Reuters: Key political risks to watch in Mongolia

The capricious nature of Mongolia’s democratic government can complicate foreign investment projects. The 5-year negotiations on the Oyu Tolgoi property were conducted against a backdrop of damaging political and legal uncertainties, including local ownership requirements and a windfall tax on mining profits that was only rescinded in 2008. The frequent replacement of key personnel at the top levels of Mongolia’s government has also caused concern, with the changes often accompanied by nationalist rhetoric and populist promises to secure more control over the country’s assets. Analysts also complain about the weakness of Mongolia’s political parties and its poor regulatory capacity. To read the full article, click here: Key political risks to watch in Mongolia

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