[2] This claim was made in the Imperial Edict of the Abdication of the Qing Emperor signed by the Empress Dowager Longyu on behalf of the six-year-old Xuantong Emperor: "[...] the continued territorial integrity of the lands of the five races, Manchu, Han, Mongol, Hui, and Tibetan into one great Republic of China" ([...] 仍合滿、漢、蒙、回、藏五族完全領土，為一大中華民國).

However, the Russian Empire could not act on the ambition due to internal struggles, so they recognised the autonomy of the region, which allowed Russia to claim that Mongolia was under her protection.

Though de jure power was held by Bogd Khan, Sternberg acted as the true head of state and began insisting that he was the saviour of the lands of Mongolia and that he would bring the Mongols to justice.

Sternberg began fusing traditional Mongolian beliefs with those of strong Russian nationalism, insisting that the Bolsheviks must be stamped out, due to their Jewish nature, and that the world was falling into "mad revolution".

As a result, Ungern was defeated in battles that took place between 11–13 June by joint actions of the 35th Division of the 5th Red Army (commander Mikhail Matiyasevich), Far Eastern Republic and Mongolian People's Party troops, and was forced to retreated to Mongolia.

Combined Bolshevik and Red Mongol forces entered Mongolia and captured Urga on 6 July 1921, after a few skirmishes with Ungern's troops.

On July 24, troops of the White Guards and Mongolian feudal lords again penetrated Soviet territory in the region north of Lake Gusinoye, but on August 3, upon learning of the approach of superior Red Army forces, they began to retreat.

[7] As a result of the operation, Baron Ungern was captured and executed on 15 September 1921, the white Russian and Mongolian feudal troops were defeated, and the power of the Bogd Khanate of Mongolia was eliminated.