Claim: Genghis Khan controlled a significant territory.

Mongolia -LSB- mɒŋˈɡoʊliə -RSB- -LRB- Mongolian : in Mongolian Cyrillic ; -LSB- -LSB- mɒŋˈɡɔl ˈʊɮs -RSB- in Mongolian script literally : Mongolia State -RRB- is a landlocked unitary sovereign state in East Asia . Its area is roughly equivalent with the historical territory of Outer Mongolia , and that term is sometimes used to refer to the current state . It is sandwiched between China to the south and Russia to the north . While it does not share a border with Kazakhstan , Mongolia is separated from it by only 36.76 km .   At 1564116 km2 , Mongolia is the 18th largest country in the world by land mass and has a population of around three million people . It is also the world 's second-largest landlocked country behind Kazakhstan and the largest landlocked country that does not border a closed sea . The country contains very little arable land , as much of its area is covered by grassy steppe , with mountains to the north and west and the Gobi Desert to the south . Ulaanbaatar , the capital and largest city , is home to about 40 % -45 % of the country 's population .   Horse culture is still integral . The majority of its population are Buddhists . The non-religious population is the second largest group . Islam is the dominant religion among ethnic Kazakhs.The majority of the state 's citizens are of Mongol/Mongolian ethnicity , although Kazakhs , Tuvans , and other minorities also live in the country , especially in the west . Mongolia joined the World Trade Organization in 1997 and seeks to expand in its participation for regional economic and trade groups .   The area that is now Mongolia was ruled by various nomadic empires , including the Xiongnu , the Xianbei , the Rouran , the Turkic Khaganate , among others . In 1206 , Genghis Khan founded the Mongol Empire , which became the largest contiguous land empire in history . His grandson Kublai Khan conquered China to establish the Yuan dynasty . After the collapse of the Yuan , the Mongols retreated to Mongolia and resumed their earlier pattern of factional conflict , except during the era of Dayan Khan and Tumen Zasagt Khan .   In the 16th century , Tibetan Buddhism began to spread in Mongolia , being further led by the Manchu-founded Qing dynasty , which absorbed the country in the 17th century . By the early 1900s , almost one-third of the adult male population were Buddhist monks . After the collapse of the Qing dynasty in 1911 , Mongolia declared independence from the Qing dynasty , and in 1921 established de facto independence from the Republic of China . Shortly thereafter , the country came under the control of the Soviet Union , which had aided its independence from China . In 1924 , the Mongolian People 's Republic was declared as a Soviet satellite state . After the anti-Communist revolutions of 1989 , Mongolia conducted its own peaceful democratic revolution in early 1990 . This led to a multi-party system , a new constitution of 1992 , and transition to a market economy .