Weekly Briefing |

Mongolia Weekly: Khurelsukh meets Putin and Xi; government submits 2027 budget and 2026 revision

August 29, 2026 to September 4, 2026 --- 1. Government Submits 2027 Budget Bill With MNT 2.306 Trillion Deficit Prime Minister Uchral and Finance Minister Z. Mendsaikhan submitted the 2027 budget bills on August 31. The proposal lists MNT 41.3 trillion in balanced revenue and MNT 43.6 tr

MongoliaWeekly

August 29, 2026 to September 4, 2026

1. Government Submits 2027 Budget Bill With MNT 2.306 Trillion Deficit

Prime Minister Uchral and Finance Minister Z. Mendsaikhan submitted the 2027 budget bills on August 31. The proposal lists MNT 41.3 trillion in balanced revenue and MNT 43.6 trillion in expenditure, while separately listing a MNT 2.306 trillion deficit. It assumes MNT 33.0051 trillion in tax receipts, including MNT 10.91 trillion from mining, and coal and copper-concentrate exports of 110 million and 2.1 million tonnes. The package seeks a MNT 6.4 trillion ceiling for new government debt guarantees.

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From daily briefs: 2026-09-01, 2026-09-02, 2026-09-03, 2026-09-04

2. Mongolia and Russia Agree to Accelerate Fuel, Power and Transport Cooperation

Prime Minister Uchral met Russian President Vladimir Putin in Vladivostok on September 2, and the sides agreed to accelerate cooperation on fuel, energy, transport, infrastructure, mining and agriculture. Priority work includes stable petrol and petroleum-product deliveries, a Mongolia-Russia-China rail corridor, expansion and modernization of Thermal Power Plant No. 3, a joint Asgat-mine study and a proposed gas pipeline through Mongolia to China. On September 3, Rosneft and Gazprom Neft said they would maintain stable deliveries under their government’s decision despite Russia’s April petroleum-product export ban.

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From daily briefs: 2026-09-01, 2026-09-02, 2026-09-03, 2026-09-04

The European Union listed Chinggis Khaan Bank in its 21st Russia-related sanctions package, adopted in July 2026, classifying the lender among non-EU financial institutions accused of seriously undermining EU restrictive measures. Regulation 2026/1848, dated July 23, names the bank and took effect August 13. The EU has not publicly specified the transactions, clients or conduct behind the listing, while the supplied report does not describe the practical restrictions. Mongolia’s central bank said the bank holds 0.02% of system assets, limiting stability effects; payment services continue normally.

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From daily briefs: 2026-09-01, 2026-09-03

4. Government Submits 2026 Budget Revision Amid Inflation, Deficit and Fuel Risks

The government submitted its 2026 budget revision to parliament on August 20, citing a deficit exceeding MNT 2 trillion, 13 percent July inflation and possible external fuel-supply disruptions. It proposes public-sector salary and pension increases from November, funded in part by more than MNT 300 billion cut from ministers’ budgets, according to the prime minister. Open Society Forum researchers said reallocations would instead increase state-budget spending by MNT 1.093 trillion and consolidated-budget spending by MNT 998 billion, warning of further inflationary pressure.

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From daily brief: 2026-08-29

5. Mongolia Reports First-Half Balance-of-Payments Surplus of About USD 566 Million

Bank of Mongolia figures cited by two outlets put Mongolia’s first-half 2026 balance-of-payments surplus at either USD 566.6 million or USD 566 million. A USD 179 million current-account surplus, improved by USD 1.9 billion year on year, was driven by a USD 4.5 billion goods-trade surplus and USD 3.7 billion higher combined copper-concentrate and coal export revenue. Oyu Tolgoi’s USD 2 billion external-debt repayment reduced financial-account inflows; June reserves stood at USD 7.7 billion, covering 4.8 months of imports.

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From daily brief: 2026-08-29

Construction crews completed all 291 bridge piers on the Gashuunsukhait-Gantsmod cross-border railway in Khanbogd soum, Umnugovi province, taking overall project progress to 49.27%. The project has produced 2,382 pile foundations, while installation work continues and 296 of 594 prepared girders have been assembled. Officials plan to commission the line and begin trial freight operations in April 2027. Once operational, it is projected to carry up to 30 million tonnes annually, expanding capacity at a major China export gateway.

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From daily brief: 2026-08-29

7. Japan and Mongolia Reach In-Principle Airport Expansion Financing Deal

Mongolia and Japan reached a principle agreement to expand capacity at Chinggis Khaan International Airport through a Japanese concessional loan. One report put proposed financing at JPY 65 billion over 40 years at 0.1-0.2% annual interest, but the project remains subject to Japanese study. Foreign Minister Toshimitsu Motegi’s visit was reported as September 3-4, while earlier accounts placed it on September 2-3. Japan will also examine Mongolia’s requests on domestic flights and short-term visitor visas.

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From daily briefs: 2026-08-29, 2026-08-31, 2026-09-01, 2026-09-03, 2026-09-04

8. Russia Extends Fuel Export Curbs as Mongolia Prepares Larger Reserves

Mongolia remains highly exposed to Russian fuel supply: about 97% of its imports come from Russia. Economist N. Enkhbayar said Russian refinery disruptions, Ukrainian drone attacks and rising Russian demand pose a direct risk to Mongolia’s supply and could raise import costs. Russia extended its diesel, marine-fuel and gasoil export ban through September 30, while restrictions on non-producer diesel exporters and motor-gasoline exports run to January 31, 2027, and the aviation-fuel ban through November. First-stage Salkhit storage is expected to open in September, targeting about one month’s supply by summer 2027; Mongolia’s refinery is scheduled for 2028.

Local Coverage: isee.mn

From daily briefs: 2026-09-01, 2026-09-02

9. State Firms Must Transfer at Least 30% of Funds to Budget From 2027

A law passed in July requires state-owned companies to transfer at least 30% of their funds into the state budget from January 1, 2027, Cabinet Secretariat head B. Enkhbayar said. The measure would bring spending previously decided within companies under parliamentary review. Enkhbayar said these companies hold MNT 60 trillion in assets and have MNT 20 trillion in annual budgets; the policy is presented as raising the state budget from MNT 30 trillion to MNT 40 trillion.

Local Coverage: itoim.mn

From daily brief: 2026-09-03

10. Khurelsukh Meets Putin and Xi on Rail, Energy and Trade Targets

President Ukhnaa Khurelsukh met Russian President Vladimir Putin in Bishkek on September 1, setting energy, transport, industry, minerals and agriculture as priorities. They discussed raising Ulaanbaatar Railway freight capacity from 30 million to 50 million tonnes over five years, agreed to study western and eastern rail corridors linking Russia, Mongolia and China, and to intensify cooperation on a Russia-China gas project through Mongolia. In a separate meeting, Khurelsukh and Xi Jinping reaffirmed a USD 30 billion bilateral-trade target within five years and discussed completing Gashuunsukhait-Gantsmod in 2027.

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From daily briefs: 2026-08-31, 2026-09-01, 2026-09-02, 2026-09-03