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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
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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
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