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Mongolia Daily: Fuel imports diversify, Oyu Tolgoi exports slow, IMF warns on budget

MongoliaDaily

Politics

Presidential Office Says It Will Seek Investigation of Former Mayor Nyambaatar

Published: 2026-10-27

The Presidential Office said it will ask law-enforcement authorities to investigate former Ulaanbaatar mayor and justice minister Kh. Nyambaatar over statements it describes as false allegations about President U. Khurelsukh. At an October 27 briefing, presidential communications official Ts. Ganzorig rejected claims concerning a private helicopter, property in Australia, Anduud Tower, tourism facilities, United Mall and luxury vehicles. He also rejected the claim that the President owned a US$30-40 million housing complex in Baga Tenger, while saying the President had bought a private residence in the area using savings. Ganzorig said the President owns a 58 percent stake in Ilkhaan, a tourism company operating in Terelj, and that ownership and asset information is publicly declared. He also said a former city press officer admitted distributing false information at Nyambaatar’s direction, and that the office had received information Nyambaatar was preparing to seek asylum in Canada.

“We will respond to these matters with documentary evidence.” - Ts. Ganzorig (ikon.mn)

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MPP Group Discusses 10-20% Cuts to 2027 Budget Spending

Published: 2026-10-27

The Mongolian People’s Party (MPP) parliamentary group discussed reducing current and investment spending in the proposed 2027 budget by 10-20% at its October 26 meeting. The revisions follow the government’s withdrawal of a proposal to fund development projects with MNT 2 trillion in Oyu Tolgoi dividends after public feedback. According to the reports, the planned reductions are intended to preserve funding for livestock vaccines, the school lunch program, energy, and equipment for education and health services. The group also heard recommendations from Parliament’s ethics subcommittee. The DP (Democratic Party) parliamentary group postponed its scheduled meeting because it lacked a quorum, with about 10 of its lawmakers reportedly abroad on presidential-visit and Australian mining-exhibition business.

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Parliamentary Committees Back Fiscal Stability Amendment

Published: 2026-10-27

Parliament’s Budget and Economic Standing Committees on October 27 backed at first reading an amendment to the Fiscal Stability Law submitted alongside revisions to the 2027 budget framework and 2028-29 projections. The change followed the government’s October 23 decision to withdraw a proposal to spend Oyu Tolgoi dividend revenue on social and basic infrastructure projects after receiving public feedback. MPP parliamentary group leader J. Batjargal said the 2027 budget resolution would direct the government to revise the Budget Law. Finance Ministry State Secretary M. Sanjaadorj said repeated sectoral amendments had fragmented budget policy, leaving Ulaanbaatar’s spending functions governed separately from its revenues. The Budget Committee also considered property-tax measures, including a proposed study of land-fee exemptions for qualifying sites.

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Lawmakers Submit Fiscal Stability Bill to Align It With Constitution

Published: 2026-10-27

Members of Parliament D. Enkhtuvshin and B. Jargalan submitted a bill on October 27 to amend the Fiscal Stability Law and bring one provision into line with the Constitution. Article 18.3 currently cites a constitutional clause as grounds for proposing the government’s dismissal if the consolidated budget fails to meet fiscal requirements for reasons other than those specified in the law. The referenced constitutional procedure changed in 2019, when provisions governing dismissal of the prime minister were rewritten. The sponsors said the obsolete reference makes a key accountability provision impracticable. Parliament Speaker S. Byambatsogt said Parliament must ensure the government works responsibly and laws are implemented. The sponsors said the amendment would make the provision enforceable and strengthen government accountability.

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Justice Ministry Plans 10 Bills for Final Passage This Autumn

Published: 2026-10-27

The Ministry of Justice and Home Affairs plans to submit or secure final parliamentary approval for 10 bills during the remaining two months of the autumn session, Justice and Home Affairs Minister G. Temuulen said. A proposed amendment to the State Registration Law, due to be introduced next week, would seek to prevent housing fraud. A revised Notary Law would allow remote authentication and online notarial services for the first time, while providing discounted or free services to designated groups. Other planned measures include bills on witness and victim protection, whistleblower protection, commercial law, civil procedure, enforcement of court decisions, offenses, and confiscation of illicit assets. The ministry expects to submit the revised Offenses Law by late November.

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Prosecutors send Darhan Metallurgical Plant bribery cases to court

Published: 2026-10-27

The Capital City Prosecutor’s Office has filed indictments against business executives accused of bribing former senior officials at the state-owned Darkhan Metallurgical Plant to secure commercial agreements. D. Unenbat, an executive of Khairkhantob LLC and Gerliin Khurd LLC, is accused of paying MNT 140 million to former Strategy and Business Development Department head G. Erdenesukh in connection with an ore-purchase contract. The case was sent to the inter-soum first-instance court in Darkhan-Uul Province. Separately, B. Khatan-Zorig, a shareholder in Mandakh Grand LLC and Khulag Holding LLC, is accused of paying USD 40,000, reported as MNT 135.7 million, to Erdenesukh and former chief executive G. Dugarjav. That case was transferred to the Bayangol, Khan-Uul and Songinokhairkhan District Criminal Court.

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Budget proposes MNT 29.2 billion for 2,000 vote-counting machines

Published: 2026-10-27

The 2027 draft budget allocates MNT 29.2 billion to buy 2,000 automated voting and counting machines before the presidential election due in eight months. Mongolia has used such equipment since 2012, but most of the original fleet reached the end of its software and service life in January 2024. The General Election Commission says it has already bought 1,000 machines this year and is completing technical certification, while the new budget would finance the remaining equipment. The commission used 2,189 polling stations in the 2024 parliamentary election and has sought 3,000 machines to cover larger stations and reserves. Commission chair N. Myagmar said discussions with Dominion Voting Systems aim to deliver the machines in the first quarter of 2027, allowing time for certification before the election.

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Petition for one personal or family-used garage tax exemption passes 100,000 signatures

Published: 2026-10-27

An online petition proposes amending the Law on Immovable Property Tax to exempt one garage or parking space owned and used for an individual’s or family’s needs. Initiated by Prime Minister’s adviser and lawyer O. Batkhuu, it passed 100,000 signatures on October 27, with sources reporting 100,379 or 100,412 supporters. Residents of Ulaanbaatar began paying immovable-property tax on garages and heated parking spaces in June. Reports say rates vary by location and zoning, citing 0.6 to 2.0 percent of assessed value, while one report lists 0.6, 0.8 and 1 percent for certified B1-level residential parking. The petition is to close November 5 before further processing.

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Green bus procurement retrial postponed until November 20

Published: 2026-10-27

The first-instance retrial involving Tenuun Ogoo LLC director A. Gankhuyag and other defendants in the so-called green bus case was postponed from October 27 to November 20. The Bayanzurkh, Sukhbaatar and Chingeltei District Criminal Court delayed the hearing because Gankhuyag’s lawyer could not attend. The judge warned that the court could not postpone the hearing again and instructed the parties to complete preparations. The retrial follows a Supreme Court decision to return part of the case for fresh first-instance consideration after an appellate ruling had dismissed a fraud charge against Gankhuyag. Earlier proceedings imposed a six-year prison sentence on him, while former parliament member J. Sukhbaatar was acquitted at first instance. Gankhuyag has since been released from detention under a measure restricting him from leaving Mongolia.

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Economy

Authorities Explore Diversified Fuel Imports as Supply Disruptions Persist

Published: 2026-10-27

Deputy Minister of Industry and Mineral Resources B. Munkhtamir said 36,000 tonnes of an October order for 57,000 tonnes of AI-92 gasoline had arrived in Mongolia, while 6,000 tonnes were in transit. One report said about 15,000 tonnes remained unloaded at the Angarsk refinery. Russian railway maintenance over the weekend and heavy snow slowed deliveries, worsening shortages. Authorities are exploring imports from China and third countries, while companies plan to bring fuel from South Korea through China. Preparations are under way for an agreement with South Korea, and a 12,000-tonne October order is expected in early November. November orders may increase, but price information has not arrived. Thirteen fuel stations on Ulaanbaatar’s main corridors must change shifts at 11:00, update Benzin.mn promptly, and serve people with disabilities and caregivers without queueing.

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Oyu Tolgoi Concentrate Exports Slow at Gashuunsukhait Border

Published: 2026-10-27

Border throughput at Gashuunsukhait-Gantsmod has fallen from 13 to 15 daily convoys to three or four over the past 14 days, slowing Oyu Tolgoi copper concentrate exports and causing stockpiles, according to reports. Compared with normal operations, the report estimates the company has lost $300 million in potential exports during that period. Chinese authorities have not publicly given a clear reason for the reduced crossings. Finance Minister Z. Mendsaikhan said Chinese-side port maintenance, which began in August, was scheduled to continue through October 31 and had reduced coal exports through Gashuunsukhait. Oyu Tolgoi exports concentrate by road through this crossing, while Erdenet Mining Corporation uses rail through Zamyn-Uud-Erenhot. If exports remain at four convoys per day through year-end without improvement, the report estimates $1.2 billion in potential exports could be at risk.

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IMF Warns Expanded Budget Could Prolong Inflation

Published: 2026-10-27

The IMF said Mongolia’s revised 2026 budget and proposed 2027 budget would materially expand fiscal policy, risking prolonged inflation and greater economic vulnerability. Mining-led growth reached 7.7 percent in the first half of 2026, reserves stood at $8.9 billion at end-September, and the IMF projects 6.2 percent annual growth. Inflation reached 12.9 percent in September, above the Bank of Mongolia’s 6 plus or minus 2 percent target; the IMF projects about 13 percent at end-2026 and 8.5 percent at end-2027. It urged rebuilding fiscal buffers, reconsidering tax cuts, tightening monetary conditions, and strengthening central-bank independence. Separately, researchers said the 2027 budget’s spending rise relies heavily on unstable mining revenue and lacks project detail; one report puts total expenditure at 41.6 trillion tugriks, while a Fiscal Stability Council member cited 43.6 trillion.

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Government Seeks Written Position and Authorized Representative for Entrée Negotiations

Published: 2026-10-27

The government has assigned the Minister of Justice and Home Affairs to lead contract negotiations concerning Entrée Resources and a strategic mineral deposit, Minister G. Temuulen said. A working group is assessing the state’s ownership share in the deposit as part of its mandate to ensure that most benefits from national mineral wealth are distributed to the public. The government has sent an invitation for talks and requested that the other side submit its official position in writing, including its view on how the deposit should be developed. It has also asked Entrée Resources to promptly send an authorized representative. Temuulen said the working group would follow the principle in Article 6.2 of the Constitution and expects talks to start soon.

“We have formally asked the other side to submit its position in writing and promptly send an authorized representative to begin negotiations.” - G. Temuulen (ikon.mn)

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Base Pension Payments Set to Begin on November 1

Published: 2026-10-27

A new multi-tier pension system will begin operating on November 1 under amendments to the Social Insurance package laws approved on July 2, 2026. Eligible recipients of social-insurance and military pensions will receive a separate base pension funded by the state budget, alongside their existing contributory pension. Women must be at least 55 and men at least 60; welfare pension recipients are not included in this payment. The General Authority for Social Insurance expects to calculate payments automatically for more than 400,000 recipients, without new applications. Officials estimate the base pension will add 200,000 to 300,000 togrog per month, depending on contribution history. The revised framework also introduces voluntary funded pension savings: participants can contribute 1 percent, with a 0.5 percent state incentive for 10 years, and accumulated funds can be inherited if the insured person dies.

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Former Erdenes Tavan Tolgoi Executive Faces Tender Investigation

Published: 2026-10-27

The Anti-Corruption Agency is investigating N. Tserensambuu, a former acting chief executive of Erdenes Tavan Tolgoi and current head of Gashuunsukhait Road LLC, over allegations that he abused public office in connection with company tenders, local reports said. He was detained for 48 hours and released, while investigators searched two locations with prosecutorial approval. One report linked the inquiry to a MNT 489 billion tender for blasting work at the West Tsankhi mine. The tender was first awarded to Blans LLC and later to Special Mining LLC after it was reissued. A court subsequently annulled the reissued tender decision and ordered Erdenes Tavan Tolgoi to address contract-award issues under applicable law. The investigation remains ongoing.

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Thermal Coal Exports Rise 73% in First Nine Months

Published: 2026-10-27

Mongolia’s thermal coal exports rose 73% year on year to 24 million tonnes in the first nine months of 2026, according to BigMint data cited by News.mn. The increase was the largest percentage gain among major suppliers during a period when global thermal coal trade fell 3.2% to 602.5 million tonnes. Russia’s thermal coal exports declined 18.6% to 42.5 million tonnes, moving it from third to fourth place among exporters as South Africa’s shipments rose 8% to 52.1 million tonnes. Indonesia remained the largest exporter despite a 10% decline, while Australia ranked second after a 2% increase. The report cited weaker Turkish power-station demand, high Chinese fuel inventories and stronger Mongolian competition as factors affecting Russian sales.

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Financial Regulator Prepares Ban on Non-Bank Loan Fees

Published: 2026-10-27

The Financial Regulatory Commission is preparing rules that would prohibit non-bank financial institutions from charging commissions and fees connected to loan services. The regulator said the measure is intended to reduce household debt pressure, lower the real cost of borrowing and protect financial consumers. It plans amendments to relevant regulations after determining that borrowers face an additional financial burden when fees are charged alongside interest. Under the proposed approach, lenders would no longer be able to charge the public separately through fees for funding costs, operating costs, risk costs and profit. The commission described the planned restrictions as part of a wider policy to make lending services more responsible, reduce pressure on household finances and safeguard consumers’ interests. The report did not state when the amendments would take effect.

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Minimum-Wage Increase to MNT 1 Million Put on Hold

Published: 2026-10-27

Labor and Social Protection Minister T. Aubakir said a proposal to raise the minimum wage to MNT 1 million from next year has been temporarily suspended. The current minimum wage is MNT 792,000, set in April last year. As of the first half of 2026, 879,837 people were employed nationwide, with more than 107,000 earning the minimum wage, according to the National Statistics Office. Aubakir said an increase would require amendments to numerous laws because fines and foreign-worker fees are linked to the minimum wage. He also cited a legal challenge over revisiting the rate before a full year has passed and warned that a higher threshold could add pressure to employers already facing tax and social-insurance costs.

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Diplomacy

Belarus and Mongolia Sign 2027-29 Roadmap and USD 50 Million in Business Deals

Published: 2026-10-27

During President Ukhnaa Khurelsukh’s state visit to Belarus, the two countries signed a 2027-2029 cooperation roadmap and a treaty on friendly relations and cooperation. The roadmap sets directions for future bilateral cooperation. During the visit, the sides also signed more than 10 government and interagency documents on cooperation in agriculture, light industry, customs, education, health, sports, media and communications. At a business forum in Minsk on October 26, companies signed 17 contracts and memorandums valued at USD 50 million, including on rail transport, construction, agricultural machinery, food and dairy products, energy, wool and cashmere. The sides agreed to seek a threefold increase in bilateral trade and use the interim trade agreement between Mongolia, the Eurasian Economic Union and its member states, which entered into force in July. They also discussed fuel supplies and the Brest-Ulaanbaatar container rail route.

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Infrastructure

November Holiday Closures Set for Road Border Crossings

Published: 2026-10-27

Border authorities have published their November operating schedule. On November 10, Genghis Khan’s Birthday, and November 26, Republic Proclamation Day, selected road crossings on the Russian and Chinese borders will close temporarily. On the Russian border, Tsagaannuur will close on those two dates, while Tes, Artsuur, Borshoo, Khang, and Ulikhan will also close on November 4. The published Chinese-border list includes Burgastai, Shiveekhuren, Gashuunsukhait, Khangi, Bichigt, Bayankhoshuu, Zamyn-Uud and Sumber for November 10 and 26 closures. Chinggis Khaan International Airport will follow its international flight timetable, and rail crossings on the Russian border will follow international train schedules. Altanbulag road crossing will operate 24 hours a day; all other crossings will follow approved hours.

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City Identifies 36 to 45 Areas at Risk of Winter Ice Overflow

Published: 2026-10-27

Ulaanbaatar authorities say 36 to 45 locations, covering a total of 596 hectares, face a recurring risk of seasonal ice overflow this winter. The phenomenon typically begins around December 10 and can continue through winter and into early spring. In four districts, 1,110 permitted and 67 unpermitted fenced plots lie in areas vulnerable to the hazard; officials said 390 household plots with a high likelihood of impact were cleared this year. District administrations, emergency services and engineering agencies are taking preventive measures. The city also reported that upgrades are under way on 80.2 kilometers of engineering networks and 132 kilometers of roads, while current and major repairs to heating and electricity distribution networks are nearing completion. Authorities said they have maintained lighting at 102,892 points across six central districts and removed more than 34,000 cubic meters of sediment from 24 flood-protection sites.

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Ice-Covered Streets Disrupt Travel After Snowfall in Ulaanbaatar

Published: 2026-10-27

Snowfall last Thursday and freezing weather left roads and pedestrian areas in Ulaanbaatar icy, disrupting traffic and sharply reducing the availability of buses and taxis, according to an Unuudur report. City authorities said more than 3,200 workers from 48 urban-maintenance organizations were on round-the-clock duty, supported by 647 specialized vehicles and 732 small pieces of equipment. They reported spreading 855.5 tonnes of salt and 422.5 tonnes of other materials on Friday, while winter-stock preparation was 80% complete. The report said sidewalks nevertheless remained covered in ice, forcing pedestrians to walk cautiously and creating fall risks, particularly for children and older residents.

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Fuel queues and crashes bring Ulaanbaatar traffic to a standstill

Published: 2026-10-27

Ulaanbaatar’s main roads, from Western Four Roads to Eastern Four Roads, were nearly gridlocked on October 26 as long queues outside fuel stations blocked lanes and intersections. The Traffic Management Center recorded nine road accidents by 6 p.m., further slowing traffic and reducing junction capacity. Bus services were also disrupted: passengers waited for long periods, crowded onto arriving buses, or walked home when they could not board. The Public Transport Policy Department introduced short-turn operations on some routes; the M:1 Tavan Shar-Officers’ Palace route was operating one-way under congested conditions on October 27. Reports also noted that the city plans to complete a feasibility study for the BYD-backed Sky Shuttle project by December, with construction tentatively planned from March 2027.

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City Council to Review Selbe Housing Pricing Model

Published: 2026-10-27

Ulaanbaatar plans to build 8,575 apartments across 158 hectares under the Selbe 20-Minute City project, but the City Citizens’ Representatives Khural is due to review a revised financing model next week after concerns that land clearance, infrastructure, and bond-interest costs could make the homes unaffordable. Selbe 20-Minute City Corporation chief executive B. Munkhbaatar said officials are studying a price below MNT 4 million per square meter, with the final figure depending on which costs the council includes. City Governor B. Purevdavaa said planned land-clearance and infrastructure spending totals MNT 700 billion. He has proposed a MNT 3-3.5 million per-square-meter range, while the city estimates that including additional costs would require sales at MNT 5.5 million per square meter to complete the project.

“If the state is involved, housing should be offered to residents at a lower price.” - B. Purevdavaa (news.mn)

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Society

Police Step Up Housing-Fraud Cases as Scam Reports Lead Crime Figures

Published: 2026-10-27

Police recorded 41,441 crimes in the first nine months of 2026, according to the General Police Department. Separate reports listed fraud, theft, crimes against personal health, and cybercrime among the most frequently recorded categories. Two reports put the fraud count at 13,731, while a housing-fraud report gave the figure as 13,371. A 40-officer task force established in July is investigating housing-fraud cases involving 3,990 contracts, 86 legal entities and reported losses of MNT 173 billion; it has recognized 2,208 people as victims. Of 173 cases, 117 have been resolved and 56 remain under investigation, with authorities aiming to resolve them by December 10. Separately, the Anti-Corruption Agency sent prosecutors 24 criminal cases for proposed referral to court during October 19-25.

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Police Warn of Online Scams Using Cheap Winter-Meat Ads

Published: 2026-10-27

Police have warned that fraudulent online advertisements offering low-priced winter meat, livestock and meat products are increasing as households prepare food supplies for winter. Scammers pose as herders from rural areas, reuse other people’s photos and videos, and ask buyers to transfer fuel money or a deposit before claiming goods are being transported. They then delete their accounts after receiving payment. The General Police Department says fake orders for goods and services account for about 35% of all fraud cases, while losses from online fraud have risen by billions of tugriks each year. Authorities advise buyers not to send advances to unknown sellers, to be wary of unusually low prices, and to inspect quality and weight in person or use state-organized certified food markets.

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Environment

Officials Face Accountability Measures After Numrug Protected Area Fire

Published: 2026-10-27

Prime Minister Uchral ordered a damage assessment, restoration plan, and accountability measures after a forest-and-steppe fire in Numrug Strictly Protected Area in Khalkhgol soum, Dornod Province. The protected-area administration said 469,000 hectares, or 79.8 percent, has been affected. An investigation is under way into entry into an area not reported to the protected-area administration, while experts will assess damage across soil, subsoil, vegetation, wildlife and air. Vehicles can reach about 30 percent of the burned land; a support team flew from Khalkhgol to inaccessible terrain to assist the assessment. Uchral instructed Finance Minister Z. Mendsaikhan to hold Border Port Administration head E. Gantulga accountable and ordered General Authority for Border Protection head J. Byambasuren to hold Unit 0198 commander B. Gantugs accountable and dismiss him. Uchral said Mobicom-related issues should be examined on the basis of law and evidence.

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November Outlook Puts 26 Percent of Land at Severe Dzud Risk

Published: 2026-10-27

The Institute of Meteorology, Hydrology and Environment has issued a preliminary November dzud outlook based on ground observations, satellite data, drought and summer pasture conditions, pasture carrying capacity for winter-spring 2026-27, forage yield, temperature and precipitation anomalies, snow depth, and monthly forecasts. It expects very severe wintering conditions for livestock across 8 percent of the country and severe conditions across 18 percent; 33 percent is rated moderate, 24 percent slight, and 16 percent no difficulty. The greatest risks are forecast for most of Bayan-Olgii, Uvs, Khovd, Zavkhan and Umnugovi provinces, plus parts of Govi-Altai, Bayankhongor, Khuvsgul, Arkhangai, Bulgan, Uvurkhangai and Dundgovi. Authorities advised affected areas to monitor updated weather and dzud forecasts and prepare contingency measures.

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Health

Health Insurance Covers Day Treatment for Children With Influenza

Published: 2026-10-27

Health authorities are increasing funding for day treatment of children as influenza and influenza-like illness cases rise during the seasonal outbreak. The Health Insurance Fund will fully cover a 100,000-togrog package for eligible children requiring day treatment at family, soum or village health centers. The package includes medical examination, monitoring, diagnostics, prescribed medicines, physical therapy and inhalation treatment. Parents will not need to buy medicines needed for covered treatment, and doctors will determine whether a child requires day care following an examination. One report specifies that the arrangement applies to children aged zero to five. Authorities plan to adjust funding through the end of the influenza season according to actual treatment demand and will publish weekly data on children treated, services provided and insurance-funded spending.

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Government Approves Paid Leave for Civil Servants Caring for Sick Children

Published: 2026-10-27

The government approved a measure on October 7 granting civil servants up to five working days of paid leave when a child aged six or younger has a cold or influenza. The arrangement applies during periods of high influenza incidence from October through March and also provides for remote work where necessary. The measure is limited to the public sector. The report notes that more than 100 countries have legal provisions for paid leave to care for sick children or family members, with many European Union countries covering such leave through insurance funds or employers. Sweden allows parents up to 120 days annually with 80% wage compensation, while Germany provides parents paid leave for sick children under 12 through health insurance.

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