Gazprom's CEO announced a “legally binding agreement" with the China National Petroleum Corporation (CNPC). The pipeline, which Russia has been pushing for years, could supply up to 50 billion cubic metres of gas per year to China over 30 years. For Russia, it would be vital to offset lost markets in Europe. Chinese media have been silent on the details that have blocked the agreement so far.
Meetings and projects for new cooperation initiatives between Mongolia's political leadership and Central Asian heads of state and government are multiplying. In a network of relations that not only has political and commercial significance but also represents a form of historical and commercial reunification.
On the 80th anniversary of the end of the Second World War, the Japanese emperor visited Ulan Bator for the first time to pay homage to the Japanese soldiers who died in Soviet POW camps. However, the atrocities committed by the Japanese Imperial Army continue to cast a long shadow on Japan’s relations with Asian countries, which Tokyo is trying to woo in opposition to Beijing.
Gomboja Zandanshatar was elected after the resignation of Oyun-Erdene, who was ousted following strong youth protests in Ulan Bator. A former banker who studied in Russia and did research at Stanford, he will face serious economic challenges, including inflation, deficit and unemployment. ‘Budget review inevitable,’ he said. Tax reforms and restrictions on luxury consumption and high incomes have been announced.
The prime minister ousted by parliament had promoted a New Recovery Policy to make Mongolia independent from the mining industry interests. Despite economic growth and the reduction of public debt, his government has had to face growing criticism, triggered by the luxury flaunted by his son on social media. Now a new phase of political uncertainty has opened for the country nestled between Russia and China.
Prime Minister Luvsannamsrain Oyun-Erdene has called for a vote of confidence in Parliament, after protesters accused him of promoting corruption and inequality. Instead, the PM blames instead mining oligarchs for the problems. Meanwhile, fears are growing that the powers of the country’s presidency might be enhanced ahead of the 2027 elections.
