplomacy, and increases its engagement based on international law and cooperation.

In implementing our two-neighbor and third-neighbor policies, I hold consistently to another core principle: Mongolia is not a country that takes sides in divisions and defines itself against others. Rather, it is a country that maintains a wise, balanced, and neutral position in defense of its sovereignty, security, and developmental future. Neutrality here does not mean passive or compliant — there is a concept called active neutrality. That describes, broadly, the direction of our foreign affairs over the past five or six years.

Consistently maintaining a multi-pillar, balanced policy in difficult geopolitical conditions is not easy. Short-term challenges can be hard, but with the right policy, mid-term opportunities can emerge. The greatest challenge is less geopolitical than structural — our economy’s vulnerability in logistics and energy. A very high share of Mongolia’s exports is directed at a single market; 95% of petroleum products depend on a single country. In that structure, balanced and multi-pillar policy depends not only on diplomatic skill but on actual supply conditions.

Neutrality here does not mean passive or compliant — there is a concept called active neutrality. That describes, broadly, the direction of our foreign affairs over the past five or six years.

In the current environment, state visits, votes in international organizations, and the financing of infrastructure and strategic minerals are all read as geopolitical signals. The cost of maintaining balance has risen considerably. It is no longer sufficient simply to remain neutral without taking sides — what matters is protecting the national interest without being misread by any side.

-Mongolia has been strengthening ties with Nordic countries, Southeast Asia, and beyond. Which new partnerships do you consider the most strategically significant for Mongolia’s future, and why?

-Strengthening ties with Nordic countries opens wide possibilities for collaboration in good governance, sustainable development, green transition, innovation, education, and social inclusion. These countries are models in institutional quality and long-term development policy, and they are always ready to share the best practices that Mongolia needs for its future.

Expanding ties with Southeast Asian countries carries real significance for economics, trade, investment, and regional integration. Mongolia must participate more actively in the processes taking place in that region in order to widen its export, logistics, and market reach.

Strategic partnerships are measured not by today’s interests alone, but by how they affect Mongolia’s future development, technological renewal, human resource potential, and the resilience of national security. Simply put, the most strategically significant partnerships for Mongolia’s future should be those that expand the space for our independent choices — partnerships that have the capacity to advance some strategic objective: economic diversification, energy independence, value-added production, or broader market access.

-At the World Women’s Forum, you called on participants to place women’s education at the forefront of discussions, stating your firm belief that many challenges women face are closely tied to the level of education they receive. In the context of building modern Mongolia, what role has women’s education played, and where do the gaps still lie?

-In our context, women’s education is connected not simply to the interests of one social group, but to the quality of national development, competitiveness, and future sustainability. Women’s education has a profound influence on Mongolia’s modern development. An educated woman participates not only in her family but directly in the formation of social values and the nurturing of future citizens. The returns on women’s education therefore exceed the boundaries of one group and affect the quality of development of society as a whole.

In Mongolia, women occupy high positions in many sectors by measures of access to education and levels of social participation. But these are just numbers. When it comes to quality of education, opportunities in rural areas, digital transition, professional training aligned with the labor market, and participation in decision-making, the gaps are quite visible.

The task is not simply to ensure girls and women are educated, but to make their knowledge and education a factor in economic independence — and to ensure that Mongol women, especially in digital technology, increase their participation in public affairs.

-You have spoken about Mongol women’s participation in the country’s great history, nomadic culture, and the legacy of ancestors who brought peace to the world. How do you draw on that heritage when you represent Mongolia’s foreign policy abroad? Is it a source of strength in those conversations?

-The role Mongol women have played throughout history is a profound source of spiritual and moral strength for me.

In nomadic civilization, women were symbols of skill, organization, responsibility, and the balance of power. That is a value embedded deep in our historical consciousness.

I try to translate these values from our historical tradition into the language of modern diplomacy — to express them through words and actions. I believe that when our positions on the international stage visibly reflect a tradition of statecraft spanning many centuries, the weight and substance of what we say is amplified.

Very few countries in the world carry such a rich heritage and broad tradition of statehood. That heritage gives me the confidence to hold my ground and express my positions with conviction. On the international stage — especially when speaking of trust, cooperation, and the cause of peace — drawing on historical tradition genuinely adds force. Because when I explain that the role Mongol women play is not a recent development but a continuous thread in the nation’s heritage, our position gains greater depth and a more solid foundation.

-With your initiative, Mongolia hosted the first Female Foreign Ministers’ Meeting in 2023. Why was it important to hold such a meeting, and what resistance — if any — did you face in bringing it to the international stage?

-This meeting was for me not merely symbolic — it carried genuine policy content. In a time when global political challenges have become more complex and unfold across multiple levels simultaneously, I felt that the voices of female foreign ministers should be heard more clearly in international affairs. The work female ministers do, the positions they hold, are not a separate topic relevant only to diplomacy. I saw them as a direct force in peace, security, and sustainable development.

By organizing this meeting under the patronage of the President, Mongolia opened a new dimension, a new space in the global conversation. The female ministers who participated still speak of it when we meet

The work female ministers do, the positions they hold, are not a separate topic relevant only to diplomacy. I saw them as a direct force in peace, security, and sustainable development.

There was no open resistance, though there was some initial skepticism. Some probably assumed it would be a momentary event that would pass by. But when the meeting took shape with clear content — when it brought female ministers together and created a unified group — it showed that it could become a very effective platform for dialogue. It proved that Mongolia can be an initiator on the international stage.

-What made you decide that Mongolia should be the one to convene the meeting?

-For Mongolia to organize this meeting, the conditions were right both in terms of timing and substance. By virtue of our geographic position and the values of our foreign policy, Mongolia strives to serve as a bridge of dialogue, understanding, and trust — contributing to the peace and stability of our region and the world. We aspire to define our position not from behind the lines of division and polarization, but from the place of dialogue.

At the same time, Mongolia has developed real positions at the international level on women’s leadership, peacekeeping, education, and sustainable development. We therefore had not only the capacity and capability to organize it, but a clear rationale and purpose. I believe that small countries can introduce new content into global politics and build new platforms of trust — and that belief needed to be proved through action.

This meeting was ultimately about Mongolia’s responsibility within the community of democratic nations. How that responsibility is carried is measured by the quality of the ideas advanced and the trust established.

-The World Women’s Forum you hosted in August 2024 was convened in recognition of the centennial anniversary of the Women’s Federation of Mongolia. How does that century of Mongol women’s organizing connect to the international work you are doing today?

-The centennial of the Women’s Federation of Mongolia is a significant testament to Mongol women’s participation in the great work of renewing their homeland and building their country’s newest history. In other words, the issues we now speak about at the international level — women’s rights and freedoms, education, participation in decision-making — are not foreign concepts imported from outside for Mongolia. They have a deeply rooted foundation within.

The organized, conscious, and purposeful participation of women in transforming society is recognized today in every country in the world. Because Mongolia’s Women’s Federation has a hundred years of history and experience, Mongolia has the moral authority to raise women’s issues on the international stage and to host international conferences on the subject.

In organizing the World Women’s Forum, we offered the world the opportunity to view the future of women everywhere from the perspective of a hundred years of Mongol women’s experience — a morally grounded perspective with deep roots.

-Mongolia hosted the international conference on “Strengthening the Role of Women in Peacekeeping” in 2022, welcoming female peacekeepers from over 30 countries, and has committed to raising the share of women peacekeepers to 15 percent by 2027. Why is it important to you that Mongol women are visible in peace and security roles on the world stage?

-Peace and security in the world are not merely questions of war and peace — in a broader sense, they are bound up with human life, dignity, trust, and development. For that reason, women’s participation in peacekeeping is not optional. Female service members earn community trust more quickly, engage more openly with vulnerable groups, and perceive human security issues more sensitively in conflict environments — advantages that matter in many situations.

Mongol women being visibly present and participating in peacekeeping on the world stage is a concrete form of Mongolia’s commitment to peace. It is also a role model — a real example that gives Mongol girls and women the belief that they can.

As a female foreign affairs minister, having Mongol women more actively engaged in peacekeeping is a very clear expression of how sincerely Mongolia is contributing to the maintenance of global peace and stability.

-Global tensions have tested the foundations of multilateral diplomacy in ways few could have predicted when you took office. After five years navigating that landscape, what has your tenure taught you about what it really takes to be an effective diplomat?

-Global politics is changing at a remarkable pace. Diplomacy is adapting along with it. What has not changed is that effective diplomatic work requires depth of substance and well-grounded foundations.

The time that has passed has taught me that strategic patience is essential. I came to understand that, for diplomacy, the greatest challenge is to preserve and maintain trust that has already been built. A diplomat must, of course, understand reality accurately. But no matter how the balance of power shifts across the world, holding firmly to one’s own country’s core interests and long-term direction is the most important thing of all.

Something else I have come to believe: small countries can participate in world politics with genuine influence. To do so, a country’s position must be clear and yet built on foundations that no one can refute — historical, political, economic, and legal grounds so solid that there is no argument against them. If the foundation is unshakable, most challenges can be turned into opportunities.

-When historians look back at this era of Mongol diplomacy, what do you hope they say about your contribution during your tenure specifically?

-I hope that future historians will say that, in a very complex and risky international environment, Mongolia conducted its independent, balanced, and multi-pillar foreign policy with dignity and consistency.

I also hope they will say that during this period, work was done to make Mongolia’s voice heard on the world stage — more actively, more ambitiously, more broadly. Over the past years, I have tried to show that Mongolia is a country that can launch new initiatives, open new platforms for dialogue, and genuinely contribute to women’s leadership, peace, and multilateral cooperation.

In the end, if historians conclude that I was able to protect my country’s sovereignty, core interests, and international standing, that will be the highest honor of all.