AGP Executive Report

Oyu Tolgoi Deal Push: Mongolia’s PM Uchral Nyam-Osor says negotiations delivered major gains: management costs cut by $2.2b, shareholder loan interest rate lowered from 10.5% to 7.9% (saving $6.2b), the rate review cycle shortened to every 3 years, and dividends expected to start this year instead of 2037. Court Enforcement Overhaul: The Cabinet approved a draft legislative package to reform how court decisions are enforced, aiming to separate civil enforcement from penal systems and address low monetary-judgment enforcement (13%) and large backlogs. Digital Government Moves: Mongolia approved steps to fully digitalize notary services via remote notarization, and set a list of IT products/services eligible for tax support for legal entities registered in the “virtual zone.” Health Diplomacy: Japan signed an exchange of notes granting up to ¥980m to equip Mongolia’s National Cancer Center with CT, mammography, and ultrasound systems. Foreign Policy & Security: Russia, China, and Mongolia discussed a schedule for potential trilateral contacts and a roadmap for cooperation, while a USFK commander visited Mongolia’s Khaan Quest 2026 peacekeeping exercise stressing multinational interoperability. China Watch: The new “Ethnic Unity and Progress” law took effect July 1, drawing global criticism over Mandarin requirements and alleged transnational reach—an issue that also surfaced in protests by Tibetans and other minorities.

Oyu Tolgoi Deal Update: Prime Minister Uchral says Mongolia secured a “historic breakthrough” in Oyu Tolgoi talks ahead of Naadam, cutting management costs by $2.2bn, slashing the shareholder loan interest rate from 10.5% to 7.9% (saving $6.2bn), moving dividend payments to this year, and shortening the rate review cycle to every three years. Court Enforcement Reform: The Cabinet approved a draft legislative package to overhaul how court decisions are enforced, aiming to separate civil enforcement from penal systems and tackle low monetary judgment enforcement (13%) and large backlogs. Digital Government Push: Mongolia approved the “Chuluulye” (Liberate) initiative to cut bureaucracy and boost private-sector trust, alongside a draft law enabling 100% remote digital notary services. IT Tax Incentives: The Cabinet also approved a list of IT products/services eligible for tax relief for legal entities registered in Mongolia’s virtual zone. Healthcare Cooperation: Japan and Mongolia signed an Exchange of Notes for a grant-funded project to modernize diagnostic capacity at the National Cancer Center. Transport Safety Rule: Mongolia bans under-18s from operating electric lightweight vehicles like e-scooters and e-bikes, citing rising accident rates. Regional Security/Drills: USFK commander Gen. Xavier Brunson visited Khaan Quest 2026 in Mongolia, stressing multinational interoperability with allies including South Korea. China Ethnic Unity Law Fallout: US senators and European officials condemned China’s “Ethnic Unity and Progress” law as forced assimilation with transnational repression risks, with Mongolia mentioned among affected minority groups. Cross-border Culture: Mongolia-Russia “Ev Modnii Naadam” festival in Buryatia highlighted long-running friendship via joined wooden boards and plans to expand cooperation.

Micro-mobility Rules: Mongolia has banned people under 18 from operating electric scooters, electric bicycles, mopeds and similar lightweight EVs, with responsibility also falling on those who provide or rent the vehicles, citing a rise in crashes. Oyu Tolgoi Finance: Rio Tinto and the Mongolian government agreed to adjust the Oyu Tolgoi shareholder loan interest rate, with Finance Minister Z. Mendsaikhan saying it was cut to 7.9% ahead of Naadam. Urban Infrastructure: President Ukhnaa Khurelsukh visited Ulaanbaatar’s new central wastewater treatment plant—built with Chinese support—calling it a long-term boost for city expansion and pollution reduction. Public Health Access: A new Health Promotion Center opened in Sukhbaatar District, expanding outpatient and preventive services for nearly 30,000 residents. Conservation Tech: Mongolia reported 210 automated cameras monitoring the Gobi bear’s core habitat since 2022, with cubs already recorded. Tourism Momentum: UN Tourism data for Q1 2026 shows Mongolia’s international arrivals up 39% year-on-year, ranking fourth globally for fastest growth. China Ethnic Unity Law: Multiple reports focus on China’s new Ethnic Unity and Progress Promotion Law taking effect July 1, with concerns about language, education, and possible legal reach against overseas minorities including Mongols. US Response: US lawmakers introduced a bipartisan resolution condemning the same China law and warning about transnational repression. Mongolia-China Diplomacy: Mongolia and China also highlighted cooperation in trade and mineral resources, alongside broader strategic partnership projects.

Oyu Tolgoi Finance Update: Mongolia’s Finance Minister Z. Mendsaikhan says the shareholder loan interest rate for Oyu Tolgoi has been cut to 7.9%, a “historic” deal tied to SOFR+4% and framed as lowering project financing costs as the mine matures. Healthcare Diplomacy: Health Minister E. Batshugar met Russia’s Deputy Health Minister to expand training and specialized cooperation, while Mongolia’s Finance Minister and Japan’s ambassador signed a grant to supply diagnostic equipment for the National Cancer Center. Public Governance & Naadam Rules: Deputy PM N. Nomtoibayar says MPs, ministers, and officials will not be invited to the Naadam main seat, alongside efforts to prevent doping controversies in wrestling. Investment Push: The Prime Minister’s “Unlock Mongolian Economy” meeting produced USD 545 million in investment agreements and MoUs, with new interest from firms and banks including OTP. EU Relations: Mongolia and the EU held their 24th Joint Committee meeting in Brussels, reviewing cooperation on infrastructure, renewables, trade, education, agriculture, and human rights. Domestic Services & City Environment: A new Health Promotion Center opened for nearly 30,000 residents, and President Khurelsukh backed the Central Wastewater Treatment Plant as a long-term pollution-cutting project. Tourism Growth: UN Tourism data ranks Mongolia 4th globally for international tourist growth in Q1 2026. Aviation Plans: MIAT is considering buying 10 Airbus jets to reduce reliance on costly leases. China Ethnic Unity Law Fallout: US lawmakers and human rights groups condemned China’s Ethnic Unity and Progress Promotion Law, warning of transnational repression and assimilation risks affecting Tibetans, Uyghurs, and Mongolians.

Mongolia–EU Diplomacy: Mongolia’s 24th Mongolia–EU Joint Committee meeting in Brussels focused on closer cooperation in infrastructure, renewable energy, trade and investment, education, and agriculture, and reviewed ongoing projects ahead of COP17 in Ulaanbaatar. Climate & Cities: The Government and the Ministry of Environment launched the “Green and Inclusive Cities in Mongolia” project for Ulaanbaatar, Darkhan, and Erdenet, backed by a USD 7.26m GEF grant plus co-financing, aiming to cut emissions and restore degraded land through 2030. Land Degradation Talks: Gobi Regional Consultative Meetings wrapped up under COP17 preparations, highlighting water shortages, drinking water access, and rangeland management as desertification pressures intensify. Defense Cooperation: The multinational peacekeeping drill Khaan Quest 2026 near Ulaanbaatar continues to build interoperability for UN missions, with U.S. and other partners training alongside Mongolian forces. Banking Interest: OTP Bank has expressed interest in opening a branch in Mongolia, signaling potential future competition in the banking sector. Regional Context: China’s Ethnic Unity and Progress Law takes effect July 1, drawing international criticism over language and cultural restrictions affecting Uyghur, Tibetan, and Mongolian communities.

Urban Climate Action: Mongolia officially kicked off the “Green and Inclusive Cities in Mongolia” project in Ulaanbaatar, Darkhan and Erdenet, backed by a USD 7.26m GEF grant plus co-financing, aiming to cut CO2, restore degraded land and expand green benefits through 2030. Land Degradation Focus: The Gobi Regional Consultative Meetings for COP17 wrapped up, spotlighting desertification, water scarcity and rangeland management, with government, herders, youth and development partners sharing local solutions. Mining Enforcement: Mongolia launched a nationwide joint state inspection of the mining sector, finding hundreds of violations, issuing orders and fines, and targeting environmental compliance gaps. Security & Tourism: The “Student Police 2026” program began to help protect foreign visitors and tourists, while Ulaanbaatar’s Khuree Tsam–Danshig Festival continues alongside Citizens’ Day celebrations. International Military Training: Khaan Quest 2026 peacekeeping drills near Ulaanbaatar continued with multinational forces training under UN peace operations frameworks. Diplomacy/Parties: A Lao People’s Revolutionary Party delegation met Mongolia’s People’s Party leadership on party-to-party ties and cooperation. Finance: OTP Bank signaled interest in opening a Mongolia branch, citing Mongolia’s investment potential.

Banking Expansion: Hungary’s OTP Bank has submitted a letter of intent to Mongolia’s PM about opening a foreign bank branch, a move expected to boost competition and access to credit. Mining Enforcement: Mongolia launched a nationwide joint state inspection of the mining sector, finding hundreds of violations and fining companies over environmental documentation and illegal extraction. Tourism Safety Program: “Student Police 2026” began in Ulaanbaatar, recruiting university students to help protect foreign visitors and tourists for two months under the “Years to Visit Mongolia” initiative. International Telecom Cooperation: Mongolia’s communications regulator signed an MoU with the US FCC to cooperate on spectrum management, broadband in remote areas, 5G/6G, and information security. Regional Security Training: India’s Army is mid-way through Exercise Khaan Quest 2026 in Mongolia, training for UN peacekeeping missions including Counter-IED and convoy protection. Sports: Mongolian shooters won three medals at the ISSF Junior World Championship in Germany.

Mining Enforcement: Mongolia launched a nationwide joint state inspection of the mining sector, with Deputy PM Nomtoibayar Nyamtaishir and Environment Minister Sandag-Ochir Tsend overseeing checks across aimags; inspectors reviewed 141 companies, flagged 281 violations, issued compliance orders, and fined firms MNT 44.5 million, while inspections continue in Zaamar soum. Labor & Energy Policy: The federation of energy, geology and mining workers’ unions announced an energy-sector strike starting 8:00 a.m. June 30, citing unmet demands beyond wages, including minimum wage and regional allowances; the ministry’s proposed 10% increase is described as insufficient. Tourism & Public Safety: “Student Police 2026” began June 26 for two months, recruiting university students with foreign languages to help protect foreign visitors, prevent disorder, and provide travel assistance under the “Years to Visit Mongolia 2023–2028” push. Culture & International Presence: Mongolia’s Mongolian Pavilion at the 16th Gwangju Biennale is tied to a special exhibition launching special edition artworks under the theme “Eternal and Distant: Collective Memory & Contemporary Challenges.” Tech & Telecom Cooperation: Mongolia and the US signed an MoU between Mongolia’s communications regulator and the FCC to expand cooperation on spectrum management, broadband in remote areas, 5G/6G, and network security. Sports: Mongolian shooters returned with three medals from the ISSF Junior World Championship in Germany.

US-China Human Rights Clash: A bipartisan group of U.S. senators introduced a resolution condemning China’s “Promoting Ethnic Unity and Progress” law, due to take effect July 1, arguing it gives Beijing a legal tool to suppress minorities and export repression abroad. Diaspora Pressure on Canberra: Tibetan and Uyghur groups in Australia say the same law could be used against exiled communities, urging the Albanese government to condemn it ahead of a Parliament House event. Mongolia Angle on Identity: Tibetan leaders and analysts claim the law’s “shared” identity push could also affect Mongolian communities in China, intensifying scrutiny of Beijing’s assimilation policies. Regional Diplomacy Watch: Mongolia’s name also appears in UN CEDAW committee elections coverage, with Mongolia listed among newly elected members—another reminder of how international rights forums intersect with domestic politics. Mongolia Economy Outlook: A week’s analysis on Mongolia’s H2 2026 outlook flags Oyu Tolgoi leverage alongside mining reform risks, set against inflation and budget strain.

Mongolia–China Finance & Trade: The Bank of Mongolia and the People’s Bank of China re-signed their bilateral currency swap for three more years, aiming to support trade finance and cross-border payments. Green Transition Push: Prime Minister Uchral Nyam-Osor opened Mongolia’s first “Green Station” in Khutag-Undur, bundling EV charging with rest and retail services under the “Liberate” green agenda, while CATL agreed to invest in a 100–400 MWh battery energy storage project in Sergelen soum. Landlocked Development Planning: Mongolia has started drafting its UN-backed Awaza Action Plan, focusing on trade expansion, transport connectivity, and regional cooperation. Diplomacy & Defense: Mongolia and Turkey expanded defense cooperation via agreements signed during ministerial-level talks, while Mongolia also hosted/engaged in broader international dialogue including the Trans-Altai Sustainability Dialogue on July 3. International Spotlight: India’s EAM Jaishankar wrapped up a Mongolia visit tied to the strategic partnership, including progress on the Mongol Oil Refinery project. Culture & Heritage: An international exhibition on Chinggis Khaan opened in the UK, bringing Mongolian artifacts to Leeds’ Royal Armouries.

Mongolia–China Finance & Energy: The Bank of Mongolia governor met China’s central bank chief on the sidelines of a BIS symposium and Mongolia and China re-signed their bilateral currency swap for three more years, aimed at boosting trade finance and cross-border payments. Green Transition Push: Mongolia opened its first “Green Station” in Bulgan’s Khutag-Undur soum, pairing EV charging with rest and retail services under the PM’s “Liberate” green policy; separately, CATL agreed to invest in a 100–400 MWh battery energy storage project in Tuv’s Sergelen soum, with plans spanning grid stability and battery recycling. Landlocked Development Planning: Mongolia began drafting a UN-backed Awaza Action Plan, focusing on trade, transport connectivity, and regional cooperation, with a consultative meeting at the UN House. Housing Law in Parliament: MPs started debate on a draft Housing Law and related bills; the government also submitted a draft Specialized Housing Finance Bank law, with a Democratic caucus recess approved for three days. International Legal Outreach: The ICC and 10 Asian universities set up a joint office in Tokyo to expand academic exchanges and training on international criminal justice, including Mongolia-linked institutions. Diplomacy & Regional Ties: Armenia and Mongolia discussed strengthening political dialogue, economic cooperation, and visa simplification during the Dubrovnik Forum. Global Context: The World Economic Forum’s “Summer Davos” in Dalian highlighted scaling innovation for jobs and growth, with Mongolia’s PM among participating leaders.

Green Transition & Energy Policy: Mongolia opened its first “Green Station” in Khutag-Undur, bundling EV charging, rest areas, and services under PM Uchral Nyam-Osor’s green push, alongside broader energy and transport reforms. Battery Investment: CATL founder Robin Zeng met the PM during “Summer Davos” in Dalian, with CATL signaling a 100–400 MWh battery energy storage investment in Sergelen soum, Tuv aimag. Central Banking & Trade Finance: Bank of Mongolia Governor Narantsogt Sanjaa and People’s Bank of China Governor Pan Gongsheng renewed the bilateral currency swap for three more years to support cross-border payments and market stability. Landlocked Development Planning: Mongolia began drafting its UN-backed Awaza National Action Plan, focusing on trade, transport connectivity, and regional cooperation. Housing Reform in Parliament: Parliament discussed a draft Housing Law and related bills, noting Mongolia’s roughly one million households and the recess that delayed consideration of the Housing Finance Bank legislation. International Diplomacy: India’s EAM S. Jaishankar visited Mongolia to advance the strategic partnership, including talks tied to mining, technology, and the Mongol Oil Refinery project. Cultural Diplomacy: The Royal Armouries in Leeds opened “Chinggis Khaan: How the Mongols Changed the World,” bringing hundreds of artifacts from Mongolian collections to the UK for the first time. UN Rights Spotlight: Mongolia won a seat on the UN CEDAW committee, joining other elected countries including Nigeria and Canada. Regional Legal Cooperation: The ICC and 10 Asian universities set up a joint office in Tokyo, with Mongolia among the partner institutions.

Housing & Finance in Parliament: Mongolia’s Parliament began debating the draft Housing Law and related bills, noting about one million households nationwide, with roughly one-third in apartments with full utility services; the Democratic Party caucus secured a three-day recess (not five), and consideration of the draft Specialized Housing Finance Bank law was also postponed. Tourism Data Pressure: A new analysis argues Mongolia’s “one million tourists” goal is undermined by weak measurement of inbound numbers and domestic tourism, leaving the sector unable to track real economic impact and limiting progress in global rankings. Central Bank Liquidity: The Bank of Mongolia and the People’s Bank of China renewed their currency swap agreement, aiming to boost local-currency funding and support cross-border trade amid market uncertainty. Mongolia–China Political & Economic Ties: Coverage highlights Prime Minister Uchral Nyam-Osor’s push to implement top-level agreements with China, focusing on trade, minerals, energy, and value-added processing (copper, aluminum, steel) plus a legal framework to expand business cooperation. International Spotlight: Mongolia’s European Film Festival director says this year’s edition brings acclaimed contemporary European films and training programs to Ulaanbaatar, strengthening cultural links.

Mongolia–China diplomacy: Mongolia’s PM Uchral Nyam-Osor met China’s Premier Li Qiang at the Summer Davos Forum in Dalian, with both sides stressing trade, minerals, energy, green development, tech and innovation, and Mongolia pushing value-added processing beyond raw exports. Monetary policy: Bank of Mongolia Governor Narantsogt Sanjaa said the Monetary Policy Committee kept the policy rate at 12%, citing May inflation at 11.2% and risks from Middle East-linked oil and food price pressures. Defense cooperation: Mongolia’s Cabinet approved a draft Mongolia–South Korea defense cooperation agreement for parliamentary consultation, building on earlier military-field ties. Foreign policy coordination: Mongolia and Türkiye held their 8th political consultative meeting in Ankara, covering UN cooperation and major events in Ulaanbaatar. Health & governance watch: While not Mongolia-specific, China’s new “ethnic unity” law and its overseas accountability clause drew fresh international concern, including from Australia. Sports (Mongolia-linked): UST-SHS’ NBA Rising Stars stint included a win over Mongolia’s Royal International School, though the team exited group play.

Monetary Policy: Bank of Mongolia Governor Narantsogt Sanjaa said the Monetary Policy Committee kept the policy interest rate at 12%, citing May inflation at 11.2% and risks from Middle East-linked oil and energy price pressures, with expectations that inflation may peak near 12% in June–July before easing. Korea Ties: Prime Minister Uchral Nyam-Osor met South Korea’s Kim Min-seok in Dalian, reaffirming the expanding strategic partnership, progress on the Mongolia–Korea Economic Partnership Agreement talks, and pushing reforms under “Four Paths to Freedom,” including a proposed Law on Business Freedom for foreign banks. Defense Cooperation: The Cabinet approved a draft Mongolia–South Korea Defense Cooperation Agreement for parliamentary committee review, aimed at deeper exchanges, training, research cooperation, and joint exercises. Türkiye Consultations: Mongolia and Türkiye held the 8th Political Consultative Meeting in Ankara, discussing ways to implement their strategic partnership and high-level Mongolian participation in COP17 and other events. India Refinery Progress: India’s Jaishankar visited the Sainshand oil refinery site, reviewing delivered equipment and near-complete crude pipeline works, and reiterated India’s support to finish on schedule. WEF Green/Digital Agenda: PM Uchral met WEF President Alois Zwinggi and sought cooperation on innovation, green development, mineral resources, energy transition, trade facilitation, and digital economy. Energy Security Debate: A new brief highlights Mongolia’s fuel vulnerability from reliance on Russian supply, arguing the domestic refinery helps availability but won’t solve affordability and sustainability without demand reduction via electrification and renewables. Regional Security Training: Khaan Quest 2026 continues in Mongolia with an Indian Army contingent participating in UN-mandated peacekeeping drills, including “Women, Peace, and Security” activities. Trade/Logistics Tech: A report on China-Mongolia border logistics spotlights AI-enabled autonomous freight operations at Ceke Port, underscoring how tech is reshaping cross-border movement.

Ethnic Unity Law Fallout: China’s Ethnic Unity and Progress Promotion Law is set to take effect July 1, with Beijing insisting it protects regional autonomy and development while critics say it could enable overseas crackdowns; Australia has formally complained to China and the UN over the law’s cross-border reach. Korean Peninsula Diplomacy: Mongolia’s former PM Gombojav Zandanshatar argues Mongolia should act as a “connector” to keep dialogue alive on the Korean Peninsula, echoing the Ulaanbaatar Dialogue approach. India–Mongolia–Korea Links: India’s EAM S. Jaishankar met South Korea’s counterpart in Seoul to deepen cooperation across trade, shipbuilding, defence and technology after a Mongolia leg, while Mongolia’s parliament speaker met Jaishankar to push the India–Mongolia oil refinery project. Security & Defence: Mongolia is set for a full-scale military parade on State Flag Day July 10, with 8,500 personnel and 90+ pieces of equipment, including domestically made drones. Environment & Biodiversity: Mongolia approved its National Biodiversity Strategy and Action Plan through 2030, and a “Clean Up Day Mongolia” volunteer project won an Asian best international human duties award. Sports & Culture: Khaan Quest 2026 peacekeeping drills are underway in Mongolia with an Indian contingent, and the Marco Polo-themed “Where Splendid Horses Run” exhibition opened in Ulaanbaatar. Business & Media: Central TV launched “On Brand Mongolia,” NBCUniversal’s first international adaptation of the marketing competition format, for Q4 2026.