Ulan Bator and G7 countries sign strategic agreement

The Mongolian government – which has always balanced between China and Russia, its two large neighbours – has in recent months entered into “strategic partnership” agreements with each of the major Western economies.  Under the presidency of Khurelsukh Ukhnaa, Mongolia is seeking to use international relations as a way out of economic and social stagnation.

Ulan Bator (AsiaNews) - The state visit of Mongolian President Khurelsukh Ukhnaa to Italy in early December concluded the signing of Mongolian partnership projects with the G7 countries, after agreements were reached with the United States, Japan, Germany, France, Canada and the United Kingdom.

The diverse agreements with each of the seven major countries have nevertheless guaranteed a state of ‘strategic partnership’ with the entire group, which adds to a series of contacts with other countries, such as Turkey and Kazakhstan, evolving with those of the G20 and the European Union's ‘19+2’ with the union of African countries.

Mongolia already has a well-established relationship with Australia, and good relations are underway with India and South Korea, in addition to China and Russia, the neighbouring giants with which Mongolia has always been in constant interaction.

Other countries with relations with Ulaanbaatar are Argentina, Brazil, Indonesia, Mexico, Saudi Arabia and South Africa. With Italy, during the meeting with the President of the Republic Sergio Mattarella, the desire to strengthen Italian-Mongolian relations and economic cooperation with mutual benefits was confirmed, increasing the volume of trade and investment, including in new sectors such as fashion and cashmere, support for small and medium-sized enterprises, and cooperation in the industrial and agricultural fields.

Mongolian Foreign Minister Battsetseg Batmunkh commented that “the strategic partnership between Mongolians and Italians will be a great advantage for both sides, acting as a catalyst for future development and sustainable growth, promoting harmony and common progress between the two peoples”.

In addition, the 15th anniversary of the Fulbright-Hays programme for the reception of foreign students from Mongolia was celebrated in recent days. The programme commemorates the initiatives launched after the Second World War by Senator James Fulbright of Arkansas in the United States, funded by the US State Department for cultural and academic relations between the citizens of the United States and all friendly countries internationally.

Thanks to this programme, over the last 15 years, 130 specialists from Mongolia have completed higher education in the United States in many fields of study, including healthcare, geology and mining research.

Mongolia needs economic support to sustain its foreign debt, which according to the statistics institute reached .4 billion in the third quarter of 2025, 13% more than the previous year. The debt is due to growing investments, internal corporate loans and the growth of government loans, concentrated in Central Bank loans, which grew by 3.5%, with interventions in many sectors of the economy.

Inflation in Mongolia, again according to statistics, fell significantly in November to 8.2% annually, after a surge in October, managing to contain prices in the construction sector, municipal public services, restaurants and healthcare institutions, although food and transport continue to maintain very high prices, which are growing by 0.6% monthly.

Mongolia's international relations are the path that, in recent years, under the presidency of Khurelsukh Ukhnaa, it has sought to find a way out of economic and social stagnation, which had led to many internal conflicts, including allegations of corruption at various levels of public officials, and not to be excluded from the particularly active development processes in the middle corridors of East and Central Asia, where Ulan Bator is proposing itself as one of the key points not to be overlooked.