History of Mongolia (1990–present)

1990 Democratic revolution

On the morning of 10 December 1989, the first open pro-democracy demonstration took place in front of the Youth Cultural Center in Ulaanbaatar. There, Elbegdorj announced the creation of the Mongolian Democratic Union (MDU). At the demonstration, the MDU founders publicly petitioned the government for a real implementation of Perestroika, allowing a multi-party system, and the total implementation of the Universal Declaration of Human Rights in all party and government affairs.

In subsequent months, the activists led by 13 democracy leaders including Tsakhiagiin Elbegdorj, Sanjaasürengiin Zorig, Erdeniin Bat-Üül, Bat-Erdeniin Batbayar and others continued to organize demonstrations, rallies, protests and hunger strikes, as well as teachers' and workers' strikes. The activists had growing support from Mongolians, both in the capital and the countryside, and the union's activities led to other calls for democracy all over the country.

On 2 January 1990, the MDU began distributing leaflets calling for a democratic revolution. When the government did not comply with these and later, more aggressive demands, demonstrations occurred. On January 14, 1990, some 1000 protesters met on the square in front of the Lenin Museum, which has been renamed as Freedom Square since then, in Ulaanbaatar. A demonstration on Sükhbaatar Square on 21 January (in weather of -30 C) followed. Protestors carried banners alluding to Genghis Khan, rehabilitating a figure which Soviet schooling neglected to praise. They celebrated Daramyn Tömör-Ochir, a statesman who was purged from the MPRP in 1962 as part of the MPRP's efforts to suppress the commemoration of the 800th anniversary of Genghis Khan's birth. Demonstrators carried a modified Flag of Mongolia, which lacked a star symbolizing socialism; this flag would become the new flag after the revolution.

After numerous demonstrations of many thousands of people in the capital city as well as provincial centers, on 4 March 1990, the MDU and three other reform organizations held a joint outdoor mass meeting, inviting the government to attend. The government sent no representative to what became a demonstration of over 100,000 people demanding democratic change.

Ten members of the organizations began a hunger strike on 7 March. The next day, the Politburo of the Mongolian People's Revolutionary Party – the highest authority of the party – eventually gave way to the pressure and entered negotiations with opposition leaders. An agreement was reached between the two sides after round table talks on 8-9 March 1990. Consequently, Jambyn Batmönkh, general secretary of the MPRP, announced his resignation and dissolution of the politburo via radio broadcast on 9 March 1990. During the MPRP plenum on 12-14 March, Batmönkh was relieved from his party duties and the politburo was reshuffled with reform-minded leaders. Behind the scenes, however, the MPRP had seriously considered cracking down on the protesters, writing a decree that was left to be signed by the party leader Batmönkh. Batmönkh opposed it, maintaining a strict policy of never using force (Mongolian: Хүч хэрэглэж хэрхэвч болохгүй). People those were present there later recalled that Batmönkh said "I will never sign this. We few Mongols have not yet come to the point that we will make each other's noses bleed," smacked the table, and left the room." The news of the Politburo resignation was announced to hunger strikers and people who gathered on Sükhbaatar Square at 10 PM on 9 March after the negotiations between leaders of the MPRP and the MDU. Constitutional amendments removing the leading role of the MPRP were made by the People's Great Khural on 21-23 March, ending the 70-year-old one-party rule.

In April, the conflict worsened, with the government restricting the freedom of assembly and the democracy leaders submitting an ultimatum demanding equal participation of all political groups. The MPRP refused to accede to the demands. However, in May, under pressure and after negotiations with members of the opposition movement, the People's Great Khural approved the Law on Political Parties. Dates for the multiparty democratic elections for the national, provincial, and municipal khurals were agreed on 14 May. In the lead up to the election, six political parties were registered by the Supreme Court of the MPR in May.

1990–1992: Democratic transition

1990 parliamentary elections

Following the collapse of the communist regime, Mongolia's first free, multi-party legislative elections were held on 29 July 1990. Six political parties ran for 430 seats in the People's Great Khural (upper house) and 50 seats in the new State Little Khural (lower house). With opposition parties unable to nominate enough candidates, the ruling Mongolian People's Revolutionary Party (MPRP) won 357 seats and an 83% majority in the Great Khural. Members of the State Little Khural were to be elected via proportional representation. One seat equaled around 5% of the party vote. The People's Great Khural first met on 3 September and elected the president (MPRP), vice president (MSDP), prime minister (MPRP), and 50 members to the Little Khural. The vice president was also chairman of the Little Khural. The MPRP, which won 61% of the votes, received 31 of the 50 seats in the lower house.

The new MPRP government under Dashiin Byambasüren formed a unity government with the opposition parties and implemented constitutional and economic reforms. Two high-ranking ministers of the Byambasüren cabinet were non-MPRP ministers; these being First Deputy Prime Minister Davaadorjiin Ganbold (MNPP chairman) and Deputy Prime Minister Dambiin Dorligjav (deputy MDP chairman).

1992 Constitution of Mongolia

In November 1991, the People's Great Khural began discussion on a new constitution, which entered into force on 12 February 1992. In addition to establishing Mongolia as an independent, sovereign republic and guaranteeing a number of rights and freedoms, the new constitution restructured the legislative branch of government, creating a unicameral legislature, the State Great Khural.

Economy

In the early and mid-1990s, with the collapse of the Soviet Union, which had until 1990 provided significant economic aid to Mongolia's state budget, the country faced severe economic problems dating back to the 1980s. Foreign trade collapsed, economic and technical aid from the former socialist countries ended, and the domestic economy struggled with privatization. Inflation rose, stores' shelves were depleted, and ration cards for food were issued for a period of time. A thriving black market had arisen in Ulaanbaatar by 1988 to meet the needs of the populace.

1990s after the transition

In the same year the constitution was ratified, the 1992 elections for the newly established unicameral State Great Khural were held on June 30. The MPRP won another round of parliamentary elections, winning 70 out of 76 seats in the State Great Khural. The main opposition alliance, the Democratic Alliance between the MDP, MNPP, and Mongolian United Party, won four seats, while the MSDP and an independent won a single seat. Puntsagiin Jasrai, an economist, was subsequently elected the next prime minister of an all-MPRP cabinet. The new constitution also provided that the President of Mongolia would be elected by popular vote rather than by the legislature as before. Incumbent Punsalmaagiin Ochirbat became Mongolia's first universally elected president, winning the 1993 presidential election with two-thirds of the vote. Originally an MPRP member, Ochirbat ran as the MNDP-MSDP joint opposition candidate after the MPRP had nominated an orthodox party member, Lodongiin Tüdev, as their candidate. The MPRP was electorally defeated for the first time in its history.

Democratic administration

In the 1996 parliamentary elections, the Democratic Union Coalition (DUC) won 50 of the 76 seats in the State Great Khural, co-led by Tsakhiagiin Elbegdorj as the chairman of the Mongolian National Democratic Party. The MPRP lost its parliamentary majority and was out of power for the first time since 1921.

Despite their electoral success, reforms by the government received mixed reactions upon implementation. Prime minister Mendsaikhany Enkhsaikhan, elected in 1996, oversaw a period of rising unemployment and inflation. Subsequently, the MPRP candidate Natsagiin Bagabandi was overwhelmingly elected as president in 1997, defeating incumbent DUC candidate Ochirbat. Prime minister Enkhsaikhan was replaced by party chairman Elbegdorj in early 1998, during the wake of the 1997 Asian financial crisis, and the 1998 Russian financial crisis.

Political crisis

In addition to the political discord, Mongolia's largely agricultural economy was adversely affected by the economic crisis and an extremely harsh winter, known as dzud. Elbegdorj soon lost a motion of no confidence on 25 July 1998, but his successor's nominations were blocked multiple times by president Bagabandi, the MPRP parliamentary minority, and a single MTUP legislator. Without two-thirds parliament majority (51 seats), the DUC couldn't override presidential vetoes by Bagabandi.

On 2 October 1998, during the ongoing cabinet crisis, a key leader of the 1990 revolution and infrastructure minister Sanjaasürengiin Zorig was assassinated at his home. A national mourning was declared following his death. Many people speculate that the murder was politically motivated, as Zorig was a likely pick to become the next prime minister. The case of Zorig's murder remains unsolved to this day. Following his death, Zorig's sister, Sanjaasürengiin Oyun, was elected in his constituency in a by-election. She would split from the DUC and found the Civil Will Party (CWP) with former allies of Zorig in March 2000.

Two months after the assassination of Zorig, former mayor Janlavyn Narantsatsralt was approved as prime minister by president Bagabandi and parliament. His tenure lasted until 1999, when he was forced to resign following a political scandal. Foreign minister Rinchinnyamyn Amarjargal superseded as premier and served until the upcoming elections in 2000. Within four turbulent years, four Democratic PMs and one acting PM held office.

2000s

Extreme dzuds and droughts

In 1999 and 2000, Mongolia experienced its worst winter since 1968, in the form of consecutive dzuds which has been the cumulative result of a drought in 1999, dubbed the 'black dzud'. On 11 February 2000, the Mongolian government appealed to the international community for assistance following the commencement of relief efforts in December 1999. 3 million livestocks, which accounted for 10% of total livestocks, were reported dead, with some estimates of total livestock deaths over 5 million; and with further 400,000 people (16% of the population) affected. More than 650 million tugriks (approximately USD 600,000) were made available by the government for the purchase of relief items. Moreover, Mongolia's GDP growth fell from 3.1% in 1999 to just 1.1% in 2000.

Drought in the summer of 2000 left 50 per cent of the country dry, 20 per cent suffering from severe water shortage and over 450,000 people in 13 provincial districts affected by food shortages in the immediate term. Another dzud in 2000 and 2001 affected 20 of the 21 provinces and half of the total counties, with many areas recording the coldest temperatures over the last fifty years. Twelve herders and over 600,000 livestocks died in the severe winterstorms, as low as -50 celsius, in December 2000 and January 2001. On 14 January 2001, Nine people from the UNDAC, the international media, and the Government of Mongolia tragically lost their lives in a helicopter crash while carrying out dzud assessment in Malchin district, Uvs Province. In February 2001, the United Nations launched an appeal for $8.7million to support herders affected by the multi-year dzuds and droughts. Ultimately, the three consecutive dzuds, in 1999–2000, 2000–2001, and 2001–2002, led to a combined loss of 11 million animals.

MPRP landslide victory

In the next 2000 parliamentary election, the DUC witnessed a major electoral wipeout, securing only a single seat. In contrast, the MPRP won a supermajority of 72 seats. The MPRP-controlled parliament nominated and appointed party chairman Nambaryn Enkhbayar as prime minister. Following their election defeat, the five former member parties of the DUC merged to form the Democratic Party (DP) in December 2000. Despite a much formidable opposition, president Bagabandi was re-elected with 59% of the vote in the 2001 presidential election. With the presidency, premiership, and parliament secured, the MPRP oversaw a much politically stable administration. Primary opposition parties to the MPRP, such as the DP, the Motherland Party, and the Civil Will Party, began reorganizing and formed the Motherland Democratic Coalition (MDC) in July 2003.

Coalition government

The 2004 parliamentary election resulted in a hung parliament between the MPRP and the MDC, with the MPRP as the plurality. There were concerns of electoral fraud in the 2004 election, but they were largely ignored. Without parliamentary majority, the MPRP was forced to join a coalition government led by MDC chairman Tsakhiagiin Elbegdorj. Much like the previous Democratic coalition, the MDC would oversee frequent political scandals, crises, and infighting. The MDC was dissolved in December 2004 due to party disagreements over the upcoming 2005 presidential election. Furthermore, economic slowdown and party disputes during Elbegdorj's tenure led to the formation of three splinter parties – the New National Party, the People's Party, and the reformed Mongolian Social Democratic Party.

Five parties with parliamentary representation were eligible to nominate a candidate in the 2005 presidential election. All five except the Civil Will Party nominated their candidates for the race, leading to Mongolia's first-ever four-way presidential election. Former prime minister Nambaryn Enkhbayar would come out on top in the 2005 presidential election, with 54% of the vote. Later in 2005, the DP lost 5 of its seats to the MPRP, leading to the now-majority MPRP leaving the coalition in January 2006. A new coalition government led by the MPRP was established the same month. A government reshuffle took place at the end of 2007, when the MPRP decided to replace its prime minister, Miyeegombyn Enkhbold, with Sanjiin Bayar.

Political upheaval

In the June 2008 parliamentary elections, preliminary results showed the MPRP with a majority. Allegations of electoral fraud surrounding the election were declared by the chairman of the DP and former prime minister Elbegdorj on 1 July 2008. Elbegdorj, Bazarsadyn Jargalsaikhan (Republican Party leader), Jalbasurengiin Batzandan, and Otgonjargalyn Magnai (Civic Movement Party leaders) called on the people to contest the results.

The initial peaceful demonstrations, amplified by opposition leaders, soon turned into a riot. The riot resulted in Mongolia's first state of emergency, lasting four days. The military was brought into the city to quell the riot. Five people were killed by the police, over 300 people were injured, the headquarters of the ruling MPRP was set on fire, and many nearby shops and galleries were looted by rioters. Locally, the event came to be known as the Black Day. Then-leaders of the MPRP, prime minister Sanjiin Bayar and president Nambaryn Enkhbayar, faced intense backlash from the public due to allegations of human rights abuse, economic mismanagement, and electoral fraud. The opening of the newly-elected State Great Khural in July was boycotted by the opposition for a month.

First Olympic gold medal

Meanwhile also in August 2008, the 2008 Summer Olympics were held in Beijing. In the 2008 Olympics, the 29-athlete Olympic team of Mongolia competed in seven events. Naidangiin Tüvshinbayar won Mongolia's first ever Olympic gold medal in judo on 14 August 2008. The following night, massive celebrations occurred in Ulaanbaatar. On Sükhbaatar Square, Mongolia's president, prime minister, and members of parliament celebrated the occasion with thousands of people in front of the Government Palace. Soon, Enkhbatyn Badar-Uugan won a gold medal in boxing on 24 August 2008 and became the second Mongolian to win an Olympic gold. The 2008 Summer Olympics have been Mongolia's most successful games ever.

After a month-long boycott, the State Great Khural was finally convened on 28 August 2008. Incumbent prime minister Bayar was re-elected (65-1) led a coalition government between the MPRP and the DP on 11 September 2008. During the second cabinet of Bayar, the long-stalled Oyu Tolgoi project, one of Mongolia's most financially undertaking mining project, was put into motion. The Mongolian government signed a major investment agreement with Ivanhoe Mines and Rio Tinto to mine Oyu Tolgoi on 6 October 2009. However, this 2009 agreement faced intense public backlash over several issues, primarily corruption and undermining of Mongolia's interests. Bayar soon resigned on 28 October 2009 due to declining health. He was succeeded by Sükhbaataryn Batbold (MPRP) as prime minister in 2009 and later as party chairman in 2010.

In the 2009 presidential election, Democratic candidate Tsakhiagiin Elbegdorj defeated incumbent president Nambaryn Enkhbayar.

2010s

Despite being heavily hit by the 2008 financial crisis and the 2008-2009 winters, Mongolia's economy saw immense growth starting from 2010, thanks to a boom in the country's growing mining sector. The country saw a rapid double-digit GDP growth, and was considered one of the fastest-growing economies in the world. Due to its immense mineral resources, Mongolia was nicknamed "Mine-golia" and the next Asian tiger. IMF forecast of Mongolia's economic growth in 2011 was at 17.5%.

In November 2010, the MPRP would restore its original 1921 name, the Mongolian People's Party (MPP), and ideologically shifted from democratic socialism to social democracy. This change provoked Enkhbayar's faction within the party to split and form the splinter Mongolian People's Revolutionary Party.

Democratic electoral comeback

In January 2012, the DP made a decision to leave the coalition government before the upcoming June elections. In the 2012 parliamentary elections, the DP won 31 out of 76 seats, becoming the largest party in parliament, whilst the MPP came second and the new Justice Coalition (JC) between the MPRP and MNDP came third. It was the first incident of a parallel voting method being used. A coalition government was formed by the DP with the MPP, the Justice Coalition, and the Civil Will–Green Party. In the 2012 local elections, the MPP was defeated for the first time in the country's history.

In the 2013 presidential election, incumbent president Elbegdorj was re-elected in a three-way race. The DP held the office of the presidency, the prime minister, and the majority of parliament from 2012 to 2016.

Economic crash

Starting from 2014, Mongolia's economic growth started to stagnate as foreign debt and inflation rose and copper and coal prices plummeted. In late 2014, sitting PM and DP chairman Norovyn Altankhuyag was ousted by majority MPs amid the economic stagnation and corruption allegations. DP legislator Chimediin Saikhanbileg was appointed the next prime minister and DP speaker Zandaakhüügiin Enkhbold assumed the party chairmanship. The cabinet of Saikhanbileg, composed of the DP, the MPP, and the JC, focused primarily on economic stabilization and the mining sector.

During his tenure, Saikhanbileg oversaw and signed a 2015 investment agreement with Rio Tinto which further progressed Oyu Tolgoi's stalled underground expansion. The deal, which brought US$5.4 billion to Oyu Tolgoi, came under scrutiny for concerns of debt accumulation and corruption in the years leading up to 2019. A cabinet reshuffle in 2015 ousted the MPP from the cabinet amid political instability. In one of his last decisions, Saikhanbileg approved the purchase of Russian shares of Erdenet Mining Corporation before the June 2016 election; which was met with intense political backlash. Russian state-owned Rostec held 49% of Erdenet copper, Mongolia's largest state revenue provider, since 2008.

Foreign investment recovered starting from 2015 but by 2016, the economic forecast of Mongolia's growth by the IMF was just at 0.4%. The economic free fall and growing DP unpopularity promptly led to a landslide MPP victory in the 2016 parliamentary election.

Supermajority of the MPP

Compared to the MPP's supermajority of 65 seats, the DP's majority was reduced to only nine seats. MPP chairman Miyeegombyn Enkhbold was elected the parliamentary speaker, and Jargaltulgyn Erdenebat was appointed the prime minister.

The 2017 presidential election was the first time no candidates met the required 50% majority vote. The MPRP's nominee Sainkhüügiin Ganbaatar effectively split the MPP vote to Battulga's favour, coming in third with only a thousand-vote difference with MPP candidate Enkhbold. The first-ever presidential runoff was held in July between the MPP nominee Miyeegombyn Enkhbold and DP nominee Khaltmaagiin Battulga. Despite the high number of protest votes called by Ganbaatar, Battulga's populist and nationalist campaign, similar to that of Donald Trump's 2016 campaign, led to him winning 50.6% of the popular vote, beating Enkhbold by only 9.4%. The share of blank votes in a presidential election reached its historic highest at 8%. Infighting between the Enkhbold-led camp of 32 legislators and the Ukhnaagiin Khürelsükh-led camp of 33 legislators occurred in the subsequent months following the MPP's electoral defeat.

In September 2017, prime minister Erdenebat and his cabinet were ousted (42–31) from office after a parliamentary motion. He was succeeded by deputy prime minister Khürelsükh in October 2017.

2018-2019 protests and crisis

In late December 2018, a series of mass demonstrations occurred in Ulaanbaatar. The protest came after the unravelling of a landmark 2018 SME loan scandal, in which 14 parliamentarians, 2 cabinet ministers, 1 deputy minister and several high officials were involved, amidst a stagnating economy and quality of life. The main phase of the anti-government protests occurred between 27 December 2018 and 10 January 2019. The protestors called for the resignation of speaker Miyeegombyn Enkhbold, who was in an unresolved 2016 corruption case and believed to be heading a cabalistic duopoly between the MPP and DP.

The mass protests coincited with a major factional infighting within the governing MPP and subsequent political gridlock since November 2018. A series of political manuevers led to a failed motion of no confidence in November, a proposed dissolution of parliament, and dismissal of MPP caucus leader Damdiny Khayankhyarvaa and MPP mayor of Ulaanbaatar Sunduin Batbold in December. In the aftermath of the protests, Enkhbold was dismissed by the State Great Khural on 29 January 2019, forcing him to retire from politics. He was succeeded by Gombojavyn Zandanshatar on 1 February 2019.

2019 constitutional crisis and amendments

Anti-corruption initiatives by the government intensified in the following months. A legislation allowing president Battulga to dismiss corrupt judges based on the suggestions of the National Security Council, a non-constitutional body chaired by the president, was passed by parliament in March 2019. Several justices, prosecutors and anti-corruption chiefs were dismissed by the president in March and June. Subsequently, the country was plunged into a constitutional crisis.

Later in November, the debate came to end with amendments to the Constitution of Mongolia, which empowered the prime minister and judicial independence with reduced presidential oversight powers. The presidential term, originally a single renewable four-year term, was limited to a non-renewable term of six years. Incumbent president Battulga was consequently barred from a second term.

2020s

COVID-19 pandemic

On 27 January 2020, the Government of Mongolia closed its border with China and all schools following the WHO reports on coronavirus. Multiple holidays, including Tsagaan Sar and Naadam, were cancelled by the government. The COVID-19 pandemic was confirmed to have reached the country when its first case was identified in a French man who traveled from Moscow to Dornogovi on 10 March 2020. From March to November, much of Mongolia's confirmed COVID-19 cases were imported. The country's first case of community transmission was announced on 11 November. Multiple lockdowns were issued by the government in the following months.

During the pandemic, the MPP won yet another landslide victory in the 2020 parliamentary election. However, before the 2020 election, the ruling party had redrawn the electoral map in a way beneficial to MPP. In January 2021, MPP chairman and prime minister Ukhnaagiin Khürelsükh, in office since 2017, resigned after COVID-19 protests over the treatment of a coronavirus patient. His shock resignation led many analysts to believe that he was bidding for the presidency. Luvsannamsrain Oyun-Erdene (MPP) became the new prime minister on 27 January 2021. Born in 1980, he represented a younger generation of politicians who had studied abroad. The MPRP strategically merged into the MPP during the 100th anniversary of the MPP in April 2021, officially ending its decade-long existence and allowing a new third-party to enter the political scene. The centrist National Labour Party (NLP), with one seat in the State Great Khural, became the primary third-party voice in politics.

In the 2021 presidential election, former PM and MPP candidate Khürelsükh became the country's sixth democratically elected president with a landslide victory. In an electoral upset, the DP nominee and chairman, Sodnomzunduin Erdene, came last out of the three candidates, with 6% of the vote. Dangaasürengiin Enkhbat, running from the Right Person Electorate Coalition, received 21% of the vote which came mostly from Mongolian expats and youth.

On 20 June 2021, Mongolia overtook China in terms of the total COVID-19 cases, becoming the third most affected country in East Asia. Three days later, on 23 June, the amount of COVID-19 cases in the country crossed the 100,000 mark. On 26 August, the number of COVID-19 cases in Mongolia crossed the 200,000 mark. On 13 January 2022, COVID-19 cases in Mongolia crossed the 400,000 mark.

Post-COVID Mongolia

In December 2022, mass protests began in Ulaanbaatar after reports of a corruption scandal involving coal theft emerged. According to unofficial data, about 6.5 million tons of coal were allegedly stolen from Mongolia and exported to China. Protestors called for accountability, punishment of corrupt officials, and broader legal anti-corruption reform. A failed storming of the Government Palace on the second day of protests led to the injury of 13 policemen and internal troops in a stampede. The government met with the protestors and promised to investigate the affair. A parliamentary working group was formed and held a public hearing on 21 December 2022. Several officers and businessmen related to the theft were arrested and a special regime for Mongolia's state-owned Erdenes Tavantolgoy mining company was introduced.

In 2022 and 2023, a series of constitutional amendments were made to the Mongolian constitution by the State Great Khural. On 31 May 2023, the parliament voted to expand the State Great Khural from 76 to 126 seats. Later in December, political parties reached a consensus to redraw Mongolia's electoral districts; the amount of constituencies decreased from 29 to 13.

In the 2024 parliamentary election, the MPP won 68 of the 126 seats and 35% of the proportional party vote, gaining only 6 seats. In contrast, the amount of seats won by the opposition DP and the HUN Party (former NLP) increased by 31 and 7. The National Coalition and the Civil Will–Green Party also gained parliamentary representation with 4 seats respectively. Incumbent Oyun-Erdene was re-appointed as prime minister by the expanded parliament and subsequently formed a coalition government, led by the MPP, with the DP and the HUN.

2025 youth-led protests

On 14 May 2025, anti-government demonstrations began in Ulaanbaatar, following reports of extravagant spending by the son of prime minister Oyun-Erdene. The protests, primarily led by young Mongolians, centered on broader concerns about government corruption, inequality, and the influence of political elites and their families. Oyun-Erdene denied wrongdoing and stated he would resign if any financial irregularities were found. The protests continued for over two weeks, prompting a realignment within the governing coalition and an eventual vote of no confidence.

On 3 June, Oyun-Erdene resigned as prime minister after losing a vote of confidence in the State Great Khural, receiving support from only 44 members of parliament, 20 short of the 64 required. Prior to his resignation, Oyun-Erdene provoked powerful business and mining interests for his efforts in establishing a sovereign wealth fund, similar to that of Norway. Analysts described the events as reflecting deeper political divisions, including internal tensions within the ruling MPP. Since 2024, the MPP had an emerging factional divide between conservative members born in the 1970s and reformist members born in the 1980s.

2025 political crisis

Former parliamentary speaker, Gombojavyn Zandanshatar, was nominated as the next prime minister by President Khürelsükh on 10 June. He was subsequently appointed by the State Great Khural on 13 June. However, a successor to Oyun-Erdene as the next MPP chairperson would not be named until the party's September conference. According to the party charter, the party chairman is designated to assume the role of prime minister when possible. Then-speaker Dashzegviin Amarbayasgalan, with the support of several allied MPP officials and MPs, came to increasingly challenge Zandanshatar's tenure in the months leading up to the Party Congress in September.

Tensions between the two camps reached its height during the MPP Congress on 27-28 September. Amarbayasgalan, a long-term ally of Oyun-Erdene, and PM Zandanshatar, a long-term ally of Khürelsükh, both ran for the chairmanship elections. Both sides contested the election results, ultimately leading to a leadership battle and political crisis that lasted 1 month and 15 days. The crisis came to an end on November 11, when Nyam-Osoryn Uchral, the First Deputy Prime Minister of Mongolia, was overwhelmingly voted in as the next party chairman. He officially succeeded Oyun-Erdene on November 15 and was sworn in to the month-long vacant speaker's office on November 20. The election of MPP leader Uchral to the speaker's office later led to a parliamentary boycott by the DP starting in March 2026. During the second week of parliamentary gridlock, prime minister Zandanshatar, with a weak political mandate, resigned on 27 March 2026 and was succeeded by Uchral three days later.