Foreign Economic Policy of Mongolia in the Context of National Security

Mongolia is a landlocked country in the center of Asia, sandwiched between Russia and China. Its geographical location makes it dependent on its neighbors in many ways. Therefore, Mongolia faces a particularly acute challenge, compared to other small states, of maintaining a balance in relations with neighboring powers and third countries without compromising its sovereignty or limiting its economic development. The paper presents the results of an analysis of the practical implementation of Mongolia's multi-vector foreign economic policy. It is emphasized that in the early 1990s, Mongolia was forced to seek assistance from Western countries, which became its key development partners. The mining boom of the 2000s, along with rapid economic growth, led to dependence on mineral exports to China and the strengthening of foreign companies as major investors. Mongolia's decision to maintain control over key sectors of the economy caused a collapse in the inflow of foreign investment. Together with the attraction of loans on the international debt market in the context of falling world prices for minerals, this led to the 2016 crisis. Nevertheless, key partners helped Mongolia avoid default on its sovereign debt. Moreover, the recession during the COVID-19 pandemic and the subsequent economic recovery confirmed that Mongolia has no alternative to a policy of multi-vector foreign economic cooperation, in which China remains the main sales market, and Western partners are key creditors. In relations with Russia, Mongolia seeks to eliminate dependence on imported Russian oil products, conclude a free trade agreement and participate in plans to build transit infrastructure to China.