NewsWire

Issue 728 –  22 April 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

BCM Highlight

• Climate Change and Sustainable Finance Working Group Meeting
• BCM Survey

Economy

• Mongolia's March coal output drops 56 pct YoY, iron ore dips 19 pct
• Foreign trade turnover up 3.1 pct in Q1
• World Bank: Reforms Crucial to Navigate Stronger Headwinds
• The Bank of Mongolia to support green and sustainable financing system
• Price of AI-95 fuel increased by MNT 200 per liter and diesel fuel by MNT 250
• Export of seabuckthorn berries to be promoted
• Cooperation agreement for project to construct a crude oil pipeline signed
• China-Mongolia border port sees robust fruit, vegetable exports
• New challenge surfaced in making domestic stock market accessible

• Amendments to the Budget Law to be submitted to Parliament
• False: The U.S. is planning to set up a biological laboratory in Mongolia
• Use of national currencies in payments discussed with Russia
• UK MP Daniel Kawczynski: Parliamentary Visit to Mongolia
• Amendment to the Regulation for determining the average salary effective from 01 April 2022
• India assures Mongolia of help in space, telecom and energy sectors
• The EU Ambassador's speaking points at the press conference 13 April 2022
• Promoting Post-Election Accountability in Mongolia, Women Civil Society Leaders Call for Political Accountability Together
• Vietnam and Mongolia build increasing open cooperation
• Medals for Mothers — a Tradition Under Threat - Editorial
• In Mongolia, Protesters With Empty Stomachs Are Denouncing Empty Promises - Editorial
• Joint ‘starving game’ - Editorial
• EITI report says independent law needed to develop extractives industry - Editorial
• State inspections burden businesses - Editorial
• Construction of Eg hydropower plant stalled for 31 years - Editorial
• Youth involvement can bring long-lasting political development - Editorial

Business

• Turquoise Hill Q1 copper output down 33 pct due to lower head grades
• Convenience store chain CU opens 200th outlet in Mongolia
• FRC: Regulatory procedures for Virtual Assets Service Providers approved
• Documents for establishing Open Mutual Investment Funds registered
• SouthGobi Resources: Application for New Listing on the TSX Venture Exchange and Primary Listing on the Hong Kong Stock Exchange
• What to Consider When Entering into an Employment Agreement (Part 2)
• Cooperation agreement to construct crude oil pipeline signed with China's Norinco
• ION’s CEO & Technical Team Embark on Site Visits in Mongolia
• Zijin invests in Xanadu to ink copper-gold resources in Mongolia
• FRC conducts training for insurance firms and NBFIs on revised regulations
• Korean LCCs to join the Incheon-Ulaanbaatar route from summer
• Thiess celebrates 15 years mining excellence in Mongolia
• UWC’s developing ties with its Mongolian partners
• Mongolia Requests Offer From TCDD Teknik for the Freight Wagon Factory to be Established
• IHC Esports Becomes First-Ever Mongolian CS:GO Team to Qualify for Major

Global and Regional Trends

• IMF cuts global growth forecast to 3.6 pct over Ukraine war
• Asia's exports to Russia plunge amid Ukraine war
• Singapore, Korea lead Asian central banks’ attack on inflation
• China’s first-quarter GDP beats expectations to grow 4.8 pct year-on-year
• Boao Forum for Asia 2022 kicks off in Hainan
• Mexico nationalizes lithium, plans review of contracts
• Asia quadruples financing for pollution-fighting projects
• Who is buying bargain Russian oil in Asia?
• Here are the new 2022 growth forecasts for 21 countries
• Amid the Ukraine Crisis, China-Russia Economic Relations Remain Lukewarm
• Asia's nuclear power dilemma: Ukraine war drives energy turnarounds - Editorial

• BCM Quarterly Report - Q1 2022
• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

BCM HIGHLIGHT

CLIMATE CHANGE AND SUSTAINABLE FINANCE WORKING GROUP MEETING

A meeting of the Climate Change and Sustainable Finance Working Group is being held on 27 April 2022. Click here view the agenda. Seating is limited to 30 individuals. Please contact Ms. Naranzul at This email address is being protected from spambots. You need JavaScript enabled to view it. or Ms. Misheel at This email address is being protected from spambots. You need JavaScript enabled to view it. to inform your wish to attend the meeting. 

Source: BCM

BCM SURVEY

The purpose of this survey is to maximize our efficiency in delivering the best newswire, workshops, events, and meetings to you and to your team. We thank you in advance for your valuable contribution in ameliorating our future performance. The survey will only take 3-5 minutes. Click here to take the survey.

Source: BCM

ECONOMY

MONGOLIA'S MARCH COAL OUTPUT DROPS 56 PCT YOY, IRON ORE DIPS 19 PCT

Coal production of Mongolia came in at 1.56 million tonnes in March, down 56.36% year on year and 1.78% month on month, showed data from the National Statistical Office of Mongolia.
In January-March, Mongolia's total coal output was 5.17 million tonnes, dropping 58.26% on the year.
Mongolia's iron ore production was 1.08 million tonnes in March, down 19.05% year on year but up 46.78% month on month. Iron sand output was 840,200 tonnes, down 7.93% year on year but up 38.21% month on month, while iron concentrate production was 238,500 tonnes, down 43.20% year on year but up 87.80% month on month.
Mongolia's iron ore production totaled 2.21 million tonnes during the first three months of 2022, up 1.67% year on year.

Source: SXCoal.com
See also: Mongolia coal railings up 2.36% YoY in Mar; iron ore shipment down 0.56%

FOREIGN TRADE TURNOVER UP 3.1 PCT IN Q1

Mongolia's foreign trade turnover increased by 3.1 percent year on year to 3.6 billion U.S. dollars in the first quarter of this year, said the country's National Statistics Office on Monday.
Mongolia registered a foreign trade surplus of 251.4 million dollars, said the office.
Mining products, precious stones, jewelry and textiles accounted for 97.3 percent of the mineral-rich country's total exports in the January-March period, while machinery and equipment, electrical appliances, vehicles, auto parts and food products accounted for 61.8 percent of the total imports, it said.
The Asian country traded with 126 economies across the world in the period.
China maintained its position as Mongolia's biggest trading partner and top export destination in the said period.

Source: News.cn

WORLD BANK: REFORMS CRUCIAL TO NAVIGATE STRONGER HEADWINDS

fter a strong initial rebound, Mongolia’s economic recovery stalled in the last three quarters of 2021, and the growth outlook for 2022 is expected to remain modest. Following a contraction of 4.4 percent in 2020 and 1.4 percent growth in 2021, the World Bank’s latest Mongolia Economic Update projects that the economy will grow by 2.5 percent in 2022, reflecting lingering border frictions with China and the impact of the war in Ukraine.
Despite continued policy support and higher commodity prices, economic growth is dragged down by protracted trade disruptions and logistical bottlenecks amid border closures. Headline inflation rose sharply by 14.4 percent (y/y) by March 2022, weighing down real incomes and household consumption. The war in Ukraine amplified external risks resulting in increased demand for foreign exchange, and further erosion of international reserves, says the report.

Source: World Bank
View the Mongolia Economic Update

THE BANK OF MONGOLIA TO SUPPORT GREEN AND SUSTAINABLE FINANCING SYSTEM

On April 18, the Bank of Mongolia and the Mongolian Sustainable Finance Association established a memorandum of understanding on cooperation.
The MoU aims to introduce and develop green and sustainable development financing products and services into banking and financial sector, and promote its implementation.
Climate change and environmental degradation are also issues of concern for Mongolia. Thus, the Bank of Mongolia is joining the global movement to study the impacts of climate change, cooperate with international organizations, public and private organizations to develop a green and sustainable financing system, and promote its implementation by using monetary policy and financial regulatory tools.

Source: Montsame

PRICE OF AI-95 FUEL INCREASED BY MNT 200 PER LITER AND DIESEL FUEL BY MNT 250

Today, the price of AI-95 fuel has increased by 200 MNT per liter and diesel fuel by 250 MNT. As a result, a liter of AI-95 fuel costs 3070-3270 MNT and diesel fuel costs 3130-3380 MNT.
The price of AI-92 fuel has not changed.
Mongolia buys 90-95 percent of its fuel from Rosneft, Russian oil company. The price is calculated according to the Singapore Stock Exchange.

Source: GoGo News
See also: Diesel fuel to be exempt from excise tax until July 1

EXPORT OF SEABUCKTHORN BERRIES TO BE PROMOTED

On the second day of the ‘Food supply and security – Crop farming’ forum, meetings of vegetable and fruit/berry farmers took place.
Minister of Food Agriculture and Light Industry Z.Mendsaikhan stressed that special emphasis is being placed on providing support and long-term investments in the sector as it takes fruits and berries at least 3 years to bear fruit and that the business requires many years of effort and investment and research-based technologies. “The government implemented the Seabuckthorn national program in 2010-2016, providing support in growing seedlings, conducting research, processing the fruits and berries, and boosting export in addition to making efforts to increase seabuckthorn berry production and giving 2.5 million seedlings to farmers on soft loans,” said the Minister, adding that further efforts will be made to promote export.

Source: Montsame

COOPERATION AGREEMENT FOR PROJECT TO CONSTRUCT A CRUDE OIL PIPELINE SIGNED

The Government made a decision on January 6, 2020 to transport the raw material of the oil refinery through a pipeline. Accordingly, the Ministry of Mining and Heavy Industry announced an international tender “to select a contractor to finance and construct an oil pipeline project in Mongolia,” and China’s the state-owned ‘Norinco International Cooperation’ Co.Ltd has won the tender.
On April 18, a cooperation agreement of the project to construct a crude oil pipeline in Mongolia was signed by State Secretary of the Ministry G.Nandinjargal, CEO of Mongol Refinery state-owned LLC D.Altantsetseg, CEO of Erdenes Tavantolgoi JSC B.Gankhuyag, and General manager of Norinco International Cooperation.
Crude oil from the Dornod aimag’s oil field will be transported to the Oil Refinery, which is currently under construction in Altanshiree soum, Dornogobi aimag through a 530 km long pipeline.
Norinco International Cooperation will complete the construction of a pipeline within three years or ahead of the commissioning of Oil Refinery.

Source: Montsame

CHINA-MONGOLIA BORDER PORT SEES ROBUST FRUIT, VEGETABLE EXPORTS

From 2018 to the end of March 2022, 366,500 tonnes of fruits and vegetables were exported from China to Mongolia via the border port of Erenhot in north China's Inner Mongolia Autonomous Region, according to the Erenhot Customs.
The total trade value of fruit and vegetable exports to Mongolia through the port reached 432 million yuan (about 67.5 million U.S. dollars).
In the first quarter of 2022, Erenhot Customs supervised the export of over 8,510 tonnes of fruits and vegetables, worth 16.05 million yuan.
In 2018, a green channel for agricultural products was launched, which has since been putting various kinds of fruit and vegetables on the tables of Mongolian people.
Thanks to this green channel, the fresh fruits and vegetables are allowed to pass through customs at the fastest possible speed.
More than 80 percent of fresh fruits and vegetables in the Mongolian market are Chinese exports supplied via Erenhot.

Source: News.cn

NEW CHALLENGE SURFACED IN MAKING DOMESTIC STOCK MARKET ACCESSIBLE

A forum took place under the theme, ‘IPO Mongolia: Accessible Stock Market’ on April 15. 
While there used to be a large number of retail investors in the Mongolian stock market, larger, institutional investors have now become more common, highlighted Director of the Securities Market Department at the Financial Regulatory Commission (FRC) B. Dulguun. And it was for this exact reason that the forum was co-organized by the Financial Regulatory Commission, the Mongolian Stock Exchange, and the Mongolian Association of Securities Dealers.
One of the topics that were discussed at the forum was making the operations of state-owned enterprises public and transparent, with appropriate monitoring. Many of the participants agreed that this measure would positively affect foreign investment, and in turn, the strength of the Mongolian tugrug (MNT), reducing inflation.
Furthermore, as investment funds begin to be established, products and services are being offered for making investments in the stock market.

Source: Montsame

POLITICS

AMENDMENTS TO THE BUDGET LAW TO BE SUBMITTED TO PARLIAMENT

At its regular meeting today, the Cabinet discussed the Bills to amend the 2022 Budget Law of Mongolia, the 2022 Budget Law of the Social Insurance Fund, the 2022 Budget Law of the Future Heritage Fund, the Law on Budget Framework Statement for 2022 and Budget Assumptions for 2023-2024 and accompanying bills such as Bill on Budget Saving and Bill on Repayment of 50 percent of Social Insurance Contributions to Some Insured Persons, and others. After discussing the bills, the Cabinet decided to submit them to the Parliament.
When planning the fiscal adjustment measures, the Government is considering all possible measures to reduce the negative impact of global situations on the Mongolian economy and society, to implement cost-saving measures, to prevent food shortages and price increases, protect citizens' incomes, and to resolve other social issues.

Source: Montsame
See also: Prime Minister holds meeting with entities to receive suggestions on amending 2022 State Budget

FALSE: THE U.S. IS PLANNING TO SET UP A BIOLOGICAL LABORATORY IN MONGOLIA

MFA Mongolia has clarified that reports of America establishing biological laboratories in the country are false and unfounded.
Russian President Vladimir Putin, Russian state-affiliated media and their allies have repeatedly spread the false story that Ukraine is developing biological weapons funded by the U.S. An article in the Russian daily Izvestia claimed without evidence that Mongolia was in talks with the U.S. to set up laboratories.
The official channel of the Ministry of Foreign Affairs (MFA) of Mongolia responded with a tweet, clarifying that information about the U.S. setting up biological laboratories in Mongolia is false. MONTSAME, the official state-run news agency of Mongolia, reported quoting Minister of Foreign Affairs B. Battsetseg, saying that no talks had been held in establishing the joint biological laboratory in the country. She said, “This information has been published four times in a Russian newspaper. The Chinese media also reported it. In regards to this, I would like to state that the information is false."

Source: Logically.ai
See also: "No talks were held between Mongolia and the US about establishing a joint biological laboratory"

USE OF NATIONAL CURRENCIES IN PAYMENTS DISCUSSED WITH RUSSIA

Ambassador Extraordinary and Plenipotentiary of Mongolia to the Russian Federation U.Enkhtuvshin met with Deputy Foreign Minister of the Russian Federation I.V. Morgulov on April 18.
At the beginning of the meeting, the Ambassador expressed Mongolia's position on the current situation surrounding Ukraine. The meeting discussed some specific issues of Mongolia-Russia economic and financial cooperation, including the mutual use of national currencies in payments between the two countries. Despite the difficult international situation, the parties agreed on the need to implement major projects and programs agreed upon during the visit of the President of Mongolia to Russia, which took place on December 15-17, 2021.

Source: Montsame

UK TRADE ENVOY DANIEL KAWCZYNSKI: PARLIAMENTARY VISIT TO MONGOLIA

As the PMs trade envoy to Mongolia, I have just completed a four-day visit to this country.  We had the opportunity of visiting the single largest foreign investment in the country which is the British/Australian copper mining investment run by Rio Tinto.  This is the third largest copper mine in the world.  We were taken 1.3k underground to inspect the vast honeycomb network of tunnels where excavation is taking place to mine copper and gold.  This is an investment of over $12b and a hugely strategic important investment.
Mongolia a country sandwiched between Russia and China inevitably finds herself in a precarious situation dependent on energy and trade from Moscow and Beijing.  They view the UK as an extremely important third-party neighbour and want to engage with us as much as possible to make them less dependent on the two giants that straddle their borders.

Source: Daniel4Shrewsbury.co.uk
See also: Daniel Kawczynski: UK Government will actively carry out works to invest in Mongolia
UK-Mongolia Trade and Investment Factsheet

AMENDMENT TO THE REGULATION FOR DETERMINING THE AVERAGE SALARY EFFECTIVE FROM 01 APRIL 2022

Minister of Labour and Social Protection (“MLSP”) made an amendment to the Regulation for determining the average salary (“Average Salary Regulation”) on 17 March 2022 and it will be effective from 01 April 2022 (the “Amendment”). The Amendment was registered with the Ministry of Justice and Home Affairs on 31 March 2022. 
The main objective of the Average Salary Regulation is to define the salary component and a reference period for calculating additional pays including overtime pay, nightshift pay and others and some statutory allowances. Upon commencement of the Average Salary Regulation from 01 January 2022, additional pays under the Labour Law are to be calculated on the basis of employee’s previous 3-month average salary which comprise of 1) base salary; 2) extra pay; 3) additional pay; 4) annual vacation pay and 5) bonuses.

Source: PwC Mongolia

INDIA ASSURES MONGOLIA OF HELP IN SPACE, TELECOM AND ENERGY SECTORS

India has assured Mongolia, a neighbour of China, assistance to develop its space, telecommunications and energy sectors including expediting creation of an oil refinery.
The assurance was extended during last week’s visit of Deputy NSA Vikram Misri who called on President of Mongolia Ukhnaagiin Khürelsükh. Misri is understood to have given assurance on the timely completion of the oil refinery project being built with Indian assistance.
Mongolia is the beneficiary of India’s single largest LoC for construction of $ 1.236 billion Oil Refinery Project in Dornogobi Province capable of producing 1.5 million MTA oil, roughly 3/4th of domestic the country’s consumption. It is expected to be completed by the end of this year and Engineers India Limited are part of the project.
The refinery will address 75 percent of Mongolia’s requirements. The country sources its fossil fuel from its biggest neighbour and traditional ally, Russia.

Source: The Economic Times

PROMOTING POST-ELECTION ACCOUNTABILITY IN MONGOLIA, WOMEN CIVIL SOCIETY LEADERS CALL FOR POLITICAL ACCOUNTABILITY TOGETHER

Civil society engagement around relevant and pressing policy issues is a key part of making democracy accessible worldwide. Women play an outsized role in civil society, making up about 80% of the civil society workforce in Mongolia. However, despite a legacy of robust political participation by women due to higher voter turnout rates and comparatively strong rankings on gender equality indices, women’s priority issues such as political participation remain largely overlooked in the policymaking process. 
In any free and open society, civil society is a bridge between the government and citizens, yet in Mongolia that promise is not being realized. According to IRI’s latest nationwide survey, an overwhelming majority of Mongolians believe that political participation is important, but most (72.5%) believe that ordinary citizens are unlikely to have any influence. Compared to those (29% and 23%) who respectively believe social media and protests can influence decision-making, very few (8%) think that civil society can.

Source: International Republican Institute

VIETNAM AND MONGOLIA BUILD INCREASING OPEN COOPERATION

On April 18, during the Mongolian Ambassador Jigjee Sereejav's reception, MARD Minister Le Minh Hoan stated that the two countries' agriculture industries are rich in traditional products that complement one another.
"I hope that the two nations would continue to expand trade and investment relations in the next years, striving to attain a two-way export turnover of USD 100 million," Minister Le Minh Hoan stated.
Vietnam-Mongolia collaboration is expanding not only in the fields of politics, security, and national defense, but also in economics, commerce, and tourism. Over the years, the two governments and enterprises have signed a number of Memorandums of Understanding to facilitate the entry of products into the two markets; he mentioned the establishment of a direct flight between Vietnam and Mongolia.
The Vietnam-Mongolia Intergovernmental Committee's meetings have reduced several barriers and boosted the two nations' economic development.

Source: Vietnam Agriculture Newspaper

THE EU AMBASSADOR'S SPEAKING POINTS AT THE PRESS CONFERENCE 13 APRIL 2022

Condemning Russian war of aggression against Ukraine
The European Union condemns in the strongest possible terms the unprovoked invasion of Ukraine by armed forces of the Russian Federation.
We also condemn the involvement of Belarus in this aggression against Ukraine.
Russia bears full responsibility of the aggression against Ukraine and its people. Russian occupation forces are violating international law, international humanitarian law and are committing war crimes in Ukraine.
Sanctions
The EU Member States remain extraordinarily united in supporting Ukraine. We will continue isolating Russia with the largest sanctions package in our Union's history. This entails massive sectoral sanctions as well as individual listings.
Measures have been closely coordinated with partners and allies - the United States, the United Kingdom, Canada, Norway, South Korea, Japan, and Australia. Over 40 countries have so far partially or completely aligned with our sanctions.
The sanctions impose huge costs on the aggressor, but they are not cost-free for the Union and its partners.

Source: EU Embassy

MEDALS FOR MOTHERS — A TRADITION UNDER THREAT - EDITORIAL

Unurgerel Enkhtuya was not only proud to produce four consecutive sons, she also was honored with a medal and a title.
After having two sons and then twin boys, Unurgerel was given the title of “Darkhan Ber,” which translates as “champion” or “high-ranking bride,” a Mongolian tradition that celebrates women who give birth to three boys in a row.
Mongolian mothers honored with this title have long enjoyed a higher level of respect within their families. But over the years this tradition has gone beyond familial respect alone to ceremonies where the mother is presented with a badge and certificate, surrounded by family and friends who gather to celebrate her.
This custom now faces a backlash from human rights activists who argue it discriminates against women based on the sex of their children and against those women who can’t or choose not to have children — and that it violates the country’s constitution and Law on Ensuring Gender Equality.

Source: Global Press Journal

 
NewsWire

Issue 726 –  9 April 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

BCM Highlight

• Mongolian Economic Forum: New Revival Policy 2022
• BCM Survey
• BCM Quarterly Report

Economy

• Mongolia’s Growth to Stay Muted for 2022 at 2.3 pct Before Climbing in 2023 — ADB
• World Bank lowers Mongolia's economic growth forecast to 2.5 pct for 2022
• China-Mongolia land port sees robust growth in freight exports
• 'Planting trees holds the key to revitalising countryside and improving air quality'
• Mongolia issues warning over wildfires
• Lethal sandstorms that shroud land in darkness threaten nomad way of life - Editorial
• Overworked and Underpaid: The Life of Assistant Herders - Editorial

• Mongolia’s youths demonstrate for the better future
• Mongolia kicks off forum for economic revival
• Mongolia authorizes USD 200 thousand for humanitarian assistance to Ukraine
• PM: Government to provide all-round support to central bank on increasing foreign exchange reserves
• B.Javkhlan: The government will pay attention to stabilize the prices of meat, flour and fuel
• Bill to prevent rise in price and shortage of key commodities submitted to Speaker
• Labour Migration Law effective from 01 July 2022
• Legal alert: New Law on protection of personal data in Mongolia
• Set of guidelines issued by Green Finance Regional Forum
• Latest on Covid-19 in Mongolia
• Almost 75 percent of Mongolia’s media operations controlled by politicians
• Mongolia requests China to improve port operation capacity and shipment
• WHO expresses support for President's decree on reducing alcohol consumption
• Estonia to cooperate in developing e-governance in Mongolia
• General development plan for ‘New Zuunmod’ city approved by Government
• ‘D-Parliament’ electronic platform launched
• Parliament endorses establishment of free economic zone in Khushig Valley
• Russian companies holding meetings with local authorities to discuss gas pipeline project
• Mongolia’s razor's edge relationship with Russia - Editorial
• Some observations of the war in Mongolia - Editorial
• Catherine Ivkoff: “We will be working to promote Canadian Green Mining solutions and initiatives in Mongolia” - Interview

Business

• Mongolia-India direct flight to be conducted from this summer
• Battery Metals Royalties to acquire 45 pct interest in Mongolian coal assets from Silver Elephant Mining
• MIAT Mongolian Airlines launches regular direct flights to Istanbul
• Aspire Mining commits to planting 10 million trees in Mongolia
• Xanadu Mines Ltd Scoping Study - Kharmagtai Copper-Gold Project
• Steppe Gold pours first gold, ramps up production in Mongolia
• The secondary market trading of "Lend Bond" will commence on April 4, 2022
• Jade signs MoU with UB Metan LLC
• Mongolia: Woolwear at Cashmere Sisters
• Meet Biirchin - An Entrepreneur Running Two Successful Ventures in Food and Information Technology
• ION Energy: Sharing Our Story with NAI500's Chinese Investors - Video

Global and Regional Trends

• World food prices hit record high over Ukraine war: FAO
• U.S. unemployment rate drops to 3.6 pct as labor market rapidly tightens
• Global government debt set to soar to record USD 71 trillion this year, new research says
• Indonesia, Australia face limits in coal exports to Europe ahead of Russian ban
• IEA details plan to release 120 mln barrels of oil over 6 months to cool prices
• Peru hikes interest rate to 13-year high as inflation sparks protests
• Ukraine war's impact on Asian economies splits global lenders
• Australian coal exports forecast to smash record with value set to break AUD 100 billion this year
• The risks of a global financial schism are mounting - Editorial

• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

BCM HIGHLIGHT

MONGOLIAN ECONOMIC FORUM: NEW REVIVAL POLICY 2022

The Mongolian Economic Forum hosted a series of six-preliminary discussions on March 21-30, 2022, under the framework of the New Revival Policy. We are presenting a series of presentations made during these discussions. Click the source linked below to view the presentations.

Source: BCM

BCM SURVEY

The purpose of this survey is to maximize our efficiency in delivering the best newswire, workshops, events, and meetings to you and to your team. We thank you in advance for your valuable contribution in ameliorating our future performance. The survey will only take 3-5 minutes. Click here to take the survey.

Source: BCM

BCM QUARTERLY REPORT

The Business Council of Mongolia delivers you its First Edition of the BCM Quarterly Report of 2022. The first edition covers all events organised by the BCM through the months of January - March. The fuller version of the articles can be found in the highlighted "details" part on the report.
PDF: 2022 First Quarterly Report 

Source: BCM

ECONOMY

MONGOLIA’S GROWTH TO STAY MUTED FOR 2022 AT 2.3 PCT BEFORE CLIMBING IN 2023 — ADB

Mongolia’s economic growth is expected to be constrained by high inflation, persistent trade disruptions, tighter external financing conditions, and complex geopolitical risks before accelerating in 2023 as coronavirus disease (COVID-19) concerns and trade disruptions ease, says a new report by the Asian Development Bank (ADB) released today.
In its flagship economic report, Asian Development Outlook (ADO) 2022, ADB projects Mongolia’s economic growth to expand by 2.3% in 2022 compared to the 1.4% growth in 2021 before climbing to 5.6% in 2023, supported by domestic demand, investment, and recovery in industry, agriculture, and services.
“Mongolia faces the unprecedented twin shocks of the continued border closure with the People’s Republic of China (PRC) and the Russian invasion of Ukraine in an environment where inflation is already high and economic growth is subdued,” said ADB Country Director for Mongolia Pavit Ramachandran. “This situation requires an immediate policy response to avoid the risk of stagflation.”

Source: ADB

WORLD BANK LOWERS MONGOLIA'S ECONOMIC GROWTH FORECAST TO 2.5 PCT FOR 2022

The World Bank has lowered Mongolia's gross domestic product (GDP) growth forecast for 2022 to 2.5 percent from a 5.2-percent forecast in October 2021, according to a World Bank report released on Tuesday.
In a downside scenario, Mongolia's economic growth could fall to 0.7 percent this year due to some external factors, said the report.
This forecast reflects the impact of the situation in Ukraine through higher prices of imported food, fuel and fertilizers coupled with lingering border restrictions caused by the COVID-19 pandemic, it said.
Over the medium term, Mongolia's economic growth is expected to accelerate to above six percent in 2023-2024, as the underground mining phase of the mineral-rich country's largest copper mine Oyu Tolgoi becomes fully operational during the second half of 2023, according to the World Bank.
The Asian country's GDP expanded 1.4 percent year on year in 2021.

Source: News.cn
See also: East Asia and Pacific Economic Recovery Faces Risks from the War in Ukraine, U.S. Monetary Tightening, and China Slowdown

CHINA-MONGOLIA LAND PORT SEES ROBUST GROWTH IN FREIGHT EXPORTS

The land port of Erenhot in north China's Inner Mongolia Autonomous Region saw its freight transport export volume increase 41.4 percent year on year in the first quarter of this year, local authorities have said.
In the first three months, 642,000 tonnes of freight were exported via the port, according to the Erenhot station under the China Railway Hohhot Group Co., Ltd.
During the period, the port logged 734 China-Europe freight trains, up 25.7 percent year on year, said Yun Zhijun, director of the Erenhot station's dispatch desk.
Currently, 57 China-Europe freight train routes pass through Erenhot Port, the largest land port on the China-Mongolia border.

Source: Xinhua

'PLANTING TREES HOLDS THE KEY TO REVITALISING COUNTRYSIDE AND IMPROVING AIR QUALITY'

In Mongolia, there is a high rate of migration from rural to urban areas.
I am from a town in Bulgan province.
Our hospitals are inadequate and have little equipment, so our people have to go to bigger cities to get diagnosed and treated for serious illnesses.
Recently during Covid-19, there were not enough hospital rooms and only one doctor and one nurse who had to be in isolation with all their patients for seven days in a row.
There are no dentists, ophthalmologists, and visceral doctors in the isolated provinces, so people have to go to big cities to be diagnosed and treated for serious diseases.
Our local schools do not provide a good education because rural teachers lag behind their peers in cities.
Since there are not enough teachers, one will teach at least two different subjects.
Differences between the urban and rural quality of education are often reflected in foreign language levels.

Source: The Mirror

MONGOLIA ISSUES WARNING OVER WILDFIRES

Mongolia's National Emergency Management Agency on Monday issued a warning of forest and grassland fires.
There is a high risk of wildfires this spring due to the dry and windy weather in most parts of Mongolia, the agency said, warning the public to prevent possible wildfires.
Four wildfires were reported in the country over the weekend, burning over 25,000 hectares of forest and grassland, according to the agency.
People's negligence was the main cause of these wildfires, it said, urging citizens not to make open fires or throw cigarette butts on the ground.

Source: Xinhua

LETHAL SANDSTORMS THAT SHROUD LAND IN DARKNESS THREATEN NOMAD WAY OF LIFE - EDITORIAL

In traditional dress, nomadic herder Zorigoo Delger stands proudly next to one of his camels in Mongolia’s wilderness.
His family have been herders for centuries, but now the nomad way of life, of huge symbolic significance to the landlocked country, is at risk.
Climate driven extreme weather events, such as sandstorms and desertification, make life very difficult for the herders.
In March 2021, Mongolia experienced its worst sandstorm in a decade, which started in the Gobi Desert and reached most of northern China and even western parts of South Korea.
Zorigoo, a 45 year-old herder from Umnugobi, a province in Mongolia’s Gobi Desert, says: “Everything went dark, it was like the sky and the earth had collapsed together and I could barely see.”
It is common for herds to go missing during such storms, but Zorigoo was more worried about his fellow herders.

Source: The Mirror

OVERWORKED AND UNDERPAID: THE LIFE OF ASSISTANT HERDERS - EDITORIAL

Allegations of herders abusing their assistants have spotlighted a key occupation that often falls beyond the boundaries of the law.
More than 18,000 assistant herders work in the country, according to the National Human Rights Commission of Mongolia, many of whom have little formal education or legal knowledge to challenge their bosses. With few regulations to protect these workers, assistant herders are often overworked and underpaid — a major human rights and labor safety challenge in a largely rural country.
The National Statistics Office of Mongolia estimates that 300,000 of the country’s 3.4 million people are herders. Many herders recruit assistants to help care for livestock. While labor law in Mongolia states that a typical workday should last eight hours, the National Human Rights Commission found that 84% of assistant herders who participated in a recent survey work overtime throughout the year. More than 40% are responsible for their own medical treatment in the event of an injury.

Source: Global Press Journal

POLITICS

MONGOLIA’S YOUTHS DEMONSTRATE FOR THE BETTER FUTURE

Young Mongolians, mostly students, demonstrated yesterday (7 April) at Sukhbaatar Square, a center of Ulaanbaatar demanding authorities do their jobs better. Youths have demanded to deduct taxes by 50 percent, to increase salaries, and to develop industries and to build more jobs. Demonstrators say that they do not want to flee to foreign countries for a better salaries; but want to build a better life in Mongolia.
The peaceful demonstration is continuing today (8 April).
Inflation in Mongolia has hovered around 13 percent since January and now it topped 14.3 percent. Due to increase of fuel price and decline of Tugrik against dollar, prices of foods and other products are now soaring in Mongolia, but salaries of doctors and teachers remained same in 2019.
As for today (8 April), one US Dollar is equal to roughly 3014 Mongolian Tugrik. Since the beginning of the 2022, the cost of AI 92 gasoline has risen to MNT 2985.

Source: News.mn

MONGOLIA KICKS OFF FORUM FOR ECONOMIC REVIVAL

The 2022 Mongolia Economic Forum kicked off here on Thursday, with the aim of putting Mongolia's economy on a path of renewal and recovery through public-private partnerships.
Hundreds of representatives from government, private sector, civil society and academia are participating in the two-day forum to discuss the pressing issues in the country's each sector.
"A very difficult crisis between Russia and Ukraine that began on Feb. 24 has become one of the most pressing geopolitical challenges for the world. This is a blow to the economies of countries that have just been recovering from the two-year pandemic and to the positive outlook of the world's banking and financial institutions on economic growth," Mongolian Prime Minister Luvsannamsrai Oyun-Erdene told the opening ceremony of the forum.
"Now, we are also facing the challenge of how to grow the Mongolian economy in these difficult times. But we are optimistic," Oyun-Erdene said, noting that Mongolia has already started working on the restoration of the economy.

Source: Xinhua, Montsame
See also: Current situation of international relations discussed
“It is possible to earn MNT 60 billion from transit flights”

MONGOLIA AUTHORIZES USD 200 THOUSAND FOR HUMANITARIAN ASSISTANCE TO UKRAINE

On 4 April, the Government of Mongolia decided to provide USD 200 thousand in emergency humanitarian assistance to assist the people of Ukraine who are facing hardship in Ukraine and neighboring countries. The assistance will be distributed through UN Crisis Relief and the International Red Cross and Red Crescent Societies.
Just one month before Russian troops entered Ukraine, on January 21, Mongolia and Ukraine celebrated 30 years of diplomatic relations. Mongolia is carefully supporting a peaceful dialogue between Russia and Ukraine, while focusing on protection of civilians.
The latest numbers from the U.N. say that there are 6.5 million internally displaced people, which means Ukrainians who have left their homes but are still inside the country. About 4 million have fled altogether. And then on top of all of that, there are 13 more million people still living in the places where the fighting is taking place.

Source: News.mn, Montsame
See also: Mongolian MP donates month’s salary for Ukraine refugees

PM: GOVERNMENT TO PROVIDE ALL-ROUND SUPPORT TO CENTRAL BANK ON INCREASING FOREIGN EXCHANGE RESERVES

It was noted that economic sanctions due to tensions between Russia and Ukraine could lead to currency shortages.
"Our country has USD 3.2 billion in foreign exchange reserves. Exchange rates began to show rapid fluctuations in a short period of time. Therefore, there is a need to limit some foreign exchange payments, control the export of Mongolian currency, involve law enforcement agencies, and strengthen the borders. The government plans to take measures to increase foreign exchange reserves. The second important provision of this law is to create a legal environment for the state to assume responsibility, along with the Central Bank, for monetary and fiscal policy over a certain period of time”.
The bill states that the following measures will be taken to increase foreign exchange reserves:
-Provision of working capital financing and advance payments to gold mining companies from the Central Bank,
-A package of measures for the purchase of gold in the external and internal markets with a 5 percent premium to the price on the London Metal Exchange.

Source: Montsame

B.JAVKHLAN: THE GOVERNMENT WILL PAY ATTENTION TO STABILIZE THE PRICES OF MEAT, FLOUR AND FUEL

A non-regular cabinet meeting was held on April 4. The meeting discussed the price increase. 
B.Javkhlan, the Minister of Finance, said, “We need to analyze the situation properly. This time, the price increase is different from normal. The external situation is directly affecting it. The increase in meat prices will be stable until July 1 by selling reserve meat. Meat prices will be held at current levels. A law related to this must be made. Private sector involvement and accountability are more important. We will focus on fuel, meat and flour prices and cooperate with the private sector. Operations of the companies will be normal when they have fuel. We cannot influence fuel prices. We cannot stop supplies, so businesses must make purchases. To do this, estimate how much funding they need. Thus, we will estimate how much funding they need.

Source: GoGo News

BILL TO PREVENT RISE IN PRICE AND SHORTAGE OF KEY COMMODITIES SUBMITTED TO SPEAKER

On April 5, Prime Minister L.Oyun-Erdene submitted to the Speaker of Parliament G.Zandanshatar a Bill to prevent the rise in price and shortage of key commodities caused by the international crisis and reduce their impact.
At its irregular meeting on April 4, the Cabinet made a decision to submit the Bill to prevent risks as the world facing economic difficulties caused by the international tensions. The Bill regulates eight issues as follows;
-Parliament shall urgently discuss relevant bills and draft resolutions
-The Bank of Mongolia shall take measures on providing meat and flour suppliers and oil importers with the necessary funds on discounted terms, and mitigating foreign exchange risk by using other financial instruments
-With a purpose to increase the country's foreign exchange reserves, the Bank of Mongolia shall provide gold mining companies with financing and down payments, and purchase gold from foreign and domestic markets at a 5 percent increase on the price of London Metal Exchange price.

Source: Montsame

LABOUR MIGRATION LAW EFFECTIVE FROM 01 JULY 2022

On 24 December 2021, the Parliament of Mongolia passed the Labour Migration Law (the “LML”) effective from 01 July 2022. The LML, once effective, its preceding law, the Law on Sending Labour Force Abroad and Receiving Labour Force and Specialists From Abroad (12 April, 2001) shall no longer be in force.
In accordance with the concept of “Private Employment Agencies” Convention, No.181 of the International Labour Organisation, to which Mongolia is a party, the legal basis for employment agency service of Mongolian citizens abroad, has been updated. In this tax and legal alert, we highlight the key aspects of the LML.
Application of the law
This law shall apply to the following: 

• relations concerning employment or apprenticeship of Mongolian citizens abroad, protection of their rights and legitimate interests;
• procedure for granting work permits to foreign citizens and stateless persons to work in Mongolia.  

Source: PwC Mongolia

LEGAL ALERT: NEW LAW ON PROTECTION OF PERSONAL DATA IN MONGOLIA

The Parliament of Mongolia (State Great Khural) passed a new Law on Protection of Personal Data on December 17, 2021. The law will become effective from May 1, 2022. The Law on Personal Secrets which was adopted in 1995 provides very general provisions that individuals were to determine and protect their secrets themselves. Compared to this law, the new law is featured that it provides more comprehensive regulation on the Protection of Personal data.
An overview of highlighted new regulations of the Law on Protection of Personal Data is outlined in this legal alert.

Source: Grata International
Click here to view the full legal alert

SET OF GUIDELINES ISSUED BY GREEN FINANCE REGIONAL FORUM

At the Green Finance Regional Forum organized at the initiative of the President of Mongolia, discussions were held on accelerating regional cooperation in fighting against climate change, desertification, and soil degradation, resolving pressing issues, developing sustainable, green financing, and implementing a policy on 'Revival of Green Development'.
At the end of the forum, a set of guidelines was issued which included the following:
ONE. GREEN FINANCE – MULTILATERAL COOPERATION
…
TWO. IMPLEMENTATION OF NATIONALLY DETERMINED CONTRIBUTION 
…
THREE. BOOSTING THE IMPLEMENTATION OF ‘REVIVAL OF GREEN DEVELOPMENT’ IN THE FRAMEWORK OF THE NEW REVIVAL POLICY

Source: Montsame

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• Mongolia’s active cases of Covid-19 fall to 843
• Mongolia's active COVID-19 cases drop below 1,000 first time since late 2020

ALMOST 75 PERCENT OF MONGOLIA’S MEDIA OPERATIONS CONTROLLED BY POLITICIANS

According to Reporters without Borders (RSF – Reporters sans Frontières), the international non-governmental journalists’ organisation, almost 75 % of Mongolia’s media operations are controlled by politicians or people with close ties to politicians.
In cooperation with the Friedrich Ebert Foundation, which is close to Germany’s Social Democrats, the DW Akademie helped to establish the Media Council of Mongolia (MCM) in 2015. DW Akademie is Germany’s biggest media development organisation.
The Media Council of Mongolia is a private institution for the self-regulation of the media sector; it follows the European model. The MCM adopted a national ethics code and established a complaint mechanism. It appointed journalists, owners of media houses and representatives of civil society to its ethics commission, which has dealt with 500 complaints since 2015. Its decisions are public – and well argued.

Source: News.mn

MONGOLIA REQUESTS CHINA TO IMPROVE PORT OPERATION CAPACITY AND SHIPMENT

Chinese State Councilor and Foreign Minister Wang Yi on Thursday held a phone conversation with Mongolian Foreign Minister  B.Battsetseg at the latter’s request.
Mrs. B.Battsetseg said that the Mongolian side looks forward to giving full play to the Mongolia-China “green lanes” to further improve port operation capacity and shipment, and effectively cope with the negative impact caused by the spillover of the Ukraine crisis and the COVID-19 pandemic.
Recently, the “green lanes” between China and Mongolia have been reopened, and positive progress has been made in railway transportation, road freight, customs clearance and energy and mineral trade.
China is willing to work with Mongolia to speed up the construction of the China-Russia-Mongolia Economic Corridor and promote the connectivity of railway lines between China and Mongolia, Wang Yi said.
China will continue to provide Mongolia with anti-epidemic materials and equipment, support the country’s efforts in epidemic prevention and control and ensure the smooth operation of the border ports, he added.

Source: News.mn, ECNS.cn

WHO EXPRESSES SUPPORT FOR PRESIDENT'S DECREE ON REDUCING ALCOHOL CONSUMPTION

 
NewsWire

Issue 725 –  1 April 2022

BCM NewsWire provides short summaries of news collected from around the world. Each article is kept to a maximum of 150 words for brevity, but click on the link next to “Source” to read the full article.

BCM Highlight

• Meeting between the Executives of the Business Council of Mongolia and the Development Bank of Mongolia

Economy

• Mongolia cuts economic growth estimate to 2.6 pct in 2022
• Preparations completed to start construction of Erdeneburen HPP
• Meeting of the Financial Stability Council
• Strengthening Mongolia's Food Security Post-COVID-19
• Mongolia’s import from India reaches USD 30 million
• Revival of Urban and Rural Areas: ‘New ring road’ to be established
• Improving the policy framework for financial assurance for mine closure in Mongolia - Paper
• As Country Fights COVID-19, Herders Face Another Virus - Editorial
• Can nationwide early screening achieve desired results? - Editorial

• L.Oyun-Erdene: The government will fully support instruments to increase green financing
• Introduction to Mongolia’s Law on Digital Signatures
• United Nations and Asian Development Bank Onboard "New Revival"
• Latest on Covid-19 in Mongolia
• Nine members of the MPP to be investigated
• Australia: New Work and Holiday Maker arrangement with Mongolia
• Mongolia establishes fund for national tree-planting campaign
• Kyrgyzstan intensifies co-op with Mongolia in all areas, including road and transport
• Citizen traffic through Mongolian and Russian border crossings opened
• Policies to reduce traffic congestion in Ulaanbaatar discussed
• Stefanie Burri: “An all-inclusive approach is crucial for peace and sustainable growth” - Interview
• Defacto Review, March 22 - Video
• After the January events: Why Mongolia can’t and won’t produce broad mass movements - Editorial
• Mongolia and Russia’s Invasion of Ukraine – Part 2 - Editorial

Business

• Rio Tinto defends Turquoise offer, says will ‘deliver value for all stakeholders’
• Sendly International Remittance Company prepares for IPO
• Gerege Systems LLC named Best IT Entrepreneur of 2021
• Corporate Governance Code revised
• EBRD supports Mongolia’s first natural skincare brand
• Elixir Energy signs on new contractors for Nomgon IX exploration in Mongolia
• Industrial giant Barloworld might need to write down assets in Russia and Mongolia due to the war in Ukraine
• SouthGobi says its annual financial results impacted by border restrictions imposed by China

Global and Regional Trends

• Inflation starts to bite in Asia on war, COVID, supply squeeze
• Russia’s economy projected to shrink by 10 pct; Ukraine’s by 20 pct
• Oil prices dive as U.S. considers record reserves release
• From chip crunch to war: Automakers grapple with supply chain woes
• Travel Trends Of 2022
• Yen hits 7-year low after Bank of Japan sticks to stimulus
• Vietnam Sees GDP Growth Accelerating on Vaccines, Manufacturing
• ASEAN faces 'collateral damage' from Ukraine war's Europe impact
• Looking behind the monetary policy curve - Editorial

• UNICEF: Guidance for employers on flexible work arrangements and other good workplace practices in the context of Covid-19
• UNICEF: Call for actions of the private sector to reduce children’s exposure to air pollution in UB
• BCM Guideline for Companies to Combat Air Pollution
• Member-to-member special offers & benefits

Economic Indicators

• Inflation
• Central Bank Policy Rate
• Sovereign Credit Rating
• Currency Rates

BCM HIGHLIGHT

MEETING BETWEEN THE EXECUTIVES OF THE BUSINESS COUNCIL OF MONGOLIA AND THE DEVELOPMENT BANK OF MONGOLIA

The Business Council of Mongolia’s (BCM) Board of Directors and Development Bank authorities met on March 25 and discussed possible future cooperation. 
Board of Directors expressed their views on the possibility of further cooperation between the private sector and the Development Bank and discussed further cooperation with the Development Bank in the framework of the New Revival Policy and other projects and programs. In addition, it was agreed that the Development Bank should develop and improve its governance, strengthen its human resources, and should have sufficient financial resources to successfully implement major projects and programs.
In the near future, BCM plan to hold its Monthly Meeting in cooperation with the Development Bank and other relevant organizations on a wider range of topics. The meeting will also discuss and bring the views of experts and professionals on the challenges facing the Development Bank, and international experiences that overcome similar issues.

Source: BCM

ECONOMY

MONGOLIA CUTS ECONOMIC GROWTH ESTIMATE TO 2.6 PCT IN 2022

Mongolia cut its forecast for gross domestic product (GDP) growth in 2022 to 2.6 percent from 5.1 percent estimated early this year, local media reported on Friday, citing the country's central bank.
"The production of industries that use imported raw materials is expected to slow significantly compared to the previous year. In addition to declining mining exports, output is also declining," the Bank of Mongolia said, noting that these factors have contributed to the reduction of the 2022 economic outlook.
Mongolia's economy has been largely dependent on its export-oriented mining sector.
The Asian country's GDP expanded 1.4 percent year on year in 2021, according to the National Statistics Office.

Source: Xinhua

PREPARATIONS COMPLETED TO START CONSTRUCTION OF ERDENEBUREN HPP

The western region of Mongolia consumes 35 MW of power annually, while the Erdeneburen HPP will have a capacity to provide 90 MW. The Energy Minister pointed out at the beginning of the presentation that the plant is projected to have three times more capacity than the western region’s annual consumption.
He said, "With the commissioning of this plant, we will be able to supply domestic green energy to the western region sustainably. All the necessary preparation works to commence the construction phase are finished. The only challenge we are facing right now is the relocation of the 1,251 farmers and herders or 270 households who currently reside in the area. Under the effective law, they will only be compensated based on the value of their fixed assets. Therefore, the government is considering increasing the compensation. The final decision will be made at the next week’s meeting and in consultation with the Prime Minister”.

Source: Montsame

MEETING OF THE FINANCIAL STABILITY COUNCIL

An irregular meeting of the Financial Stability Council was held in the first quarter of 2022. The meeting was chaired by B. Javkhlan (Minister of Finance) and attended by D. Bayarsaikhan (Chairman, Financial Regulatory Commission), B. Lhagvasuren (Governor, Bank of Mongolia), S. Baatarsuren (CEO, Deposit Insurance Corporation), and other relevant experts.
In the meeting, J. Ganbayar (Head, Macro-economic Policy Division, Ministry of Finance) presented ‘Impact of Russian and Ukrainian military operations on the economy of our country’. B. Bayardavaa (Director, Monetary Policy Department, Bank of Mongolia) talked about ‘Mongolia's economic outlook and proposals for some measures’. Thereafter, E. Anar (Director, Settlement Department, Bank of Mongolia) introduced the ‘Settlement sanctions imposed on Russia from other countries’. Afterwards, Financial Stability Council members discussed further policy measures and decided to submit relevant information to the National Security Council of Mongolia.

Source: FRC

STRENGTHENING MONGOLIA'S FOOD SECURITY POST-COVID-19

The coronavirus disease (COVID-19) pandemic has disrupted the global and local food supply chains. In Mongolia, rising food prices, food shortages, inadequate storage facilities, and limited quality logistical resources have put primary producers, processors, importers, wholesalers, retailers, consumers, and households at a disadvantage.
To support the government’s response plan, the Asian Development Bank (ADB) conducted a study to understand the extent of the COVID-19 disrupted food supply chains and impacted food security.  A total of 362 households, 56 retailers, 21 wholesalers, and 35 other supply chain actors were surveyed between June and August 2021. This article shares the findings of this study and provides insights on how policy makers can build a more resilient food supply chain in Mongolia.
High international market prices affected imported goods in late 2020 and beyond. On average, national food prices increased by 21% from January 2020 to October 2021.

Source: Development Asia

MONGOLIA’S IMPORT FROM INDIA REACHES USD 30 MILLION

Mongolia-India cooperation meeting themed ‘Expanding 3T Horizons for India and Mongolia – Trade-Technology-Tourism’ was held at the Mongolian National Chamber of Commerce and Industry (MNCCI) on March 25, 2022
The meeting was attended by Ambassador Extraordinary and Plenipotentiary of the Republic of India to Mongolia M.P. Singh, former Ambassador Extraordinary and Plenipotentiary of Mongolia to the Republic of India G.Ganbold, other relevant officials, and business representatives.
In his opening remarks delivered at the meeting, MNCCI President O.Amartuvshin emphasized the great potential that the two countries have for trade and economic cooperation in the fields of oil, tourism, pharmaceuticals, and information technology.
Mongolia imports a variety of medicine, pharmaceuticals, animal vaccines, tea, sugar, telecommunications equipment, and trucks from India. The import reached USD 30 million last year. On the other hand, Mongolia mainly exports minerals such as coking coal, fluorspar, copper concentrate, iron ore, and uranium, which totaled about USD 200 thousand in 2021.

Source: Montsame

REVIVAL OF URBAN AND RURAL AREAS: ‘NEW RING ROAD’ TO BE ESTABLISHED

During the discussion on ‘Revival of Urban and Rural Areas’ held ahead of the Mongolian Economic Forum 2022, Governor of the Capital City and the Mayor of Ulaanbaatar D. Sumiyabazar announced that a total of 26 measures in nine types of operations are planned to be implemented in Ulaanbaatar city.
These include as follows:

• With the expansion and renovation works of main road network, the traffic congestion index will be reduced by 15-20 percent and road capacity will be increased by 35 percent.
• With the introduction of the unified smart system for traffic management and control, it will become possible to create a real-time information system of the traffic situation.
• The introduction of a new type of high-capacity public transport will increase the number of passengers by 30 percent compared to 2020 and reduce traffic movement by 50,000-60,000 vehicles. 
• Legal framework for tax incentives will be improved for entities that have taken measures to reduce congestion.

Source: Montsame

IMPROVING THE POLICY FRAMEWORK FOR FINANCIAL ASSURANCE FOR MINE CLOSURE IN MONGOLIA - PAPER

Highlights
•The mining sector is the main pillar of Mongolia's economy, accounting for over 20% of its GDP.
•The existing mining legal framework in Mongolia is weak with no requirements for mine closure plans and financial assurance.
•The study is the first one, attempting to assess financial assurance for mine closure in Mongolia through a case study.
•The total funds required to rehabilitate the existing areas affected by mining will be a heavy burden on country's economy in the future.
•If we assume that 1% of the total area under mining licenses will be exploited, almost double of Mongolia's GDP in 2019 will be required to rehabilitate this area.

Source: Science Direct

AS COUNTRY FIGHTS COVID-19, HERDERS FACE ANOTHER VIRUS - EDITORIAL

Herders call it the COVID-19 of livestock. It spreads swiftly, through dust kicked up by cattle hooves and car tires, and through the meat and blood of livestock. In the first two years of the pandemic, its spread abated, but now, Mongolian herders say, foot-and-mouth disease is back with a vengeance.
On an early February morning in Orkhon province, Togtokh Buduukhai stepped out of his yurt and peered into the distance, shielding his eyes with his hand. Then he hurried toward the veterinarian examining his animals and picked up a 2-year-old calf on the way. “This one is a little thin and unable to gain weight,” Togtokh said. “Please test it.”
Foot-and-mouth disease is common in Mongolia. The highly contagious virus, which affects cloven-hoofed animals, induces a high fever that can last up to six days, and blisters on the mouth and feet of infected animals.

Source: Global Press Journal

CAN NATIONWIDE EARLY SCREENING ACHIEVE DESIRED RESULTS? - EDITORIAL

The government of Mongolia plans to conduct a nationwide early screening, testing, and diagnosis of common communicable and non-communicable diseases based on age, gender and health risks from May 1. This has created expectations among citizens that they will be covered by free medical examinations. The biggest concern is whether the program will be implemented efficiently and bring enormous socioeconomic benefits to society as anticipated.
This is not the first time that an early screening program has been implemented in Mongolia. In 2018, the country covered its citizens with preventive medical examinations with funding from the Health Insurance Fund. However, it failed to meet even 10 percent of the target. In other words, citizens’ participation was very low. In this year’s state budget, 60.8 billion MNT has been allocated from the Health Insurance Fund for the nationwide program.

Source: The UB Post

POLITICS

L.OYUN-ERDENE: THE GOVERNMENT WILL FULLY SUPPORT INSTRUMENTS TO INCREASE GREEN FINANCING

L. Oyun-Erdene, Prime Minister and Chairman of the National Committee in charge of climate change and reduction of desertification, gave a keynote speech at the opening of the panel discussion ‘Green Finance-Regional Forum’ being organized as part of the series of discussions ahead of the Mongolian Economic Forum 2022.
In his speech, PM Oyun-Erdene expressed confidence that the forum would approve the national roadmap for sustainable financing within the framework of ‘New Revival Policy’, issue final recommendations for presentation at the plenary session of the Mongolian Economic Forum 2022, and play an important role in elevating the ​​public-private partnerships against climate change to a new level. 
He stressed, “In Mongolia, the frequency of natural disasters has doubled, 76 percent of the total territory has been struck by desertification, and 90 percent of pastures are at the risk of desertification. In addition, the country is among the 20 countries with the lowest water resources. The indication is worsening every year.”

Source: Montsame
See also: Green Financing Regional Forum starts at State House
U. Khurelsukh: Mongolia will reduce greenhouse gas emissions by 22.7 percent by 2030
USD 6.3 billion to be required to reduce greenhouse gas emissions
Call for collaboration in mitigating climate change and combating desertification
UNDP Associate Administrator Keynote Address at Green Finance Regional Forum

INTRODUCTION TO MONGOLIA’S LAW ON DIGITAL SIGNATURES

A newly revised Law on Electronic Signatures was adopted in December 2021 and will come into force on May 1^st, 2022.
The Revised Law distinguishes between electronic signatures and digital signatures. The Law provides that an electronic signature shall be used for electronic information that has been converted from paper form to electronic form by means of an information system, or created, sent, received, stored or accessed in an electronic environment (except for those classified as state secrets).
Generally digital signature is characterized by a unique feature that is in digital form like fingerprint that is embedded in a document. The Law provides that digital signature is a form of an electronic signature, and is an information that is encrypted and converted into digital signature by using private key and can be verified and validated by using a public key. With regards to legal entities, pursuant to the Law legal entities shall use digital seals, which must meet the requirements for digital signatures.

Source: LehmanLaw Mongolia

UNITED NATIONS AND ASIAN DEVELOPMENT BANK ONBOARD "NEW REVIVAL"

The ADB has declared public support for the government’s “New Revival” policy. The Asian Development Bank (ADB) has assisted in providing Mongolia over USD 3.9 billion in financing over the years, supporting development in key sectors across the national economy. Recently, Mongolia was paid a visit from country coordinator for the ADB Pavit Ramachandran, along with an ADB Senior Urban Development Specialist. As part of assistance with the “New Revival” program, the ADB is expected to provide additional funding for public transportation upgrades, an urban revival program, a rural development program, as well as green development initiatives. The rural development program is planned to provide new funding for small and medium local businesses in rural areas of the country. There are also plans to move forward with development on a “satellite city” outside of the capital Ulaanbaatar in hopes of relieving urban congestion in Mongolia’s largest city.

Source: LehmanLaw Mongolia

LATEST ON COVID-19 IN MONGOLIA

Below are headlines from the past week concerning Covid-19 in Mongolia:

• COVID-19 and Economic Recovery Potential in the CAREC Region
• Ts.Bilegtsaikhan: Experts still recommend the citizens to follow the infection control regime
• 3.5 percent of Mongolia’s population gets Covid-19 4th shot
• Mongolia records lowest daily COVID-19 cases in a year
• COVID-19: 69 cases reported

NINE MEMBERS OF THE MPP TO BE INVESTIGATED

D.Amarbayasgalan, the General Secretary of the Mongolian People’s Party, said that nine members of the MPP have been ordered to be investigated by law enforcement agencies.
On March 23, the General Investigation Committee of the Mongolian People's Party held a meeting to discuss the issues of the members regarding the Development Bank loan.
The resolution obliges the following members involved in the Development Bank loan to submit their request to the law enforcement agencies to have their guilt investigated by April 10. Herein:

•     S.Byambatsogt, Member of Parliament
•     Kh.Gankhuyag, Member of Parliament
•     G.Amartuvshin, Member of Parliament
•     G.Damdinnyam, Member of Parliament
•     Ch.Undram, Member of Parliament
•     M.Bilegt, Former Member of Parliament
•     A.Sukhbat, Former Member of Parliament
•     Ts. Garamjav, Former Member of Parliament
•     Sh.Lkhamsuren, Former Deputy Minister

Members will be suspended from the party if they do not apply for legal investigation by April 10. If convicted, the member will be expelled from the party in accordance with party rules.

Source: GoGo News

AUSTRALIA: NEW WORK AND HOLIDAY MAKER ARRANGEMENT WITH MONGOLIA

A new Work and Holiday Maker (WHM) arrangement will allow up to 100 young Mongolians and 100 young Australians each year to enjoy a 12-month holiday in each other’s country, during which they may undertake short-term work and study.
Minister for Immigration, Citizenship, Migrant Services and Multicultural Affairs, Alex Hawke, signed WHM agreements with Mongolia and Brazil today, the first since the COVID-19 pandemic began.
Working holiday makers support regional Australia by providing local businesses with access to more workers. Working holiday makers often fill labour gaps in agriculture, hospitality and healthcare, supporting critical industries and contributing to the Australian economy.
“This reciprocal visa arrangement with Mongolia highlights the vibrant relationship between our two countries,” Minister Hawke said.
“Australia and Mongolia have much in common. We share democratic values, cooperate on issues such as regional security—and we are committed to further developing our people-to-people links,” he said.

Source: Ministry of Home Affairs, Montsame

MONGOLIA ESTABLISHES FUND FOR NATIONAL TREE-PLANTING CAMPAIGN

Mongolia has established a fund to support its national tree-planting campaign, local media reported on Thursday, citing the presidential press office.
The nationwide campaign to plant at least 1 billion trees by 2030 was officially launched last year as Mongolian President Ukhnaa Khurelsukh told the United Nations General Assembly that the country aims to combat climate change and desertification.
The purpose of the fund is to create a structure and system to provide sustainable financing for afforestation, tree planting and other environmental activities, and member organizations of the Mongolian Bankers Association are expected to donate at least 2 billion Mongolian Tugriks (679,000 U.S. dollars) annually to the fund.
In addition, green loans in the banking sector will be increased to 10 percent by 2030, according to the presidential press office.
Forest only covers 7.9 percent of Mongolia's 1,564,116 square km of land currently.

Source: Xinhua, Montsame
See also: D.Sumiyabazar: Public participation in tree planting is vital

KYRGYZSTAN INTENSIFIES CO-OP WITH MONGOLIA IN ALL AREAS, INCLUDING ROAD AND TRANSPORT

The 4th meeting of the Mongolian-Kyrgyz Intergovernmental Сommission on trade-economic, scientific-technical and cultural cooperation was held in Ulan Bator on March 28-29, the press service of the Ministry of Transport of Kyrgyzstan said, Trend reports with reference to Kabar.
The meeting was chaired by Chairman of the Mongolian section of the Intergovernmental Commission, Minister of Road Development and Transport Haltar Luvsan and Chairman of the Kyrgyz section, Minister of Transport and Communications of Kyrgyzstan Erkinbek Osoev.
During the meeting, the sides agreed to intensify cooperation in trade and economic, investment, road and transport, agricultural, tourism, cultural and scientific and humanitarian spheres as part of expanding friendly relations and cooperation between Mongolia and Kyrgyzstan.
They noted the importance of improving transport and logistics conditions to stimulate trade and investment, and noted that the direct flights opened this month will be an important impetus for cooperation.

Source: Trend.az
See also: Investment and mining relations with Kyrgyzstan to be developed

CITIZEN TRAFFIC THROUGH MONGOLIAN AND RUSSIAN BORDER CROSSINGS OPENED

The Government of the Russian Federation approved Resolution #5656 on March 29, and all Mongolian-Russian border crossings are open to citizen traffic.
The Embassy of the Russian Federation in Mongolia announced this in a written note №36 / ko on March 30, 2022 at 11:00 am. Therefore, citizens are able to travel through all road ports of the two countries starting from 12:00 PM, March 30.
The Russian Embassy in Ulaanbaatar has announced that Mongolian citizens traveling to Russia will be allowed to cross the state border if they have a PCR test which was made within the last 48 hours.

Source: GoGo News, Montsame

POLICIES TO REDUCE TRAFFIC CONGESTION IN ULAANBAATAR DISCUSSED

Ahead of the Mongolian Economic Forum 2022, discussions are taking place on six main topics for the ‘New Revival Policy’ being implemented by the Government of Mongolia.
On March 25, a discussion on the topic ‘Revival of Urban and Rural Areas’ was organized and the discussion touched on the policies to reduce traffic congestion in Ulaanbaatar city.
The discussion was moderated by Deputy Director of Bloomberg TV B.Batmanlai, while the panelists were Member of the State Great Khural E.Bat-Amgalan, Deputy Minister of Road and Transport Development J.Bat-Erdene, Capital City Road and Transport Projects Manager B.Odsuren, JICA Representative Taiga Koizumi, Consultant of Shunkhlai group B.Byambasaikhan, and Architect Z.Tuya.
Deputy Minister of Road and Transport Development J.Bat-Erdene: “Traffic congestion depends on many factors. It is very important to ensure the coherence of activities, goals, and objectives related to traffic congestion. In other words, it is important to align projects and activities in the capital city with government policies”.

Source: Montsame

STEFANIE BURRI: “AN ALL-INCLUSIVE APPROACH IS CRUCIAL FOR PEACE AND SUSTAINABLE GROWTH” - INTERVIEW

Mrs. Stefanie Burri, Head of Swiss Cooperation in Mongolia, was interviewed to discuss about SDC’s activities including its support to combat gender-based violence in Mongolia.
Welcome, Mrs. Stefanie Burri, to our MONTSAME Agency. We invite you to discuss the very important topic of gender equality in Mongolia.
-Thank you very much for inviting me to discuss the important topic of gender equality and inclusion and how Switzerland addresses these issues globally and in Mongolia. The Swiss Agency for Development and Cooperation (SDC) joined this year’s Equal Respect campaign launched by the National Agency for Gender Equality and UNFPA. This campaign combines the observance of International Women’s Day with Mongolian Soldiers Day. I want to take this opportunity to congratulate all the girls, boys, women, and men of Mongolia.

Source: Montsame

DEFACTO REVIEW, MARCH 22 - VIDEO

Highlights of the week:

• The war protest at the Russian Embassy in Ulaanbaatar
• The Economic pre-forums held in Ulaanbaatar
• The Central Bank raises the monetary policy rate by 2.5 percent

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