Mongolia's Prime Minister Luvsannamsrai Oyun-Erdene has officially resigned, following weeks of street protests and a failure to secure backing from the country's Parliament. The announcement was made on June 3, 2025, after the Parliament did not pass a draft resolution linked to a confidence vote, triggering an automatic resignation as per Mongolian law.

The political crisis in the world’s largest landlocked country has intensified over the past month, as thousands of citizens took to the streets in Ulaanbaatar, demanding action against what they claim is corruption involving the Prime Minister and his family.

What triggered the resignation?

At the core of this upheaval is public outrage over corruption allegations linked to Mr. Oyun-Erdene and his family. Protesters, many of them young Mongolians, gathered in the capital over several weeks, demanding transparency and accountability. The pressure from the street soon translated into political vulnerability, culminating in a Parliamentary failure to affirm confidence in the Prime Minister.

Without the approval of the confidence resolution, Mr. Oyun-Erdene was deemed to have effectively resigned under existing rules. The Mongolian Parliament issued a formal statement confirming the development.

Oyun-Erdene's reaction and exit message

In a statement released following the vote, Mr. Oyun-Erdene said it had been an honour to serve Mongolia during difficult global circumstances including pandemics, wars, and trade tariffs. He also thanked the country's youth for their voices and concerns about governance, adding that he regrets the use of these issues for political purposes.

He expressed disappointment that his broader national development efforts were being overshadowed by accusations he considers politically motivated. He stated that although he remained committed to anti-corruption efforts, his government had over-prioritised large infrastructure projects at the expense of pressing social and political reforms.

Caretaker PM until successor is named

Oyun-Erdene, who took office in January 2021 and was re-elected in July 2024, will continue to serve as caretaker Prime Minister for up to 30 days. The Mongolian Constitution requires a new Prime Minister to be appointed within this timeframe by Parliament.

Until then, Oyun-Erdene will oversee the continuity of essential government functions and ensure a peaceful transition of power.

Background on Oyun-Erdene's leadership

During his term, Oyun-Erdene championed a number of major infrastructure and resource development initiatives. He introduced 14 mega projects, including:

• Mineral processing facilities

• Water diversion systems

• Hydroelectric dams

• Renewable and conventional power plants

These projects were designed to leverage Mongolia’s vast natural resources, particularly in minerals, to drive economic growth and energy independence.

However, critics argue that his emphasis on mega infrastructure came at the cost of immediate social concerns, such as poverty alleviation, public health, education, and job creation. This imbalance became more evident as allegations of corruption surfaced, weakening public trust.

The protests and public sentiment

The Ulaanbaatar protests began in early May 2025, led largely by students, civil society activists, and young professionals. Protesters accused the Prime Minister and his family of unethical enrichment and demanded complete investigations into their financial activities.

Placards, chants, and online campaigns centred on themes of transparency, fairness, and generational accountability, signifying a growing youth-led political awareness in the country.

The protests remained largely peaceful but gained momentum, eventually prompting lawmakers to reassess their support for the Prime Minister.

No comment on corruption allegations

As of now, Oyun-Erdene has not directly responded to the corruption allegations. A Reuters request for comment remains unanswered. However, in public statements, he has consistently maintained that he has fought against corruption throughout his term and suggested that the timing of the accusations may have been politically motivated.

What happens next?

The coming weeks will be crucial for Mongolia's political landscape. Parliament must nominate and vote in a new Prime Minister within 30 days, a process that could either stabilise or further fragment the political scene, depending on coalition dynamics.

Analysts believe that public trust must be restored, and the next administration will need to balance economic development with public accountability. The youth, who played a key role in forcing the resignation, are likely to continue demanding stronger civic engagement and anti-corruption measures.

Meanwhile, investors and international observers are closely watching the situation for signs of economic and political continuity, especially in sectors like mining and renewable energy, which are central to Mongolia’s long-term growth.

Conclusion

The resignation of Luvsannamsrai Oyun-Erdene marks a critical turning point in Mongolian politics. Driven by widespread protests and a loss of parliamentary support, his departure reflects a deepening public demand for clean governance and inclusive development.

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