World Bank Names New Director for China, Mongolia, Korea www.miragenews.com/

-The World Bank has appointed Tatiana Rosito, a Brazilian national, as its new Division Director for China, Mongolia and Korea, effective July 1, 2026, based in Beijing.

Ms. Rosito brings 30 years of experience in international economic affairs, diplomacy, development finance, and business leadership, with a distinguished career spanning government, multilateral institutions, and global corporations.

Before joining the World Bank Group (WBG), she served as Vice Minister at Brazil's Ministry of Finance, where she led international development and finance cooperation, including engagement with multilateral development banks and climate funds. She also served as the G20 Finance Track Deputy during Brazil's G20 Presidency in 2024, BRICS Finance Deputy in 2025, and steered the Circle of Finance Ministers for COP30.

Ms. Rosito also brings deep regional expertise, having lived, worked, studied and traveled in China and Asia for over twelve years, including during her posting to the Embassies of Brazil in Beijing and Singapore. She was a co-founder of the Asia/China Program at the Brazilian Center for International Relations (CEBRI) and served on the Consultative Committee of the Brazil-China Business Council. She holds a degree in Economics with honors from the Federal University of Rio de Janeiro (UFRJ), a Master's in International Development from the Harvard Kennedy School, and a Master's in Business Administration from INSEAD and Tsinghua University.

"I am deeply honored to join the World Bank Group and return to this region," said Ms. Rosito. "The World Bank's partnerships in China, Mongolia, and Korea are critical to advancing the jobs agenda, promoting global knowledge sharing, and addressing global challenges. I look forward to working closely with governments, development partners, and stakeholders across the region to advance shared development priorities."

Over more than four decades, the WBG has supported China's development through financing, knowledge, and capacity building. China has made significant development advances over the past several decades and is reaching a new phase in its relationship with the WBG, reflecting that reality. With financing evolving in line with China's development trajectory, the partnership is increasingly centered on knowledge, innovation, and addressing shared global challenges - including through initiatives such as the establishment of the China-WBG Global Center for Ecological Systems and Transitions (CWGC).

Over the past three decades, the WBG's engagement with Mongolia has supported the country's development objectives and strategic reforms through development financing, analytical work, and advisory services. The current Country Partnership Framework for Mongolia aims to help the country navigate short term challenges while working toward a more sustainable, inclusive, and resilient growth over the longer term, with a focus on job creation and climate resilience.

The WBG's partnership with the Republic of Korea reflects the country's remarkable transformation from an aid recipient to a high-income economy. Today, the WBG Korea Office serves a global center for innovation and technology for sustainable development, turning Korea's development journey into a resource for the world. Through trust funds and targeted programs, the partnership channels Korean expertise, innovation, and resources to client countries, helping drive sustainable prosperity worldwide.

Canada Expands Air Agreement With Mongolia, Enabling First Direct Flights www.travelpulse.ca

Canada and Mongolia have expanded their bilateral air transport agreement, paving the way for the first direct flights between the two countries.

The announcement was made by the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons.

Under the expanded agreement, airlines from each country will be permitted to operate up to three weekly passenger-combination flights.

The expanded agreement marks the first time direct air service between Canada and Mongolia will be permitted.

"Mongolia is an emerging market and I'm pleased to see this expanded air transport agreement, which will unlock exciting new opportunities for travellers and businesses in both our countries," said MacKinnon.

The original Canada-Mongolia Air Transport Agreement was signed in 2018. This is the first time it has been expanded.

Canada currently has air transport agreements or arrangements covering more than 125 countries as part of its ongoing efforts to increase international connectivity.

Mongolia, Russia, China Hold Trilateral Consultative Meeting www.montsame.mn

The 7th Trilateral Consultative Meeting between Mongolia, the Russian Federation, and the People’s Republic of China at the Deputy Foreign Minister level was held in Ulaanbaatar on July 2, 2026.

The meeting was co-chaired by Deputy Minister of Foreign Affairs Amartuvshin Gombosuren, Deputy Foreign Minister of the Russian Federation Rudenko Andrey Yurevich, and Assistant Minister of Foreign Affairs of the People's Republic of China Liu Bin.

During the consultation, the parties exchanged views on the current state and future prospects of the traditional friendly relations and trilateral cooperation between Mongolia, Russia, and China. They also shared updates on the preparations for the upcoming trilateral summit of the heads of state and government, as well as the implementation progress of agreements reached at the highest levels.

Furthermore, the sides discussed a wide range of issues, including the implementation of the Program on Establishing the Economic Corridor of Mongolia, Russia, and China, alongside railway, road, transit transport, logistics, and energy infrastructure projects. Conversations also covered regional cooperation, Northeast Asian security, collaboration within the United Nations and other international organizations, the "Ulaanbaatar Dialogue" initiative, and ongoing processes within the Shanghai Cooperation Organization (SCO).

Additionally, during the 7th Consultative Meeting, the parties exchanged information on the progress of the project to construct a natural gas pipeline from Russia to China across the territory of Mongolia, along with other priority projects to be implemented under the Economic Corridor.

Concluding the meeting as constructive and productive, the parties agreed to intensify cooperation to maximize the benefits of their trilateral ties, advance the implementation of projects and programs within the Economic Corridor, and contribute to regional peace and sustainable development, reports the Ministry of Foreign Affairs.

Mongolian state budget recorded almost USD280 million deficit in 2025 www.asianews.network

The consolidated budget posted a balanced deficit equivalent to 1.1% of Mongolia's GDP.

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.

E.Oyun-Erdene

Japan, China Vie for Mongolia's Rare Earth Resources www.chosun.com

Japan secures mining rights and infrastructure deals as China warns against third-party influence in resource-rich Mongolia

The competition between China and Japan over rare earth resources is intensifying. The latest diplomatic battleground is Mongolia. Last month, Mongolian Foreign Minister Batmunkh Battsetseg held a closed-door meeting with Japanese Foreign Minister Toshimitsu Motegi and stated, “As a special strategic partner, we hope to further concretize cooperation with Japan.” Japan responded by expressing its willingness to actively collaborate on the expansion of Genghis Khan International Airport. In response, Chinese Foreign Minister Wang Yi rushed to Ulaanbaatar to meet with Mongolia’s president, prime minister, and foreign minister in succession.

China views the “concretization of cooperation” mentioned by the Mongolian foreign minister after his talks with Japan as a reference to rare earth supply. Mongolia is rich in rare earth resources. The U.S. Geological Survey (USGS) estimates Mongolia’s rare earth reserves at 3,100 tons, the world’s second-largest after China’s 4,400 tons.

Since the 2010 Senkaku Islands territorial dispute with Japan, China has restricted exports of heavy rare earths like dysprosium and terbium to Japan. Japan diversified its supply chain to countries like Vietnam, reducing its dependence on Chinese imports from 90% in 2010 to 63% over 15 years. During this process, Japan focused on Mongolia, which has abundant potential reserves but insufficient exploration and development.

In 2021, Mongolia opened Genghis Khan International Airport. Japan provided a low-interest long-term loan of 410 million dollars for its construction, and Japanese companies like Mitsubishi supplied the necessary technology. In July last year, Emperor Naruhito made the first state visit to Mongolia by a Japanese monarch.

In return, Japan secured the right to develop the Khalzan Buregtei mine in northwestern Mongolia. The mine has confirmed rare earth reserves of 150 tons, rich in heavy rare earths like dysprosium and terbium. Dysprosium is essential for enhancing the performance of permanent magnets.

Immediately after the Japan-Mongolia talks, China warned Mongolia, stating, “A third country should not use its territory to harm the sovereignty and security of another.” Citing a 1994 treaty, Beijing threatened that Mongolia should not undermine its exclusive influence by supplying rare earths to Japan. Mongolia’s logistics are vulnerable if China and Russia control its railway network.

Japan, Mongolia Agree to Share Portion of Greenhouse Gas Emission Reductions Achieved Through Decarbonization Technologies www.japannews.yomiuri.co.jp

Japan and Mongolia have agreed that they will report to the United Nations a portion of their reductions of greenhouse gas emissions achieved through decarbonization technologies Japan provided to Mongolia as part of Japan’s own efforts at cutbacks, according to sources.

The reduction credits that Japan will earn will total over 80,000 tons — the largest amount to date. Japan can accumulate these reduction credits, and Mongolia benefits by improving its decarbonization technologies.

This arrangement is based on the Joint Crediting Mechanism (JCM), a system Japan introduced independently to allocate emission reductions between two countries. Mongolia is the fourth country to participate in the program.

According to the Environment Ministry, companies in Osaka and Gunma prefectures that received JCM subsidies installed solar panels at farms and an airport near Ulaanbaatar. They have reportedly helped reduce Mongolia’s emissions for the 2021–2025 period by the equivalent of about 214,000 tons of carbon dioxide. Mongolia relies on coal-fired power for the majority of its electricity generation, and air pollution is becoming a serious problem. For Japan, expanding decarbonization technologies overseas can lead to economic growth.

On Tuesday, the two countries agreed to allocate about 86,500 tons — a portion of the total reduction — to Japan’s reduction tally. This will be reported to the United Nations under the Paris Agreement, the international framework for climate change measures.

Japan has previously shared emission reductions with three countries — Thailand, the Maldives and Palau — but the maximum reduction it had secured was about 1,000 tons from Thailand. Japan’s emissions for fiscal 2024 totaled about 1.046 billion tons, and the government aims to achieve a total reduction of 100 million tons through the JCM by fiscal 2030.

“We hope to use this achievement as a catalyst to encourage further participation by domestic companies in the JCM,” a senior ministry official said.

Mendsaikhan Zagdjav: Agreement Reached to Reduce Shareholder Loan Interest Rate After Five Rounds of Negotiations www.montsame.mn

 At the regular session of the Cabinet of Mongolia, Minister of Finance Mendsaikhan Zagdjav presented the outcomes of negotiations with the investor regarding the review and adjustment of the Oyu Tolgoi project's shareholder loan interest rate.

“During the initial stage of negotiations, the parties reached an in-principle agreement to reduce the loan interest rate, which was formalized by a protocol. Official negotiations with the investor commenced in October 2025. Following a total of five rounds of talks with Rio Tinto over this period, we have successfully reached an agreement to lower the shareholder loan interest rate," stated the Minister.

He continued, "The Oyu Tolgoi shareholder loan interest rate has been reduced. As a result, USD 6.2 billion, or MNT 22 trillion, that would have been paid toward the loan will be saved, paving the way for the Mongolian side's economic benefits to increase by USD 2.5 billion, or approximately MNT 8 trillion.

"Furthermore, the review of the Oyu Tolgoi shareholder loan interest rate, which was previously conducted once every seven years, will now take place every three years. The parties also agreed to receive dividends from Oyu Tolgoi this year."

Tax Support to Be Provided to Legal Entities Registered in Virtual Zone www.montsame.mn

At its regular session, the Cabinet of Mongolia approved the "List of Information Technology Products, Works, and Services of Legal Entities Registered in the Virtual Zone to Support Information Technology Production." Minister of Finance Mendsaikhan Zagdjav and Minister of Digital Development, Innovation, and Communications Nomin Chinbat were tasked with organizing and monitoring the implementation of the resolution.

In 2024, the State Great Khural of Mongolia (Parliament) passed the Law on Supporting Information Technology Production. This legislation created a legal framework to foster the digital economy by supporting individuals and legal entities engaged in the IT sector, diversifying their funding sources, and maximizing the economic benefits of IT production. In accordance with a Government resolution, registration requests submitted via the e-business system by over 100 legal entities seeking to join the IT virtual zone have been processed since January 2026.

Under the Law on Corporate Income Tax, these registered entities are eligible for tax relief. Specifically, Article 22.5.4 stipulates a tax exemption on the sales revenue of IT products, works, and services generated by legal entities registered in the virtual zone, as defined in Article 11.1 of the Law on Supporting Information Technology Production. Furthermore, Article 22.6 mandates the Cabinet to formally approve the list of eligible products, works, and services that qualify for this tax exemption.

Countries such as Kazakhstan, Uzbekistan, and the United Arab Emirates currently offer comprehensive tax exemptions to legal entities operating in special IT zones, relieving them of corporate income tax, value-added tax, personal income tax, customs duties, and real estate taxes. Driven by similar policies, Kazakhstan’s total IT sector exports reached USD 1.1 billion in 2025, with the Astana Hub alone accounting for USD 633 million. Kazakhstan aims to boost the hub's export revenue to USD 1 billion in 2026, reported the Media and Public Relations Department of the Parliament of Mongolia.

Mongolia energy workers delay strike for talks www.sxcoal.com

Mongolian energy sector workers have agreed to postpone a planned strike by 48 hours to allow for negotiations, according to the latest reports.

The workers had threatened to launch a nationwide strike from 8 a.m. on June 30 unless their demand for a 30% wage increase was met, following prolonged but unsuccessful talks with the Energy Ministry. Over 6,000 workers from 22 units had pledged to participate.

However, the Mongolian Energy, Geology and Mining Trade Union Federation held further discussions with the ministry and employer representatives, proposing a phased 30% wage increase over 2026 and 2027.

The union decided to delay the strike by 48 hours to allow time for talks. If negotiations fail to reach a deal within that period, the strike will resume at 8 a.m. on July 2.

Rio Tinto agrees new financial terms for $18bn copper mine project www.ft.com

Rio Tinto and Mongolia have agreed new financial terms for the $18bn Oyu Tolgoi copper mine, after surging prices for the metal and mounting political pressure pushed the company into talks.

The London-listed miner has agreed to cut its management fees for the project in the Gobi Desert by 50 per cent and to reduce the interest rate on its multibillion-dollar loan to Mongolia by 2.5 percentage points.

The agreement follows months of negotiation over Mongolia’s single biggest mining project and foreign investment, after officials described earlier terms as “unfair” and claimed the country was “being deceived”.

It also comes as copper prices are near record highs, potentially increasing the future payouts from the mine. It is expected to produce about 500,000 tonnes annually of the red metal, which is in high demand for its role in the energy transition.

Rio Tinto chair Dominic Barton and Katie Jackson, head of copper, met Mongolian Prime Minister Uchral Nyam-Osor on Tuesday in Ulan Bator to sign the deal.

The agreement showed that Mongolia could “protect our financial sovereignty while maintaining a highly lucrative environment for global capital”, the PM said in a statement.

Jackson said the agreement “demonstrates Rio Tinto’s ongoing commitment to the long-term success of Oyu Tolgoi”, adding that the reduced interest rate reflected the lower risk as the project matured. The Mongolian government declined to comment.

The new deal is the latest in many twists and turns for Oyu Tolgoi, which has been under construction for nearly 17 years.

Four years ago, Rio agreed to waive about $2.4bn of the government’s loan as both sides vowed to “reset” the relationship — but that truce has not held, while elections due next year have raised the political stakes.

Two weeks ago protesters successfully disrupted exports from Oyu Tolgoi, forcing it to halt shipments of concentrate leaving the project for nearly a day.  

One issue that has not been resolved is how soon the government will start receiving dividends from Oyu Tolgoi, in which it holds a 34 per cent stake, with Rio owning 66 per cent.

Frequent cost overruns and delays have pushed back the expected start date for dividends from 2017 to around 2037. Rio said it would “bring forward distributions to shareholders”, without committing to a date.  

Ben Davis, analyst at RBC, said the agreement was “just about a net positive” for Rio, though concerns remained about how long it would hold before the government seeks “to take a larger share of the economics”.

“Given how quickly Mongolia politics changes, this remains a very real risk,” he said in a note to clients.

Separately, the Anglo-Australian company is facing a tax probe in Mongolia, where authorities allege it has underpaid about $450mn largely because of accounting differences related to depreciation during the 2021 and 2022 tax years.

That dispute is working its way through the courts.