1 MONGOLIA PM FACES LIKELY CONFIDENCE VOTE AMID CORRUPTION CLAIMS WWW.AFP.COM PUBLISHED:2025/06/02      2 RIO TINTO FINDS ITS MEGA-MINE STUCK BETWEEN TWO MONGOLIAN STRONGMEN WWW.AFR.COM PUBLISHED:2025/06/02      3 SECRETARY RUBIO’S CALL WITH MONGOLIAN FOREIGN MINISTER BATTSETSEG, MAY 30, 2025 WWW.MN.USEMBASSY.GOV  PUBLISHED:2025/06/02      4 REGULAR TRAIN RIDES ON THE ULAANBAATAR-BEIJING RAILWAY ROUTE TO BE RESUMED WWW.MONTSAME.MN PUBLISHED:2025/06/02      5 MONGOLIAN DANCE TEAMS WIN THREE GOLD MEDALS AT THE WORLD CHAMPIONSHIP CHOREOGRAPHY LATIN 2025 WWW.MONTSAME.MN  PUBLISHED:2025/06/02      6 RUSSIA STARTS BUYING POTATOES FROM MONGOLIA WWW.CHARTER97.ORG PUBLISHED:2025/06/02      7 MONGOLIA BANS ONLINE GAMBLING, BETTING AND PAID LOTTERIES WWW.QAZINFORM.COM PUBLISHED:2025/06/02      8 HOW DISMANTLING THE US MILLENNIUM CHALLENGE CORPORATION WILL UNDERMINE MONGOLIA WWW.THEDIPLOMAT.COM PUBLISHED:2025/05/30      9 ORBMINCO ADVANCES BRONZE FOX PROJECT IN KINCORA COPPER PROJECT IN MONGOLIA WWW.DISCOVERYALERT.COM.AU PUBLISHED:2025/05/30      10 MONGOLIA SOLAR ENERGY SECTOR GROWTH: 1,000 MW BY 2025 SUCCESS WWW.PVKNOWHOW.COM PUBLISHED:2025/05/30      ЕРӨНХИЙЛӨГЧ У.ХҮРЭЛСҮХ, С.БЕРДЫМУХАМЕДОВ НАР АЛБАН ЁСНЫ ХЭЛЭЛЦЭЭ ХИЙЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/06/02     Н.НОМТОЙБАЯР: ДАРААГИЙН ЕРӨНХИЙ САЙД ТОДРОХ НЬ ЦАГ ХУГАЦААНЫ АСУУДАЛ БОЛСОН WWW.ITOIM.MN НИЙТЭЛСЭН:2025/06/02     Л.ТӨР-ОД МҮХАҮТ-ЫН ГҮЙЦЭТГЭХ ЗАХИРЛААР Х.БАТТУЛГЫН ХҮНИЙГ ЗҮТГҮҮЛЭХ ҮҮ WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/02     ЦЕГ: ЗУНЫ ЗУГАА ТОГЛОЛТЫН ҮЕЭР 10 ХУТГА ХУРААЖ, СОГТУУРСАН 22 ИРГЭНИЙГ АР ГЭРТ НЬ ХҮЛЭЭЛГЭН ӨГСӨН WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/02     УУЛ УУРХАЙН ТЭЭВЭРЛЭЛТИЙГ БҮРЭН ЗОГСООЖ, ШАЛГАНА WWW.EGUUR.MN НИЙТЭЛСЭН:2025/06/02     ГАДНЫ КИБЕР ХАЛДЛАГЫН 11 ХУВЬ НЬ УИХ, 70 ХУВЬ НЬ ЗАСГИЙН ГАЗАР РУУ ЧИГЛЭДЭГ WWW.ZINDAA.MN НИЙТЭЛСЭН:2025/06/02     НИЙТИЙН ОРОН СУУЦНЫ 1 М.КВ-ЫН ДУНДАЖ ҮНЭ 3.6 САЯ ТӨГРӨГ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/06/02     ГОВИЙН БҮСИЙН ЧИГЛЭЛД УУЛ УУРХАЙН ТЭЭВЭРЛЭЛТИЙГ БҮРЭН ЗОГСООНО WWW.EAGLE.MN НИЙТЭЛСЭН:2025/05/30     СОР17 УЛААНБААТАР ХОТНОО 2026 ОНЫ НАЙМДУГААР САРЫН 17-28-НД БОЛНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/05/30     НИЙСЛЭЛИЙН ТӨР, ЗАХИРГААНЫ БАЙГУУЛЛАГЫН АЖИЛ 07:00 ЦАГТ ЭХЭЛЖ 16:00 ЦАГТ ТАРНА WWW.EAGLE.MN НИЙТЭЛСЭН:2025/05/30    

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

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Before the Great Wall, Chinese rulers built a shallow ditch www.newscientist.com

Long before the Great Wall of China was constructed, other monumental walls were built across the Eurasian steppes – but they weren’t designed to defend against Mongol armies. Recent excavations reveal that they were erected to control movement of people or demonstrate power, much like border walls today.
The Great Wall of China spans many thousands of kilometres, the longest stretch running some 8850 kilometres. This part dates from the Ming dynasty (AD 1368 to 1644) and served as a physical barrier to defend against Mongol raids.
Unlike the Great Wall, which is – as the name implies – made up of large walls, the earlier system is a network of trenches, walls and enclosures stretching approximately 4000 kilometres across more northerly regions in China, Mongolia and Russia.
It was built between the 10th and 12th centuries by several dynasties, chiefly the Jin dynasty (AD 1115 to 1234), which was founded by Jurchen people from Siberia and north-east China, who were mainly pastoralists.
Gideon Shelach-Lavi at the Hebrew University of Jerusalem and his colleagues had already surveyed and mapped the walls using satellite imagery and drones, but now they have studied a section running for 405 kilometres through what is now Mongolia and excavated at one of the enclosures.
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The structures were made up of a ditch about 1 metre deep and 3 metres wide, with the earth from it piled up on one side, creating a wall of compressed earth that may have been a metre or two tall. Then, every few kilometres along the wall, there was a thick, square, stone enclosure, about 30 metres across.
What the walls were built for hasn’t been clear. There is very little historical documentation about them and they weren’t built at natural geographic borders, says Shelach-Lavi.
Many historians thought they were built to stop the armies of Genghis Khan, who ruled the Mongol Empire from 1206 until 1227, says Shelach-Lavi.
The structures wouldn’t have been particularly effective defensively, though. “This was not meant to stop invading armies,” says Shelach-Lavi.
Instead, he suggests it was more of a show of power – to demonstrate that the area was under the control of the Jin dynasty. The wall would also have funnelled people through gates at the enclosures, so the flow of people, goods and animals could be managed. It might also have been used to prevent small raids, even if not stopping armies, he says.
“The idea, I think, is to channel those people to where you have those enclosures, so you can control them, you can tax them,” he says. “It’s a matter of controlling who is moving, and in this respect, it’s not very different from what we see today.”
Read more
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Finds at the enclosure also shed light on how the people there may have lived. “This is a pastoralist area,” says Shelach-Lavi. “We find a lot of evidence in the region of people living off herding and hunting and fishing.”
And yet, at the enclosure, the researchers found coins from the Han Chinese Song dynasty, which was at war with the Jin dynasty, as well as ceramics, a plough head and a stone platform or bench that could be heated and used as a stove or bed.
This implies that significant resources were invested into the garrison’s construction and maintenance, says Shelach-Lavi, and also that the people lived here all year round and practised agriculture. “That’s surprising because even today, they don’t do agriculture in this place,” he says.
By Chris Simms

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IMF Report: Mongolia’s Economy Gains Most When Government Invests in Infrastructure www.devdiscourse.com

An IMF study finds Mongolia’s fiscal multipliers are low due to high import leakages, with capital spending having the strongest and most lasting economic impact. It urges a shift from current spending to infrastructure investment and cautions against overreliance on tax cuts for growth.
A new working paper by the International Monetary Fund (IMF), titled "Fiscal Multipliers in Mongolia" and authored by Tigran Poghosyan from the IMF’s Asia and Pacific Department, offers a rigorous analysis of how government spending and tax policies shape Mongolia’s economic trajectory. The study benefits from the collaboration of key institutions such as the IMF Resident Representative Office in Mongolia and the World Bank’s Mongolia office. Using a structural vector autoregressive (SVAR) model and more than two decades of quarterly data from 2000 to 2023, the research reveals that Mongolia’s fiscal multipliers, indicators that measure the effect of fiscal policy on economic output, remain disappointingly low. The findings indicate that both spending and revenue multipliers are well below one, reflecting a constrained fiscal environment where much of the intended stimulus dissipates through import leakages and structural inefficiencies.
Why Stimulus Measures Often Fall Short in Mongolia
Mongolia’s economy has long relied on fiscal tools due to its relatively rigid exchange rate and limited monetary flexibility. The government has typically used public spending, particularly in the form of current expenditures like wages, pensions, and social support programs, to stimulate economic activity. However, these measures often fail to deliver robust or sustained growth. The study points out that these recurrent outlays, especially in election years, are politically motivated and not strategically aligned with long-term development goals. Tax exemptions are also frequently employed as a short-term fix, but they have had minimal impact on improving competitiveness or encouraging private sector investment.
Adding to the challenge is Mongolia’s high vulnerability to global commodity cycles, given its dependency on mineral exports. With public debt increasingly dominated by foreign currency instruments, the country is exposed to significant fiscal risks during external shocks. In this setting, the paper seeks to measure the true effectiveness of different types of fiscal interventions.
Low Multipliers and High Leakages: The Empirical Findings
The results are striking. The total government spending multiplier peaks at a mere 0.3, implying that for every additional tögrög spent by the government, GDP rises by only 0.3 tögrög. The multiplier effect dissipates after a few quarters, highlighting the fleeting impact of government expenditures. Meanwhile, the revenue multiplier, a measure of GDP change following a reduction in taxes or increase in government income, is even lower, peaking at -0.1 and losing statistical significance after just two quarters. These low figures suggest that a significant portion of fiscal stimulus leaks out of the economy, largely through imports.
When the study adjusts for special circumstances such as IMF program periods, economic crises, and parliamentary elections, the results change only marginally. This indicates that Mongolia’s fiscal constraints are not simply a product of temporary crises or political cycles but stem from deeper structural characteristics.
A more granular analysis reveals that the composition of government spending matters greatly. Capital expenditures, such as infrastructure projects, are significantly more effective than current spending. The capital spending multiplier starts at 0.3 and peaks at 0.6 between the fifth and seventh quarters, maintaining its impact for a longer period. In contrast, the current spending multiplier tops out at just 0.2 and fades quickly. These results align with previous global research, including findings by Ilzetzki and colleagues, which show that infrastructure and investment-related expenditures tend to have stronger and more durable economic impacts.
This contrast underscores a major policy lesson: capital investment not only delivers better immediate returns but also helps lay the foundation for future growth. The persistence and scale of capital multipliers make a compelling case for reorienting fiscal strategy toward long-term investment rather than short-term consumption.
Rethinking Tax Policy and Revenue Dependence
On the revenue side, the story is equally sobering. Tax and non-tax revenues both show weak multiplier effects. The tax revenue multiplier is -0.1, while the non-tax revenue multiplier, which includes earnings from Mongolia’s mineral wealth, peaks at -0.2 and quickly loses relevance. There is little difference in their effects, and both fail to provide any sustained lift to GDP. Compounding the problem, Mongolia rarely undertakes major tax policy reforms, limiting the ability to assess or optimize revenue strategies. Furthermore, due to the lack of disaggregated quarterly data, the study could not separate mining and non-mining revenues, an omission that, if addressed, might yield further insights into sector-specific dynamics.
Policy Lessons: Prioritize Investment, Build Resilience
The implications for policymakers are clear. With fiscal multipliers below one, Mongolia cannot expect spending or tax cuts alone to meaningfully boost economic growth, especially when much of the stimulus leaks out through imports. The paper urges the government to avoid cutting capital investments during fiscal consolidations, as these have the most growth potential. Likewise, tax cuts should be approached cautiously, since their ability to spur the economy appears marginal at best.
Instead, Mongolia should focus on improving tax collection efficiency, reducing its dependence on volatile non-tax revenues, and investing more in productive infrastructure. Diversifying the economy away from mining and reducing trade-related vulnerabilities will also be crucial. Finally, future research should explore the role of governance, the interaction between fiscal and monetary policy, and the broader institutional environment to fully understand the drivers and limits of fiscal effectiveness in Mongolia.
In a country seeking to balance growth, stability, and fiscal sustainability, this IMF study serves as a critical roadmap, pointing not just to what isn’t working, but also to what could.

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Mongolia exports 25 mln tons of coal in first 4 months www.xinhuanet.com

Mongolia exported 25 million tons of coal in the first four months of 2025, local media reported on Tuesday, citing official data released by the country's Ministry of Finance.
The figure decreased by 44 percent in terms of value since the beginning of this year, the data showed.
The mining sector remains one of the main pillars of the Mongolian economy, as the country is rich in natural resources such as gold, silver, copper and coal.
A significant share of Mongolia's coal production is accounted for by the Tavan-Tolgoi coal deposit, which is one of the world's largest untapped coking and thermal coal deposits, located in the southern Mongolian province of Umnugovi. It has a total estimated resource of 6.5 billion tons, one-quarter of which is high-quality coking coal.

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3.1 billion USD deficit in service recorded www.ubpost.mn

According to the Mongol Bank’s daily record of USD coming in and going out of citizens’ services accounts, as of 2024, Mongolians earned 1.5 billion USD through services such as education, finance and medical care. However, they lost 4.6 billion USD to foreign countries. In essence, the USD earned by selling natural resources are being absorbed abroad, not in Mongolia.
Mongolians often purchase medical, educational and financial services from abroad. The tourism services account alone had a loss of 954.4 million USD last year. For example, the country earned 581.7 million USD through private travel, but lost 1.5 billion USD in return. Also, it earned 42.1 million USD through educational services, but lost 602.4 million USD to foreign countries.
The next service that loses the most USD from mining is transportation. The deficit in the transportation services account continues to grow year by year. Last year, the transportation-related services account suffered a deficit of 800 million USD. Basically, while 1.4 billion USD was lost in freight transportation alone, it earned 606.5 million USD. The majority of this loss, or 1.2 billion USD, was spent on freight transportation. However, passenger transportation services last year showed a relatively positive performance compared to previous years, when they incurred a deficit of 13.6 million USD.
The construction and financial services account recorded a deficit of 396 million USD last year. Construction and financial services alone earned 43.6 million USD, while the surplus was 223.8 million USD. Of course, this figure is growing as the economy recovers. Depending on the skills of Mongolians, they pay foreign consulting companies for financial services. Last year, Mongolians earned 12 million USD through their own financial knowledge. However, they paid 228.2 million USD to foreign consulting companies.
Due to the value of Mongolian knowledge, other business services are often purchased from abroad. For example, last year, Mongolia spent 458 million USD on professional and management consulting services, while 102 million USD was imported into Mongolia.
In general, the category of other business services has a large deficit. Through this type of service, while 499 million USD were sent abroad in 2020, it has increased to 1.1 billion USD in 2024. The maximum USD that is received back is more than 230 million USD. Moreover, as of last year, 706.6 million USD were sent abroad for architectural, engineering, scientific and technological services, and 121 million USD were received back.

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Fifth Thermal Power Plant Project to Be Implemented Through Public-Private Partnership www.montsame.mn

During its 6th irregular session, the Citizens' Representative Khural of the Capital City discussed and approved the implementation of the Thermal Power Plant-5 Project through a public-private partnership.
The Project was presented by First Deputy Governor of the Capital City Davaadalai Tumendalai. The Plant, which will be built on the main site 400 meters from “TPP-II” in the XX khoroo of Bayangol district, will have a capacity to produce 300 MW of electricity and 340 Gcal/h of thermal energy. It will use environmentally friendly technology with CFB boilers, air cooling, and multi-stage air pollution control. The Project is regarded as a model project for public-private cooperation, which ensures Mongolia's energy security and is economically efficient and environmentally friendly.  The Citizens' Representative Khural of the Capital City supported the implementation of the Project under a single partnership agreement under the "Design, Build, Finance, Operate, Maintain" method, which is commonly used in international practice, as specified in Article 15.1.1 of the Law on Public-Private Partnership.
The estimated cost of the Thermal Power Plant-5 Project is USD 658 million.
First Deputy Governor of the Capital Davaadalai Tumendalai said, “The total project investment is USD 658 million. A bid will be announced. After the selection, negotiation will be held on the contract, which will be presented to the Citizens' Representative Khural of the Capital City. The investment cost will not increase. The price of 1 kWh will be USD 0.095 over the period of 25 years, and this price will not be raised during the contract period. A preliminary estimate was made that 80 percent of the investment will come from the private sector and 20 percent from the Capital City budget. If the private sector invests 100 percent, we will renegotiate what discounts and benefits can be included in the contract.”
When TPP-5 becomes operational, USD 200 million is estimated to be generated in sales per year. In addition, officials noted that payments of the principal loan will be exempted in the first three years, and fully paid off in the next seven years.
The TPP-5 Project was initially presented 14 years ago, and now the Project is planned to be implemented in 2025-2028.

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Archaeologists Uncover New Evidence about Construction and Purpose of Gobi Wall www.sci.news

The Gobi Wall is a 321-km-long structure made of earth, stone, and wood, located in the Gobi highland desert of Mongolia. It is the least understood section of the Medieval Wall System that extends from China into Mongolia. In a new study, archaeologists aimed to determine builders, purpose, and chronology of this structure. They found that the main construction and usage phase of the wall and its associated structures occurred throughout the Xi Xia Dynasty (1038-1227 CE), a period characterized by advanced frontier defense systems and significant geopolitical shifts.
Stretching 321 km across the highland deserts of Mongolia, the Gobi Wall is part of an extensive wall system that once spanned from China into Mongolia.
Until now, its origins, function, and historical context remained largely unknown.
“The Medieval Wall System stretches approximately 4,000 km across extensive regions in northern China and Mongolia, as well as shorter sections in Siberia,” said Hebrew University’s Professor Gideon Shelach-Lavi and his colleagues.
“It represents one of the most extensive yet enigmatic architectural features in East Asia.”
“In recent years, several projects have extensively studied and published on different sections of this wall line.”
“Such research demonstrated that this extensive system of earthen walls was built by different empires from c. the 10th to the 13th centuries CE.”
“Among the different sections of the system, the wall section located in the southern Mongolia’s Gobi Desert is the least explored and still poorly understood.”
“Our study focuses on a 321 km-long segment of this wall line, located in Ömnögovi province of Mongolia, that we refer to as the Gobi Wall.”
In the study, Professor Shelach-Lavi and co-authors were able to uncover new evidence about the wall’s construction and purpose.
They found that the wall and its garrison complexes were primarily constructed during the Xi Xia (1038-1227 CE), a dynasty ruled by the Tungut tribe of Western China and Southern Mongolia.
This period marked by the expansion of frontier defense systems amid significant geopolitical transformations.
Contrary to the traditional view of such walls as solely defensive structures, the research highlights the Gobi Wall’s multifunctional role in boundary demarcation, resource management, and the consolidation of imperial control.
While the main phase of construction and occupation belongs to the Xi Xia, the expedition reviled evidence of periodic occupation of this remote area from the 2nd century BCE through the 19th century CE, with layers of artifacts pointing to the wall’s long-term strategic significance.
The fortifications were made of rammed earth, supported by stone and wood reinforcements, illustrating the adaptive use of local materials in this arid, remote environment.
Moreover, the study’s ecological and spatial analysis shows that the wall’s route was carefully selected based on resource availability, particularly water and wood.
The placement of forts and garrisons took advantage of natural geographic features such as mountain passes and sand dunes to enhance the wall’s effectiveness.
“This research challenges long-standing assumptions about imperial frontier systems in Inner Asia,” Professor Shelach-Lavi said.
“The Gobi Wall was not just a barrier — it was a dynamic mechanism for governing movement, trade, and territorial control in a challenging environment.”
The findings offer critical insights into the interplay between environmental adaptation and state power in medieval empires, with broader implications for understanding ancient infrastructure and its legacy on today’s political and ecological landscapes.
“The research supports a broader reconceptualization of medieval frontiers — not merely as static defensive barriers, but as dynamic administrative infrastructures,” the archaeologists said.
“The Gobi Wall exemplifies a mode of Xi Xia statecraft that used architectural investments to manage re-sources, population movement, and territorial boundaries.”
“This understanding aligns with theoretical models framing frontiers as zones of control and interaction, rather than rigid dividing lines, and invites broader comparative analysis across Eurasian contexts.”
A paper on the findings was published in the journal Land.

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Jade Gas says it's first to launch production fracking well in Mongolia www.msn.com

Jade Gas Holdings (ASX:JGH) has today asserted it’s the first company to ever bring a horizontal coal bed methane (CBM) well into production in Mongolia.
“Two horizontal production wells have now been completed for production, and the dewatering process will commence imminently once the Company receives approval from the regulator,” the company wrote on Monday.
Shares jumped 18% in first trade, to 3.3cps, but before we hit 11:30am, some gains were pared off as investors appeared to get out while they could.
Regardless: It’s, if only due to a technicality, a history-making moment for Jade.
Also known as a fracking well, the technicality here is that Jade is set to commence a production well. A number of pilot wells have been sunk in Mongolia by the likes ofElixir Energy (now back in Queensland) and TMK Energy (these days, an illiquid penny stock).
What now remains for Jade – and its share price – is to lock in sales.
“Jade continues to progress negotiations with partners on these near-term commercialisation opportunities, with a focus on Liquified Natural Gas (LNG) and Compressed Natural Gas (CNG) capabilities to capture value,” Jade added – a sentiment backed by company chief Dennis Morton.
JGH last traded at 3.3cps.

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Mongolia to Host “Golden Shears – 2025” International Shearing and Woolhandling Championships www.montsame.mn

Under the auspices of President of Mongolia Khurelsukh Ukhnaa, the “Golden Shears – 2025” International Shearing and Woolhandling Championships will be held in Mongolia for the first time on June 20-21, 2025. 
Since 1961, countries around the world have regularly hosted the International Shearing and Woolhandling Championships aimed at introducing advanced machinery, equipment, and technology to the livestock industry and improving the quality of raw material preparation. The first Golden Shears World Shearing and Woolhandling Championships were held in England in 1977, and the Championships have since taken place every two years.
The Championships have international categories, such as wool pressing and wool classing. Mongolia began training professional shearers in 2022, and to date, 28 individuals have become certified in this field.

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Project on “Supporting Climate Change Adaptation in Mongolia” to Be Implemented in Rural Areas www.montsame.mn

The Launching Ceremony of the “Supporting Climate Change Adaptation in Mongolia” Project, financed by the China International Development Cooperation Agency and to be jointly implemented by the Mongolian Red Cross Society and the International Federation of Red Cross and Red Crescent Societies (IFRC), was held on May 26, 2025. 
Globally, the number of natural disasters and hazardous events driven by climate change is becoming increasingly frequent. In Mongolia, disastrous cases increased by 26 percent over the decade (2015-2024) compared to the previous ten years, with associated economic losses rising by 47 percent. The severe dzud in 2023-2024 led to the loss of 8.1 million heads of livestock and caused widespread socio-economic disruption, affecting 186,000 herder households. 
The Project, aimed at strengthening the capacity of communities to adapt to climate change, reduce disaster risks, and build resilient livelihoods, particularly among vulnerable and at-risk groups, will be implemented in Bayankhongor, Gobi-Altai, Dundgobi, and Umnugobi aimags, benefiting around 20,000 people, of whom 5,000 will receive direct support. 
Under the Project, the project team will establish early warning and response systems in targeted aimags and soums, raise public awareness and knowledge about climate issues, enhance institutional capacity, and support the development of climate-related policies.

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Mongolia PM expected to call vote of confidence in the face of protests www.theguardian.com

The political direction of mineral rich Mongolia is to be put to the test, with the country’s prime minister expected to call a vote of confidence in his premiership, amid claims that allegations swirling about his son’s lavish lifestyle are being exploited to push the country back to authoritarianism.
Mongolia has been an outpost of parliamentary democracy since 1992, uneasily squeezed between superpowers Russia and China.
Small but persistent protests by young Mongolians have been held in the capital’s main square over the past week after reports appeared on Instagram that the son of prime minister, Oyun-Erdene Luvsannamsrai, had given lavish gifts to his fiancee. Concerns over inequality and minerals related to corruption have been a frequent source of protests, but until recently the prime minister maintained a reputation as someone who was challenging the many vested interests that kept rare minerals in the hands of a small wealthy oligarchy.
The prime minister’s allies say he is leaning towards announcing the vote of confidence on Tuesday with the vote likely to occur in the middle of next week.
The protests have been fuelled by allegations the prime minister’s family are enjoying wealth far beyond a civil servant. The fiancee of the prime minister’s 23-year-old son, Temuuleni, posted pictures on her Instagram account showing luxury bags, an expensive ring and even a Mercedes-Benz, prompting anger.
It has been claimed the prime minister must have been aware of his son’s luxury lifestyle or even funded some of gifts. Luvsannamsrai has submitted himself to a full inquiry by the country’s anti-corruption watchdog, but has explained little in public. A petition signed by 59,000 people had called for him to quit citing the unknown sources of his son’s wealth, high inflation and growing repression of press freedom.
But sources inside the government say the lifestyle of the prime minister’s son is being exploited by the supporters of Mongolia’s President, Ukhnaagiin Khürelsükhto, in a bid to give him the power to sideline the parliament and take up a second term in office. Currently the president can only serve one term of six years.
Last September the president courted controversy in Europe when he invited Vladimir Putin to Mongolia even though as a signatory to the Rome Statute, Mongolia had an obligation to arrest the Russian leader for war crimes in Ukraine as requested by the international criminal court. The president also attended Putin’s recent “victory parade” in Red Square.
Figures inside the government say Khürelsükh, previously the country’s prime minister and like the current prime minister a member of the Mongolian People’s Party, wants to be able to stand for a second six year term and would like to see Luvsannamsrai removed in favour of someone willing to reduce the power of the parliament.
Luvsannamsrai was re-elected prime minister only 10 months ago, with his party winning 68 seats in the 126 seat parliament. But trying to build a political consensus around the long-term changes needed to modernise the country’s economy, including developing a national wealth fund and some major infrastructure investments, he chose to form a three party coalition with the Democratic Party (42 seats) and the HUN Party (8 seats) instead of governing alone.
But after three members of the Democratic Party (DP) expressed support for the street protests against the prime minister, the Congress of the Mongolian People’s Party at a marathon closed door meeting voted to declare the DP had expelled themselves from the coalition, a decision that could spell the end for the prime minister.
DP leader Gantumur Luvsannyam, who is the deputy prime minister, said that the views of the three legislators were not his or his party’s position, but exercising their right to free expression was not in conflict with any coalition agreement.
Jargal DeFacto, a leading Mongolian commentator and broadcaster, told the Guardian: “Those that want an extended Presidency with more power have a simple argument. They say because China and Russia, our neighbours, have stability, when we keep changing political leaders, we need a strong Presidency. This clash has been coming for more than a year because the next Presidential election is in 2027. The controversy is dividing the ruling Mongolian People’s Party into two camps”.
He added “The government also wanted to move away from being a commodity and debt driven economy by setting up a sovereign wealth fund funded by strategic deposits. That has set the prime minister against wealthy private individuals that will not relinquish their strategic resources to the wealth fund.”
“Ironically he is facing political resistance because he is disclosing corruption in banking, mining and education, which means he is making a lot of enemies, but the court system is itself corrupt so they do not go after the big shots, and instead concentrate on small cases. It creates distrust in the state as a whole, especially when inflation and interest rates are high.”
China is Mongolia’s single biggest export market, but the coalition government has tried to diversify the economy by focusing on a raft of 14 major infrastructure projects.
BY Patrick Wintour Diplomatic editor

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