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Uzbekistan, Mongolia forge stronger integration links - outcomes of Mirziyoyev's visit to Ulaanbaatar

Economy Analytics 25 June 2025 14:49 (UTC +04:00)
Uzbekistan, Mongolia forge stronger integration links - outcomes of Mirziyoyev's visit to Ulaanbaatar
Aygun Baliyarli
Aygun Baliyarli
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TASHKENT, Uzbekistan, June 25. The ties between Uzbekistan and Mongolia have blossomed beyond just a handshake and are now shaping up into a real strategic partnership. What was until recently limited to rare diplomatic visits is evolving into steady and purposeful cooperation.

Diplomatic relations between the two countries were officially established in 1992; however, the first high-level visits by the leaders of Uzbekistan and Mongolia took place only in 2024–2025, marking a breakthrough in bilateral ties.

In June 2024, Mongolian President Ukhnaagiin Khurelsukh made his first state visit to Uzbekistan, followed by Uzbek President Shavkat Mirziyoyev’s visit to Ulaanbaatar in the summer of 2025. These visits were not mere formalities but opportunities to establish systematic cooperation and sign significant agreements. The leaders discussed key areas, including trade development, the launch of new transport routes, and the creation of mechanisms for ongoing interaction.

As a result of these meetings, 20 bilateral documents were signed, touching on a plethora of sectors like transport, healthcare, agriculture, education, environment, trade, and investment, covering all the bases. In June 2025, a Joint Declaration on Comprehensive Partnership was signed, paving the way for a new chapter of regular and fruitful collaboration.

It is crucial to acknowledge that while Mongolia is situated within the geographical confines of Central Asia, it has historically been peripheral to regional integration dynamics, directing its diplomatic endeavors predominantly towards its two principal neighboring powers, Russia and China, which collectively constitute over 90% of its external trade interactions. Nevertheless, in contemporary times, Ulaanbaatar has been progressively endeavoring to mitigate its reliance on these collaborators. In excess of 90 percent of Mongolia's hydrocarbon procurement is sourced from the Russian Federation, while approximately 85 percent of its external trade dynamics are interlinked with the People's Republic of China, engendering significant vulnerabilities for its macroeconomic stability and sovereign integrity.

Within this paradigm, Uzbekistan has surfaced as a crucial ally and a strategic nexus for Mongolia to access innovative market terrains and logistical avenues. The progressive partnership highlights Mongolia's ambition to actively participate in Eurasian structures, bolster international connectivity, and reduce dependency on traditional hegemonic neighbors.

Economic collaboration showcases remarkable growth trajectories. Between the fiscal years of 2019 and 2024, the bilateral trade volume experienced a substantial escalation, surging over 10.5-fold—from an initial valuation of $1.9 million to a remarkable $20.4 million. Uzbekistan's export trajectory experienced a significant escalation, surging from $1.5 million to an impressive $15.1 million. Concurrently, the import dynamics from Mongolia exhibited a robust growth pattern, advancing from $519,000 to a substantial $5.31 million. In the fiscal year 2024, the trade volume experienced a substantial uptick of 46.8 percent, and during the first quarter of 2025, it escalated to $9.7 million, representing a remarkable 2.4-fold increase compared to the corresponding timeframe in 2024.

Uzbekistan engages in the provision of machinery and transport apparatus, alongside a diverse array of industrial and consumer commodities, alimentary products, refreshment beverages, tobacco goods, and ancillary services to Mongolia. Mongolia, in its economic framework, engages in the exportation of proteinaceous commodities, fibrous materials, tanned hides, and geological substrates. The prospects for amplifying bilateral trade volume are substantial, with potential increases of 5 to 10-fold in the forthcoming years, driven by the diversification of product offerings and the expedited finalization of preferential trade frameworks and investment safeguarding accords.

Industrial cooperation is receiving serious attention. Uzbekistan has expressed readiness to participate in processing Mongolia’s copper and gold ores—both by providing technology and services and by establishing joint metallurgical enterprises. Another important area is deep processing of wool and cashmere. Joint production facilities in Mongolia are planned using Uzbek technologies, including spinning, dyeing, and manufacturing knitwear and finished clothing. A notable example is the agreement between Mongolian company Cashmere Holding LLC and Uzbek Ideal Tekstil Orzu from Namangan to create a joint cashmere products manufacturing enterprise.

A vivid example of expanding industrial cooperation was the launch of an official Chevrolet car dealership in Ulaanbaatar in 2024, showcasing vehicles produced in Uzbekistan. The first model, Chevrolet Cobalt, was already delivered to a customer. This step symbolizes the Uzbek automotive industry’s entry into new markets and Mongolia’s interest in affordable, reliable vehicles.

Given that Mongolia's economic framework is intricately linked to its trade dynamics with Russia and China, the strategic cultivation of a partnership with Uzbekistan represents a pivotal maneuver in fortifying economic resilience and broadening the spectrum of foreign economic affiliations. Enhancing synergies with Tashkent is strategically aligned with Mongolia’s geopolitical objectives, facilitating a reduction in reliance on conventional allies while cultivating innovative trade and industrial linkages within the Central Asian landscape.

Another pivotal domain is enhancing transportation linkages. For two landlocked nations, the establishment of robust transport and logistics frameworks is not merely an economic imperative but also a strategic exigency. In contemporary discourse, the stakeholders have strategically established the foundational framework for direct logistical conduits: formal accords pertaining to aerial and terrestrial transit modalities have been executed, culminating in the inaugural direct flight operation between Tashkent and Ulaanbaatar set to commence in 2025. Commencing in September 2025, air travel operations will be executed by Hunnu Air in strategic collaboration with Uzbek aviation stakeholders. This innovative corridor will markedly optimize transit duration and establish a robust framework for enhancing commercial synergies, humanitarian linkages, and tourism interchanges.

Noteworthy is Uzbekistan's strategic initiation of an innovative international transport corridor facilitating connectivity to Mongolia through Kyrgyzstan and China. In a span of eight days, a national Uzbek logistics provider successfully executed the transportation of freight across an extensive distance exceeding 4,500 kilometers via terrestrial routes. This corridor facilitates unmediated ingress for Uzbek exporters into the Mongolian and northern Chinese marketplaces, significantly amplifying revenue streams and diversifying logistical pathways.

Industry specialists emphasize that this corridor holds significant strategic value for stakeholders in the agricultural, textile, and machinery sectors aiming to penetrate alternative markets in light of ongoing initiatives to diversify international economic engagements.

For Mongolia, the corridor represents a pivotal opportunity as it catalyzes market diversification and mitigates reliance on conventional transit pathways via Russia and China, thereby fortifying the nation’s economic robustness and enhancing its integration within the broader Eurasian framework.

Facilitating transport collaboration engenders an environment conducive to the proliferation and dynamic utilization of extensive Eurasian transit routes, notably the Middle Corridor, thereby substantially bolstering the economic resilience and competitive edge of the involved nations.

Energy is another key promising area of cooperation. Mongolia possesses substantial reserves of minerals—copper, coal, and rare earth metals—but imports over 90 percent of its fuel from Russia, creating high dependency and risks for the country’s energy security. Meanwhile, Uzbekistan is actively expanding exports of energy resources and electricity, opening new opportunities to diversify Mongolia’s fuel sources.

The opening of the Uzbekistan Ministry of Geology’s representative office in Ulaanbaatar is a significant step towards launching joint projects in mineral extraction and processing as well as developing energy supply infrastructure. This cooperation will help Mongolia reduce energy dependence, strengthen economic resilience, and bolster its position in the Eurasian energy space.

International cooperation is also reaching a new level: Mongolia was one of the first countries to support Uzbekistan’s accession to the World Trade Organization. At platforms such as the UN, SCO, and other international institutions, the two countries not only cooperate but also form joint positions, turning their partnership into a sustainable political choice rather than a temporary coincidence of interests.

Consequently, we observe substantial transformations: Mongolia is strategically endeavoring to mitigate economic and political reliance on China and Russia by fortifying its affiliations with Central Asia. The partnership with Uzbekistan has become a key confirmation of this strategic pivot.

This tactical alignment is transforming not only the dynamics of bilateral engagements but also the comprehensive regional geopolitical landscape. Collaborative initiatives aimed at market diversification, the establishment of novel transportation corridors, and the enhancement of cooperative frameworks underpin the architecture for a more cohesive, stable, and resilient Eurasian ecosystem.

Uzbekistan and Mongolia are strategically aligning their interests towards a sustainable partnership that is poised to catalyze regional development and transformative initiatives.

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