Mongolia Weekly: Mongolia orders legal overhaul as EAEU trade deal advances; court curbs PM vote rules

December 27, 2025 to January 2, 2026

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

1. Parliament Accepts Constitutional Court Ruling on Criminal Defamation and Orders Legal Overhaul; Inflation Mandate Issued to Cabinet, Central Bank and FRC

Parliament accepted Constitutional Court Decision No. 10 and struck down Criminal Code Article 13.14 — the general criminal ban on “spreading obviously false information” — as incompatible with constitutional guarantees of free expression and access to information. Lawmakers voted in plenary (after the Legal Affairs Committee initially rejected the ruling) to form a cross‑party task force to draft amendments that will narrow and clarify defamation rules, likely shifting remedies toward civil liability; Speaker N. Uchral urged precise language to protect speech while safeguarding reputation and security. The Justice Minister B. Enkhbayar warned decriminalization risks given anonymity online, while MPs and journalists said the provision chilled scrutiny of officials.

Separately, Parliament passed a resolution directing the Government, Bank of Mongolia and Financial Regulatory Commission to curb inflation and strengthen fiscal discipline, setting objectives including at least 6% growth, keeping inflation within target bounds, and reducing poverty to 15%. The twin moves signal a short-term policy pivot to protect media freedoms and accountability, alongside an explicit macroeconomic mandate for the cabinet and central bank.

Local Coverage: isee.mn, news.mn, urug.mn, gogo.mn, unuudur.mn, ikon.mn

From daily briefs: 2025-12-31, 2026-01-01

2. Putin Signs Law Endorsing Temporary Free-Trade Deal Between EAEU and Mongolia

Russian President Vladimir Putin signed into law on December 2023 the ratification of a temporary free‑trade agreement between the Eurasian Economic Union (EAEU) and Mongolia, following Mongolian parliamentary approval on December 12. The interim pact cuts or eliminates tariffs on 367 product lines, with Russia’s Economic Development Ministry saying duty preferences will cover roughly 90% of bilateral trade and exempt 89% of Russian exports to Mongolia, lowering average duties in Mongolia on covered goods from 6% to 0.2%. Moscow estimates Russian firms could save about RUB 8 billion annually; 2024 trade figures cited in the report show a pronounced asymmetry — Russian exports to Mongolia are roughly $2.3 billion versus Mongolia’s $40 million of imports to Russia under EAEU tariffs.

Analysts warn the pilot could produce mixed outcomes: Mongolia expects a 24.1% rise in exports to EAEU members, with 97.5% of eligible items in agriculture and livestock, but some academic models project Mongolia’s GDP growth could fall by about 6.1% while overall exports rise 3.7% and imports 4.72%, risking industrial contraction as cheaper manufacturing imports increase. The agreement is explicitly interim and limited in scope, signaling a cautious step toward deeper integration; its sectoral impact and whether it will be expanded into a full FTA will depend on product coverage and implementation timelines.

Local Coverage: isee.mn, eagle.mn

From daily briefs: 2025-12-31, 2026-01-01

3. Year in Review: Landmark Uranium and Rail Deals, Political Upheavals, and a Major Power Plant Accident Reshape 2025

In 2025 Mongolia sealed two landmark economic deals and endured sharp political turbulence that together reshaped its fiscal and infrastructure trajectory. Economically, the government signed a government-investor pact with France’s Orano Mining to develop uranium with a guarantee of at least 51% of direct annual returns to Mongolia, issuance of preferred shares, escalated royalties, and new local-content and environmental requirements — a template signaling tighter, investor-facing extractives terms. Separately, the long-stalled Gashuunsukhait–Ganqmod rail project was revived under the Harbin accords: China Railway Construction Corporation (CRCC) was selected to build a dual-gauge line with a 22‑month delivery target, unlocking long-term coal sales and capacity upgrades and prompting parliamentary scrutiny of coal pricing in the related 21‑year sales contract.

Politically, Prime Minister L. Oyun-Erdene was removed after failing to justify family expenditures; his successors G. Zandanshatar and Speaker D. Amarbayasgalan also left office amid contested moves, leaving N. Uchral as MPP leader and Speaker — a sequence that underscores deep intra‑party instability with potential policy continuity risks. Public life featured the unveiling of a 7‑meter golden Chinggis Khaan statue at the national museum, while a deadly explosion at Thermal Power Plant No. 3 exposed decades of underinvestment; authorities initiated emergency oversight, leadership changes, and an accelerated rebuild plan to secure Ulaanbaatar’s heating ahead of peak winter.

Local Coverage: news.mn, news.mn

From daily brief: 2025-12-31

4. Constitutional Court Suspends Parliamentary Rules Extending Timelines for PM Confidence and Dismissal Votes

Mongolia’s Constitutional Court has ruled that Articles 101.1 and 102.1 of Parliament’s Rules of Procedure — which required a seven-day wait before debating motions to dismiss the prime minister or holding confidence votes — are unconstitutional because they conflict with constitutional timelines and the rule-of-law principle. The Constitution requires debate to begin three days after such motions and decisions to be made within ten days; the Court suspended the offending provisions effective December 26, 2025, and applied the ruling prospectively.

Practically, the decision accelerates the parliamentary calendar for no‑confidence and confidence motions, narrowing procedural leeway for delay and tightening political‑risk timelines for the executive and parties. It also reinforces constitutional supremacy over internal parliamentary rules and will shape future legislative drafting on executive accountability and parliamentary procedure.

Local Coverage: itoim.mn, isee.mn, ikon.mn

From daily brief: 2025-12-27

5. Copper Producer Achit Ikht Halts Negotiating Team as Government Seeks Free 50% Stake

Mongolia’s government has announced it will take a 34–50% stake in selected mining firms without payment, beginning with copper producer Achit Ikht. Cabinet Secretariat Chief S. Byambatsogt said a deal in principle grants the state 34% of Achit Ikht for free, with negotiations to raise that to 50%; he emphasized the move will not involve force. Achit Ikht, which produces cathode copper from Erdenet Mining Corporation’s secondary ore stockpile and built its own hydrometallurgical plant, said its negotiating team is halting talks because the government’s claim of up to 50% free state ownership exceeds the team’s mandate and legal authority, and shareholder-level discussions will follow.

The dispute — hinging on the legal basis for registering the dump as a state reserve and for unpaid state equity — could set a precedent for other Mongolian miners and affect investor confidence and project economics. For international stakeholders, the key implications are potential changes to ownership rights, retroactive state claims on privately funded assets, and increased political risk in Mongolia’s mining sector.

Local Coverage: isee.mn

From daily brief: 2025-12-27

6. Government Plans One-Time Cash Payout to 1.8 Million People Raises Fiscal and Policy Concerns

The government has announced a one‑time cash payout of 1 million MNT to 1.8 million people — including children under 18, seniors and people with disabilities — totaling 1.8 trillion MNT. The editorial criticizes the measure as politically driven and short‑term, arguing that the funds could instead finance lasting investments such as provincial diagnostic centres, modernization of rural schools and dormitories, mitigation of ger‑district air pollution, housing for 5,000–7,000 families, and creation of thousands of permanent jobs.

Analytically, the piece warns that universal, non‑targeted cash transfers are an inefficient use of scarce public resources: they mainly boost consumption of imported goods, risk feeding inflation, and leave structural problems (debt, overloaded hospitals, aging schools, unemployment, pollution) unaddressed once the money is spent. The editorial frames the decision as a lost generational opportunity to fund sustainable development priorities.

Local Coverage: news.mn

From daily brief: 2026-01-02

7. Credit Ratings Upgraded and External Balances Improve as Fiscal Reforms Advance

By late 2025 key macroeconomic indicators and fiscal reforms have materially strengthened the country’s external and credit profile. Real GDP growth, which had slowed to 2.6%, is projected to stabilize at 6.1% by year-end; the balance of payments swung from a $742 million deficit earlier in the year to a $141 million surplus by October, and foreign reserves rose to about $6 billion. Sovereign ratings improved: S&P upgraded to BB- (Stable) from B+ (Positive) — a 13‑year high — Moody’s moved to B1 (Stable), while Fitch maintained B+ (Stable). The OECD lowered export credit risk one notch to 6/7, a change that could modestly reduce borrowing costs.

Fiscal measures underpinning these outcomes include a 2026 budget that tightens overall spending while increasing allocations to health and education, plans MNT 3.3 trillion in public investment and seeks MNT 1.6 trillion in external financing for 738 projects aimed at creating 107,000 jobs. The sovereign Future Heritage Fund rose to MNT 4.7 trillion (including MNT 144 billion in interest), and planned tax reform would cut the tax burden by MNT 2.7 trillion and introduce phased VAT refunds from late 2026. Collectively, these developments point to improving debt-servicing capacity and investor sentiment, though execution of the investment and reform agenda will be critical to sustain momentum.

Local Coverage: urug.mn

From daily brief: 2026-01-01

8. Erdenes Tavantolgoi Calls Extraordinary Shareholders’ Meeting for February 6 to Amend Charter

Erdenes Tavantolgoi JSC (ETT) has called an extraordinary general meeting of shareholders for 10:00 on 6 February 2026 at the Corporate Convention Center in Ulaanbaatar to consider amendments to the company charter; the record date for the meeting is 19 January 2026 and meeting materials will be available from 26 January 2026. In line with Mongolian Government Resolutions No.181 (2012) and No.45 (31 Jan 2024), shares issued free to citizens and those purchased at par by enterprises will remain non‑voting and non‑transferable until secondary market trading begins, so only voting shareholders may submit proposals and vote at the EGM.

The charter amendment and attendant voting restrictions signal ETT’s continuing governance adjustments ahead of potential secondary‑market participation and regulatory compliance. International investors and stakeholders can access documents via ETT’s Finance Center (Jigjidjav Street, 1st khoroo, Chingeltei District, Ulaanbaatar 15160), the company website (www.ett.mn), phone +976 7505‑5555, email [email protected], or watch the livestream on ETT’s Facebook page.

Local Coverage: isee.mn, gogo.mn, news.mn

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

9. Diplomatic Ties Upgraded and New Corridors Agreed as Ulaanbaatar Expands 2025 Outreach

In 2025 Mongolia executed a broad diplomatic reset, upgrading ties and signing concrete connectivity and sectoral deals that expand its role as a transit and project hub in Eurasia. Ulaanbaatar elevated relations to “strategic partnerships” with Türkiye and Italy and “comprehensive partnerships” with the Czech Republic, Poland, Uzbekistan and Kyrgyzstan, hosted Japan’s Emperor Naruhito on his first state visit, and received reciprocal leader visits from Austria, Turkmenistan and Uzbekistan. Parliament completed diplomatic relations with Eswatini, Barbados, Trinidad and Tobago and Botswana, bringing Mongolia into formal relations with all UN members.

The year’s agenda prioritized transport, energy and trade: trilateral talks with China and Russia extended the Mongolia–China–Russia Economic Corridor to 2031 and advanced the 960 km “Soyuz‑Vostok” pipeline linking Russia’s Power of Siberia 2 to China via Mongolia, alongside an MoU to study Ulaanbaatar gas infrastructure. Rail traffic on Ulaanbaatar Railway rose to 32.4 million tons in 2025 (1.5× since 2013); Russia is drafting a modernization plan and considering mine branch lines. A temporary trade pact with the Eurasian Economic Union was ratified on December 12, with Russia signaling imminent approval, and Moscow–Ulaanbaatar intergovernmental talks on December 22 highlighted progress across 72 projects for 2026–2030 in trade, logistics, energy, education and climate initiatives. These moves signal Mongolia’s strategic diversification of partners and a shift toward project-oriented diplomacy with tangible infrastructure and supply implications for regional markets.

Local Coverage: montsame.mn, unuudur.mn

From daily briefs: 2025-12-31, 2026-01-01

10. Parliament Opens Debate on Overhaul of Insolvency Law to Align with Global Standards

Parliament has opened first-stage debate on a comprehensive overhaul of the 1997 Bankruptcy Law, proposing a new Insolvency Law to modernize procedures for initiation, creditor claims, restructuring and liquidation. The draft introduces combined cash-flow and balance-sheet insolvency tests, tighter verification of claims to curb abuse, updated roles, qualifications and incentives for insolvency practitioners (with new state duties for exams, training and an e‑database), and keeps sector-specific insolvency regimes for banks, insurers and NBFIs within their own laws while harmonizing common provisions.

Justice Minister B. Enkhbayar said the reform — accompanied by amendments to some 40 related bills — aims to create an effective, transparent legal environment and “cleanse” the economy; lawmaker O. Nominchimeg emphasized preserving viable businesses and equitable creditor distribution. The package signals a significant alignment with international standards that should improve creditor predictability, practitioner professionalism and cross‑sector consistency for investors and restructuring professionals.

Local Coverage: gogo.mn

From daily brief: 2025-12-27

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.