Mongolia’s top court ruled a parliamentary vote to oust the prime minister last week was unconstitutional, a move analysts say could spur further turmoil in the coal-rich country as factions in the ruling party feud over the economy. The Constitutional Court said a motion passed by the State Great Khural or parliament last Friday to dismiss Prime Minister G.Zandanshatar had no legal basis.

The court sided with President U.Khurelsukh, who on Monday vetoed the parliament’s resolution to dismiss Zandanshatar, citing procedural irregularities, including the use of an “incorrect voting formula.”

Zandanshatar, nominated by President U.Khurelsukh and named as prime minister in June, is expected to be able to fend off reformists within the Mongolian People’s Party led by former parliamentary speaker D.Amarbayasgalan.

G.Zandanshatar is seeking to push through a more conservative economic policy ahead of the next election in 2027, resisting calls for stronger anti-corruption measures and progressive taxation. But the confrontation could lead to an economically damaging policy stalemate, analysts say, worsening a cost-of-living crisis and delaying efforts to diversify the economy beyond mining, as government instability hampers long-term planning and deters foreign investment.

The Mongolian People’s Party also faces pressure to address public discontent over allegations that government officials misappropriated state funds and were engaged in corruption.

Those concerns sparked large-scale street protests in urban centers, including the capital Ulaanbaatar, which ultimately prompted parliament to vote to remove Prime Minister L.Oyun-Erdene four months ago.

REUTERS