Good Morning! Ulaanbaatar traded traffic for running shoes last weekend as the 11th UB Marathon drew its largest crowd yet. The city center was filled shoulder-to-shoulder with runners, families and supporters from early morning until the finish line. If you missed this year’s energy, maybe it’s time to start training for the next one. 👟

What’s inside today’s edition…

• ⛴️ Mongolia Becomes China’s Top Monthly Coal Supplier for First Time

• 🤔❓ Who will be the Next Mayor?

• ⁇ Mongolia’s Productivity Recovers, But…

We’ve got a lot to cover, so let’s get moving. 🐐

MARKET

EAEU: The EAEU–Mongolia free trade agreement is set to take effect on July 22, 2026, eliminating or reducing tariffs on 367 product categories and bringing nearly 90% of Russia, Mongolia trade under a preferential regime.

MNG: China’s coal imports from Mongolia jumped 61% in April to 11.3 million tons, overtaking Indonesia as China’s top monthly coal supplier for the first time in years. 

RUSS: Russia’s Inter RAO electricity exports to Mongolia fell 16.6% year-on-year to 250 million kWh in the first quarter of 2026.

🤔❓ Who will be the Next Mayor?

Ulaanbaatar is set to get a new mayor this week following the official dismissal of former city governor Kh.Nyambaatar, capping off one of the capital’s most politically charged weeks in recent years.

👀 A Political Turning Point

Last week, Prime Minister N.Uchral announced Kh.Nyambaatar’s removal amid mounting public frustration over soaring meat prices and shortages in reserve meat supply. The move came after inspections at food markets and contracted reserve meat distribution points revealed growing public anger over living costs.

Shortly after, Kh.Nyambaatar pushed back publicly through a livestream, accusing the Prime Minister of politically targeting rivals and obstructing city projects. The broadcast quickly gained traction online, becoming one of his most viewed live sessions in recent weeks.

🗯️ More than just Meat Prices

Still, few believe the dismissal was only about reserve meat. Over the past two years, the city administration faced increasing criticism over ballooning municipal spending, controversial mega-project proposals, mounting deficits, and aggressive political messaging. From trillion-tugrik infrastructure ambitions to accusations of wasteful spending, pressure had been building long before the latest dispute erupted.

👹 Why Now?

That remains the biggest political question. The grounds for removing Kh.Nyambaatar had existed for some time, yet the trigger ultimately became meat prices — an issue directly felt by households amid persistent inflation. For many observers, the timing reflects not just economic frustration, but broader political recalibration inside the ruling party ahead of the next phase of city leadership.

Overall… Under Mongolian law, the Prime Minister holds the authority to nominate a replacement within 15 days. Attention has now shifted from whether Kh.Nyambaatar would survive politically to who will inherit one of the country’s most difficult jobs: running a capital struggling with congestion, debt, pollution, and increasingly impatient voters.

⭐ Selected for you

ECONOMY & BUSINESS

• Kincora Copper Pockets US$1.5M Option Payment in Mongolia Asset Sale. (DiscoveryAlert)

• Mongolia Growth Group Finalizes Arrangement, Changes Board and Leadership. (StockTitan)

• 1st Beechcraft King Air 360 to Enter Mongolian Market With Order Placed by Hunnu Air. (ASDNews)

• China–Mongolia’s Busiest Land Gateway Tops One-Million Passenger mark Four Days Earlier Than in 2025. (VisaHQ)

POLITICS

• Mongolia Secures $3.7 Billion in Savings and Benefits in Rio Tinto Talks. (Morningstar)

• Seoul Concludes Urban Development Training Program for Mongolian Officials. (TheKoreaTimes)

• Beyond Aid and Trade: Japan, Mongolia, and the Critical Minerals Opening. (CSIS)

• China, Mongolia to Hold Steppe Partner 2026 Joint Army Training. (MOD)

 CULTURE & LIFESTYLE

• Asia Activates Its Political and Sporting Axis in Mongolia with Ulaanbaatar 2026. (Mastkd)

• The United States and Mongolia Collaborate on Conservation of Golden Stupa and Temple Complex at Erdene Zuu Monastery. (USEmbassy)

🏋🏻‍♀️ Mongolia’s Productivity Recovers, But…

As of the first quarter of this year, the average Mongolian worker generated labor productivity of ₮4.8 million, or around $1,350. 

• ☔️ Weather Matters: Mongolia’s economy remains highly seasonal and heavily dependent on weather conditions. During the first quarter, sectors such as construction and agriculture tend to slow sharply during winter, making Q1 traditionally the weakest period for labor productivity each year.

📌 Higher, but… 

The $1,350, figure marks an 11.4% increase, or around ₮500,000 and $140, from the same period a year earlier. Since labor productivity is calculated using real GDP, the gain reflects real growth beyond inflation. More notably, it marks the highest winter-season productivity level in Mongolia’s history.

• ⛳️ Breaking out of stagnation: The last time Mongolia reached a similar level was in 2021. Since 2022, first-quarter productivity had remained stuck around ₮4.2–₮4.3 million, equivalent to roughly $1,180–$1,210. Four years later, the economy has finally moved past that plateau and returned to its previous peak.

🐫 An Elephant Sized Gap

Back in the 1990s, sectors such as trade, industrial supply, manufacturing, transport and communications recorded the country’s highest productivity levels. Productivity in the trade sector alone was 2.9 times above the national average, while agriculture lagged 2.4 times below average. 36 years later, the gap remains largely unresolved.

🙁 Still Below ₮1 Million

Mining remains Mongolia’s most productive sector today, with GDP per worker rising 13.2% year-on-year to ₮12.9 million, or about $3,630. In contrast, labor productivity in agriculture still remains below ₮1 million, or under $280, making it roughly 16 times lower than the mining sector.

Ultimately, while Mongolia’s winter productivity has finally broken out of a 4 year stagnation, the gap between sectors remains enormous. The data once again highlights that without technological modernization and productivity gains in agriculture, raising living standards broadly across the economy will remain difficult.

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Publisher: Ts.Ankhbayar
Writer: M.Khulan
Graphics by: Ts.Tselmeg

Disclaimer: The information Inside Mongolia provides is for educational and informational purposes only. It is not intended to be or constitute financial advice, trading advice, or any other advice. The decision whether to consider the information we provide is solely our readers' independent decision.