The practice of concluding investment agreements in Mongolia, its implementation and challenges

Due to the interest from the side of many large international companies in the last years the number of the investment agreements concluded between the Government of Mongolia and foreign investors has increased. Accordingly, the issues in relation with foreign investment agreements became one of the most critical topics. For instance, an amendment was made to the Minerals Law in 2007, where a new article provision regulating investment agreements was added. However, even with this new separate provision on “ the investment agreement“, many issues concerning the profit allocation from investment agreements, exploration, monitoring, tax stability and environmental compensation are unresolved. The competing interests from the country and its people on one side and the investors from the other side illustrate the problem. In Mongolia, the concept of investment agreements and the concerned issues have been analyzed only in general. This research paper aims to improve the current legal framework by underlining its challenges as well their solutions.