AGP Executive Report

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.

SCO Diplomacy for Trade: Mongolia’s President Khurelsukh pushed for the Shanghai Cooperation Organisation to become “implementation-oriented” as the Bishkek summit adopted the Bishkek Declaration, with leaders including Xi, Putin and Modi setting priorities on security, counter-terrorism, trade facilitation and economic integration. Russia-Mongolia Business Momentum: On the sidelines of the Eastern Economic Forum, Putin said Russia-Mongolia trade turnover rose 18.1% in 1H 2026 to $1.57bn, citing the interim free trade deal with the EAEU and expanding cooperation in energy, transport, mining and agriculture. Energy Corridor Update: Russia’s energy minister said the planned “Power of Siberia 2” gas pipeline has been renamed “Power of Baikal,” with the project expected to ship 50 bcm annually to China via Mongolia. Budget Watch: Mongolia’s 2027 draft budget projects 41.3tn MNT revenue, 43.6tn MNT spending and a 2.306tn MNT deficit, while noting first Oyu Tolgoi dividends to citizens. Youth & Work Rights: Mongolia’s ILO-backed training in Ulaanbaatar focused on decent work and youth labor rights, including protections against workplace pressure and discrimination. Land & Water Under Pressure: UNCCD COP17 coverage highlighted drought as a systemic risk tied to food, water and security—relevant for Mongolia’s rangelands and herding economy.

SCO Diplomacy: President Khurelsukh urged the Shanghai Cooperation Organisation to shift from “dialogue” to an “implementation-oriented” body, aiming for tangible results on peace, sustainable development, trade and investment. Mongolia–Russia Trade: Khurelsukh met Vladimir Putin in Bishkek, highlighting deeper “Comprehensive Strategic Partnership” ties and citing the interim free-trade deal with the Eurasian Economic Union as a boost for Mongolian goods; priority sectors include energy, transport, mining and agriculture. Eastern Economic Forum: Prime Minister Uchral arrived in Vladivostok for the Eastern Economic Forum, where a Mongolia–Russia business discussion is set for the first time and Putin is expected to meet Mongolian officials. Budget Watch: Mongolia submitted its 2027 draft budget projecting 41.3 trillion MNT revenue, 43.6 trillion MNT spending and a 2.306 trillion MNT deficit, with a key promise that Oyu Tolgoi dividends will reach citizens for the first time. Energy Corridor: Russia renamed the stalled “Power of Siberia 2” project to “Power of Baikal,” with a planned 2,600-km pipeline to China via Mongolia. ADB Trade Facilitation: The ADB approved a USD 400 mln BUILD facility to modernize CAREC border rail/road crossings, targeting faster, cheaper trade and better screening systems. Youth & Work: ILO training in Ulaanbaatar focused on decent work and youth labor rights, including practical guidance under Mongolia’s updated Labor Code. COP17 Follow-Through: Coverage from Mongolia’s UNCCD COP17 emphasized drought as a systemic economic risk and pointed to the need to turn pledges into implementation.

Mongolia–China ties: President Ukhnaa Khurelsukh met Xi Jinping, with both sides highlighting progress in trade, cross-border rail, renewables, environmental protection, agriculture and light industry, and discussing completion of the Gashuunsukhait–Gantsmod border rail crossing by 2027 plus gradual commissioning of other lines. SCO connectivity push: Khurelsukh also said Mongolia is ready to cooperate on a Mongolia–Russia–China transport corridor, including highways and rail links, as SCO+ leaders meet in Bishkek. Budget 2027: Mongolia submitted its 2027 unified budget framework and related laws to parliament, projecting revenue at MNT 41.3tn and expenditure at MNT 43.6tn, with a deficit of MNT 2.306tn, and proposing fiscal stability tweaks tied to state dividends and carryovers. UNCCD COP17 fallout: COP17 in Ulaanbaatar mobilized about $1.3bn for rangelands and drought resilience, but postponed a global drought agreement to COP18, leaving implementation and preparedness as the key gap. Energy deal watch: Russia and China renewed talks on the stalled Power of Siberia 2 gas pipeline at the SCO summit, keeping the overland energy corridor front and center for regional trade. People & skills: A Kenyan spa therapist in Mongolia is pivoting toward English teaching, reflecting growing demand for foreign skills in the local services market.

SCO & Corridor Talks: Mongolia’s President Khurelsukh said Mongolia is ready to cooperate with SCO members to build a Mongolia–Russia–China economic corridor, including high-speed highways and rail links, as leaders gather in Bishkek for the SCO summit. Mongolia–China Trade Push: In Bishkek, Khurelsukh and Xi Jinping agreed to raise bilateral trade turnover to $30 billion over the next five years, alongside cooperation in rail, renewables, environment, agriculture and light industry. SCO Summit Deal-Making: SCO leaders signed the Bishkek Declaration and 27 agreements, including calls to reform the international financial system and reject unilateral coercive measures, while stressing the bloc is not directed against third parties. Energy Pipeline Focus: Xi and Putin resumed talks on the stalled Power of Siberia 2 gas pipeline, with the project designed to route Russian gas through Mongolia into northern China. Mongolia Budget Update: The government submitted draft amendments for the 2027 budget framework and related laws, projecting revenues of MNT 41.3T, spending MNT 43.6T, and a deficit of MNT 2.306T, with Oyu Tolgoi dividends earmarked for power and reduced fuel dependence. Green AI Infrastructure: NOVVA Group and Mongolia’s MDDIC signed an MOU on green data centres and renewable-powered, AI-ready digital infrastructure under Mongolia’s “Sovereign by Design” initiative. Food Security Supply Chain: JICA’s JICABiz survey aims to localize Mongolia’s onion seed value chain, addressing that only about 50% of onion demand is met domestically and nearly all seeds/sets are imported. Teachers Policy Overhaul: The Education Ministry outlined a broader support package for teachers beyond salary, including professional development systems, work-norm reforms, and a private pension fund pilot for the education sector.

SCO Summit in Bishkek: China’s Xi told Mongolia’s President Khurelsukh Beijing is ready to deepen trade, connectivity, energy and mineral cooperation, aiming for “more areas of growth” as the SCO marks its 25th anniversary. Mongolia–Kyrgyz Trade Push: Kyrgyz President Japarov urged turning political trust into specific projects in trade, investment and transport logistics with Mongolia. UNCCD COP17 Finance for Land: Mongolia hosted COP17, ending with pledges totaling about $1.3bn for desertification and drought resilience, including a rangelands flagship initiative meant to move promises into investment-ready projects. Fuel Supply Update: Mongolia confirmed September fuel orders—about 65k tonnes AI-92 and 150k tonnes diesel—while shortages in some Ulaanbaatar soums are being prioritized. Ulaanbaatar Rail Bypass: A 127 km freight bypass is nearing completion, with test runs planned for September to divert heavy lorries and improve logistics around the capital. Medical Tourism Watch: South Korea saw foreign card spending on medical services jump 66.5% in July, signaling continued growth in inbound healthcare demand. Business & Travel Links: China expanded visa-free transit to more countries, with Mongolia among top source markets for arrivals.

Fuel Supply Watch: Mongolia’s PM task force says September demand is covered: 68,502 tonnes of AI-92 gasoline have arrived out of 74,780 ordered, and all 158,530 tonnes of diesel were imported; shortages persist in 30–40 soums, with Ulaanbaatar prioritized while distribution normalizes. UN Land Finance: UNCCD COP17 in Ulaanbaatar secured a reported $1.3bn for “green” land investments, but coverage highlights a wider worry that project pipelines and bankable deals still lag, slowing private capital. Business & Climate Tech: JinkoSolar attended COP17’s Business for Land Forum, pitching PV-based desertification control with solar-storage and “green financing” to scale solutions. Cross-Border Mobility: China’s visa-free and transit expansions keep boosting inbound travel; Mongolia is listed among top source markets benefiting from the policy shift. SCO Diplomacy: Mongolia’s regional context is dominated by the SCO summit in Bishkek (Sept 1), with major leaders meeting on trade, connectivity and security—Pakistan’s PM Shehbaz Sharif arrives and assumes chairmanship for 2026–27. Korea-Mongolia Links: Mongolia and South Korea immigration agencies discussed easing visa conditions for medical travel and expanding multiple-entry and e-visa options.

SCO Summit Watch: Mongolia’s President Khurelsukh is heading to Bishkek as the Shanghai Cooperation Organization marks its 25th anniversary, with Putin, Xi, Modi and Iran’s Pezeshkian among expected leaders and a packed schedule of bilateral meetings aimed at boosting regional cooperation and countering Western pressure. UNCCD COP17 Finance: After COP17 in Ulaanbaatar, countries announced a $1.3bn land-restoration and drought-resilience portfolio (with $644.5m new funding) and launched an investment hub to channel private capital into rangeland restoration, while talks still fell short on a stronger global drought framework. Mongolia Harvest Update: PM Uchral visited Selenge Province, where wheat yields are forecast to rise to 1.65 tonnes/ha, supported by Atar-4 concessional loans; farmers also pushed for a balanced wheat pricing mechanism and raised concerns over labor shortages and livestock encroachment. Trade & Markets: A report on coking coal benchmarking highlights how fewer observable spot trades and shifting liquidity can complicate price discovery as markets fragment. Green Business Angle: UNCCD COP17 also featured calls for more private investment and community-led rangeland protection, with Zimbabwe taking the African Group chairmanship for drought and land-degradation priorities.

SCO Diplomacy: President Khurelsukh has departed for Bishkek to attend the SCO extended heads-of-state meeting (Aug 31–Sep 1), with planned speeches and bilateral talks as Russia and China push a multipolar agenda. UN Land & Drought Finance: UNCCD COP17 in Ulaanbaatar ended with a $1.3bn land restoration and drought-resilience financing portfolio (including $644.5m new funding), but negotiators failed to lock in a stronger global drought framework, kicking key talks to COP18. Mongolia’s Harvest Outlook: PM Uchral visited Selenge’s farms, where 2026 wheat yields are forecast to rise (to 1.65 tons/ha) supported by concessional “Atar-4” loans; farmers still want a stable wheat pricing mechanism and more labor planning. Mongolia External Accounts: Mongolia’s H1 balance of payments posted a USD 566.6m surplus, driven by a larger goods trade surplus from higher copper concentrate and coal exports. ADB Cooperation: Finance Minister Mendsaikhan met ADB VP Scott Morris on projects for schools, hospitals, and emergency equipment, with Mongolia set to chair a CAREC ministerial meeting in late September. Regional Business Watch: South Korea’s medical tourism keeps accelerating, with foreign card spending on medical services up 66.5% y/y in July—Mongolia is among the rising patient sources mentioned.

SCO Summit Watch: Bishkek will host the Shanghai Cooperation Organisation summit on Sept 1, with leaders including Putin, Xi, Modi, Erdogan, Iran’s Pezeshkian and Mongolia’s President Khurelsukh, plus UN chief Guterres and other regional bodies. Putin’s Bilateral Push: Moscow says Putin will hold nine separate meetings on the sidelines, including with Xi, Modi, Erdogan, Mongolia and Kazakhstan—signaling economic and security outreach amid Western pressure. COP17 Finance for Land: Mongolia’s UNCCD COP17 wrapped with a $1.3bn land restoration and drought-resilience portfolio (including $644.5m new finance), but delegates failed to agree a global drought framework, kicking the tougher talks to COP18. Investment Hub for Rangelands: COP17 launched an “investment hub” aimed at closing a $278bn land-restoration gap by linking private capital to community rangeland projects. Mongolia External Accounts: Mongolia’s H1 balance of payments posted a USD 566.6m surplus as goods trade swung positive on higher copper concentrate and coal exports. ADB Cooperation: Mongolia’s finance minister met ADB VP Scott Morris on projects for schools, hospitals and emergency-management equipment, with CAREC ministerial talks and an ADB president visit planned later in the year.

SCO Summit in Bishkek: Leaders including China’s Xi, Russia’s Putin, India’s Modi, Iran’s Pezeshkian and Mongolia’s Khurelsukh will meet in Kyrgyzstan on Sept 1 for the Shanghai Cooperation Organization “Heads of State” and “SCO plus” formats, with Putin also set for bilateral talks on energy and regional issues. Power of Siberia 2: Putin and Xi’s planned meeting is expected to put the stalled gas pipeline back in focus, as pricing and terms remain unresolved. Mongolia’s external position: Mongolia’s balance of payments posted a USD 566.6m H1 surplus, driven by a big goods trade surplus from higher copper concentrate and coal exports, while services and primary income deficits weighed. ADB and health/infrastructure: Finance Minister Zagdjav met ADB VP Scott Morris on cooperation, including projects for schools, kindergartens, hospitals and emergency management equipment. Land restoration funding gap: UN data says land restoration needs USD 355bn a year but only USD 77bn is currently invested, leaving a USD 278bn deficit; COP17 in Ulaanbaatar mobilized up to USD 1.3bn for rangelands and drought resilience but postponed a global drought preparedness framework to COP18. UFC Shanghai: Umar Nurmagomedov vs Song Yadong headlines in Shanghai, with the event drawing major international attention.

UNCCD COP17 Wrap (Ulaanbaatar): The desertification summit closed with rangelands and grasslands firmly in the spotlight, including a $1.2bn rangelands initiative and a push to turn pledges into investable projects—but negotiators postponed a global drought preparedness framework to COP18 after divisions left no landmark deal. Private Sector Push: Mongolia’s Business4Land Mongolia Hub was launched via a UNCCD–Business Council of Mongolia MoU to pull companies into land restoration and drought resilience, while side events highlighted investment cases for forest and rangeland restoration. Community & Gender Tensions: Indigenous peoples, women, youth and pastoralists warned that objections by a single party sidelined core agenda items like gender and civil society participation, urging the Mongolian presidency to keep decision-making inclusive. EU Forestry Cooperation: Mongolia met EU officials to expand cooperation on forest rehabilitation and sustainable forest management, with talks also touching potential EIB financing and the “Steppe Action Agenda.” Regional Diplomacy: Mongolia is also in the orbit of wider Eurasian talks, with SCO and Eastern Economic Forum diplomacy featuring Mongolia’s PM among participants. Business Watch (China): PUTAILAI reported 1H2026 profit up 37.6% YoY on strong new energy battery materials demand, a reminder of how Mongolia’s supply-chain and green-industry ambitions sit inside a fast-moving regional market.