Adrian: Everything I have heard here in Ulaanbaatar is that the Hanh border crossing at the top of Huvsgul lake is NOT normally open to foreigners, only to Mongolians and Russians. I do know some foreigners who have come through there, but only on large group tours where they arranged it in advance with both the Mongolian and Russian Foreign Ministries.
That said, the Mongolian border forces tend to be much friendlier than the Russians (or the Chinese), so I suspect if you managed to get the Russians to let you out from their side, the Mongolians would probably let you in. It might take some talking and some vodka toasts, but I think they would relent. Getting the Russians to let you leave through there would be the tough part.
Maybe as you travel through Russia getting close to Mongolia you could ask the police or other authorities in nearby Russian cities to see if they think you will be able to get out of Russia there. That might save you riding all the way down there and having to turn around.
-Scott
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