Economy
Tourism Generated MNT 3.2 Trillion Last Year but Fuel Shortages Threaten Peak Season
Published: 2026-08-09
Tourism generated at least MNT 3.2 trillion for the economy last year and accounted for 6-7 percent of gross domestic product, according to the Professional Tourism Association. Mongolia had received 568,989 foreign visitors as of August 2026. The association said fuel shortages during the summer peak are disrupting tourism operations and could cause MNT 1.2 trillion in losses if they continue. In an association calculation using a scenario of 846,000 visitors, about 70 percent were assumed to come from Russia, China, South Korea, and Japan. It estimated that visitors from those markets contribute at least USD 500 each, while travelers from more distant markets such as Australia and the United States typically stay longer and spend about USD 240 per day. Tourism income supports operators, museums, herder families, hotels, restaurants, and cafes.
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Government Orders Spending Cuts as Fuel Supply Measures Continue
Published: 2026-08-09
The government has ordered a spending-saving regime across all budget entities after reporting a 2.1 trillion tugrik deficit in the first half of 2026, with balanced revenue of 14.6 trillion tugrik and consolidated expenditure of 16.7 trillion tugrik. Salaries, pensions, emergency services, healthcare and education will remain fully funded, while spending classified as non-essential will be reduced. Finance Minister Z. Mendsaikhan linked the pressure to 2025 debt payments financed from the budget and higher pay for teachers and doctors, and said a budget amendment will be prepared. Fuel restrictions also remain in place until August 15, following supply difficulties. Mongolia imports 95-97 percent of its petroleum products from Russia. The DP (Democratic Party) blamed government policy and said the country lacks a clearly defined state strategic fuel reserve.
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Diplomacy
Industry Minister Heads to Russia for Fuel-Supply Talks
Published: 2026-08-09
Minister of Industry and Mineral Resources G. Damdinyam is traveling to Russia for talks on fuel supplies, his ninth trip there since taking responsibility for the sector a year ago. He said the government has worked to limit diesel-price increases and maintain imports that have faced interruption risks since February. The minister cited the US-Iran conflict, the Strait of Hormuz crisis, and the Russia-Ukraine war as pressures on global oil markets. He said fuel shortages and restrictions cover 90 percent of Russia’s territory, while Russia has continued supplying Mongolia. Damdinyam plans to travel from Russia to Kazakhstan and then Beijing for further fuel discussions. He said Mongolia’s annual fuel consumption is growing by 14 percent.
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US Senate Approves Russia Sanctions Bill Targeting Oil Buyers
Published: 2026-08-09
The US Senate voted 86-11 to approve the Lindsey O. Graham Sanctioning Russia Act, a bill intended to penalize Russia and countries purchasing its oil in connection with the war in Ukraine. The measure was named for the late Republican Senator Lindsey Graham, who introduced it before his death last month. It would impose visa and other sanctions on President Vladimir Putin and Russia’s top military commanders, and set tariffs of up to 500 percent on Russian exports. It would also authorize the US president to impose import tariffs of up to 100 percent on goods from the five largest buyers of Russian oil and natural gas. The bill now goes to the House of Representatives, which is expected to consider it after its late-August recess.
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Iran Sets Six Conditions for Reopening the Strait of Hormuz
Published: 2026-08-09
Iran has said the United States must meet six conditions before the Strait of Hormuz can fully reopen, according to Mohammad Bagher Zolghadr, secretary of Iran’s Supreme National Security Council. The demands include ending threats and pressure against Iran, halting attacks on Iran and its allies in Lebanon, Palestine, Yemen and Iraq, lifting the US naval blockade, withdrawing nearby naval and air forces, compensating Iran for losses from two alleged wars, removing sanctions and releasing frozen Iranian assets without conditions. Iran’s Islamic Revolutionary Guard Corps said reopening the waterway depends on US acceptance. The United States has indicated it could lift the blockade of Iranian ports if commercial shipping can transit the strait unhindered. Oman is seeking to mediate talks.
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Infrastructure
Parking and Road Access Near Two Ulaanbaatar Markets to Be Restricted for COP17
Published: 2026-08-09
Ulaanbaatar will temporarily close the parking areas at Narantuul and Dunjingarav shopping centers and restrict traffic on the affected road sections from 07:00 to 21:00 during the UN Convention to Combat Desertification COP17 conference. The measures begin on August 17 and will remain in place while the conference runs through August 28 at the National Park. City authorities said public-transport service in the affected direction will be increased. Officials expect about 5,000 guests and delegates from 196 countries to attend the conference. The city administration’s press office announced the parking closures, traffic restrictions, and increased public-transport access in connection with the event. The source does not specify which lanes or road sections will face the restrictions.
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Concessional Loans Fund 22 Fuel-Storage Projects as Capacity Expands
Published: 2026-08-09
Eighteen companies have begun building or expanding 22 petroleum-product storage facilities with government-supported concessional loans, and some facilities have already entered service. Prime Minister Uchral inspected projects by Sun Petroleum LLC and Shunkhlai LLC in Songinokhairkhan District and instructed officials to support their completion. Sun Petroleum is building 16,000 cubic meters of storage in the district’s 20th khoroo; an 8,000-cubic-meter facility is 95 percent complete and is scheduled to open by August 20. Once the storage facilities enter service, they are expected to cover 13 days of Ulaanbaatar’s AI-92 gasoline demand. Shunkhlai’s planned 100,000-cubic-meter facility is 40 percent complete and scheduled for full commissioning by December 31, 2027. The government plans to continue supporting storage expansion in the 2027 budget.
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Selenge’s 70 MW Thermal Plant Lights Its First Technological Fire
Published: 2026-08-09
Ride Mongolia is building a 70 MW thermal power plant in Sukhbaatar soum, Selenge Province, where the plant’s first technological fire was lit. Located 311 km from Ulaanbaatar, the plant will have two boiler units, each with a 35 MW turbine generator. It is projected to produce 489.2 million kWh of electricity annually and distribute 440.2 million kWh of electricity and 373,000 Gcal of heat. Construction began May 1, 2024, and work is under way to put the plant into operation by October, before winter peak demand. Cambodia’s MITIME Group is performing turnkey construction. Energy Minister B. Naidalaa said the plant could help cover electricity and heating-capacity shortages and reduce dependence. The ministry said it will use Mongolia’s first modular carbon chimney.
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Environment
Thunderstorms Bring Flood Risk and Cooler Nights Across Much of the Country
Published: 2026-08-09
The National Agency for Meteorology and Environmental Monitoring forecasts heavy rain and thunderstorms in Selenge, Tuv, and Ovorkhangai provinces on August 9, with rising river levels, strong gusts, hail, lightning, and flash flooding possible. Rain is expected to shift to the eastern half of the country on August 10, affect the Orkhon-Selenge basin and Khentii mountains on August 11, and reach the Altai, Khangai, and Khuvsgul mountain regions through August 13. Winds may temporarily strengthen before rain; one forecast puts Gobi and steppe winds at 14-16 meters per second on August 10. Ulaanbaatar is forecast to receive rain and thunderstorms on August 9-10, then cool from August 10, with daytime highs of 18-23 C.
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Innovation
Ulaanbaatar Opens Online Kindergarten Registration on August 10
Published: 2026-08-09
Applications for public kindergarten places in Ulaanbaatar for the 2026-2027 academic year will be accepted through E-Mongolia from 9 a.m. on August 10 until 11:59 p.m. on August 23. The capital expects 126,827 children to need preschool places, out of 258,921 nationwide: 27,832 two-year-olds, 31,303 three-year-olds, 32,002 four-year-olds and 35,690 five-year-olds. Parents and guardians should verify their own and their child’s registered residential address before applying. Families whose children attended kindergarten last year are advised to select the option to continue at the same institution. Enrollment, registration and transfer preparations for 73 kindergartens and 60 schools in five districts will be handled online during the August 17-28 COP17 conference period; authorities said teaching programs will not change.
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