Mongolian Political Turmoil: A Coal-Driven Conflict

Mongolia's top court deemed the ousting of Prime Minister Zandanshatar unconstitutional, igniting political instability as factions in the ruling party clash. President Khurelsukh's support for Zandanshatar, amidst calls for economic reform, faces opposition within his party, threatening economic progress and deterring foreign investment.

Mongolia's Constitutional Court has declared the parliamentary vote to dismiss Prime Minister Zandanshatar Gombojav as unconstitutional, potentially intensifying political unrest. The decision aligns with President Khurelsukh Ukhnaa, who previously vetoed the dismissal motion due to procedural inconsistencies.

Prime Minister Zandanshatar, advocated by President Khurelsukh and appointed in June, plans to enforce a conservative economic policy ahead of the 2027 elections, but faces resistance from reformists within the ruling Mongolian People's Party. This internal conflict might lead to policy paralysis, exacerbating the cost-of-living crisis and stalling economic diversification efforts.

The Mongolian People's Party is under pressure to address public dissatisfaction over corruption allegations against officials, which resulted in earlier large-scale protests and the removal of a former prime minister. As coal remains central to Mongolia's economy, changes to mining royalties are contentious, affecting revenue and investment prospects.

(With inputs from agencies.)