NewsWire

Issue 757 –  18 November 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.

Economy

• Inflation surges to 14.5 pct in October
• Viktoria Abramchenko: Trade between Russia and Mongolia will reach a historic high this year
• Coal export likely to rally in coming months
• Mongolia launches online platform for tourists
• Foreign currency deposits soar to 4.6 trillion USD
• IRI Mongolia Poll Shows Concerns with Economy and Corruption, Support for Democratic Governance
• Training on yak animal husbandry, disease risk & mitigation, flaying & fleshing techniques, and preservation and storage of yak hides
• New to Ulaanbaatar November 2022 - Editorial

• 2023 Budget Law passed with 1.4 trillion MNT deficit
• Upcoming modifications to Mongolian Double Tax Treaties
• Concerns over restrictive HRD law passed by Mongolian Parliament
• Russia plans to complete designing of Soyuz Vostok gas pipeline to China via Mongolia in 2023
• Civil societies demand withdrawal of ‘anti-association’ bill as it negates past progress
• Mongolia Arrives at COP27 with Largest Delegation in Country's History
• Russia increased electricity export to Mongolia by 100 MW-official
• Kh.Nyambaatar: Citizens of most countries will travel without a visa to Mongolia
• E.Bat-Amgalan MP: Expansion of Amgalan thermal power plant needs to start immediately
• “Food Supply and Security” national movement launched in Ulaanbaatar
• Parents Rally for Child-Friendly Spaces - Editorial

Business

• Rio Tinto’s long-awaited deal comeback is stuck in limbo
• Turquoise Hill reports USD 40-million third quarter profit, raises gold guidance
• Legal Regulation On Mergers And Acquisitions In Mongolia
• Fintech lending debt-to-income ratio regulated to be 70 percent
• Parabellum Resources targets resource update in Q1 2023 at Khotgor rare earth project in Mongolia
• Talon Energy has a world-scale resource on the doorstep of the world’s largest gas consumer: MST Access
• Experts with right to provide professional services in securities market take oath
• Ulaanbaatar’s ger district starts moving to renewable energy
• Agreements signed with sports associations to cooperate in East Asian Youth Games
• Khan bank successfully receives 60 million USD in long-term funding

Global and Regional Trends

• As the world’s population hits 8 billion people, UN calls for solidarity in advancing sustainable development for all
• Russia Falls Into Recession
• China Q3 GDP growth tops forecasts but meaningful rebound elusive
• Japan's economy unexpectedly shrinks as hot inflation, global slowdown take toll
• China Jan-Oct FDI rises 14.4 pct y/y - commerce ministry
• Commodity star lithium shows signs of cooling after 1,200 pct rally
• Key takeaways from the G20 summit in Bali
• IPO funds raised by Southeast Asian companies fall amid economic headwinds
• OPEC cuts oil demand growth forecast again as economic challenges mount
• The global shipping industry is facing a new problem — too many containers
• Central Asia looks beyond Russia's orbit to secure its future - Editorial

• BCM Quarterly Report for Q3'22
• BCM submits policy paper
• The BCM appoints Raphaël Goué as official BCM representative in Europe
• SDG Investor Mapping project survey - Identifying business cases for investment opportunities
• 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

ECONOMY

INFLATION SURGES TO 14.5 PCT IN OCTOBER

Mongolia's inflation, measured as the consumer price index, surged year-on-year by 14.5 percent in October, said the country's National Statistics Office on Tuesday.
The index rose 1.3 percent from the previous month and 10.9 percent from the start of 2022. The increase is largely related to the higher prices for imported goods, the office said in a statement.
There are 410 items in the country's consumer goods and services basket, with 221 of them imported, said the statement.

Source: Xinhua
See also: 

VIKTORIA ABRAMCHENKO: TRADE BETWEEN RUSSIA AND MONGOLIA WILL REACH A HISTORIC HIGH THIS YEAR

The Russian delegation at the talks was led by Deputy Prime Minister Viktoria Abramchenko, head of the Russian section of the commission. The Mongolian delegation was chaired by Deputy Prime Minister and Minister of the Economy and Development of Mongolia Chimed Khurelbaatar.
Viktoria Abramchenko stressed that bilateral relations between Russia and Mongolia are based on a long history of friendship, cooperation and mutual assistance. She noted the two countries’ similar approaches to many topical issues, mutually respectful dialogue and equitable interaction of the parties in international affairs.
The Deputy Prime Minister noted the growing trade between the two countries, which increased by more than 30 percent last year.
“We expect that it will reach a historic high of $2 billion by the end of the year. At the same time, we understand that 98 percent of mutual trade consists of Russian products supplied to Mongolia, and for our part, we emphasise that we want to see Mongolian goods on our market,” Viktoria Abramchenko said.

Source: EINnews..com
See also: Mongolia asks Russia to supply extra volumes of diesel fuel before cold weather-Deputy PM

COAL EXPORT LIKELY TO RALLY IN COMING MONTHS

Mongolia’s coal export is rising as there is less congestion at the Chinese port. The volume of coal transportation has risen in the past two months and analysts emphasized that if this situation continues, coal export can reach up to 30 million tons by the end of the year. As of November, Mongolia has exported 24.4 million tons of coal. 
China consumes about 4.3 billion tons of coal annually, of which 611 million tons are imported. According to an international economic review, it seems that China’s coking coal prices will rise in the upcoming months.
As of October 10, the price of a ton of coal in Shaanxi Province, China is 2,488 CNY or 347.8 USD, which is 9.1 USD higher than in September, while at the Tianjin port, it costs 2,760 CNY or 385.7 USD, 29.4 USD higher than in the previous month.

Source: The UB Post
See also: Coal transport information on Tavantolgoi-Gashuunsukhait becomes transparent
China's Erenhot border port imports more than 2 Mt coal over Jan-Oct

MONGOLIA LAUNCHES ONLINE PLATFORM FOR TOURISTS

The Mongolian government declared 2023 and 2024 the Years of Visiting Mongolia to promote the country’s pandemic-hit tourism sector.
Meanwhile, the government launched an online platform for promoting Mongolia internationally. The website www.mongoliatravel.guide and the application "Visit Mongolia" were launched in test mode.
The www.mongoliatravel.guide website and "Visit Mongolia" travel app will provide information about the history, culture, art, customs, food and nature of Mongolia in Mongolian, English, Russian, Chinese, Japanese, Spanish and Korean languages, schedule of tourist activities and other information.
In addition, every foreign tourist who has obtained an e-visa to come to Mongolia will soon receive a greeting letter from the prime minister of Mongolia titled "Welcome to Mongolia.
Mongolia has set a goal of welcoming 1 million foreign tourists and earning 1 billion U.S. dollars from tourism in 2024.

Source: News.mn, Montsame

FOREIGN CURRENCY DEPOSITS SOAR TO 4.6 TRILLION USD

The National Statistics Office (NSO) announced that the money supply (М2) stood at 27.3 trillion MNT in October based on preliminary estimation, which is an increase of 183.4 billion MNT or 0.7 percent from the same period of last year.
The growth was caused by the increase in foreign currency transactions, up by 82.2 percent (1.9 trillion MNT), and foreign currency deposits, up by 15.2 percent (611.4 billion MNT).
The preliminary findings for October show that the money supply (M1) or money outside depository institutions and MNT-linked accounts reached 6 trillion MNT. This is a drop of 2.1 percent (128.7 billion MNT) from the previous month but a rise of 6.3 percent (358.5 billion MNT) from a year ago. In the money supply (M1), about 87.8 percent (5.3 trillion MNT) consists of MNT-linked accounts while 12.2 percent (735.6 billion MNT) consists of money outside the depository institutions.

Source: The UB Post

IRI MONGOLIA POLL SHOWS CONCERNS WITH ECONOMY AND CORRUPTION, SUPPORT FOR DEMOCRATIC GOVERNANCE

A new poll by the International Republican Institute’s (IRI) Center for Insights in Survey Research (CISR) shows Mongolians have concerns over the economy and corruption, while demonstrating strong support for democratic governance.
When asked about the most important problems facing the country today, most Mongolians chose issues related to the economy. The top three responses show 58% citing high prices and the cost of living, 26% stating unemployment, and 14% declaring other general economic issues. 
In a poll fielded from March to April 2021, 34% cited healthcare and COVID-19 as the top issue in Mongolia. 
The survey also finds that 74% of Mongolians feel that corruption is a very serious problem and there is little faith with institutions to address it. Sixty-four percent have a negative opinion about the Independent Authority Against Corruption, 66% have a negative opinion of the Courts, and 62% of have a negative opinion of the State Great Hural, the unicameral parliament. 

Source: GoGo News

TRAINING ON YAK ANIMAL HUSBANDRY, DISEASE RISK & MITIGATION, FLAYING & FLESHING TECHNIQUES, AND PRESERVATION AND STORAGE OF YAK HIDES

A five-day training programme will be organized for up to 25 representatives of herders’ groups and veterinary extension officers, targeted to highlight essential issues for attention during animal breeding and ultimately during slaughter.
The training will be held on:

• 14/11/2022 – 18/11/2022, Premises of Ministry of Food, Agriculture and Light Industry building – Conference Hall, Arkhangai province, Tseterleg (city center)
• 21/11/2022 – 25/11/2022, Premises of Ministry of Food, Agriculture and Light Industry building – Conference Hall, Khuvsgul province, Moron (city center)
• 28/11/2022 – 02/12/2022, Premises of Ministry of Food, Agriculture and Light Industry building – Conference Hall, Bayankhongor province, Bayankhongor (city center)
• 05/12/2022 – 09/12/2022, Premises of Ministry of Food, Agriculture and Light Industry building – Conference Hall, Uvurkhhangai province, Arvaikheer (city center)

Source: MNCCI

NEW TO ULAANBAATAR NOVEMBER 2022 - EDITORIAL

This list was cruelly interrupted by something that was new to the world in 2020, a global pandemic and thus restrictions on travel. After not being able to visit for 32 months, I finally made it back in August 2022.
What has arrived?

• large-scale BBQ extravaganza on the banks of the Tuul river, particularly near the ASEM Road. On summer weekends, so many cars parked right on the riverside, BBQs planted right next to them, families camping out, some literally

• drive-home service for drivers who have been drinking. You call the service, they drop off a driver who drives you home in your car and is then picked up again. Given – fortunately – much stricter enforcement of drunk driving laws, a great service!
• fixies
• airport road is getting ever fancier, now there’s a giant overpass just before crossing the Tuul on the way into town. Lots of fancy on/off-ramps popping up everywhere on roads.
• …

Source: Mongolia Focus

POLITICS

2023 BUDGET LAW PASSED WITH 1.4 TRILLION MNT DEFICIT

Last Friday, Parliament approved the draft 2023 Budget Law and draft amendments to the Law on Budget Framework Statement for 2023 and Law on Budget Assumptions for 2024 to 2025 among other fiscal bills.
In the state budget, revenue is projected to be about 19 trillion MNT, or 34.9 percent of the GDP, and spending is estimated to be around 20.4 trillion MNT, or 37.6 percent of the GDP. In other words, the state budget was passed with a deficit of 1.4 trillion MNT.
Under the Law on State Austerity, the government will take measures to keep the budget deficit at the target level, stabilize the economy and maintain fiscal discipline at all levels next year, Finance Minister B.Javkhlan said.
The government expects the economy to grow by about 5 percent and plans to reduce the inflation rate to a single-digit level next year.

Source: The UB Post, Montsame

UPCOMING MODIFICATIONS TO MONGOLIAN DOUBLE TAX TREATIES

In brief
Multilateral Convention to Implement Tax Treaty Measures to Prevent Base Erosion and Profit Shifting, also known as the Multilateral Instrument (MLI), is a flexible instrument which modifies tax treaties according to a jurisdiction's policy preferences with respect to the implementation of the tax treaty-related BEPS measures.
On 6 October 2022, Mongolia become the 100th jurisdiction to join the BEPS Convention (by signing the MLI), which now covers around 1850 bilateral tax treaties worldwide.
As a result, the double tax treaties (DTTs) of Mongolia are expected to be modified from 1 January 2024 in the expectation that the MLI would be ratified by the Parliament in the 2023 spring session.
Takeaway and what we can offer:
Adoption of the MLI will impact significantly DTT rules. Specifically, the DTT benefits are not applicable if, having regard to all relevant facts and circumstances, obtaining that the DTT benefit was one of the principal purposes of any arrangement or transaction.

Source: PwC Mongolia

CONCERNS OVER RESTRICTIVE HRD LAW PASSED BY MONGOLIAN PARLIAMENT

The ‘Law of Mongolia on the legal status of Human Rights Defenders’, has been in the making for over 2 years, with participation from civil society, human rights organisations (including ISHR, Front Line Defenders and Forum Asia), the National Human Rights Institution and UN experts. The original draft was approved by a committee in the Mongolian State Great Khural in December 2020 and was later sent to a parliamentary working group for review. The resulting version passed and was celebrated as the first law specifically destined for the protection of human rights defenders adopted in Asia. However, despite major objections from civil society and defenders, some broad provisions that could easily be used to restrict the rights of defenders were included in the version adopted.
Article 8.1.3 prohibits defamation of the ‘honour or reputation of others’. This broad provision could be misused to silence or criminalise defenders, as has occurred with other national laws, by claiming that any act of denunciation breaches this prohibition.

Source: International Service for Human Rights

RUSSIA PLANS TO COMPLETE DESIGNING OF SOYUZ VOSTOK GAS PIPELINE TO CHINA VIA MONGOLIA IN 2023

The designing of the Soyuz Vostok gas pipeline to China via Mongolia should be completed next year, Russian Deputy Prime Minister Victoria Abramchenko told journalists following a meeting of an intergovernmental commission with Mongolia.
"The completion [of the designing] is scheduled for next year. After all, this is a trilateral story, that is, we are supposed to ensure clearance by the three states," Abramchenko said.
Gazprom started to assess the possibility for supplying up to 50 billion cubic meters of gas per year to China via Mongolia in 2020. Design and surveying as part of the Soyuz Vostok trunk pipeline project began in February 2022. The pipeline is to go through Mongolian territory and will be a continuation of the Power of Siberia 2 pipeline.

Source: Interfax
See also: Russia, China continue discussing terms of gas supplies via Mongolia, says ambassador

CIVIL SOCIETIES DEMAND WITHDRAWAL OF ‘ANTI-ASSOCIATION’ BILL AS IT NEGATES PAST PROGRESS

In 1997, Parliament passed the Law on Non-Governmental Organizations (NGOs), which laid out the initial framework for Mongolians to fully exercise their newly gained constitutional rights of association, assembly and expression. Since then, civil society organizations have grown in number and capacity and have made invaluable contributions to the country’s evolving free and open society. However, these groups and the fundamental freedoms they enshrine are at risk as Parliament is discussing more “stringent” bills. Therefore, they have expressed their disapproval of the bills, which govern the work of civil society organizations, including the processes for registration and reporting and the types of activities allowed.
Last November, the Ministry of Justice and Internal Affairs submitted two new bills to regulate NGOs – a bill on associations and another on foundations. Both bills are pending in Parliament and propose a substantial revamp of the country’s regulatory environment for NGOs. 

Source: The UB Post

MONGOLIA ARRIVES AT COP27 WITH LARGEST DELEGATION IN COUNTRY'S HISTORY

The COP27 has begun in Sharm El-Sheikh, Egypt. Leaders from over 100 countries and about 50,000 representatives from 180 countries are participating this year, being held 6-18 November 2022.
This year, Mongolia is paying huge attention and participating in more than 60 people which considering the largest delegations from Mongolia in COP’s history. President of Mongolia, Ukhnaa Khurelsukh, will be attending high-level meetings on November 7-8, and will present Mongolia's position on combating climate change, desertification, and mitigating global warming, as well as presenting policies and activities that have been implemented at the national level.
The COP27 officially included loss and damage in its agenda for the first time. According to the National Emergency Agency of Mongolia, the country faced direct economic losses of 1.6 trillion MNT between 2009 and 2019. Additionally, Mongolia need 30.3 trillion MNT or USD11.5 billion financing on adaptation and mitigation of climate change to reach its climate target by 2030.

Source: EarthJournalism.net

RUSSIA INCREASED ELECTRICITY EXPORT TO MONGOLIA BY 100 MW-OFFICIAL

Russia has increased the capacity of electricity export supplies to Mongolia by 100 MW, Deputy Prime Minister Viktoria Abramchenko told reporters after the meeting of the Russian-Mongolian intergovernmental commission.
"We agreed with the Mongolian partners to scale up electricity supplies to the Mongolian market and increased such deliveries by 100 MW," she said.
Russia’s electricity export to Mongolia and China will grow by 19-20% annually to 5.2 bln kWh, Energy Minister Nikolay Shulginov said earlier.

Source: TASS

KH.NYAMBAATAR: CITIZENS OF MOST COUNTRIES WILL TRAVEL WITHOUT A VISA TO MONGOLIA

The decision of the Cabinet meeting is presented.
Kh.Nyambaatar, Minister of Justice and Internal Affairs, reported:
- The Ministry of Justice and Internal Affairs is preparing the first draft of the Law on Tourism. The regulation of tax refunds for tourists visiting Mongolia is included in this law. In relevance, the law on hunting will be amended an open auction will be organized based on the number of wild animals that can be hunted in that year issued by the Ministry. The hunting market will be more open. Many initiatives to increase the products of tour operators are under process. 
Also we intend to provide visa discounts for tourists. According to this, Mongolia will be the country that allows citizens of the largest number of countries to travel without a visa. The list of countries will be presented at next week's Cabinet meeting. 

Source: GoGo News
See also: Vietnamese citizens to become able to apply for visas online starting from December

E.BAT-AMGALAN MP: EXPANSION OF AMGALAN THERMAL POWER PLANT NEEDS TO START IMMEDIATELY

E.Bat-Amgalan, the Member of Parliament and Chairman of the Ad Hoc Committee on Development policy of Ulaanbaatar city, made a following report.
"The Government of Mongolia is paying special attention to the recovery of the energy sector within the framework of the "New Revival" policy. In June, 2022, a decision to start the expansion of the Amgalan Thermal Power Plant was made in order to provide heat to the eastern region of Ulaanbaatar. As of today, the expansion work has not officially started yet. Therefore, we met with the relevant authorities and exchanged opinions about the stage at which the expansion of the station is delayed”. 
Officials of the power plant said that a contractor for the expansion has been selected and is ready to begin work, but contractual issues related to financing have been holding up delays. The contractor will complete the expansion of the station within 16 months when the contract is finalized.

Source: GoGo News

“FOOD SUPPLY AND SECURITY” NATIONAL MOVEMENT LAUNCHED IN ULAANBAATAR

The ‘Food Supply and Security’ national movement, initiated by President of Mongolia U.Khurelsukh, is ongoing to ensure the food supply and security, to implement the goals of sustainable development, including meeting the domestic needs of 19 main types of food products in the next five years. This movement was officially launched in the capital city of Ulaanbaatar.
On this occasion, Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar presented the policy to improve food supply and security and to provide the population of the capital city with 19 types of main food products for the next five years.
He said, "Based on the growing demand for food, it is important to increase the production of food and agricultural products, supply domestically, reduce dependence on imported products, and meet safety and hygiene requirements at every stage of the food chain…”

Source: Mayor's Office

PARENTS RALLY FOR CHILD-FRIENDLY SPACES - EDITORIAL

Six-year-old Setsen Unenbat plays out her dream of becoming an astronaut for the day at Mongolia’s only science museum for children, an interactive space that was forced to close during the pandemic due to a lack of funds.
At the DuDu Children’s Museum in the capital, Setsen runs excitedly to her mother, Battsetseg Chagdgaa, and points at a spaceship as she tugs at her mother’s hand. “It’s very interesting, Mom. Let’s go play together,” she says. “It makes me feel great to wear an astronaut’s uniform, float around inside the spaceship, and play in my own imagination.”
For Setsen and thousands of other schoolchildren, spaces like the DuDu museum were vital when school was open for only just three months in 2020 and 2021 due to the coronavirus pandemic. But the pandemic also caused a drastic drop in visitors to the museum’s two sites in the capital.

Source: Global Press Journal

BUSINESS

RIO TINTO’S LONG-AWAITED DEAL COMEBACK IS STUCK IN LIMBO

Mining giant Rio Tinto Group is finding that its long-awaited return to cutting a major deal without the brash spending of its past is proving a challenge.
Its more than $3 billion bid to buy the rest Turquoise Hill Resources Ltd. and boost its exposure to a massive copper deposit in Mongolia has effectively been put on hold. Rio struggled to win investor support, forcing it to offer unusual terms to the most stubborn holdouts which appeared to be enough to close the deal.
But within days, Canadian regulators took issue with the side deal, compelling Turquoise Hill to postpone the shareholder vote.
M&A is a sensitive subject at Rio. Disastrous deals more than a decade ago almost sunk the company, cost a former CEO his job and led to regulatory probes. Yet there’s a recognition within the world’s No. 2 mining firm that those issues have cast a shadow for too long.

Source: Mining.com

TURQUOISE HILL REPORTS USD 40-MILLION THIRD QUARTER PROFIT, RAISES GOLD GUIDANCE

 
NewsWire

Issue 756 –  11 November 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.

Economy

• Mongolia Jan-Oct coal exports surge 72 pct on yr
• Creation of the ‘Mongolian Coal’ brand
• FRC meets with Financial Service Commission and the Financial Supervisory Service of South Korea
• Digital solutions to make life easier for UB citizens
• ‘It is necessary to create healthy, safe and green workplaces’ - Interview
• Can monetary policy guarantee 4-5 pct economic growth in 2023? - Editorial
• Miners working long shifts deserve to be paid more fairly - Editorial
• In Mongolia, a Quest to Democratize Carbon Credits - Editorial

• 15 highlights from President of Mongolia's national statement delivered at COP27
• Mining minister J. Ganbaatar met with Minister for Resources of Australia
• “Sustainable Development Cooperation Framework” document presented to Prime Minister
• 'We can approve the state budget without deficit by raising revenue'
• Repayment of MNT 779 billion made to Development Bank
• “Erdenes Tavantolgoi” company to not agree on upfront payment terms
• Construction permits inspected
• District administration to plan green spaces, pedestrian and cycling infrastructure
• Bill on pawnshops passed to protect consumers’ interests
• Defacto Review, November 6 - Video

Business

• Rio Tinto's takeover of Turquoise Hill postponed indefinitely after Quebec watchdog raises concerns
• Golomt Bank LLC has registered shares to be issued as a public offer
• MMC’s Tender Offer Not DDE; Rating Headroom Pressure Easing
• Best handicraft products to be selected and supported for export
• Parks to be built in 2 ger areas in cooperation with Rio Tinto
• TMK delivers resource estimate for Mongolia CBM project
• Sandvik wins 2022 Innovation Award for AutoMine® in Mongolia
• Jade Gas Continues to Deliver Exploration Success
• A Brighter Tomorrow for Mongolia’s Energy Sector
• How Management Accountants Can Lead Digitalization
• Mascot of Ulaanbaatar-2023 East Asian Youth Games introduced
• Steppe Gold's Q3 Financials: Seeing Strong Increase in Gold Production - Video

Global and Regional Trends

• US inflation slows more than expected to 7.7pc annual rate
• Australia's resource-led economy digs stock markets out of hole
• China's trade unexpectedly shrinks as COVID curbs, global slowdown jolt demand
• Codelco proposes 33 pct price hike for Chinese copper buyers for 2023
• EU, Kazakhstan establish strategic partnership on raw materials, green hydrogen
• U.S. midterm elections: Five things Asia should know
• COP27: Key climate goal of 1.5C rise faces new challenge
• ASEAN summit begins with Myanmar likely to dominate agenda; 'little progress expected'
• The precarity of progress: Asia confronts post-pandemic era of insecurity - Editorial

• BCM Quarterly Report for Q3'22
• BCM submits policy paper
• The BCM appoints Raphaël Goué as official BCM representative in Europe
• SDG Investor Mapping project survey - Identifying business cases for investment opportunities
• 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

ECONOMY

MONGOLIA JAN-OCT COAL EXPORTS SURGE 72 PCT ON YR

Mongolia's coal exports came in at 23.11 million tonnes during the first ten months of 2022, up 71.69% or 9.65 million tonnes year on year. The export value jumped 159.27% from the year prior to $5.11 billion, showed data from the Mongolian Customs General Administration (MCGA).
MCGA didn't release the specific figure for October, and Sxcoal calculated the shipments at 4.09 million tonnes based on the overall exports published by the administration.
The volume surged 178.41% or 2.62 million tonnes year on year yet decreased 1.75% or 72,700 tonnes month on month, data showed.
In October, the export amounts totaled $607 million, with the average price calculated at $148.55/t, down $171.91/t year on year and $1.11/t month on month.
Mongolia exported 21.56 million tonnes of coal to China from January to October, soaring 70.5% year on year, taking up 93% of the total.

Source: sxcoal.com
See also: Mongolia Looks to Sell More Coal to China as World Shuns Polluting Fuel
Mongolian enterprises can control coal quality, enhance brand awareness, Fenwei
Coal transportation on Tavan Tolgoi-Tsagaan Khad route surges 370%

CREATION OF THE ‘MONGOLIAN COAL’ BRAND

The bill on the Sovereign Wealth Fund will be discussed at the autumn session of Parliament. As the government supports, its approval without much objection is expected. The main point is that the structure, management, executive management, board of directors, operating strategy, and direction of the state-owned company, Erdenes Mongolia , is clearly stated in the bill. So, if the law is approved, Erdenes Mongolia will become the Sovereign Wealth Fund. On the other hand, by bringing Erdenet Mining Corporation and Mongolrostsvetmet into the Erdenes Mongolia company’s structure, it will become a "holding" company. This also applies to the government decree issued in April of this year that updates the company's rules.
This clarifies many issues. There are good objectives for an open and transparent business environment, good corporate governance, joint management of joint ventures and mutually beneficial investor relations.

Source: Mongolian Mining Journal

FRC MEETS WITH FINANCIAL SERVICE COMMISSION AND THE FINANCIAL SUPERVISORY SERVICE OF SOUTH KOREA

T.Tserenbadral (Vice Chairman, Financial Regulatory Commission, FRC) met with Kim Yong-Jae (Standing Commissioner, Financial Service Commission, FSC), and Lee Myung Soon (First Senior Deputy Governor, Financial Supervisory Service, FSS) on 4 November, 2022. During the meeting, T.Tserenbadral presented a brief introduction about the activities of the FRC, and information about its work in recent years. Particular examples included:

• measures implemented to increase capital market growth,
• policy development to support new services and products,
• increase participation of foreign (and professional) investors, and reduction of financial costs (by creating fair competition in financial markets). 

• optimize the form of ownership of state-owned companies, and
• reform the Bank sector and improve governance (by establishing publicly controlled and open joint-stock companies, in stages). In this way, the stock market value of Mongolia will increase two to threefold, and products that meet the demands of foreign and domestic investors will be created.

Source: FRC

DIGITAL SOLUTIONS TO MAKE LIFE EASIER FOR UB CITIZENS

It is a wise and timely decision to use new solutions to solve the issues of the city, ensure the comfort of citizens and create conditions for living in a safe and pleasant environment. Therefore, the digital transition plan of Ulaanbaatar has been presented taking into account international standards, the characteristics of Mongolia, the culture and traditions of the citizens, the extreme climate and the characteristics of the state structure. In other words, Ulaanbaatar is cooperating with more than 70 national IT entities and 1,000 Mongolian engineers to use information technology solutions in each branch of the capital. We are highlighting digital solutions that were introduced in the city.
As part of the digitalization of public transport, the ePASS project, an integrated system with automation and information technology solutions will be introduced to the city’s public transport and school bus services.

Source: The UB Post

‘IT IS NECESSARY TO CREATE HEALTHY, SAFE AND GREEN WORKPLACES’ - INTERVIEW

The following interview is with Head of the Federation of Energy, Geology and Mining Workers’ Trade Unions of Mongolia D.Dolgor.
How do you evaluate the state of labor relations among employees in the energy, geology, and mining sectors?
Our federation is working to protect the labor rights and legitimate rights of workers in the energy, geology and mining sectors. Since last May, workers in the energy sector have started speaking to the government about concerns for their health and safety. On average, power plants and utility networks have been operating for about 30 years. Due to the lack of investment in the energy sector, the technology and equipment are outdated. People are working under such conditions.
Due to the pandemic, the electricity tariff for households has not been raised since 2019. However, the prices of oil, lubricants and spare parts used in power plants and pipelines have hiked significantly.

Source: The UB Post

CAN MONETARY POLICY GUARANTEE 4-5 PCT ECONOMIC GROWTH IN 2023? - EDITORIAL

Since the macroeconomic policy is aimed at improving the quality of citizens’ life by ensuring economic growth, keeping inflation and unemployment at a stable low level and reducing fiscal and trade deficits, the draft basic guidelines for 2023 state monetary policy, which is expected to be passed by Parliament this week, is drawing people’s attention.
Mongol Bank developed the draft guideline to support the economic and financial stability of Mongolia and overcome the pandemic and international conflict situation, the rise in foreign and domestic prices and other spillovers through the coordinated implementation of budget, monetary and financial policies.
The pandemic effects and the external geopolitical tensions have directly and indirectly affected the country’s economy for the past two years.
Mongol Bank explains that progressive measures taken in terms of budget, monetary and financial policies have yielded results, expanding the economy by 1.9 percent in the first half of 2022 compared to the same period of last year.

Source: The UB Post

MINERS WORKING LONG SHIFTS DESERVE TO BE PAID MORE FAIRLY - EDITORIAL

After the implementation of the revised labour law, which was endorsed last July and made effective from this year, miners have less money in their hands. That is because miners who worked more days at mining sites and spent much less time at home, are now entitled to have more time with their families and earn less. But it is not that simple. Miners require fair salary from their employers under the revised law. But employers have answered them that they are paid what they are entitled. Under the new labour law, miner’s average working hours per day should be limited to eight hours (as regulated by the law’s articles 87, 92, 109.1) and if it is extended, no more than four hours overtime can be added. But the laws are not implemented well. On the contrary, miners’ salaries have been decreased due to the law’s related regulations on average salary defining, salary calculation methodology, approved following the labour law.

Source: Mongolian Mining Journal

IN MONGOLIA, A QUEST TO DEMOCRATIZE CARBON CREDITS - EDITORIAL

For several years, The Asia Foundation’s Mongolia office in Ulaanbaatar has been working to reduce our carbon footprint. We started with simple efforts to reduce our emissions—limiting energy use, walking to meetings, composting our food waste, etc.—but we soon bumped up against some fundamental constraints, such as how our office building is heated during the long cold winters and the inevitability of car and airplane travel. These factors meant there was no direct pathway to zero emissions for our office.
Through this process we discovered that the only path to our goal of net zero emissions was to purchase carbon credits.
Carbon credits are based on a simple concept. Some entities are required by regulation, or choose voluntarily, to reduce their emissions. Those who cannot reduce their own emissions to zero, like our Mongolia office, can instead pay for emissions reductions by others by purchasing carbon credits.

Source: The Asia Foundation

POLITICS

15 HIGHLIGHTS FROM PRESIDENT OF MONGOLIA'S NATIONAL STATEMENT DELIVERED AT COP27

President of Mongolia U. Khurelsukh yesterday delivered a national statement at COP27. The following are some of the highlights of his statement that expressed Mongolia's stance on climate change.

1. In these difficult times when the world is faced with significant challenges such as the global food and energy crisis, rising prices, and geopolitical tensions. It is imperative that all countries remain committed to achieving the Sustainable Development Goals and intensify their actions, especially towards combating climate change without losing momentum.
2. Soil, food, and human beings are inextricably linked. Healthy soil produces healthy food and healthy food nurtures healthy people. Therefore, combating climate change is important to protecting soil, our food, and humankind.
3. Every country needs to comprehensively address the pillars of food supply, food security, and climate change as part of SDGs.
4. Mongolia, in its efforts to achieve SDGs, is successfully implementing the “Food Supply and Security”, “Healthy Mongolians” and “One Billion Trees” national movements.
5. …

Source: Montsame
See also: UN chief warns "We are on a highway to climate hell" at COP27 summit
Mongolia becomes the first Asian country to join the EU Forest Partnership
Mongolia plants over 10 mln trees in 1 year to combat desertification

MINING MINISTER J. GANBAATAR MET WITH MINISTER FOR RESOURCES OF AUSTRALIA

Minister of Mining and Heavy Industry of Mongolia J. Ganbaatar, who is participating in the “International Mining and Resources Conference (IMARC) 2022", met with Madeleine King, Minister for Mineral Resources and Minister for Northern Australia.
During the meeting, Minister J. Ganbaatar mentioned that this year marks the 50th anniversary of the establishment of diplomatic relations between Mongolia and Australia and expressed his satisfaction with the expansion of cooperation in the field of mining.
Minister for Resources of Australia Madeleine King said that she will support Mongolia’s cooperation with relevant organizations of Australia in the fields of geology, exploration, and investment such as Geoscience Australia.
In addition, Minister J. Ganbaatar invited Minister Madeleine King to visit Mongolia at her convenience.

Source: Montsame
See also: Possibilities of attracting investment in geological exploration discussed

“SUSTAINABLE DEVELOPMENT COOPERATION FRAMEWORK” DOCUMENT PRESENTED TO PRIME MINISTER

On November 8, Prime Minister of Mongolia L. Oyun-Erdene received United Nations Resident Coordinator in Mongolia Tapan Mishra to discuss the relations and cooperation between the two sides.
UN Resident Coordinator Tapan Mishra expressed that the UN and its specialized agencies would support the Government of Mongolia's New Revival Policy and presented the Prime Minister with the document of the UN Sustainable Development Cooperation Framework for Mongolia 2023-2027.
The Prime Minister said that this document is aimed at intensifying the implementation of the long-term program document “Vision-2050", is aligned with the Action Plan of the Government of Mongolia for 2020-2024, and also ensures close intersectoral coordination. 
In addition, he informed that the Government of Mongolia is paying a special attention to the issues of renewable energy and water sources.

Source: Montsame

'WE CAN APPROVE THE STATE BUDGET WITHOUT DEFICIT BY RAISING REVENUE'

During its plenary session on November 3, Parliament reviewed the draft 2023 Budget Law and the draft amendment to the Law on Budget Framework Statement for 2023.
Parliamentarians asked questions and expressed their views on the bills at the session.
Legislator M.Oyunchimeg underscored that the Consumer Price Index is estimated to be 8 percent although it is already 13 to 14 percent right now. She noted that the 30 percent increase in the price of flour was putting too much pressure on the people. The best-selling consumer good was baked goods, she said.
Minister of Food, Agriculture and Light Industry Kh.Bolorchuluun explained, “The prices of flour and rice did not increase in the last four to five years and remained stable. However, the price suddenly increased by 30 percent. The price stabilization program was approved in May. This program can only keep inflation at 10 percent. However, the cost of grain and rice increased by 50 percent.”

Source: The UB Post

REPAYMENT OF MNT 779 BILLION MADE TO DEVELOPMENT BANK

Between January 20 and October 31, 2022, a total repayment of MNT 779.6 billion was made to the Development Bank of Mongolia. MNT 681.2 billion were repaid in cash, and MNT 98.4 billion were repaid by real estate.
A total of 14 borrowers' loans were paid-off. 12 loans were paid-off in cash or MNT 278.3 billion, and 2 loans were paid-off by real estate.
As of October 31, 2022, the Development Bank has loans outstanding of MNT 2.8 trillion of 53 borrowers. 31.5% or MNT 890 billion is borrowed by 8 borrowers of state-owned companies, and 68.5% or MNT 1.9 trillion was borrowed by 45 private sector borrowers.

Source: GoGo News

“ERDENES TAVANTOLGOI” COMPANY TO NOT AGREE ON UPFRONT PAYMENT TERMS

During its regular meeting dated October 26, the Cabinet made a decision to impose an emergency regime for “Erdenes Tavantolgoi” state-owned enterprise for six months, assigning State Secretary of the Ministry of Finance J. Ganbat as the Government’s Special Representative to take relevant measures to improve the company’s operations and management and increase the revenue.
In this regard, on November 8, the Special Representative held a press briefing, during which he emphasized that making the company’s information on contracts and activities transparent and open to the public is the most appropriate solution.
After being assigned as the Government’s special representative, he started publicizing the coal mining and transportation information and contracts signed with mining companies accessible on the company’s website. Tender information related to procurement is linked online. Specifically, the quantity of coal loaded from the mine is disclosed on the company’s website.

Source: Montsame

CONSTRUCTION PERMITS INSPECTED

The meeting of the Ulaanbaatar Mayor’s Council was held on November 3.
At the beginning of the meeting, the results of inspections made to the construction permits issued after 2020 were discussed. Head of the Ulaanbaatar Specialized Inspection Agency S.Davaasuren introduced the result of the inspection.
Since 2020, the Ulaanbaatar Urban Planning and Development Department has issued a total of 1,143 building permits, 1,197 electrical and energy permits, 104 utility and network permits, 368 permit extensions and 16 renewed permits. A total of 67 of 410 construction permits were found to be in violation. In this regard, the mayor instructed the relevant officials to eliminate the violations found during the inspection.
General Manager of Ulaanbaatar and Head of the Ulaanbaatar Mayor’s Office D.Ganbold presented the increasing cost of waste disposal at the landfill.
Ulaanbaatar has more than 410,000 households and 175,000 entities. As this number increases every year, the amount of waste is also increasing.

Source: The UB Post

DISTRICT ADMINISTRATION TO PLAN GREEN SPACES, PEDESTRIAN AND CYCLING INFRASTRUCTURE

Mayor of Ulaanbaatar D.Sumiyabazar met with the governors of six districts of the capital city and reviewed plans for building pedestrian and bicycle paths and green facility infrastructure next year. For instance, in Songinokhairkhan District, 1,234 unauthorized garages were vacated this year and the construction of pedestrian and cycling paths has started. The Khan-Uul District authorities presented their plan to build an Eco corridor.
During the meeting, the Policy Research and Analysis Center of Ulaanbaatar provided information on the existing bicycle and pedestrian paths, as well as short-term planning on how to increase them and reduce traffic congestion. According to research, there are 31.4 kilometers of bicycle paths in the city center. However, there are issues such as these roads being cut off and not being connected to each other. Therefore, the study revealed that 31.5 kilometers of pedestrian and bicycle paths are needed to connect them and create conditions for people to go to work by bicycle.

Source: The UB Post

BILL ON PAWNSHOPS PASSED TO PROTECT CONSUMERS’ INTERESTS

During its plenary session on November 4, Parliament adopted the bill on the regulation of money lending, submitted by the government, in order to manage pawnshops.
As of today, there are about 1,000 pawnshops in Mongolia but very few of them pay taxes. Therefore, the law was developed with eight chapters to regulate the activities of pawnshops and protect the interests of consumers. It sets specific requirements for money lending operators and provides regulations for registration and control, according to lawmakers. The newly-approved law also disallows pawnshops to sell collaterals.
According to the Authority for Fair Competition and Protection of Consumers’ inspections in 2020, more than 900 pawnshops were found to be making some kind of violations, including operating without a license, valuing collaterals at up to 80 percent below market value and charging high interest and high overdue payment.

Source: The UB Post

DEFACTO REVIEW, NOVEMBER 6 - VIDEO

Highlights of the week:
1. Cases of fraudulent activities surrounding foreign investors
2. Changes in the management of Erdenes Tavantolgoi
3. Increase in the prices of railway transport and energy

Source: Jargal Defacto

BUSINESS

RIO TINTO'S TAKEOVER OF TURQUOISE HILL POSTPONED INDEFINITELY AFTER QUEBEC WATCHDOG RAISES CONCERNS

A Turquoise Hill Resources Ltd. shareholder vote on Rio Tinto Ltd.’s attempt to take full control of the Montreal-based miner has been indefinitely postponed after Quebec’s securities regulator said the way the transaction is currently structured raises “public interest concerns” due to side deals with shareholders who spoke against the bid.
Turquoise Hill said in a press release on Wednesday that it has been “engaged with Rio Tinto in order to address the differential treatment of minority shareholders resulting from the agreements.”
Once these concerns are resolved, the company said it will provide shareholders with supplemental disclosures regarding the revised terms and provide them with sufficient time to consider them. As such, Turquoise decided to indefinitely postpone the vote.
This is the third time Turquoise has postponed the shareholder vote. On Sunday, it shifted the vote for a second time to Nov. 15 from Nov. 8 because…

Source: Financial Post, AFR
See also: Former OSC chair says Rio Tinto deal with dissident shareholders is illegal, regulators likely to stop Turquoise Hill takeover

GOLOMT BANK LLC HAS REGISTERED SHARES TO BE ISSUED AS A PUBLIC OFFER

A total of 31 issues were discussed at the 20th regular meeting of the FRC (9 November 2022), and decided to register the ordinary shares of "Golomt Bank" LLC in the register of securities approved for public offering. "Golomt Bank" LLC is the second bank among influential banks in the banking system to register its shares for public offering within the framework of the reform of the banking system. Implementation of public offering of shares (IPO) by banks will increase the value of the stock market, increase the number of new products with good liquidity, improve the activity and participation of foreign and domestic investors, and make banking operations more transparent and open. In addition to the creation of long-term sources of financing for banks and the increase in credit output, it will be an important step in creating a multi-pillar financial system.

Source: FRC

MMC’S TENDER OFFER NOT DDE; RATING HEADROOM PRESSURE EASING

Mongolian Mining Corporation’s (MMC, B/Negative) tender offer, if accepted by the holders of its USD440 million senior notes due April 2024, has no immediate rating impact, Fitch Ratings says. Pressure on MMC’s rating headroom is also easing, reflecting the reduction in border disruptions.
MMC plans to purchase with cash part of its outstanding 9.25% senior notes due 2024 for an aggregate price of up to a tender cap. We regard MMC’s tender offer for part of its US dollar bonds as an opportunistic move and we do not treat it as a distressed debt exchange (DDE) even though the buyback consists of a material reduction in terms as it is below par. This is because we do not believe the offer was made to avoid a default since the company’s near-term liquidity remains adequate and its bond maturity in 2024 is close to 18 months away.

Source:

 
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

Source: