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BCM HIGHLIGHT
REGULATORY & TAX WORKING GROUP INITIAL MEETING
The Regulatory & Tax Working Group Initial Meeting is scheduled to convene on 22 April 2022. If interested, click here to view the agenda, or please inform 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. with your wish to register. Seating is limited.
Source: BCM
KNOWLEDGE SHARING SESSION: “DEVELOPING A REFERENCE MODEL FOR THE EXTRACTIVE INDUSTRY OF MONGOLIA”
This Knowledge Sharing Session is being held on 21 April 2022. Click here to register and view the agenda.
Source: BCM
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
MONGOLIAN ECONOMIC FORUM: NEW REVIVAL POLICY 2022
The "Mongolian Economic Forum-2022" organized under the theme "New Revival Policy" was held on April 7-8. Within the framework of the forum, 12 sub-meetings on "New Revival Policy" were organized, and some of the presentations made during the conference can be found at the link below. Click the source linked below to view the presentations.
Source: BCM
See also: Mongolia Highlights ‘New Recovery Policy’ at Economic Forum
PM sets out ambitious goal to double Mongolia’s GDP in six areas
Revival of Urban and Rural Areas discussed
Mongolia Economic Forum 2022 - International partnerships to deliver $49bn investment plan for Mongolia
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Source: BCM
ECONOMY
JAN-MAR COAL EXPORTS LOG LARGE DROP
Mongolia exported 2.52 million tonnes of coal during the first three months of 2022, down 62.18% year on year, showed the latest data from the Mongolian Customs General Administration (MCGA).
The exports were worth $676 million in January-March, down 1.9% year on year.
MCGA didn't release the specific figure for March, yet Sxcoal calculated the exports at 1.23 million tonnes based on the overall exports published by the customs authority, down 42.83% year on year but up 81.99% month on month, registering the third consecutive month of rise.
The exports were worth $349 million in March, with average price at $284.76/t, rising $172.10/t year on year and $13.49/t month on month.
Mongolia exported 2.34 million tonnes of coal to China from January to March, dropping 62.51% year on year, taking up 93% of the total.
Source: SXCoal.com (soft-walled)
MONGOLIA JAN-MAR IRON ORE EXPORTS UP 15 PCT MOM, DOWN 28 PCT YOY
Mongolia exported 616,200 tonnes of iron ore in January-March 2022, tumbling 67.78% or 1.3 million tonnes year on year, showed latest data from the Mongolian Customs General Administration (MCGA).
The total export value slumped 75.91% on the year to $57.45 million during the first three months, data showed.
China was the only destination of Mongolian iron ore during the period.
MCGA didn't release the specific figure for last month, yet Sxcoal calculated the exports at 307,300 tonnes based on the overall exports published by the customs authority, falling56.24% year on year but rising 15.2% on the month.
The iron ore exports amounted to $31.88 million in March, with average price at $103.74/t, down $26.41/t from a year ago but rising $18.97/t from a month earlier, data showed.
Source: SXCoal.com
CENTRAL BANK TO PURCHASE 24 TONS OF GOLD THIS YEAR
Mongolia's central bank plans to purchase at least 24 tons of gold in 2022 to increase the country's foreign exchange reserves, local media reported on Thursday, citing the Bank of Mongolia.
"Buying that much gold would increase the forex reserves by at least 1.2 billion U.S. dollars," the Bank of Mongolia said.
This week, the Asian country's forex reserves fell to 3.3 billion dollars, down 1.2 billion dollars from the end of 2021.
The decline in forex reserves is the result of the country's imports exceeding exports and the ongoing conflict between Russia and Ukraine, according to the central bank.
The bank purchased 20.9 tons of the precious metal last year and 2.4 tons in the first quarter of this year.
Central banks typically hold gold as part of their foreign exchange reserves because of its long-term historical returns and high liquidity.
Source: Xinhua
INTERVIEW: MONGOLIA EYES RAMP-UP OF COKING COAL, COPPER EXPORTS TO CHINA IN 2022: MINISTER
Mongolia is ramping up its efforts to supply raw material such as coking coal and copper to China in 2022 after a lackluster trade in 2021, as it expands its mining sector and boosts its transport network, said O.Batnairamdal, Vice-Minister at Mongolia’s Mining and Heavy Industry Ministry.
Mongolia is a key metallurgical coal and copper concentrates suppliers to China, with most of the trade happening through trucks. Mongolian truck suppliers in 2021 faced severe logistics issues in hauling shipments from land ports to China due to the pandemic-led restrictions at border crossings.
Mongolia is looking to launch three railway lines this year, which will bring the country’s mining sector to a whole new level, O.Batnairamdal said in an interview with S&P Global Commodity Insights.
Railway shipments will be much convenient, cost-effective, and safer with less human contact amid COVID-19 border restrictions compared to trucks, once the rail networks come online, O.Batnairamdal added.
Source: Hellenic Shipping News, S&P Global
MONGOLIAN COMMERCIAL BANKS IMPOSE LIMITATIONS ON DAILY VOLUME OF FOREX TRANSACTIONS
Mongolian commercial banks have imposed limitations on foreign-exchange transactions amid the country's dwindling forex reserves due to the COVID-19 pandemic and ongoing conflict between Russia and Ukraine.
Mongolia's forex reserves fell to 3.3 billion U.S. dollars as of Tuesday, down 1.2 billion dollars from the end of 2021, Atarbaatar Enkhjin, head of the reserve management and financial markets department of the Bank of Mongolia, said in a statement.
The decline in forex reserves is likely the result of a 40-percent increase in imports since the beginning of this year, and COVID-19 restrictions have prevented the country from exporting much of its coal, its main export product, despite the high prices of raw materials in the world market.
"Also, due to the situation between Russia and Ukraine that began in late February, the uncertainty of the external environment is deteriorating beyond our expectations. Due to this, there is a certain pressure on the forex reserves and the exchange rate of the Mongolian Tugriks," Enkhjin said.
Source: Xinhua
THERMAL POWER PLANTS TO BE BUILT IN THREE SOUMS OF ZAVKHAN AIMAG
Construction work of a 25MW thermal plant will begin this May in Uliastai soum of Zavkhan aimag.
Within the framework of the government’s New Revival Policy, thermal plants with capacity of 25MW, 30MW and 5MW are planned to be built in Uliastai, Tosontsengel and Aldarkhaan soums respectively.
This year, it is also expected to have large construction works including ‘Arts suuri - Shivee khuren’ railroad, 167km auto road from Numrug and Tuduvtei soums to Arts suuri border crossing, 190 km auto road between Altai and Uliastai soums as well as wastewater treatment plant in Uliastai soum.
Zavkhan aimag receives more than 70 percent of its energy from central energy grid and 30 percent from the Taishir hydropower plant. The construction of abovementioned facilities will have a significant impact on the aimag’s economy and livelihoods, creating opportunities for SMEs development.
Source: Montsame
‘FOOD SUPPLY AND SECURITY – CROP FARMING’ NATIONAL FARMERS’ FORUM TAKING PLACE
The Fourth Campaign for Reclaiming Virgin Lands is launching. It was announced at the ‘Food supply and security – Crop farming’ national farmers’ forum that the campaign will run under the slogan ‘Healthy Local Food’. At the event, Minister of Food, Agriculture and Light Industry Z.Mendsaikhan delivered opening remarks and the Agriculture Ministry’s Policy and Planning Department Director Ts.Bolorchuluun gave a presentation on ‘National farming policy, goals and challenges’.
In his speech, Minister Z.Mendsaikhan emphasized the important role the sector has in the country's economy, people's health, and national security. “As part of its New Recovery Policy, the government is supporting crop farming and aiming to fully meet domestic demand of essential food products and further become a food exporter and organize the fourth campaign at a national level,” he said.
Source: Montsame
See also: Flour export conditions agreed with 13 factories of China
POPULATION PROJECTED TO REACH 4 MLN IN 2033
Mongolia's population is expected to reach 4 million in 2033 and 5 million in 2048, the country's National Statistics Office (NSO) said Monday.
The updated projections for the population growth were based on the 2020 National Population and Housing Census, the NSO said in a statement.
Mongolia, with a land area of 1,564,116 square km and a population of about 3.4 million, is the most sparsely populated country in the world.
According to the NSO, the country's population reached 1 million in 1962, 2 million in 1988, and 3 million in 2015.
In addition, the median age of the Mongolian population was 27.9 at the end of 2020 and is expected to increase to 30.6 by 2050, it said.
In the Asian country, the average life expectancy is 70.8 years for women and 60.6 years for men, and the government aims to reduce the gap to five years by 2024, according to the country's health ministry.
Source: Xinhua
See also: Vaccine Warnings Compound Declining Birth Rates
SOCIAL WELL-BEING STUDY OF MONGOLIA: THE SOCIAL WELL-BEING OF HEALTH SECTOR EMPLOYEES
IRIM conducted the Social Well-being Study of Mongolia for the fifth year in the row. The Study was to help improve understanding of factors in social development, and contribute to promoting evidence-based decision making.
In 2021, IRIM selected health sector employees as the target group for the Study.
General average trust level of health sector employees was 4.9. This is 1.76 points lower than the national level. In other words, health sector employees and doctors are more careful in terms of trusting other people compared to the general Mongolian population.
More information on the results of the Study, is available at irim.mn/Well-Being-Study.
Source: IRIM
MONGOLIA TO LAUNCH IMMUNIZATION CAMPAIGN AGAINST INFECTIOUS ANIMAL DISEASE
Mongolia plans to launch a month-long nationwide immunization campaign against the infectious animal foot-and-mouth disease (FMD) starting Monday, its State Emergency Commission (SEC) said on Wednesday.
Since the beginning of this year, a total of 422 epicenters have been registered in 20 of the country's all 21 provinces due to an FMD outbreak, according to the SEC.
As of Wednesday, a quarantine regime continued in 145 epicenters in 15 provinces, it said.
The landlocked country strives to develop its livestock sector by increasing meat exports in a bid to diversify its mining-dependent economy. However, frequent outbreaks of livestock animal diseases such as the FMD, lumpy skin disease and mad cow disease impede its endeavor.
The country's meat exports have been suspended since last June due to infectious animal diseases, according to the Mongolian National Chamber of Commerce and Industry.
Source: Xinhua
MONGOLIA IS OPEN, TRANSPARENT, AND READY FOR BUSINESS - EDITORIAL
Last week Ulaanbaatar hosted the 2022 ‘Mongolia Economic Forum,’ with hundreds of representatives from across the government, private sector and civil society coming together over two days to discuss the country’s pressing economic issues and the elements of the government’s ‘New Recovery’ Policy: Mongolia's plan for recovery and renewal through public-private partnerships.
Nomin Chinbat is the Culture Minister for Mongolia and Chair of the Mongolia Economic Forum Working Group.
Speaking to EU Reporter, she said
“Mongolia is open for foreign direct investment and tourism, directly thanks to my country’s handling of the pandemic and the large uptake of vaccines across the country thanks to the government’s vaccination drive. Our economic future will be driven by the ‘New Recovery Policy’ which is the government’s plan for economic growth and prosperity.”
Fundamental to the growth of the economy was the action taken by the government on Covid. “It feels like we're once again living under normal conditions…
Source: EU Reporter
POLITICS
DEPUTY MINISTER MEETS UK PRIME MINISTER’S TRADE ENVOY
Deputy Minister for Foreign Affairs B.Munkhjin held a meeting with UK Prime Minister’s Trade Envoy to Mongolia, MP Mr. Daniel Kawczynsk on April 12.
At the meeting, the Deputy Minister informed that Mongolia has lifted COVID-19 related restrictions and is implementing the New Revival Policy in aims of recovering economy. He reaffirmed commitment to supporting British businesses in introducing technology, starting business and investing in Mongolia.
They also discussed the possibility of Mongolian businesses and enterprisers to collaborate with the UK Export Finance to find additional sources of funding.
Source: Montsame
See also: Mongolia-UK cooperation in education discussed
Click here to view Daniel Kawczynsk's speech
DRAFT PARLIAMENTARY RESOLUTION ON TRANSITIONING TO COST-SAVING MODE TO BE DEVELOPED
A working group, which was established by the order of the Speaker of the Parliament G.Zandanshatar, held a meeting on April 10.
During the meeting, the Parliament Speaker G.Zandanshatar stressed “Demands made by youth during the last week’s protest must be responded. They demanded the government to fulfil their duties for justice. I am proud of the new generation that united for their values by being apart from biased interests of others.”
The working group considered it is necessary to develop the draft resolution on saving budget and to have it discussed by the Parliament. The draft resolution will include as follows:
-to transition the 2022 budget to cost-saving mode and amend state budget if necessary;
- to take cost-saving measures at all levels of public organizations, cutting spending at least by 10 percent, monitoring structures and functions, eliminating duplications, and reducing the number of administration employees and related costs;
- …
Source: Montsame
PRESIDENT SUGGESTS TO AMEND BUDGET IF NECESSARY
Today, April 11, President U.Khurelsukh met with Speaker of the Parliament G.Zandanshatar, Prime Minister L.Oyun-Erdene and members of the government and Parliament.
At a time when the world countries have been battling the pandemic for two years, international geopolitical issues have arisen. Consequently, oil prices have doubled and grain and vegetable prices have risen by 30-40 percent at world markets. Therefore, the Parliament and Government need to coordinate their works and amend state budget if necessary, emphasized the President.
He stressed that it is vital to pay special attention to the reduction of prices of energy, oil, consumer goods and food products, and the performance of spring cultivation to meet domestic food needs.
“Today, you have to discuss whether to amend the budget. People must be informed of the truth about the situation. All unnecessary expenses and investments need to be cut out. The whole world is in a very difficult situation…
Source: Montsame
See also: World Bank experts says Mongolia must reform budget and trade
MONGOLIAN YOUTH MOUNT PROTEST AGAINST ‘UNLIVABLE ECONOMY’
Large numbers of Mongolian youth have mounted a protest demanding that the government address economic hardship and unliveable conditions.
Protesters yelled, "Do your job!" and "You [officials] cut back on your expenses!", the latter slogan being a response to Speaker of Parliament Gombojavyn Zandanshatar, who lately pressed Mongolians to cut back on their expenditures during the current difficult times.
Mongolia is suffering high fuel costs triggered by effects of the war in Ukraine and jammed export channels to China, caused by Beijing’s “Zero covid” policy. Inflation, meanwhile, is on the rise. It is a real headache for Mongolians, who were shocked to see it hit an eye-watering 14% in January.
The rally, held over April 7 and 8, was peaceful, but police used force to arrest some protesters on the evening of the first day, claiming they were intoxicated. The second day saw the size of the protest crowd increase.
Source: bne IntelliNews
See also: Youth Protest Stretches Into Day 2 in Mongolia
U.S. EMBASSY: OVERVIEW OF U.S. SANCTIONS AND EXPORT CONTROLS ACTIONS IN RESPONSE TO RUSSIA’S 2022 INVASION OF UKRAINE (AS OF APRIL 11, 2022)
U.S. Sanctions Actions:
- On February 21, in response to Russia’s purported recognition of the so-called Donetsk and Luhansk People’s Republics, the President issued an Executive Order that imposes an embargo on these regions, including by prohibiting U.S. investment in them and authorizes the Department of the Treasury to impose sanctions on persons operating in these regions.
As of April 11, we have taken the following sanctions actions:
(click on source to view the full document)
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