Mongolian tent-dwellers face growing hardship amid skyrocketing energy costs and falling livestock prices.
Mongolia produces oil but, without a cost-effective means to refine it into gasoline, exports almost all of it to China. While exports to China have declined in recent months as Mongolia's economy slows under strict COVID-19 curbs, gasoline prices have risen as much as 65 percent since Russia launched its war in Ukraine in February. Mongolia, one of the world's most sparsely-populated countries, is being squeezed economically by China and Russia, its two giant neighbours, which have historically dominated its vast landmass. "We're dependent on China in terms of our economy, and we depend on Russia for electricity. Also, we buy 90 percent of our coal and petrol from Russia. All other consumer goods come from China." Former Mongolian territories, Tuva, Buryatia and Altai are part of today's Russian Federation, while China controls the geographic area of Southern Mongolia as the Inner Mongolia Autonomous Region. After the Dalai Lama's visit to Ulaanbaatar in 2016, China punished Mongolia by closing off the border. Many Mongolians believe China and Russia discourage the construction of power-generation plants and factories in Mongolia for fear of losing their influence over the country.