Mongolia Weekly: Mongolia launches investor shield, orders central bank overhaul; SOE sales eyed

January 17, 2026 to January 23, 2026

This week's top 10 stories from Mongolia, selected from our daily intelligence briefs.

1. Government Opens Investor Protection Center as Legal Reforms Are Readied

Mongolia’s Ministry of Economy and Development has opened an Investor Protection Center to streamline legal information, training and pre‑court dispute support as the government prepares amendments to the 2013 Investment Law and a draft Trade Law for the spring legislative session. Deputy Prime Minister J. Enkhbayar framed the center and related legal reforms as part of a broader drive to boost growth, exports and jobs; officials say the platform will channel investor feedback into policymaking, improve interagency coordination and host events such as “AmCham Week in Mongolia” to deepen public–private cooperation.

Analysts caution the center’s impact will depend on stronger rule‑of‑law and enforcement: the World Bank and U.S. sources cite frequent contract breaches and protracted dispute resolution—averaging 6.2 years—with a high share of unresolved cases deterring investors. Economist N. Enkhbayar warned that durable investor protection requires a “stable, predictable legal environment,” not transient bodies. The initiative signals intent to address structural barriers, but substantive judicial and enforcement reforms will be critical to change investor perceptions.

Local Coverage: unuudur.mn, isee.mn

From daily briefs: 2026-01-20, 2026-01-23

2. Parliament Speaker Orders Central Bank Overhaul; Audit to Probe Losses and Alleged Money Printing

Parliament Speaker N. Uchral has ordered an overhaul of the Bank of Mongolia, demanding cuts to headcount, elimination of overlapping functions and stricter fiscal discipline, and has asked the National Audit Office to audit the central bank’s operations after reported losses near MNT 10 trillion. Uchral linked the bank’s structural expansion and weak controls to persistent inflation and higher living costs and warned that confirmed irregular money issuance could be referred to law enforcement.

Bank of Mongolia President S. Narantsogt said a two-phase restructuring begins next week, consolidating 19 departments into 10 and limiting non-core activities, with a medium-term strategy through 2030 to address accumulated losses and inflation drivers. Audit chief S. Magnai­süren said the audit team is ready to proceed on formal request and will begin broader audits of budget entities from January 25.

Local Coverage: eagle.mn, gogo.mn, itoim.mn, urug.mn, news.mn, isee.mn

From daily brief: 2026-01-20

3. Parliament Weighs 2026–2028 Privatizations of Major SOEs, Sparking Equity and Control Concerns

The government has proposed privatizing minority stakes in several major state-owned enterprises via the stock exchange between 2026 and 2028, including 10% each of Erdenet Mining, Erdenes Tavan Tolgoi and Erdenes Critical Minerals, along with varying sales in MIAT, the Mongolian Stock Exchange, Törin Bank and multiple power plants (notably Thermal Power Plant No. 4). The move follows long-running losses and governance problems across the SOE sector: lawmakers say 101 SOEs hold MNT 78 trillion in assets but have accumulated over MNT 20 trillion in losses, with only a handful—Erdenet and Erdenes Tavan Tolgoi among them—reported as profitable.

Parliamentary scrutiny is underway: a working group led by MP D. Uuriintuya is drafting the resolution for the spring session. Critics caution that partial listings could entrench elite or foreign control given weak minority‑shareholder protections, raising political and market‑structure risks even as the government seeks to improve efficiency and fiscal outcomes through market-based disposals.

Local Coverage: news.mn

From daily brief: 2026-01-20

4. US Halts Immigrant Visas for Nationals of 75 Countries, Including Mongolia

The U.S. State Department announced on January 21, 2026 that it is indefinitely suspending issuance of immigrant visas to nationals of 75 countries, including Mongolia, in line with President Donald Trump’s directive aimed at preventing new immigrants deemed likely to rely on public benefits. Consular interviews for applicants from the listed countries will continue, but no immigrant visas will be issued until the policy is lifted; non‑immigrant categories (e.g., B1/B2 tourism/business and F1 student visas) are not affected. Dual nationals holding a valid passport from an unlisted country may still qualify for immigrant visas.

The move has immediate operational and legal implications for applicants and employers managing global mobility: existing valid immigrant visas will not be revoked, though some approved cases not yet printed could be voided according to reports, and policy implementation may shift with future State Department guidance or court challenges. Affected applicants and sponsoring organizations should monitor official State Department channels for updates and reassess relocation timelines and contingency staffing plans.

Local Coverage: gogo.mn, unuudur.mn, unuudur.mn

From daily brief: 2026-01-17

5. Russia-Mongolia Talks Outline Fuel Supply Safeguards with Border Storage Plan

Mongolia’s minister of Mining and Heavy Industry G. Damdinyam met Russia’s Energy Minister S. E. Tsivilyov and other senior officials in Moscow to agree measures aimed at preventing petroleum shortages in 2026, including regular online coordination and Moscow’s commitment to maintain uninterrupted deliveries and to prioritize Mongolian orders in exporters’ production plans. Participants from Gazprom, Rosneft, Tatneft and Russian Railways discussed establishing a fuel storage facility on Russian territory near the Mongolian border—potentially leased temporarily—to build strategic reserves for rapid replenishment while Mongolia expands domestic capacity; Mongolia’s latest imports were reported at about 11,460 tonnes of AI‑92 gasoline, 28,740 tonnes of diesel and ~1,300 tonnes of other products.

Concurrently, Damdinyam explored digital and supply diversification options with Chinese partners: talks with Inspur covered implementing an automated nationwide fuel‑inventory monitoring system and financing for depots sized for 3–6 months of national demand, and preliminary agreement in principle was reached on a long‑term fuel supply deal with CNPC to reduce Mongolia’s current 95% dependence on Russian imports (5% from China). Officials also discussed Mongolia’s role in a Russia–China gas transit pipeline and joint mining cooperation projects starting in 2026, signaling a coordinated push to improve downstream predictability, energy security and cross‑border infrastructure.

Local Coverage: unuudur.mn, isee.mn, urug.mn, itoim.mn, eagle.mn, gogo.mn, montsame.mn

From daily briefs: 2026-01-17, 2026-01-18, 2026-01-20, 2026-01-21, 2026-01-22

6. Parliament to Tackle Legal Block on Tavantolgoi Power Plant, Retender Planned for 2026 Contractor Selection

Parliament is set to address legal barriers in its spring session to enable a fresh tender for the 450 MW Tavantolgoi thermal power plant after earlier procurements failed under new rules prohibiting turnkey contracts. Energy Minister B. Choijilsuren said the government has submitted amendments to the Energy Law, the Public‑Private Partnership Law and the Debt Management Law; if passed, the tender can be relaunched under the revised legal framework with an EPC contractor to be selected by Q2 2026 and a 36‑month construction timeline targeting commissioning in 2028.

The project is intended to supply southern mining hubs such as Oyu Tolgoi and reduce annual electricity imports from China, retaining an estimated $120–140 million in domestic value each year. Separately, Umnugovi Governor N. Enkhbat announced a first‑time 500 billion MNT (about —) local bond program to fund a 50 MW plant, indicating growing regional financing initiatives to bolster Mongolian energy supply.

Local Coverage: news.mn

From daily brief: 2026-01-23

7. Energy Minister Projects End to Capacity Shortfalls in Central Grid by 2027 as Private Plants Advance

Mongolia’s Energy Minister B. Choijilsuren announced that the central power system is expected to eliminate capacity shortfalls from 2027, driven largely by private investment and a slate of coal-fired plants now under construction or planned. The minister said 560 MW was added over the past two years but demand still outpaced supply; upcoming projects he cited include a 660 MW Bayangol plant targeting 2027, a 660 MW Shivee-Ovoo unit aimed for H1–Q3 2026, 300 MW at Booroljuut already online with an additional 300 MW planned for 2027–2028, a 70 MW Selenge plant, and a 30 MW Tosontsengel site (22 MW operational). He stressed fiscal limits and the need for private capital—citing a $598 million estimate for a 300 MW Tavantolgoi tender—and warned of procurement risks and vested interests as the sector opens to private players.

Local Coverage: ikon.mn

From daily brief: 2026-01-22

8. Budget Gap Widens as 2025 Revenues Shift from Mining to Social Insurance and VAT

Preliminary 2025 data from Mongolia’s National Statistics Office show consolidated budget revenue and grants rising 3.8% year-on-year to MNT 32.6 trillion, but expenditure and net lending of MNT 31.3 trillion leave a stabilized deficit of MNT 1.2 trillion. Tax revenue fell 1.2% to MNT 27.1 trillion as mining-linked receipts—corporate income tax, mineral royalties and a 33.6% drop in resource use fees—contracted sharply; partially offsetting gains came from social insurance contributions (+18.9%), VAT (+6.1%) and property taxes (+32.3%).

The spending mix shifted toward current transfers while capital outlays declined 11% amid cuts to equipment and construction, and local budgets collectively recorded a MNT 526.1 billion shortfall. The Social Insurance Fund’s revenue rose to MNT 6.7 trillion alongside growth in beneficiaries and 2.5 million people registered for social welfare by year-end. The figures indicate weaker mining-driven inflows in 2025 and an increasing reliance on domestic consumption and payroll-based revenues, with implications for fiscal stability and capital investment capacity.

Local Coverage: gogo.mn, montsame.mn, eagle.mn, ikon.mn, isee.mn

From daily brief: 2026-01-20

9. Parliament Lowers Payout Threshold and Allows Advance Compensation in Livestock Index Insurance Reform

On December 12, 2025 Parliament approved amendments to the Livestock Index-Based Insurance Law that lower the payout trigger and introduce advance compensation to increase participation and speed relief during dzud events. The reform sets the loss trigger at 5% with a ±1 percentage-point band by soum, resulting in 120 soums at 4% and 155 soums at 5%, thereby expanding eligibility nationwide after studies found prior thresholds depressed take-up between 2020–2024.

To accelerate support, insurers may now make a one-time advance payment based on preliminary weather data from the national meteorological authority and interim livestock statistics from the statistics agency, rather than waiting for year-end verification. The law also updates governance terminology—replacing “livestock reinsurer” with “reinsurance company”—and moves the board deadline for audited annual reports from March 1 to April 1. Collectively, the measures aim to stabilize herder livelihoods and improve systemic risk management against recurrent dzud losses.

Local Coverage: gogo.mn

From daily briefs: 2026-01-22, 2026-01-23

10. Golomt Bank Opens USD Account with India’s HDFC, Enabling Direct Transfers and Trade Links

Golomt Bank has opened a US dollar correspondent account with India’s largest private lender, HDFC Bank, enabling its clients to send USD transfers directly to India and aiming to reduce costs and improve the speed and reliability of cross‑border payments. The partnership positions Golomt to deepen Mongolia–India trade and investment links; Golomt reports executing more than 35% of Mongolia’s outbound USD transfers by volume and 45% by value in 2025 and already maintains relationships with 27 financial institutions across multiple regions and 15 currencies.

For HDFC — which reported roughly $460 billion in total assets as of March 31, 2025, and operates over 9,500 branches and 21,000 ATMs across 4,100+ locations, plus international offices in Singapore, Hong Kong and Bahrain — the tie offers access to growing flows from Mongolia. Golomt’s CEO A. Odonbaatar framed the move as lowering transaction costs for domestic businesses as bilateral commerce expands, suggesting near‑term operational benefits for remittances and trade finance and potential medium‑term increases in bilateral trade volume.

Local Coverage: ikon.mn, itoim.mn, eagle.mn, news.mn

From daily brief: 2026-01-21

About This Weekly Digest

The stories above represent the most significant developments from Mongolia this week, selected through our AI-powered analysis of hundreds of local news articles.

Stories are drawn from our daily intelligence briefs, which synthesize reporting from Mongolia's leading news sources to provide comprehensive situational awareness for international decision-makers.