On February 7, Prime Minister of Mongolia G.Zandanshatar attended the opening ceremony of the “Thousand Camels Festival” during his working visit to Umnugovi aimag and delivered an address.

In his speech, the Prime Minister stated that Mongolia’s camel population has reached half a million. According to the 2025 national livestock census, 501,300 camels were counted. He noted that the figure has doubled over the past twenty years, rising from 254,000, and emphasized that this growth is the result of herders’ sustained efforts and is closely linked to the Camel Festival.

The “Thousand Camels Festival,” now recognized as a key winter tourism event, was first organized in 1997 in Sevrei soum of Umnugovi aimag. At the time, the camel population had significantly declined, with just over 200,000 camels recorded nationwide until 2002. The festival was initiated as part of efforts to increase camel numbers and promote the winter Gobi as a tourism destination, a goal that organizers say has since been achieved.

This year’s festival has brought together camel herders from more than 60 soums across four aimags, participating with over 1,000 camels. According to organizers, approximately 8,000 spectators attended the event, including more than 200 international tourists.

Festival activities included camel races in four age categories, a camel parade, a fermented camel milk celebration, a photography exhibition, and competitions recognizing the best camel pair as well as outstanding breeding male and female camels. Additional events featured camel polo and mounted archery competitions.

Several camel-related records have been set during the history of the festival. In 2016, a world record was established with a race involving 1,108 camels. In 2024, a national honorary title recognizing distinguished camel trainers was introduced. This year, President U. Khurelsukh proclaimed January 24 as the annual “Mongol Camel Day.”

Prime Minister of Mongolia G. Zandanshatar received Ms. Yasmine Fouad, Executive Secretary of the United Nations Convention to Combat Desertification (UNCCD), on 3 February 2026.

During the meeting, Prime Minister G. Zandanshatar provided an overview of the progress of preparations for hosting the 17th session of the Conference of the Parties to the UNCCD (COP17), scheduled to take place in Mongolia from 17 to 28 August 2026. He underscored that the Government of Mongolia is working in close cooperation with the Convention Secretariat and relevant partners to ensure the successful organization of the conference.

The Prime Minister further highlighted that, at Mongolia’s initiative, the United Nations has proclaimed 2026 as the “International Year of Rangelands and Pastoralists,” noting that this designation is closely aligned with the agenda, priorities, and expected outcomes of COP17.

Executive Secretary Yasmine Fouad expressed appreciation for Mongolia’s proactive and responsible efforts as the host country in advancing preparations for COP17. She reaffirmed that the UN Resident Coordinator’s Office and the Convention Secretariat will extend comprehensive policy and organizational support to facilitate the successful convening of the conference and will continue to work closely with the Government of Mongolia.

Ulaanbaatar has launched the “Milk for Immunity” program to support the health and nutrition of primary school students across the capital.

Under the initiative, students in grades 1 to 5 at public schools will receive milk three times a week. The program covers more than 189,600 students from over 170 schools and is being implemented jointly by city and district authorities, in cooperation with parents and guardians.

Officials said the program aims to improve children’s intake of essential vitamins and minerals, support healthy growth and development, and reduce the risk of osteoporosis and oral health problems. All milk and dairy products provided through the program will be supplied by domestic producers.

City authorities noted that the initiative is expected to expand to include students in grades 1–12 by 2027.

According to survey data, milk and dairy consumption among Mongolian children is 2.5 times lower than the levels recommended by the World Health Organization, highlighting the need for targeted nutritional support.

During a Cabinet meeting held on 28 January, the Chief of the Cabinet Secretariat, S. Byambatsogt, presented to Cabinet members an update on the progress of work conducted by the sub-working group responsible for evaluating proposals submitted by companies that have expressed interest in investing in and partnering on the Copper Concentrate Smelting and Processing Plant project to be implemented based on Erdenet Mining Corporation, a state-owned enterprise.

In September of last year, pursuant to an order of the Prime Minister, a Working Group was established to accelerate the implementation of the project to construct a copper concentrate smelting and processing plant at Erdenet Mining Corporation. The Working Group is chaired by S. Byambatsogt, Chief of the Cabinet Secretariat.

General information regarding the project was disseminated to 55 companies from more than 20 countries. To date, 13 companies from seven countries have officially expressed their interest in investing in and cooperating on the project.

To identify the most qualified investor and contractor, the sub-working group conducted an evaluation of the submitted proposals, taking into consideration the companies’ experience in implementing similar projects, proposed technical and technological solutions, financial and economic capacity, and comparative advantages.

The companies currently under consideration include:

  • NFC (People’s Republic of China)
  • Jiangxi Copper (People’s Republic of China)
  • A consortium comprising Liantou New Energy Technology, China ENFI Engineering Corporation, and Shanxi Northern Copper Industry (People’s Republic of China)
  • Glencore International AG (Swiss Confederation).

Preparatory work is underway to complete the final stage of the selection process for the investor and contractor for the Copper Concentrate Smelting and Processing Plant project within the first quarter of 2026.

Preparatory Work for Launching Direct Flights Between Mongolia and the United States Is Ongoing

At the Cabinet meeting held on 28 January, the Government discussed the progress of preparatory work for launching direct flights between Mongolia and the United States of America.

In 2023, the Governments of Mongolia and the United States concluded an Air Transport Agreement, thereby establishing the legal framework for operating direct flights between the two countries.

From the Mongolian side, to commence direct flights, it is required to undergo the International Aviation Safety Assessment (IASA) conducted by the U.S. Federal Aviation Administration, as well as a security assessment by the Transportation Security Administration. As part of the preparatory work for launching direct flights, the Civil Aviation Authority of Mongolia announced a selection process and, in 2024, entered into a consultancy agreement with the U.S.-based company The Wicks Group Consulting to obtain professional guidance for the IASA assessment.

Mongolian civil aviation sector organizations are currently implementing the recommendations provided through the consultancy services. To fully complete preparations for the IASA assessment, discussions have been held regarding the financing of the second phase of consultancy services through the United States Trade and Development Agency.

It is planned that a grant agreement will be concluded soon between the Government of the United States and USTDA, and the Government of Mongolia and the Civil Aviation Authority of Mongolia.

Prime Minister G. Zandanshatar on January 26 attended the opening of an exhibition showcasing products from domestic small and medium-sized enterprises, organized as part of preparations for the upcoming Tsagaan Sar holiday.

At the event, the Prime Minister announced that the Government is developing a strategy to reduce loan interest rates for national producers and intends to submit it to Parliament during the spring session. He noted that improving financial conditions for SMEs remains a priority for supporting domestic production and employment.

The Prime Minister further stated that a package of tax reform bills will be submitted during the same session. The reforms are expected to reduce the tax burden by 1.6 trillion MNT, primarily benefiting citizens and SMEs.

Prime Minister Zandanshatar underscored that strengthening national production contributes to economic stability and job creation. He called on citizens to purchase domestic products ahead of the Tsagaan Sar holiday and emphasized the importance of improving product quality and compliance with standards.

On November 1, Prime Minister G.Zandanshatar visited Dongsheng Petroleum Mongolia LTD in Zuunbayan, Dornogovi Province, to review the company’s operations and discuss plans for increased production.

Since its establishment in 2003, Dongsheng Petroleum has invested USD 480 million and extracted over 1 million tons of crude oil. Under the 1997 Production Sharing Agreement, the company has contributed USD 134 million to the state budget. The company currently operates 170 wells and plans to extract 56,000 tons of oil this year.

During the visit, the Prime Minister met with company executives and Chinese Ambassador Shen Minjuan, highlighting the importance of expanding exploration and production to supply crude oil for Mongolia’s upcoming oil refinery, expected to be completed in 2027.

Dongsheng Petroleum currently produces 50,000–60,000 tons of oil annually, with the capacity to increase output to 100,000 tons. Executives noted that certain legal and operational challenges remain that could limit further investment.

Under the leadership of China’s SINOPEC Group, Dongsheng Petroleum reaffirmed its commitment to continue investing in Mongolia’s petroleum and energy sectors, contributing to the country’s long-term energy security and economic development.

On November 1, Prime Minister G.Zandanshatar inspected the ongoing construction of Mongolia’s oil refinery in Dornogovi Province, announcing significant progress on the landmark project. The refinery, which was only 20 percent complete in June, has now surpassed 50 percent completion.

Since assuming office, Prime Minister G.Zandanshatar has prioritized the refinery as a strategic economic project, accelerating work with the aim of putting the facility into operation ahead of schedule, as early as next year.

The refinery project, financed through a USD 1.7 billion loan from the Export-Import Bank of India, consists of four development packages. The first phase was completed in 2024. Remaining packages, including the construction of a thermal power plant and technological facilities, are currently underway. Meanwhile, the 527-km crude oil pipeline that will feed the plant is 89.4 percent complete.

According to the official timeline, the construction of the refinery is scheduled for completion in December 2027, with commissioning planned for 2028. However, optimism for early commissioning remains high.

The project is expected to cover 50–100 percent of Mongolia’s domestic fuel demand, marking a major step toward energy independence. Additionally, the refinery will create approximately 1,500 new jobs and contribute significantly to the country’s industrial and economic development.

S&P Global Ratings has upgraded Mongolia’s sovereign credit rating from “B+ (positive)” to “BB- (stable)”, the country’s strongest rating in 13 years.

The upgrade reflects improved fiscal discipline, debt management, and sustained economic growth. Since taking office, Prime Minister G.Zandanshatar has amended the 2025 budget, cutting spending by MNT 2.2 trillion and reducing the fiscal deficit. The government also boosted coal exports and foreign currency inflows, helping foreign reserves reach a historic high.

S&P highlighted Mongolia’s strengthened budget performance driven by mining exports, a declining debt-to-GDP ratio, and expectations of continued steady growth with a relatively low deficit over the next one to two years. The agency also expects consistent policy implementation despite domestic political developments.

The move follows other positive ratings actions in 2025: Fitch affirmed Mongolia at “B+, Stable”, and Moody’s upgraded the country to “B1, Stable.” This is S&P’s second upgrade for Mongolia in two years.

The higher rating is expected to reduce Mongolia’s external borrowing costs, strengthen the credit outlook for banks and businesses, and boost investor confidence.

Highlights from the Cabinet Meeting – October 29

Expanded Working Group Established to Improve Housing Access for Teachers and Doctors

The Cabinet has established an expanded working group, headed by Minister of Urban Development, Construction and Housing E. Bat-Amgalan, to study and propose measures to improve housing access for teachers and doctors.

The working group includes representatives from the Ministry of Health, the Ministry of Education, the Ministry of Urban Development, Construction and Housing, and the Office of the Governor of the Capital City.

Draft Revision of the Family Law to Be Submitted to Parliament

The Cabinet discussed the draft revision of the Family Law and related amendments to other laws and decided to submit the package to Parliament after incorporating suggestions from Cabinet members.

Family Law is one of the core laws governing personal legal matters. The current law, adopted in 1999, has been in effect for 26 years without major revisions. Although it has been amended eight times since its adoption, those changes primarily aligned with broader legal reforms rather than addressing emerging issues in family relations. As a result, the existing law no longer adequately reflects the evolving dynamics of modern family and social relations.

Resolution Adopted to Support Parents During Influenza Outbreak

The Cabinet approved a resolution instructing government organization to grant up to five working days of paid leave to parents caring for children under six who are diagnosed with influenza, either in hospitals or at home, from November 1, 2025, to March 1, 2026.

The measure aims to help reduce influenza transmission and prevent complications. The government also encouraged private sector and non-governmental employers to adopt the same policy.

Young children are at risk of developing pneumonia within three to five days after flu symptoms appear, and the average recovery period is around 12 days. Providing paid leave during the early stage of illness can help prevent complications and reduce the burden on hospitals.

Mongolia and Kyrgyzstan Approve Agreement on Mutual Recognition of Driving Licenses

The Cabinet approved the “Agreement between the Government of Mongolia and the Cabinet of Ministers of the Kyrgyz Republic on the Mutual Recognition and Exchange of Driving Licenses,” signed in Bishkek on July 21, 2025.

Mongolia joined the Vienna Convention on Road Traffic in 1997, which governs the mutual recognition and exchange of national driving licenses among its 87 member states. Currently, Mongolian citizens permanently residing in the Czech Republic, the Kingdom of Belgium, and the Grand Duchy of Luxembourg can exchange their Mongolian licenses without additional requirements.

The Mongolia–Kyrgyzstan agreement will enter into force once both countries complete domestic legal procedures and notify each other.

Prime Minister G.Zandanshatar has established a Special Working Group to combat corruption and theft in the mining sector and state-owned companies. The group includes representatives from the General Intelligence Directorate, the Independent Authority Against Corruption, the National Police Agency, the General Customs Administration, the Mongolian Tax Administration, and all ministries.

The working group will review and provide recommendations on a draft law aimed at identifying the causes of corruption and official misconduct and strengthening the legal framework.

The Prime Minister instructed the group to focus on developing laws on whistleblower protection and enhancing the national system for witnesses and victims. He also highlighted the importance of amending the Law on State and Official Secrets, ensuring contract transparency, and establishing public oversight.