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ECONOMY
JANUARY EXPORTS INCREASE 29 PCT M/M, DECREASE 15.7 PCT Y/Y
In January 2022, Mongolia traded with 117 countries from all over the world, and the total trade turnover reached USD 1.1 billion, of which USD 539.6 million were exports and USD 556.5 million were imports. The total foreign trade turnover decreased by USD 2.5 million (0.2 percent), where exports decreased by USD 100.2 million (15.7 percent) and imports increased by USD 97.7 million (21.3 percent) compared to the same period of the previous year. In January 2021, exports increased by USD 122.3 million (29.3 percent) and while imports decreased by USD 104.2 million (15.8 percent) compared to the previous month.
The foreign trade balance was in surplus of USD 181.0 million in January 2021 and while it was in deficit of 16.9 million in January 2022, decreased by USD 197.9 million compared to the same period of the previous year. In January 2022, trade balance deficit decreased by USD 226.5 million from previous month.
Source: Montsame
MONGOLIA'S JAN COAL OUTPUT SLUMPS 56 PCT YOY, IRON ORE UP 9 PCT
Coal production of Mongolia dived 55.85% year on year and fell 18.06% on the month to 2.03 million tonnes in January, showed data from the National Statistical Office of Mongolia.
The country produced 399,200 tonnes of iron ore in January, up 9.01% on the year but down 49.91% from December.
The iron sand production rose 37.25% on the year but slumped 50.76% on the month, while iron ore concentrate production was 126,900 tonnes, down 24.37% from a year ago and 47.97% month on month.
Source: SXCoal.com
ETT TARGETS 3.3 MT RAIL COAL DELIVERY AFTER RAILWAYS PUT IN OPERATION
Mongolia's Tavan Tolgoi-Zuunbayan railway will start trial run from March 15 and Tavan Tolgoi- Gashuunsukhait is scheduled to come into use on July 15, according to a report from Gogo Mongolia.
The commissioning of new railways can increase mineral exports, reduce transportation costs and increase employment. After the railway from the largest mining area to Gashuunsukhait on the border with China is officially put into use, it can transport and export 30 million tonnes of coal every year, according to the news
With the railways put into use this year, the operator of the Tavan Tolgoi coal mine, Erdenes Tavantolgoi JSC (ETT), plans to transport 3.3 million tonnes of coal via railway for the year.
Source: SXCoal.com
See also: Tavan Tolgoi-Zuunbayan railway line to open in October
Transportation route for iron ore and coal to be shortened by 318 km
MONGOLIAN ECONOMIC FORUM TO BE ORGANIZED ON APRIL 7-8
At its regular meeting held today, the Cabinet made a decision to organize the Mongolian Economic Forum, which has been suspended for two years due to the pandemic, under the theme ‘New Revival Policy’ on April 7-8.
“The conditions for organizing the forum have been created considering the factors such as the Government’s decision to downgrade the country’s level of heightened state of readiness from ‘Orange’ to ‘Yellow’ and high vaccination rate”, said the Deputy Minister of Economy and Development S.Narantsogt.
He further mentioned that the plans are underway to organize a series of events this year to expand the economy, accelerate the implementation of the ‘New Revival Policy’ as well as to attract foreign investors.
It was also reported that the ‘Invest Mongolia-2022' conference is scheduled to be held in September.
Source: Montsame
600 HOUSEHOLDS’ APARTMENT AND 150 CHILDREN KINDERGARTEN OF CAA TO BE BUILT IN KHUSHIGT VALLEY
On February 18, L.Oyun-Erdene, Prime Minister of Mongolia, visited Khushigt Valley and got acquainted with an architectural draft and location of some construction works to be built in the framework of the New revival policy.
The architectural draft for a government complex in Khushigt Valley, 600 apartments for the Civil Aviation Authority, and a free economic zone are ready. In particular, a kindergarten with a capacity of 150 children, a green area and a parking lot will be built next to the apartments of the Civil Aviation Authority.
Within the framework of policy to reduce traffic jam in Ulaanbaatar, to expand decentralization, and to establish satellite cities, it is planned to build apartment blocks, hospitals, schools, campuses and service centers in the Khushigt Valley according to the design of South Korea, Kazakhstan and Singapore, and has provided consulting services.
Source: GoGo News, Montsame
See also: IFEZ Authority Signs MOU with Construction Development Center of Mongolia
CONSIDERATIONS ON PLANNING TRAVEL FROM THE US TO MONGOLIA IN FEBRUARY 2022
This past week I have spoken with several people, and participated in several conversations on social media, where an announcement by Prime Minister Oyun-Erdene has been quoted as “borders are open.”
I am sharing here a breakdown of my process for assessing if I’m ready to plan or not. Again, this is my process, and it reflects my citizenship and point of departure. Additionally, please note that this in no way reflects the opinions or approaches of others writing for the Mongolia Focus blog.
For now, no, I’m not ready, but I am keeping tabs on the situation.
When I dug around for primary and more direct secondary sources on the announcement, I quickly found MNB World’s English language coverage. This coverage actually made no mention of changes to entry procedures, rather highlighting how the lifting of domestic restrictions will hopefully help Mongolia’s stricken economy (“economic growth reached -5 percent and the state’s revenue also decreased by 23 percent”).
Source: UBC Mongolia Focus Blog
“PROTECTION OF KHUVSGUL LAKE WILL SERVE AS A PART OF MONGOLIA’S CONTRIBUTIONS TO REDUCING CLIMATE CHANGE”
According to a study conducted by the Mongolian Academy of Sciences, the glacial area around the Khuvsgul Lake has decreased by 3 times between 1981 and 2000.
This is merely a single example of how various factors have been negatively affecting the Khuvsgul Lake ecosystem, highlighted Director of the Institute of Geography and Geoecology of the Mongolian Academy of Sciences A.Dashtseren during his presentation on the current state of the lake’s ecosystem at a panel discussion themed, ‘Protection of the Lake’s Ecosystem’, which is being organized in the framework of the National Forum on the Protection of Khuvsgul Lake.
Under the auspices of President of Mongolia U.Khurelsukh, the national forum is being co-organized by the Office of the President of Mongolia, the Ministry of Environment and Tourism, and the Governor’s Office of Khuvsgul aimag. Discussions are taking place on defining the pressing issues of Khuvsgul Lake, and ways to develop and protect the area at the two-day forum.
Source: Montsame
See also: Mongolia holds national conference to protect major freshwater lake in northern province
Russian institute to cooperate in creating Khuvsgul Lake online monitoring system
BOGDKHAN RAILWAY PROJECT WORKS PLANNED TO BE LAUNCHED THIS SPRING
Last year, the Cabinet gave the permission to construct the main infrastructure of the Bogdkhan railway project to ‘Tavantolgoi Tumur Zam’ LLC in 2021, with plans to launch its works this spring.
The railroad will connect the stations of Maanit and Rashaant by going around the capital city on its northwest side and passing through the Chinggis Khaan International Airport area in Khushig Valley. In the framework of the project, a railroad tunnel and a large-scale bridge structure are planned to be built.
During the international scientific conference themed, ‘The Pressing Issues in Mongolia’s Railway Sector Development’, CEO of ‘Tavantolgoi Tumur Zam’ LLC N.Udaanjargal said, “The project will be constructing the first railway tunnel in the country. As corresponding studies have been completed, it has now become ready to draft detailed plans and blueprints. In Gashuunsukhait and Zuunbayan, 33 bridges were built, of which total lengths amounted to 3.7 km…
Source: Montsame
THE IMPACT OF CLIMATE CHANGE ON EDUCATION IN MONGOLIA
Climate change is a risk multiplier, threatening to undermine the progress achieved in promoting development over the last few decades. The education sector, however, has been underrepresented in global climate change discussions. Indeed, no single National Adaptation Programme of Action (or the subsequent National Adaptation Plans) in the East Asia and Pacific region highlights the education sector as being at risk. However, in the 2018 climate change negotiations, delegates recognized the importance of including education in the Nationally Determined Contributions of countries, highlighting the increasing significance of exploring the links between education and climate change (UNFCCC, 2018).
The current study was launched by UNICEF with the overall aim of gathering evidence on impacts of climate change on education sector, enhancing awareness and understanding among key stakeholders, enabling cross-country comparison of climate change actions in education, and facilitating sharing of good practices and lessons learned in the region.
Source: Montsame
DOING BUSINESS IN MONGOLIA 2022 - REPORT
Tremendous mineral reserves, agricultural endowments, and proximity to Asia's vast markets make Mongolia an attractive destination for medium to long-term foreign direct investment (FDI). The Gross Domestic Product (GDP) in Mongolia is worth 10.4 billion US dollars as of September 2021 according to the national statistics of Mongolia. The GDP value of Mongolia represents 0.01 percent of the world economy. The significant features and advantages of Mongolia include, but not limited to the following:
- Diversified and growing market exists in Mongolia;
- Technology Innovation Hub;
- Large mineral resource base that can be leveraged for value added processing;
- Developing Industry and Infrastructure;
- A bridge between the two economic powerhouses of Russia and China;
- Young, well-educated population;
- Private Sector & Privatization /privatize major state assets, list Mongolian conglomerates and exploration license aggregators on MSE/;
- PPP & Modernizing Infrastructure;
- Rule of law &Regulatory Quality &Transparency;
- Ensuring guarantee for investors /tax & nontax/;
- Promising mega projects; and
- Thriving Telecoms & IT sector.
Source: Grata International
View the full report
MONGOLIA’S PATH TO ECONOMIC REVIVAL - EDITORIAL
Mongolia’s government has announced a ‘comprehensive’ plan to help its economy rebound from the shock of the pandemic, but it contains no policies designed specifically to reduce poverty, Ariun-Erdene Bayarjargal writes.
Though pandemics do not ‘die’, COVID-19 is likely to fade away from central focus in 2022. As the world transitions into post-pandemic life and into a new normal, policymakers are now looking at recovery options for economies hit hard by the pandemic. Mongolia is no exception.
Mongolia’s economy contracted by 5.3 per cent in 2020, the largest decline in last two decades, but a strong return on exports helped the economy to rebound in the first half of 2021.
High commodity prices, particularly of mining products, in the world market led to a positive balance of trade despite raw volume of exports decreasing. The International Monetary Fund’s Mongolia outlook indicates growth is expected to be 7.5 per cent in 2022.
Source: Asia & the Pacific Policy Society
THE ADB'S NEW ENERGY POLICY - PRESENTATION
The Business Council of Mongolia held a Knowledge Sharing Session on the ADB’s "New Energy Policy" on 23 February 2022.
In September 2021, the Asian Development Bank (ADB) approved a new energy policy to support universal access to reliable and affordable energy services, while promoting the low-carbon transition in Asia and the Pacific. The new energy policy was unveiled by Ms. Shannon Cowlin, the Principal Energy Specialist at Asian Development Bank (ADB) at Knowledge Sharing Session (KSS) on 23rd of February, 2022.
Click here to download the presentation.
Source: ADB
See also: New ADB Energy Policy to Support Energy Access and Low-Carbon Transition in Asia and Pacific
POLITICS
41 MONGOLIAN STUDENTS RETURN FROM UKRAINE SO FAR
On February 24, Minister of Foreign Affairs B.Battsetseg reported that the issue concerning having Mongolian students return from Ukraine was discussed at an irregular meeting of the Cabinet.
Currently, there are 68 Mongolian students, who study in Ukraine, and 22 citizens, who have a permanent residency. As most of the Mongolian citizens that have obtained permanent residency are either married to Ukrainian citizens or employed at international organizations in the country, they have yet to make any requests to return to Mongolia.
Over the past month, the Ministry of Foreign Affairs has regularly made contact with the Mongolian students in Ukraine, advising them to return to their home country as the situation may get worse, highlighted the Minister. While 41 students have returned to Mongolia, 27 students had yet to make a decision due to certain factors such as being in their last year of study, and studying at a language school.
Source: Montsame
B.BATTSETSEG: MONGOLIAN CITIZENS IN UKRAINE WERE NOT ATTACKED
B.Battsetseg, the Minister of Foreign Affairs, made a brief report on the situation of Mongolian citizens who are in Ukraine.
She said, “No Mongolians were injured and attacked in Ukraine. Currently, we are discussing bringing back 27 students from Ukraine. If the Frankfurt-Istanbul flight operates, we will use it. We have prepared vehicles in Kharkov and Kyiv. Some schools have reported that they will not allow those students to come back once they leave. We are sending some necessary official letters. This is a challenge not only for Mongolia, but for the whole world. The UN Security Council held a meeting today. We are having connections with all Mongolian citizens in Ukraine.
Currently, Ukrainian flights are suspended, and if the air border is not opened in the near future, we will take our citizens by road through Poland and Hungary”.
Source: GoGo News
MINISTER OF MINING AND HEAVY INDUSTRY TO VISIT RUSSIA AND BELARUS ON MARCH 7-11
At its regular meeting today, the Cabinet made the following decisions.
-Minister of Food, Agriculture and Light Industry Z.Mendsaikhan was instructed to announce 2022 as the Year of Promoting Cooperatives’ Development, approve the plan of action, monitor its implementation and report its progress at the Cabinet meeting.
-· The Government considers it appropriate to expand the activities of the Dairy Asia Secretariat Office, established in cooperation with the Food and Agriculture Organization of the United Nations (FAO). Currently, 13 countries have joined the partnership.
-Minister of Mining and Heavy Industry G. Yondon will pay a working visit to Russia and Belarus on March 7-11, 2022.
Source: Montsame
LATEST ON COVID-19 IN MONGOLIA
Below are headlines from the past week concerning Covid-19 in Mongolia:
Source: Various
APPROVAL OF NEW REGULATION ON THE CHANGES TO THE SHARE CAPITAL AND SHAREHOLDING STRUCTURE OF BANKS AFTER IPO
On 28 January 2021, the Parliament of Mongolia adopted the Law of Mongolia on Amendments to the Banking Law (the “Banking Law Amendments”) which, among other things, required systemically important banks to become open joint stock companies (i.e. a publicly listed company) by 30 June 2022, and other banks to become open or closed joint stock companies. For more information, please refer to our previous note on the Banking Law Amendments here.
The Banking Law Amendments was adopted within the framework of banking sector reform and a number of related developments. Some of these developments, including the approval of plans of five systemic banks on how they intend to meet the new requirements by the Bank of Mongolia (the “BoM”) and the Financial Regulatory Commission of Mongolia (the “FRC”), have occurred since the adoption of the Banking Law Amendments; and one non-systemic bank has become a publicly listed company.
Source: Melville Erdenedalai LLP
IMPLEMENTATION OF THE NEW REVIVAL POLICY IN RURAL AREAS DISCUSSED
Prime Minister L.Oyun-Erdene attended a meeting on ‘Accelerating the implementation of the New Revival Policy in rural areas’.
In his opening remarks, Head of the Cabinet Secretariat Ts.Nyamdorj stressed the importance of local authorities’ role in the implementation of the policy. The Prime Minister gave detailed information on the six development impediments in the ‘New Revival Policy’.
As a result of the government’s MNT 10 trillion Plan for Health Protection and Economic Recovery, the country’s economy which had contracted 5.3 percent grew by 3.6 percent as of the third quarter of last year. The launch of the first phase of Oyu Tolgoi underground mine production has had positive impact of the economy and raised investors’ confidence, the Prime Minister underscored, ordering the local government leaders to be responsible and place emphasis on starting and accelerating development projects to be implemented in rural areas as part of the policy.
Source: Montsame
PROMINENT ANTI-CHINA ACTIVIST ARRESTED IN MONGOLIA
A prominent anti-China activist has been arrested in Mongolia, part of what campaigners have said is a wider effort to "clean up" Beijing's critics in the country.
Landlocked Mongolia is dependent on mineral exports to its giant neighbours, Russia and China, but there have also been protests in the capital Ulaanbaatar over Beijing's language policy in Inner Mongolia.
Critics of the policy in the Chinese border region -- home to an estimated 4.5 million ethnic Mongolians -- say it mirrors moves in other areas such as Xinjiang and Tibet to assimilate local minorities into the dominant Han culture and eradicate minority languages.
Munkhbayar Chuluundorj was arrested Friday in Ulaanbaatar on suspicion of "receiving instructions and funds from a foreign intelligence group", the country's spy agency said.
The General Intelligence Agency (GIA) said he had "engaged in illegal cooperation activities" but gave no more details.
Source: France24, WIONews.com
NATIONAL INVESTMENT BANK PAID OFF DEBTS OF HIF AND SIF
MNT 161.5 billion of Health Insurance Fund and Social Insurance Fund was placed at Chinggis Khaan Bank and National Investment Bank.
The Bank of Mongolia reported that the National Investment Bank paid-off all debts of the Health Insurance Fund and the Social Insurance Fund.
Chinggis Khaan Bank has MNT 100 billion from the Social Insurance Fund and MNT 30 billion from the Health Insurance Fund. The National Investment Bank has MNT 45 billion from Erdenet Plant, MNT 53 billion from Erdenes Tavan Tolgoi JSC and MNT 24 billion from the Health Insurance Fund. The Parliament's Standing Committee on Economics (October 28, 2021) was discussing about the government couldn’t receive money from these banks for the last three years.
In addition, Article 9.1.5 of the Audit Report on the Budget Performance of Mongolia for 2020 states, “The Health Insurance Fund and the Social Insurance Fund, a total of MNT 161.5 billion were placed in two banks with low repayment capacity.
Source: GoGo News
EVENT TAKES PLACE TO MARK 50TH ANNIVERSARY OF ESTABLISHMENT OF MONGOLIA-JAPAN DIPLOMATIC RELATIONS
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