Politics
Budget Revision Stalls as Inflation Reaches 12.5 Percent
Published: 2026-09-12
Parliament’s extraordinary session, scheduled for September 7-14 to consider a 2026 budget revision and medium-term fiscal framework, has stalled at the second-reading stage because standing committees lacked a quorum. Prime Minister Uchral said the revision would save MNT 1.4 trillion, including MNT 1 trillion for wage and pension increases and MNT 400 billion in subsidies for price rises, energy and fuel shortages. The Fiscal Stability Council and Bank of Mongolia warned that the subsidies could add inflationary pressure, while auditors said the proposal does not meet the required structural-balance surplus. The DP criticized the bill. Separately, annual inflation reached 12.5 percent in August, while a disputed MNT 3.52 billion allocation listed for Ikh Zasag Kings School prompted scrutiny.
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Economy
Oyu Tolgoi Shareholders Amend Agreement to Cut Costs and Target 2027 Dividends
Published: 2026-09-12
The government and Rio Tinto have signed amendments to the 2011 Oyu Tolgoi shareholders’ agreement, the first changes in 17 years. Prime Minister Uchral said the measures are expected to increase the Mongolian side’s future benefit by about MNT 13 trillion. The agreement reduces management costs and duplicate expenses by about MNT 8 trillion and lowers shareholder-loan interest costs by about MNT 22 trillion, for projected savings of roughly MNT 30 trillion. Finance Minister Mendsaikhan said the loan rate was reduced from SOFR plus 6.5 percent to SOFR plus 4.0 percent, creating conditions for a USD 2.5 billion increase in the Mongolian side’s benefit. The parties also agreed to work toward distributing project dividends in 2027.
“Rio Tinto will cooperate to enable Oyu Tolgoi shareholders to receive dividends in 2027.” - Simon Trott (ikon.mn)
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City Council Set to Consider Domestic Securities Issue
Published: 2026-09-12
Ulaanbaatar’s Citizens’ Representatives Khural is scheduled to convene its extraordinary 14th session at 9 a.m. on September 14. The agenda includes first readings on approval of the capital’s 2025 budget execution and its 2027 development plan. Representatives will also consider refinancing the city’s foreign securities and backing the issuance of domestic securities. Other proposed items include amendments to the 2026 land-management plan, a 2026 list of municipal assets for privatization, the write-off of buildings and structures from the city property register, and nominations for state awards. The meeting was called under an order issued by the chair of the Citizens’ Representatives Khural. The reports describe the listed measures as agenda items, not decisions already adopted.
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Infrastructure
Appeal Hearing on Tuul Expressway Delayed for Two Weeks
Published: 2026-09-12
An appeal-stage preliminary hearing over the Tuul Expressway project has been delayed by 14 days after China’s Haoyuan Group sought time to hire a lawyer. Lawyer Batbold filed a court complaint last spring, arguing that a Ulaanbaatar Citizens’ Representatives Khural resolution approving the project was unlawful. On July 22, the first-instance administrative court ordered the project temporarily suspended until the case is finally resolved. Haoyuan Group appealed in August. The delayed proceeding is the preliminary hearing at the appeal stage. The case concerns the Tuul Expressway project and the legal challenge to the municipal resolution that authorized its implementation. The court is considering the challenge brought against the resolution, while the appeal follows the first-instance court’s temporary suspension decision.
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Moped and Scooter Rules Cut Crashes by 90 Percent
Published: 2026-09-12
Road-safety rules for mopeds and scooters have cut related crashes by 90 percent since the Road Traffic Safety Law took effect, according to the Traffic Police Department. Riders must be at least 18, register their vehicle and complete driver-licensing training before using public roads. They must use designated lanes where available; otherwise, they may travel along the right edge of the roadway. Riding on sidewalks is prohibited, and riders must dismount and push their vehicle across pedestrian crossings. Police say they are continuing enforcement. Mayor B. Purevdagva said 111 km of dedicated roadside lanes for mopeds and scooters have been completed, citing 2,700 people struck and injured by scooters or mopeds on sidewalks within one year.
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Special Even-Odd Plate Restrictions End
Published: 2026-09-12
The special even-odd license-plate restriction for vehicles was canceled on September 12, ending a measure introduced in connection with COP17, which was held in Mongolia. The restriction had required vehicles to circulate under an even-odd plate arrangement during the conference-related period. Under the announcement, ordinary license-plate restriction rules resumed once the special measure was canceled. The report does not provide the terms of those ordinary rules or identify a location for either the temporary arrangement or the resumed regime. It also does not describe any additional traffic-management changes. The cancellation specifically ends the COP17-related even-odd plate restriction, while the ordinary license-plate restriction procedure is to be followed again.
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YUNEX Traffic Begins Work on Smart Ulaanbaatar Traffic System
Published: 2026-09-12
YUNEX Traffic has begun work to introduce an intelligent traffic-management system in Ulaanbaatar with World Bank support, according to the city governor’s office. The global technology company specializes in urban traffic control, smart traffic signals and intelligent transport systems, or ITS. It is working at the city’s Traffic Management Center, a municipally owned enterprise, on improving traffic regulation through smart technology. The announcement does not specify a timetable, locations, cost or which components will be installed first. The project is therefore at the implementation-work stage rather than a completed citywide rollout. It seeks to strengthen management of traffic flows and signals in the capital through ITS expertise.
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Environment
Published: 2026-09-12
Authorities have delivered 2.4 million vaccine doses to local areas for a campaign against SAT-1 and O strains of foot-and-mouth disease. The vaccination program is planned to cover 2.6 million animals, including cattle and pigs in Selenge, Darkhan-Uul, Orkhon, Ulaanbaatar, Khentii, Sukhbaatar and Dornod, plus small livestock in selected soums. Preparations were made to begin work in eight central and eastern provinces from September 12, with the main vaccination period planned from September 15 to October 15 while weather remains warm. Campaigns in the remaining provinces will be organized after funding is resolved through the budget revision. Agriculture Minister Iderbat said prompt, high-quality vaccination during this period is important to prevent winter outbreaks.
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