AGP Executive Report

UAE Energy Deal: Mongolia’s Deputy PM Dorjkhand Togmid signed an MoU with the UAE Ministry of Energy and Infrastructure at AIM 2026, targeting renewable power, green hydrogen, grid upgrades, storage, and possible electricity/hydrogen exports to regional markets, plus training and investment attraction. Sovereign Wealth Market Prep: Mongolia also signed an MoU with BlackRock Financial Markets Advisory to support capital-market steps under the “Chuluulye” initiative, including consolidating state-owned enterprise shares via investment instruments and offering them domestically and abroad. Fuel & Air Quality Push: Ulaanbaatar laid out measures for the Sept. 15 heating season—improved fuel output, semi-coke sales points, tighter stock controls via the “Khotula” app, and coal imports for processing until a Baganuur plant starts in 2028. UNCCD After COP17: Mongolia hosted UNCCD COP17 in August and highlighted its “Steppe Plan” and flagship initiatives, while a separate UNCCD COP17 wrap notes Indigenous participation and key promises were still blocked or deferred. Energy Trade Signals: Russia’s electricity exports to Mongolia fell 6% to 450 million kWh in Jan–Jul 2026, even as overall Russian exports rose. Mining Investment Outlook: Orano’s CEO said Mongolia’s Zuuvch Ovoo uranium project could reach multi-million pounds per year by decade’s end, with major spend commitments already underway. Addressing the Ger City: South Korea will fund an 11 billion won aid project to roll out road-name and building-number addresses in Ulaanbaatar’s ger districts through 2029, improving logistics and digital services. Food Trade Update: Russia exported over 290k tons of agri goods to Mongolia in 7 months of 2026 (up 2.3x by weight), led by wheat and flour products. Parliament-to-Parliament Ties: Mongolia and Vietnam advanced cooperation through official talks, aiming to implement MoUs through 2028 and deepen trade, investment, and transport links.

Energy Deals: Mongolia and the UAE signed an energy cooperation MoU covering renewables, green hydrogen, grid transmission, storage, and potential electricity/hydrogen exports to regional markets. Capital Markets: Mongolia signed an MoU with BlackRock Financial Markets Advisory to support reforms under the “Chuluulye” initiative, including information exchange on consolidating state-owned enterprise shares and offering them on domestic and international capital markets. Fuel & Air Quality: Ulaanbaatar rolled out measures for the Sept 15 heating season, including improved fuel production, semi-coke sales points, tighter stock controls via the “Khotula” app, and plans to import coal while a Baganuur coal processing plant is built for 2028. Trade & Industry: Mongolia’s foreign trade turnover jumped 36.8% y/y to $22.8B in Jan–Aug 2026, with mining exports nearly 90% of total exports; meanwhile Russia exported 290k tons of agri goods to Mongolia in 7 months, up 2.3x by weight. Infrastructure & Addressing: South Korea will fund an 11bn won ODA project through 2029 to introduce a Korean-style road-name address system in Ulaanbaatar’s ger areas. Policy & Health: The government approved the “Year of Health Support – 2027” action plan, targeting continuity of subsidized medicines, digital health transformation, and better access to care. Bilateral Politics: Mongolia and Vietnam advanced parliamentary cooperation through official talks and MoUs, aiming for implementation plans through 2028.

Mongolia Trade Surge: Mongolia’s foreign trade turnover jumped 36.8% year-on-year to $22.8B in the first eight months of 2026, with a $6B surplus, driven by mining exports (about 90% of exports) and China remaining the top partner. Industrial Push: Mongolia plans an $800M steel complex in Darkhan-Uul to cut reliance on China, targeting 1M tonnes of steel a year; five Chinese firms are shortlisted, with an agreement expected by Oct 2026. State Sector Reshuffle: The government approved measures to implement the new governance law for state-owned enterprises, cutting staffing by 30%, removing 25 organizations from the budget, and aiming for MNT 30B in annual salary and recurrent savings from 2027. Audit Spotlight: Mongolia’s National Audit Office launched a financial and compliance audit of COP17 funding and spending (2023–2026), covering ministries and the organizing committee. Bilateral Business Drive: Montenegro and Mongolia are moving from agreements to action, with a business roundtable focused on direct contacts, tourism, and trade; a joint declaration also calls for more regular parliamentary links. Aviation Links: Ulaanbaatar’s airport operator signed an MoU with Hokkaido Airports to support new Mongolia–Hokkaido flight routes and civil aviation cooperation.

State-Owned Enterprise Restructuring: Mongolia’s government approved measures to cut staffing at state-owned enterprises by 30%, remove 25 organizations from the state budget, and reorganize 108–324 positions, targeting about MNT 30 billion in annual salary and recurrent savings starting with implementation plans for 2027. COP17 Financial Scrutiny: The National Audit Office launched a financial and compliance audit of COP17 funding and expenditure, covering 2023–2026 decisions, budgets, procurement contracts, and spending across multiple ministries and agencies tied to the UN desertification conference hosted in Mongolia. Demographics & Labor Market: Mongolia’s census data shows 99% of residents are Mongolian citizens and 1% are foreign nationals; foreign nationals living in Mongolia for six months or longer rose to 35,446 (+58.1% since 2020), with growth linked to mining, infrastructure, and industrial zones in provinces like Dornogobi, Tuv, and Umnugobi. Trade & Diplomacy: A Mongolia–Montenegro business roundtable focused on diversifying trade and expanding B2B ties during President Jakov Milatović’s state visit. Energy & Geopolitics: Power of Siberia 2 talks reportedly stalled over a gas price gap, with China seeking far lower pricing than Russia’s reference to Power of Siberia 1. Aviation Links: New Ulaanbaatar International Airport (NUBIA) signed an MoU with Hokkaido Airports to explore new Mongolia–Hokkaido flight routes, supporting tourism and aviation workforce development. Corporate Finance: Erdene Resource Development entered an automatic securities purchase plan alongside its normal course issuer bid to buy shares for cancellation, including during trading blackouts.

Fuel Crisis: Mongolians are facing five-hour queues and soaring prices as a Russia-linked petrol shortage bites, with authorities using purchase caps, a ban on stockpiling, and license-plate rationing to manage supply. Energy Reform: The crisis is also spotlighting Mongolia’s winter power vulnerability, where heating demand strains the Soviet-era system and leaves the capital reliant on imports during cold snaps. Tourism & Trade: Mongolia welcomed 705,098 foreign tourists in the first eight months of 2026, up 17.9%, with Russia, China, South Korea, Japan and Kazakhstan leading arrivals. Diplomacy & Business: Mongolia and Montenegro advanced cooperation during a state visit, agreeing to expand trade, economy, education, science, media and people-to-people ties, with a private-sector roundtable planned to spur partnerships. Agriculture: Mongolia’s harvest commission is urging faster harvesting and zero-waste practices as colder weather approaches, supported by working-capital and concessional loans under the Atar-4 campaign. Media Cooperation: China and Mongolia called for stronger journalism links to deepen mutual understanding, including at the 16th China-Mongolia Media Forum in Hohhot.

Mongolia–Montenegro Diplomacy: President Khurelsukh and Montenegro’s Jakov Milatović issued a joint statement after official talks, agreeing to expand cooperation in trade, economy, education, culture, science, media and people-to-people ties; a Joint Declaration and multiple agreements (including visa-free diplomatic/official travel and diplomatic training cooperation) were signed. Tourism Boost: Mongolia welcomed 705,098 foreign tourists in the first eight months of 2026, up 17.9%, with Russia, China, South Korea, Japan and Kazakhstan leading. Energy & Fuel Stress: Fuel shortages tied to reliance on Russia worsened, with queues reported in Ulaanbaatar; a prime-ministerial task force ordered urgent deliveries to 17 soums in Bulgan, Dornod, Dundgobi, Umnugobi and Sukhbaatar, after 30 soums had run out of fuel. Food Security Push: With snow and colder weather expected for agricultural regions, the State Harvest Commission urged faster harvesting and zero-waste methods, backed by working-capital and concessional loans under the “Atar-4” campaign and plans to mobilize students and military personnel. Green Industry Deal: BYD investor relations reported a strategic cooperation agreement with FinDreams Battery and Zero Carbon Engine Technology Group to develop zero-carbon projects in Mongolia’s mines, logistics and industrial parks. Mining/Power Watch: Rio Tinto’s Bell Bay aluminium smelter electricity contract talks with Hydro Tasmania remain unresolved as the current deal nears expiry, keeping the plant’s costs in focus.

Renewables & Power Infrastructure: Mongolia’s first competitive renewable energy auction is now moving from plan to contracts, with the National Dispatching Centre signing power purchase agreements for 220 MW of solar PV plus 135 MW/440 MWh of battery storage across five provinces; tariffs range from $0.0485/kWh (Dundgovi) to $0.078/kWh (Khentii), and a second auction is set for Sept. 11. Budget & Household Support: Mongolia’s parliament opened an irregular session to debate 2026 budget amendments, redirecting MNT 1.44 trillion in operating savings toward higher pensions, public-service salary adjustments, the “School Close to Home” program, and expanded strategic food reserves, alongside stabilizing energy supply without raising prices. Heating Project Progress: Ulaanbaatar’s 63 MW Dambadarjaa thermal power plant is 70% complete and is expected to support reliable heat for about 5,000 households, with district-heating connections aided by the “Selbe 20-Minute City” apartment buildout. AI Governance Debate: A commentary argues Mongolia’s AI push needs a practical verification standard inside workflows before systems influence decisions, citing fragmented data and governance gaps as operational risks. Mining & Exploration: Azzuro Resources reports new resistivity anomalies and drill-ready targets at its Oval Cu-Ni-PGE project after a 3D IP survey, including a standout deep extension signal. Korea Medical Tourism: Korea Tourism Organization’s roadshow in Ulaanbaatar and Dalanzadgad targets Mongolia’s mining workforce with tailored health screenings and packages, aiming to convert high-spending industrial visitors into sustained demand.

Energy & Infrastructure: Ulaanbaatar’s 63 MW Dambadarjaa thermal power plant is 70% complete, with boilers, coal storage and pollution-control equipment under construction; once online it should supply heat to about 5,000 households and ease winter restrictions. Renewables Push: Mongolia has completed its first competitive renewable energy auction, awarding 220 MW solar PV and 135 MW/440 MWh battery storage across five provinces, with a second auction set for Sept. 11. Budget & Governance: Parliament opened an irregular session to debate 2026 budget amendments, with lawmakers urging measures to ease household pressure and protect long-term stability while expanding private-sector freedom. Energy Security & Investment Climate: Prime Minister Uchral ordered oil exploration and extraction to be protected by Internal Troops, citing national security and the need to reduce fuel-import dependence. Mining & Capital Markets: Mongolia’s sovereign wealth fund is positioning state-owned miners to attract global investors, while Korea is targeting Mongolian miners for medical tourism. Exploration Update: Azzuro Resources reports new 3D IP anomalies at its Oval Cu-Ni-PGE project, defining five priority targets and importing a new DHEM system for September surveys. Regional Diplomacy: Mongolia’s ties with Japan deepen as foreign ministers meet, and Montenegro’s president is set for a state visit to Ulaanbaatar (Sept. 8–10).

Copper Market Watch: Analysts say copper prices may need to rise further from record levels to close a supply gap driven by falling ore grades, higher capex and fast-growing demand from AI and electrification. Mongolia–Russia Trade & Logistics: Ulaanbaatar Railway reports freight volumes on track for a record year, with Mongolia-Russia transport cooperation also including a mobile medical train service for thousands. Mongolia–Japan Aviation Deal: President Khurelsukh met Japan’s FM Motegi, reaffirming the “Special Strategic Partnership” and welcoming a concessional-loan plan to expand Chinggis Khaan International Airport capacity. Mongolia–Europe Diplomacy: Montenegro’s president will visit Mongolia Sept 8–10, aiming to deepen trade, investment, education, tourism and climate cooperation. AI Hardware & Data Centers (Regional Impact): DeepSeek plans a massive Inner Mongolia data center using at least 160,000 Huawei Ascend 950DT chips for inference, highlighting the wider shift toward domestic AI compute. Mining Tech Trend: Autonomous battery-electric haulage is scaling up, with reports of 1,500+ electric autonomous mining trucks deployed. Tourism Cooperation: East Asia tourism leaders push “coopetition” to grow the regional market together rather than compete for the same travelers. Digital Payments & Relief: Nepal’s QR-code donation system for flood relief shows how fast digital rails can mobilize funds—an approach relevant to disaster-ready economies. Construction Sector Milestone: Mongolia marks 100 years of modern construction, with a push toward greener, safer, disaster-resilient development beyond the capital.

Mongolia–Russia trade & transport: Mongolia’s rail freight is on track for a record high, with “Ulaanbaatar Railway” moving 33m+ tonnes last year and nearly 20m tonnes in the first seven months, while Mongolia and Russia also discussed transport cooperation at the Eastern Economic Forum. Mongolia–Japan ties: President Khurelsukh met Japan’s FM Motegi, reaffirming the “Special Strategic Partnership,” and both sides welcomed an agreement in principle for Japan’s concessional loan to expand Chinggis Khaan International Airport capacity. Mongolia–Montenegro diplomacy: Montenegro President Jakov Milatović will visit Mongolia Sept 8–10 for talks on expanding trade, investment, education, tourism and climate cooperation, with a joint declaration and documents expected. Tourism & business links: East Asia tourism leaders pushed multi-destination travel packages via EATOF, aiming to help regional tourism businesses capture longer itineraries. Labor mobility: Korea is rolling out predeparture safety training in Mongolia for migrant workers under the Employment Permit System, linking Mongolian instruction with post-arrival orientation to cut workplace accidents. Construction & jobs: Mongolia marked 100 years of modern construction, highlighting the sector’s role in growth, employment and supply chains. Food systems: Mongolia’s state secretary joined Bhutan’s Global Conscious Food Systems Summit, tying Mongolia’s pastoral heritage to climate-resilient food governance. Energy & infrastructure: Russia ordered renaming the stalled “Power of Siberia 2” pipeline to “Power of Baikal,” with the route tied to future gas supply agreements.

AI & Chips: DeepSeek plans to deploy at least 160,000 Huawei Ascend 950DT accelerators at a new data centre in Ulanqab, Inner Mongolia, mainly for inference (running finished models), while training still relies on Nvidia—highlighting how China’s chip push is reshaping the AI stack. Mongolia Construction Milestone: Mongolia marked 100 years of modern construction, noting the sector’s role in growth, jobs, manufacturing and supply chains, and urging greener, safer, future-focused city development. Food Systems & Pastoral Resilience: Mongolia’s State Secretary Jambaltseren joined Bhutan’s Global Conscious Food Systems Summit, linking Mongolia’s nomadic pastoral heritage to climate-resilient food governance and food security. Regional Business Deals: Russia’s 11th Eastern Economic Forum in Vladivostok ended with 285 cooperation agreements worth 6.66 trillion rubles, including dialogues involving Mongolia and other Asia-Pacific partners. Permitting Reform: Mongolia’s Investor Protection Centre discussed licensing simplification, digital permit applications, and moving from special permits toward regular permits activated via notifications. Mongolia-Japan Talks: Mongolia’s FM met Japan’s Motegi, reaffirming the Special Strategic Partnership and pushing deeper economic cooperation. Energy Corridor Naming: Russia ordered renaming the delayed “Power of Siberia 2” to “Power of Baikal,” with the Mongolia route still tied to future supply agreements.

Mongolia’s Construction Milestone: President Khurelsukh marked the 100th anniversary of Mongolia’s modern construction sector, highlighting its role in growth, jobs, household income, and supply chains. Food Systems & Pastoral Resilience: State Secretary Jambaltseren joined Bhutan’s Global Conscious Food Systems Summit, linking Mongolia’s nomadic pastoral heritage to climate-resilient food governance and rural livelihoods. Eastern Economic Forum Deals: The 11th Eastern Economic Forum in Vladivostok ended with 285 cooperation agreements worth 6.66 trillion rubles, including business talks involving Mongolia and other Asia-Pacific partners. Agriculture Cooperation: Mongolia’s ambassador to Italy presented credentials to IFAD’s chair, discussing expanded projects to strengthen herders’ resilience and agriculture human resources. AI Hardware Push (China): DeepSeek plans to deploy at least 160,000 Huawei Ascend 950DT accelerators in Inner Mongolia for running AI models, while ByteDance secured a $29.6B loan to fund AI data centers. Business Environment Reform: Mongolia’s Investor Protection Centre training focused on licensing reform, digital permitting, and simplifying the process for businesses. Regional Connectivity & Diplomacy: Mongolia-Japan foreign ministers held official talks, reaffirming the Special Strategic Partnership and plans to deepen economic cooperation.

AI & Energy: China’s energy storage firms are rolling out AI-native systems that turn natural-language instructions into automated charging and scheduling, aiming to cut outages and optimize trading. Labor Mobility: Korea is linking predeparture safety training in Mongolia with post-arrival orientation for migrant workers under the Employment Permit System to reduce workplace accidents. Trade & Policy: Mongolia’s permitting is getting more digital and streamlined, with more permits shifting toward notifications and simplified renewal rules. Food Security: Mongolia plans government wheat purchases for a strategic reserve at cost-based prices (up to 1.45m MNT/tonne for Class I) to stabilize supply and support farmers. Mongolia-Japan Ties: Foreign ministers Battsetseg Batmunkh and Motegi Toshimitsu held official talks, reaffirming the Mongolia–Japan Special Strategic Partnership and pushing deeper economic cooperation. Regional Governance: UNCCD COP17’s Mayors’ Forum in Ulaanbaatar produced a declaration calling for stronger local government roles in drought resilience and sustainable land management. Global Finance/AI: ByteDance secured a $29.6b loan for AI infrastructure, while DeepSeek is reportedly planning a massive Huawei chip deployment in Inner Mongolia.

SCO Summit Update: Leaders in Bishkek adopted the 26th SCO Bishkek Declaration, signaling shared positions on security, counter-terrorism, and economic cooperation as Kyrgyzstan handed over the rotating presidency to Pakistan. Mongolia–Russia–China Trade & Energy: Mongolia’s PM pushed effective rollout of the interim trade deal with the Eurasian Economic Union, while Russia and China kept working on gas supply talks under the “Power of Baikal” plan that routes through Mongolia. Japan–Mongolia Ties: President Khurelsukh met Japan’s FM Motegi; both sides agreed to deepen cooperation on trade, digital governance, renewable energy, critical minerals, and airport expansion at Chinggis Khaan International Airport. Food Security: Mongolia’s government set wheat purchase prices for a 100,000-tonne food-wheat reserve, aiming to stabilize prices and support farmers. Local Media Pressure: A new report says Mongolia’s local media outlets have been shrinking, especially outside provinces, raising concerns about access to local information. Tourism: Foreign arrivals hit a record pace, with Japanese tourists rising for four straight years. Sports & Business: Mongolia’s wrestlers won bronze at the World Nomad Games, and the 21st Taiwan–Mongolia Economic Forum wrapped in Ulaanbaatar with deals targeting biotech, digitalization, and tourism.

Air Quality & Public Health: Mongolia launched a nationwide air quality monitoring system, installing automatic stations in Ulaanbaatar and all 21 aimags, with real-time data and forecasts available via agaar.gov.mn. Aviation & Connectivity: Japan and Mongolia agreed to cooperate on expanding Chinggis Khaan International Airport, using Japanese yen loans to boost people-to-people and economic exchanges. Energy & Trade Corridor: Mongolia’s PM said the Russia-Mongolia-China economic corridor and border upgrades will cut transport time and costs, while Russia renamed the stalled “Power of Siberia 2” gas pipeline to “Power of Baikal,” with construction moving toward final preparations. SCO Diplomacy: Mongolia’s President and PM took part in SCO meetings in Bishkek, with leaders discussing expanded cooperation and a more implementation-focused agenda. Land Restoration Finance: At UNCCD COP17 in Mongolia, mayors adopted the Ulaanbaatar Declaration on drought resilience, while ICBA highlighted financing and drought-resilience work. Regional Business Finance: ByteDance secured a $29.6bn syndicated loan to fund major AI-related spending plans, underscoring how debt is fueling Asia’s tech buildout.

Mongolia-Russia Trade & Energy: Russia’s fuel crunch is spilling into Mongolia, with officials warning of higher gasoline and diesel prices and tighter supplies as Russian exports fluctuate. Eastern Economic Forum (EEF) Diplomacy: At the EEF in Vladivostok, Mongolia’s PM said a gas pipeline route through Mongolia to China could unlock trilateral strategic opportunities, while Russia also highlighted broader interregional cooperation potential with Mongolia. Central Bank & Markets: The Bank of Mongolia bought 3,058 kg of precious metals in August, lifting year-to-date purchases and signaling continued reserve accumulation. Air Quality Infrastructure: Mongolia launched a nationwide air quality monitoring system with stations across Ulaanbaatar and all 21 provinces, with public data and forecasts now available online. Mining & Investment Signals: Mongolia-linked regional business chatter also includes new exploration activity in Australia’s NSW copper-gold sector, reflecting ongoing investor appetite for critical minerals. Regional Connectivity & Trade Growth: Russia reported trade turnover with Mongolia up about 18% in 1H 2026, alongside talks on infrastructure modernization and implementation of prior agreements.