Decoding Mongolia’s Former President’s “Blue Banner” Campaign

Former president Khaltmaagiin Battulga is once again stirring the Mongolian steppe. His “Blue Banner of Blue Mongolia” rallies are more than colourful displays; they are calculated manoeuvres in a political landscape beset by resource nationalism and presidential ambitions.

Battulga, whose 2017 "Mongol Will Win" campaign capitalized on widespread discontent over corruption and foreign interference, now rebrands his populism.

Former President Battulga in Dundgovi province on February 12, 2025.

His latest initiative—demanding that 34–50% of Mongolia's natural resource revenues be directly distributed to citizens in accordance with the law—appears to support PM Oyun-Erdene's proposal of distributing dividends through a new sovereign wealth fund, yet there are subtle differences in their approaches.

Rhetoric against “oligarchs and foreigners” resonates anew amid growing concerns over Chinese investment and control of strategic assets. A recent denunciation of a proposed labour law amendment, dismissed as a ploy to import 280,000 foreign workers and exploit local resources, encapsulates his nationalist appeal.

For observers in Ulaanbaatar, Battulga’s timing is no accident. With the 2027 presidential elections looming and the Democratic Party (DP) grappling with internal power struggles, the “Blue Banner” campaign appears designed to keep him—and allies like the outspoken MP Ganbaatar—in the public eye. Legal ambiguities surrounding his eligibility only add to the intrigue, positioning Ganbaatar as the likely heir within Battulga’s faction while underscoring the broader contest between the nationalist wing and moderates such as party leader Gantumur.

The campaign’s launch, coinciding with Prime Minister Oyun-Erdene’s trip to China, is equally calculated. Battulga’s discourse on resource sovereignty and equitable distribution skirts direct criticism of a contentious cross-border railway deal.

Instead, by amplifying anxieties about foreign influence as Beijing deepens economic ties with Ulaanbaatar, he positions himself as a defender of national interests without alienating voters who view the railway as vital for Mongolia’s landlocked economy.

On the other hand, directly distributing 34-50% of natural resource revenues to each citizen could undermine the government's new strategy of favoring higher royalties. For example, Battulga`s followers may not be too excited about the recent uranium deal with French company Orano, where the government traded its stake for increased royalty payments.

Ultimately, the “Blue Banner” campaign is as much about personal political survival as it is about policy. It re-ignites perennial debates over resource wealth, national identity, and foreign relations while ensuring Battulga’s nationalist faction remains a formidable force in Mongolia’s evolving political landscape. As the country navigates its complex regional ties and the challenge of converting resource wealth into prosperity, Battulga’s vibrant blue fervour may well prove a disruptive element in its future.

Khaltmaagiin Battulga, age 62, is a former sambo wrestling champion turned politician who served as Mongolia's President from 2017 to 2021. Known for his nationalist stance, specifically anti-Chinese, he has been a key figure in the Democratic Party, advocating for the protection of Mongolian interests against foreign influence. His background in business, particularly in construction and real estate, has shaped his approach to national economic policy.

As China has imposed a 15% tariff on U.S. coal, creating an opportunity for Mongolia to increase its coal exports, Mongolia's trade and economic relations with China will be in the spotlight in the coming months.