1 GOLD AND COPPER PRICES SURGE WWW.UBPOST.MN PUBLISHED:2025/04/02      2 REGISTRATION FOR THE ULAANBAATAR MARATHON 2025 IS NOW OPEN WWW.MONTSAME.MN PUBLISHED:2025/04/02      3 WHY DONALD TRUMP SHOULD MEET KIM JONG- UN AGAIN – IN MONGOLIA WWW.LOWYINSTITUTE.ORG  PUBLISHED:2025/04/02      4 BANK OF MONGOLIA PURCHASES 281.8 KILOGRAMS OF PRECIOUS METALS IN MARCH WWW.MONTSAME.MN PUBLISHED:2025/04/02      5 P. NARANBAYAR: 88,000 MORE CHILDREN WILL NEED SCHOOLS AND KINDERGARTENS BY 2030 WWW.GOGO.MN PUBLISHED:2025/04/02      6 B. JAVKHLAN: MONGOLIA'S FOREIGN EXCHANGE RESERVES REACH USD 5 BILLION WWW.GOGO.MN PUBLISHED:2025/04/02      7 185 CASES OF MEASLES REGISTERED IN MONGOLIA WWW.AKIPRESS.COM PUBLISHED:2025/04/02      8 MONGOLIAN JUDGE ELECTED PRESIDENT OF THE APPEALS CHAMBER OF THE ICC WWW.MONTSAME.MN PUBLISHED:2025/04/01      9 HIGH-PERFORMANCE SUPERCOMPUTING CENTER TO BE ESTABLISHED IN PHASES WWW.MONTSAME.MN PUBLISHED:2025/04/01      10 LEGAL INCONSISTENCIES DISRUPT COAL TRADING ON EXCHANGE WWW.UBPOST.MN PUBLISHED:2025/04/01      УСТСАНД ТООЦОГДОЖ БАЙСАН УЛААНБУРХАН ӨВЧИН ЯАГААД ЭРГЭН ТАРХАХ БОЛОВ? WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     САНГИЙН ЯАМ: ДОТООД ҮНЭТ ЦААСНЫ АРИЛЖАА IV/16-НААС МХБ-ЭЭР НЭЭЛТТЭЙ ЯВАГДАНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     МОНГОЛБАНКНЫ ҮНЭТ МЕТАЛЛ ХУДАЛДАН АВАЛТ ӨМНӨХ САРААС 56 ХУВИАР, ӨМНӨХ ОНЫ МӨН ҮЕЭС 35.1 ХУВИАР БУУРАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     Б.ЖАВХЛАН: ГАДААД ВАЛЮТЫН НӨӨЦ ТАВАН ТЭРБУМ ДОЛЛАРТ ХҮРСЭН WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     1072 ХУВЬЦААНЫ НОГДОЛ АШИГ 93 500 ТӨГРӨГИЙГ ЭНЭ САРД ОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2025/04/02     Н.УЧРАЛ: Х.БАТТУЛГА ТАНД АСУУДЛАА ШИЙДЭХ 7 ХОНОГИЙН ХУГАЦАА ӨГЧ БАЙНА WWW.NEWS.MN НИЙТЭЛСЭН:2025/04/02     “XANADU MINES” КОМПАНИ "ХАРМАГТАЙ" ТӨСЛИЙН ҮЙЛ АЖИЛЛАГААНЫ УДИРДЛАГЫГ “ZIJIN MINING”-Д ШИЛЖҮҮЛЭЭД БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ТӨМӨР ЗАМЫН БАРИЛГЫН АЖЛЫГ ЭНЭ САРЫН СҮҮЛЭЭР ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2025/04/02     “STEPPE GOLD”-ИЙН ХУВЬЦААНЫ ХАНШ 4 ХУВИАР ӨСЛӨӨ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2025/04/02     ҮЙЛДВЭРЛЭЛИЙН ОСОЛ ӨНГӨРСӨН ОНД ХОЁР ДАХИН НЭМЭГДЖЭЭ WWW.GOGO.MN НИЙТЭЛСЭН:2025/04/01    

Events

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

NEWS

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More Russian commodities expected to come into China www.chinadaily.com.cn

HARBIN - More Russian commodities are expected to come into the Chinese market, a Russian trade representative said.

With the joint efforts of related departments, manufacturers and exporters in Russia, more farm produce and food from Russia will be seen at the Chinese market, said Sergey Inyushin, Russia's trade representative in China.

China has a big demand for soybeans, corn, beef and mutton, he said, adding that cooperation in agriculture is becoming a new point of growth in the economic and trade cooperation between Russia and China.

In 2018, trade volume between the two countries exceeded $100 billion, and bilateral economic and trade cooperation is continuing to expand.

"Last year, Russia and China enhanced cooperation in the imports and exports of dairy products and frozen poultry meat," he said, adding Russia's exports of agricultural products and food to China increased 51.4 percent year-on-year.

The two countries are also expanding cooperation in cross-border e-commerce, with a memorandum of understanding inked at the Sixth China-Russia Expo, which concluded Wednesday in Harbin, capital of Northeast China's Heilongjiang province.

These days, many Russian commodities can be purchased online by Chinese customers, he said. "In the future, Russia will continue to bring more Russian agricultural products and food to China via e-commerce."

From January to September 2018, trade volume via cross-border e-commerce between the two countries reached $3.7 billion, up 23 percent year-on-year.

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High-level inter-regional conference against terrorism taking place in Ulaanbaatar www.montsame.mn

Ulaanbaatar /MONTSAME/ On June 20, the High-Level Inter-Regional Conference on ‘Whole-of-Society Approach’ to Preventing and Countering Violent Extremism and Radicalization that Lead to Terrorism kicked off at the Ministry of Foreign Affairs. The conference is being co-organized by the Government of Mongolia, OSCE Secretariat’s Transnational Threats Department (TNTD) and the United Nations Office of Counter-Terrorism.

D.Tsogtbaatar, Minister of Foreign Affairs, D.Gerel, Director of the General Intelligence Agency, Thomas Greminger, Secretary General of the Organization for Security and Co-operation in Europe (OSCE), and Muhammad R. Shah of the UN Office of Counter-Terrorism delivered remarks at the opening chaired by Deputy Minister of Foreign Affairs B.Battsetseg. In his remarks, Foreign Minister Tsogtbaatar noted, “Terrorists’ and criminals’ area of operations will be narrowed more and more with elevation of developing countries’ potential for countering terrorism and organized crime to an appropriate level.”

“We have to bear in our mind that terrorism and transnational organized crime, in particular drug trafficking are interconnected. Drug affects a person’s mental state, making them prone to violent extremism,” he added.

At the conference, around 180 participants from Asia and Europe comprising policy makers, civil society representatives, members of Counter-Terrorism Coordination Council of Mongolia, and law enforcement officials are sharing their best practice in the fight against terrorism and exchanging views on building trust through enhancement of inter- cultural and religious dialogues and harmony, ensuring public participation in development of national policies, strategies and plans to prevent and counter the crime.

Moreover, honored guests of the conference, Milan Ciganik, representative from Slovakia - 2019 OSCE chair, G.Munkhtsetseg, Member of Parliament, and Peter Szijjarto, Minister of Foreign Affairs and Trade of Hungary shared their stance on promoting inter-religious dialogues and harmony to prevent transnational organized crime and improving laws on prevention of the crime.

The regional conference will take place until June 21.

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Mongolia's possibility to become Eurasian integrated logistics hub discussed www.montsame.mn

Ulaanbaatar /MONTSAME/ A seminar themed ‘Logistics trend in Eurasian Continent and Role of the Mongolian Transport Sector’ took place on June 19 at Construction Development Center. The Ministry of Construction and Urban Planning organized the consultation in partnership with JICA.

Ryuichi Shibasaki, Associate Professor at the University of Tokyo and D.Gerelnyam, Senior specialist at the Department of Policy and Planning made presentations under topics ‘Transport demand trend in Eurasian Continent and role of the Mongolian transport sector’ and ‘Changes in the road and transport sector and progress of current projects, further goals’.

The speakers emphasized that policy-makers should understand global freight flows and lead up to development of international logistics policy in present condition of globalization of logistics market.

Associate Professor Mr. Ryuichi Shibasaki advised to pay attention on integrated Euro-Asian transport network using model of traffic flow. He suggested analyzing effects of Chinese policy on international rail transport. By doing so, regional countries will have possibilities to develop their logistics as reducing expanse of rail transport and increasing frequency of transport and transit freight.

In his presentation, Mr. D.Gerelnyam underlined that current condition of multilateral cooperation in Eurasian economic space is creating favorable condition for Mongolia to become a stronghold for integrated transport infrastructure of Eurasian Continent. Therefore, the country should increase international transit transport through integrating and developing new international airport, transit transport facilities, railroads and highways that surround the capital city, logistics terminals as well as tourist destinations. This will influence Mongolia indirectly and it is available to become an integrated logistics system center that connect Asia and Europe.

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Mongolia ranks 42nd in Global Peace Index www.montsame.mn

Ulaanbaatar /MONTSAME/ The Institute for Economics and Peace released its thirteenth edition of the Global Peace Index (GPI), which ranks 163 independent states and territories according to their level of peacefulness.

Mongolia ranks at the 42nd place in the GPI with 1.792 points, unchanged from the previous year. Iceland remains at the top with 1.072 points, followed by New Zealand and Portugal. Afghanistan is now the least peaceful country, according to the report.

The state of peace was measured using three thematic domains including the level of Societal Safety and Security, the extent of Ongoing Domestic and International Conflict and the degree of Militarisation.

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Mongolia Rapidly Moving Out of Russian World, Raising Concerns in Moscow www.jamestown.org

For most of the Soviet period after 1945, Russians informally viewed Mongolia as “the 16th Soviet republic” not only because it tried to become one during World War II, but also because, even more than Bulgaria, it slavishly copied Soviet laws and practices. Notably, Mongolia introduced a Cyrillic-based alphabet close to Russian in 1941 (Asiarussia.ru, April 1, 2018). Moreover, it promoted Russian in its media and educational system to the point that, in many sectors, Russian displaced Mongol as the most frequently used language (Cod15.ru, May, 10 2018).

This pattern partially had its roots in the fact that Imperial Russia played a key role in Mongolia’s acquisition of independence from China just over a century ago. But additionally, it stems from the history of the Soviet Union using this large (one-third the size of the United States) but underpopulated (just over three million residents now) Northeast Asian country to put pressure on China, which still controls Inner Mongolia. Moscow further sought to use its dominance in Mongolia to prevent Beijing from using the Mongols against their co-ethnics inside Soviet Russian borders, the Buryats (or Buryat Mongols as they were known until 1958) (Fergananews.com, September 11, 2008). However, with the collapse of the Soviet empire in 1989 and then of the Soviet Union itself two years later, all that began to change. And now, in the words of one Russian specialist, “an entire generation has grown up in Mongolia that does not know Russian” (Rossyiskaya Gazeta, June 11, 2019). Indeed, some in Mongolia even want to do away with the Cyrillic alphabet entirely and go back to the vertical script Mongols had used for centuries (Vb.kg, May 11, 2017; Gtrkchita.ru, April 17, 2018; 161.ru, May 16, 2019).

From Moscow’s perspective, such moves on language and alphabets in Mongolia are just as offensive and dangerous as similar policies in the former Soviet republics (see EDM, January 28, 2019; Commentaries, March 5, 2018). Indeed, they may be even more worrisome for two reasons. On the one hand, they introduce a new complexity to Russia’s relations with China, further undermining Moscow’s confidence that it can reliably expect Ulaanbaatar to be on its side in talks with Beijing. And on the other, changes in Mongolia in this regard are likely to have an impact on the already-restive Buryats within current Russian borders, who, to this day, follow closely what happens in Mongolia (Gazeta-n1.ru, March 17, 2017).

While Russian does remain the most widely known foreign language in Mongolia—Chinese has so far not made massive inroads as many had predicted—it is now very much a foreign language rather than a national one. It has not been a requirement for entry into Mongolian universities since 1990, and it has not been a compulsory subject in primary and secondary schools since 2003, the year in which English replaced Russia as the required foreign language. What this means—and what anecdotal evidence appears to confirm (Quora.com, October 18, 2014)—is that while most Mongols over 35 know Russian, most below that age no longer do. This pattern suggests the role of Russian will continue to decline unless radical measures are taken, something Moscow would like to see but which Ulaanbaatar presently has no plans to introduce.

Just how dire the situation of the Russian language and, with it, of Russian cultural and political influence in Mongolia has become was recently described by Nyamzhav Naymdavaa, a Russian-language teacher in the Mongolian capital. In a paper for delivery at a Moscow competition on Russian-language use outside the Russian Federation, she recalls “the golden times of the end of the 1940s, when Russian was studied in all the schools of the country four or five hours a week, or the end of the 1970s, when a Pedagogical Institute of the Russian Language was established, an institution that, over the decade of its existence, graduated 1,847 Russian teachers.” Those times, she says, are not likely to reappear. Worse, Naymdavaa argues, in 1989, Ulaanbaatar canceled the contracts of all Russians teaching Russian in Mongolia. As a result, 500 lost their jobs altogether, and “more than 200” stopped providing Russian-language classes and began to teach English instead (Rossyiskaya Gazeta, June 11, 2019).

To be sure, the Ulaanbaatar-based teacher writes, Russian instruction did not completely disappear. But even positive steps contain negative aspects. Three years ago, for example, the Mongolian Ministry of Education said schools could reintroduce Russian-language courses but only where each could assemble “no less than 25” pupils who wanted to study the language. In some places, that has effectively blocked Russian instruction altogether. And she said she was encouraged that Ulaanbaatar has restored a Russian-language television program after canceling it 33 years ago.

Moscow has responded to this situation by increasing the number of scholarships for Mongols who want to study Russian in Russian universities, by providing more support to Russian-language instructors in Mongolia so that they can help the approximately 3,000 young people there in such classes continue, and by launching a major propaganda campaign against any further cuts in Russian-language instruction or any consideration of the idea that Mongolia should dispense with the Cyrillic alphabet and go back to its original national one (Russkiymir.ru, June 3, 2019; Vb.kg, May 11 2017; Gtrkchita.ru, April 17, 2018).

Moscow may be on the winning side of efforts to block a return to the pre-Cyrillic national script, as there are many Mongols who oppose such a move; but it almost certainly will be the loser elsewhere. All evidence seems to suggest that the Russian language will continue to decline in importance in Mongolia. And with that decline, Russian influence will wane there as well.

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Péter Szijjártó concludes 57-million-dollar vaccine production plant investment agreement in Mongolia www.kormany.hu

“The Hungarian Government has concluded an agreement in Mongolia concerning a 57-million-dollar vaccine production plant investment, and Eximbank has opened a 46-million-dollar credit line to help enable Hungarian water management and mining industry enterprises that have already accumulated a high level of market experience to acquire an even larger share of the market in the Asian country”, Minister of Foreign Affairs and Trade Péter Szijjártó said in a statement to Hungarian news agency MTI following negotiations in Ulaanbaatar.
“Thanks to the Government’s Eastern Opening policy, Hungarian enterprises are successfully appearing in more and more markets in the part of the world that lies to the east of us”, the Minister stated.

“Within the framework of the Eastern Opening strategy, we must pay articular attention to Mongolia, which is currently producing the highest level of economic growth in Asia. Its economy is extremely open, and they are happy to welcome Hungarians with great affection”, he added.

“The reason for this”, he explained, “is that Hungary was the seventh country in the world to recognise Mongolia’s independence and has been maintaining diplomatic relations with Mongolia for 70 years now”. “Based on this historic relationship, Budapest has now decided to increase the funding provided to Hungarian companies to facilitate their appearance and success on the Mongolian market, which is promising excellent prospects”, he said.

According to the inter-governmental agreement, which was signed by Minister of Foreign Affairs and Trade Péter Szijjártó and Mongolian Minister of Finance Chimed Khurelbaatar, within the framework of a 57-million-dollar tied aid loan programme Hungary will be providing funding to enable Hungarian companies to construct Mongolia’s largest animal vaccine plant, which will be equipped with Hungarian technology. “This means that the vaccines required to vaccinate Mongolia’s animal stocks will be produced in this new factory”, Mr. Szijjártó declared.

“Thus, the Eastern Opening Strategy helps Hungarian enterprises to be able to invest not only at home, but also abroad, and to reinforce the further growth of the Hungarian economy by bringing the profits realised their back home”, said the Minister.

During his visit to Ulaanbaatar, Mr. Szijjártó signed a memorandum of understanding on cooperation with Minister of Finance Chimed Khurelbaatar on expanding bilateral economic relations, met with Foreign Minister Damdin Tsogtbaatar and Minister of Agriculture Chultem Ulaan, and was also received by President of the Republic Khaltmaagiin Battulga.

(Ministry of Foreign Affairs and Trade/MTI)

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Rio Tinto looks at developing Simandou again — report www.mining.com

Rio Tinto (ASX, LON: RIO) is mulling options to develop the giant Simandou iron ore deposit in Guinea, which almost sold last year to its partner in the project Aluminium Corp of China, or Chinalco, as it is known.

People familiar with the matter told Bloomberg on Thursday that the world’s No. 2 miner has rehired consultants to work with its own team on how it would be possible to export ore, should the mine be developed.

Guinea has always said that Simandou’s output would have to be shipped via the country’s own ports. This means that the project would have to include a 650km trans-Guinean railway line and a port, which could push the total investment needed to a whopping $23 billion.

Simandou is one of the world’s richest reserves of high-grade iron ore, holding an estimated 2 billion tonnes of the steelmaking ingredient. It’s also one of the most easily exploitable iron ore fields outside of Australia’s Pilbara region and top producer Vale’s Brazilian home base.

At full production, the concession would export up to 100 million tonnes per year – that’s a third of Rio’s total capacity at the moment – and would catapult the company past Vale as world number one iron ore miner.

Simandou would by itself be the world’s fifth-largest producer behind Australia’s Fortescue Metals and BHP.

The asset, however, has been a source of headaches for Rio since it was first granted rights to start prospecting for iron ore two decades ago.

In 2008, one of Guinea’s former dictators stripped Rio’s rights over two of the four blocks and handed them BSG Resources, the mining arm of Israeli diamond billionaire Beny Steinmetz. Rio was able keep to the two southern blocks but only after paying $700 million to the government in 2011, which guaranteed the miner tenure for the lifetime of the Simandou mine.

That deal came under scrutiny in 2016, forcing Rio to fire two senior managers over a questionable $10.5 million payment made to a consultant who helped the company secure the two blocks and alerted authorities, including the US Department of Justice and the UK’s Serious Fraud Office.

BSG Resources and Steinmetz were also subject of several investigations over bribery and corruption accusations, but it was able to put an end to and to all that in February this year, through a deal with Guinean President Alpha Conde.

Such agreement removes a key obstacle for Simandou to move forward. Rio holds a 45% stake in two of the four blocks that make up the giant Simandou deposit, while state-controlled Chinalco owns 40% and the Guinea government 15%.

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Mongolia Energy : year loss narrows to HK$44.43m www.marketscreener.com

[ET Net News Agency, 19 June 2019] Mongolia Energy Corporation Limited (00276) said its

loss attributable to owners of the company was HK$44.43 million for the year ended 31

March 2019, compared to the loss of HK$159.94 million of the same period last year. The

loss per share was HK$0.02. No dividend will be distributed.

The revenue was HK$776.71 million, a year-on-year increase of 21.86%. The gross profit

was HK$335.8 million, a year-on-year increase of 6.53%. (RC)

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India to overtake China as the world's most populous country: UN www.cnn.com

(CNN)India is set to overtake China as the world's most populous country in less than a decade, according to a new United Nations report.

China and India currently account for about 37% of the entire global population of roughly 7.7 billion, with China currently home to about 1.4 billion people and India to 1.3 billion.
But by 2027, India will have more people than China, according to the UN's 2019 World Population Prospects report released Monday, and by 2050 the gap is expected to have widened even further.

"Between 2019 and 2050, 55 countries or areas are expected to see their populations decrease by at least 1%," the report said, mostly due to low-levels of fertility and in some cases, high numbers of emigration.
"In the largest of these, China, the population is projected to shrink by 31.4 million, or 2.2 per cent."
That would put China's population at 1.1 billion, fewer than the 1.5 billion forecast for India.
By 2050, the report predicts the planet's entire population will be 9.7 billion people, a staggering rise in just one century.
Five years after the founding of the UN in 1950, the global population was a mere 2.6 billion people.
The UN compiles the report using demographic trends and relevant patterns in human fertility, mortality and migration. The aim is to provide governments with information as they work towards the UN's 2030 Sustainable Development Goals.

China has been attempting to preemptively tackle a looming population decline for years. With the country's population rapidly aging and birth rates falling, Beijing even reversed its infamous One Child policy to encourage couples to have more children.
But with an increasingly urban population facing rising costs of living, attempts to push up the birth rate have failed.
Besides India overtaking China, the UN report said Nigeria will be the third most populous country by 2050 with an estimated 733 million people, overtaking the United States, which will fall to fourth place with a population of 434 million. Pakistan will remain the world's fifth largest country in terms of population.

"Many of the fastest growing populations are in the poorest countries, where population growth brings additional challenges", said Liu Zhenmin, United Nations Under-Secretary-General for Economic and Social Affairs (DESA), in a statement.
More than half of the predicted global population by 2050 will be clustered in just nine countries, the report said: India, Nigeria, Pakistan, the Democratic Republic of Congo, Ethiopia, Tanzania, Indonesia, Egypt and the United States.
Large global trends include decreasing populations, unprecedentedly large, aging populations due to rising life expectancy, and a narrowing discrepancy between rich and poor countries.

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Mongolia: Bridge or Buffer in Northeast Asia? www.thediplomat.com

What if you held a big party for 200 people and one of the guests you most wanted to see RSVPed but never showed up? This was the scenario with North Korea’s absence at the sixth Ulaanbaatar Dialogue (UBD) on Northeast Asian Security, a 1.5 level forum for officials and academics, which I attended from June 5-6 in the Mongolian capital. Nonetheless, Mongolia succeeded in making its case as a meaningful interlocutor on North Korean issues and a participant in Northeast Asian economic integration efforts, such as ongoing discussions about expanding the use of wind and solar power in a regional power grid.

Although Mongolia was considered as a venue for one of the summits between U.S. President Donald Trump and North Korean leader Kim Jong Un, it was eventually not selected. Of course, it was not unexpected that North Korea would prefer an authoritarian host to a fledgling democracy that had made a transition from socialism. Nevertheless, Mongolia has played an important, if often overlooked, role over the years as a facilitator of Northeast Asian diplomacy with North Korean officials. As Foreign Minister Damdin Tsogtbaatar put it, Mongolia has the potential to be a “bridge for peace” in Northeast Asia, due to its own unique history as a socialist state and more recent development as a democracy.

Mongolia is also one of a few countries to enjoy good relations with both South and North Korea. Mongolia’s relations with South Korea have deep historical and cultural roots, and democratization in both countries has deepened their mutual affinity. Alicia Campi, a former diplomat and scholar of Mongolia’s foreign policy, notes that its longstanding bilateral relations with North Korea are “underappreciated.” Despite the differences in their trajectory after Mongolia’s democratic transition, the two countries have retained mutually beneficial economic ties, including the provision of North Korean guest workers (until sanctions prohibited this in 2018). Then-President Tsakhiagiin Elbegdorj used the occasion of a state visit to Pyongyang in 2013 to offer his country as a mediator in the nuclear crisis (as well as to praise democracy during his speech at Kim Il Sung university). The annual Ulaanbaatar Dialogue began in 2014 as a means of encouraging regionwide security discussion and reducing distrust among the parties in the aftermath the collapse of the Six-Party Talks.

Elbegdorj was the first foreign leader to meet Kim Jong Un, and his successor, President Khaltmaagiin Battulga, extended an invitation to the North Korean leader to visit Mongolia. In December 2018, North Korean Foreign Minister Ri Yong Ho visited Ulaanbaatar to celebrate 70 years of diplomatic relations between the two countries. Mongolian officials have also participated in a number of less public mediation efforts, helping to facilitate the return of Japanese abductees from North Korea and assisting South Korea in resettling North Korean refugees. As a nuclear weapons-free state and a small developing country surrounded by stronger powers, Mongolian officials believe their experience is highly relevant to ongoing discussions of security on the Korean Peninsula. To this end, at the recent UBD some proposed Mongolia’s participation in future multilateral talks on the nuclear crisis, a position that Russian officials supported in the past.

Apart from North Korea’s no show at the June 2019 UBD, the other hot topic in Ulaanbaatar was whether or not Mongolia should seek full membership in the Shanghai Cooperation Organization (SCO), which both Russia and China have encouraged. Membership was restricted to China, Russia, and the Central Asian states until 2017, when India and Pakistan both joined. Mongolia has been an observer in the SCO since 2004. Some Mongolian officials contend that full membership would enhance trust between Mongolia, Russia, and China, and potentially add new dynamism to their trilateral economic cooperation plans. Others argue that such a move might compromise Mongolia’s “third neighbor” policy and that Mongolia does not share the same concerns as other SCO members over terrorism, extremism, and separatism. Moreover, at a fraught time in U.S. relations with both Russia and China, Mongolia’s membership in the SCO might be construed in Washington and other Western capitals as anti-NATO, despite Mongolia’s history of military cooperation with it. Certainly, Mongolia’s participation last summer in the major Russian military exercise, Vostok, along with a contingent of Chinese forces, raised some eyebrows.

While India has been able to navigate between membership in the SCO and its partnership with the United States and other democracies, it does not face the same economic or geopolitical pressures as landlocked Mongolia, which seeks to balance sustainable development with independence from its two powerful neighbors. Despite expectations of a shift in Mongolia’s position, Battulga’s attendance at the SCO summit in Bishkek did not lead to any change from his country’s observer status. Admitting that SCO membership remained controversial at home, the Mongolian president noted that “Mongolia is exploring levels of increase of its participation” in the organization and supported the additional opportunities at the Bishkek summit for observer states and international organizations to join in the discussions with member states.

Presidents Xi Jinping, Vladimir Putin, and Battulga met on the sidelines of the summit to discuss their trilateral cooperation in the framework of the China-Mongolia-Russia-Economic Corridor established as a part of the Belt and Road in 2014. In their individual statements, each president provided a different vision of what this corridor should involve. Given the lack of consensus among the three, it is not surprising that the corridor has made little progress so far, not even in achieving mutually acceptable feasibility studies, not to mention completing planned projects.

Mongolia has enthusiastically supported the trilateral economic agenda with its two neighbors, but bilateral issues have stymied its progress. On the one hand, the slow pace of Sino-Russian regional cooperation has held up trilateral plans for road and rail connections via Mongolia. For example, the bridge from Blagoveshchensk, Russia, to Heihe, China, on the books since 1995 and at long last constructed earlier this month, will be a key link in these new transit routes once road and rail connections are completed. The possibility of a second Sino-Russian gas pipeline transiting Mongolian territory depends on the protracted Sino-Russian negotiations over routing and pricing, as well as China’s view of pipelines transiting third countries as an energy security risk, a concern likely to color its view of a Northeast Asian energy grid as well. Other key areas of China-Mongolia-Russia trilateral cooperation (simplifying customs clearance and rail logistics) also need to be negotiated bilaterally.

On the other hand, the deepening Sino-Russian political partnership makes Mongolia’s effort to balance a good relationship with each of its two neighbors — with the goal of avoiding economic dependence on either one — all the more difficult. Although Battulga, responding to anti-Chinese sentiment in the Mongolian public, appeared to be tilting more toward Moscow in his first year in office, a series of meetings with Xi since 2018 have sought to rebalance Mongolian foreign policy, given the inescapable fact of the country’s considerable reliance on trade and investment from China. Nonetheless, excessive dependence on China for trade and investment creates new vulnerabilities, as economic stagnation in China diminishes its demand for Mongolian minerals, a fact that already worsened Mongolia’s economic woes earlier in the decade. The challenge will be for Mongolia to implement some of its creative foreign policy thinking, which looks beyond the immediate pressures of the two large neighbors and seeks to put Mongolia on the map through a variety of multilateral initiatives as well as its “third neighbor” policy.

Elizabeth Wishnick is a Professor of Political Science at Montclair State University and a Senior Research Scholar at the Weatherhead East Asian Institute, Columbia University.

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