Oyun-Erdene Luvsannamsrai is anticipated to initiate a vote of confidence this week following concerns regarding his family's wealth. The political future of mineral-rich Mongolia is at stake, as the prime minister faces scrutiny over allegations related to his son's extravagant lifestyle, which some believe are being used to undermine democracy and steer the country back toward authoritarianism. Since 1992, Mongolia has maintained a fragile parliamentary democracy, navigating its position between the superpowers of Russia and China.
Over the past week, small but ongoing protests by young Mongolians have taken place in the main square of the capital. These demonstrations were sparked by Instagram reports revealing that Prime Minister Oyun-Erdene Luvsannamsrai's son had bestowed extravagant gifts upon his fiancée. While concerns about inequality and corruption linked to mineral resources have often fueled protests, the prime minister had previously been viewed as a figure fighting against the entrenched interests that monopolize rare minerals among a wealthy elite.
Allies of the prime minister indicate that he is inclined to announce a vote of confidence on Tuesday, with the actual vote expected to take place in the middle of next week. Protests have erupted over claims that the prime minister's family is living in wealth that far exceeds that of a typical civil servant. The fiancée of the prime minister's 23-year-old son, Temuuleni, shared images on her Instagram account featuring luxury handbags, an extravagant ring, and a Mercedes-Benz, which has sparked public outrage.
There are allegations that the prime minister was aware of his son's extravagant lifestyle and may have even financed some of the gifts. Oyun-Erdene has agreed to a comprehensive investigation by the country's anti-corruption agency, but he has provided little public explanation. A petition with 59,000 signatures has called for his resignation, citing concerns over the unclear origins of his son's wealth, rising inflation, and increasing restrictions on press freedom.
However, sources within the government suggest that the prime minister's son's lifestyle is being leveraged by supporters of Mongolia's president, Ukhnaagiin Khürelsükh, to strengthen his position and enable him to bypass parliament in pursuit of a second six-year term. Currently, the president is limited to serving just one term.
Last September, the president sparked controversy in Europe by inviting Vladimir Putin to Mongolia. As a signatory to the Rome Statute, Mongolia was obligated to arrest the Russian leader for war crimes in Ukraine, as requested by the International Criminal Court. Additionally, the president attended Putin's recent "victory parade" in Red Square.
Sources within the government suggest that Khürelsükh, a former prime minister and a member of the Mongolian People’s Party like the current prime minister, aims to secure a second six-year term. He reportedly seeks to replace Oyun-Erdene with someone more inclined to diminish the power of parliament.
Oyun-Erdene was re-elected as prime minister just 10 months ago, with his party securing 68 out of 126 seats in parliament. In an effort to foster political consensus for the long-term reforms necessary to modernize the economy—such as establishing a national wealth fund and undertaking significant infrastructure projects—he opted to form a coalition with the Democratic Party, which holds 42 seats, and the HUN Party, with 8 seats, rather than governing alone. However, tensions arose when three members of the Democratic Party voiced their support for street protests against the prime minister. In response, the Congress of the Mongolian People’s Party held an extensive closed-door meeting and voted to declare that the Democratic Party had effectively expelled itself from the coalition, a move that could jeopardize the prime minister's position.
Deputy Prime Minister Gantumur Luvsannyam, a leader of the DP, stated that the opinions expressed by the three legislators do not reflect his or his party's stance. However, he emphasized that their right to free expression does not violate any coalition agreements.
Jargal DeFacto, a prominent commentator and broadcaster in Mongolia, shared with the Guardian, “Those advocating for an extended presidency with increased powers present a straightforward argument. They argue that, unlike our neighbors China and Russia, which have political stability, frequent changes in our leadership necessitate a strong presidency. This conflict has been brewing for over a year, especially with the next presidential election set for 2027. The debate is causing a rift within the ruling Mongolian People’s Party, splitting it into two factions.”
He stated, “The government aims to transition away from a commodity- and debt-driven economy by establishing a sovereign wealth fund supported by strategic deposits. This initiative has put the prime minister at odds with wealthy private individuals who are unwilling to part with their strategic resources for the fund.”
“Paradoxically, he is encountering political pushback for exposing corruption in the banking, mining, and education sectors. This has led to the creation of many adversaries, yet the corrupt court system tends to target smaller cases rather than going after the influential figures. This situation fosters a general distrust in the state, particularly in the context of rising inflation and interest rates.”
China remains Mongolia’s largest export market, but the coalition government is working to diversify the economy by focusing on a series of 14 major infrastructure projects.
