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ECONOMY
FOREIGN TRADE TURNOVER UP 3.1 PCT IN Q1
In the first quarter of 2022, Mongolia traded with 126 countries from all over the world, and the total trade turnover reached USD 3.6 billion, of which USD 1.9 billion were exports and USD 1.7 billion were imports. The total foreign trade turnover increased by USD 108.7 million (3.1 percent), where imports increased by USD 167.0 million (11.0 percent) and exports decreased by USD 58.3 million (2.9 percent) compared to the same period of the previous year. In March 2021, exports increased by USD 121.3 million (18.9 percent) and imports increased by USD 171.8 million (35.7 percent) compared to the previous month.
The foreign trade balance was in surplus of USD 476.6 million in the first quarter of 2021 and while it was in surplus of USD 251.4 million in the first quarter of 2022, decreased by USD 225.3 million compared to the same period of the previous year.
Source: Montsame
INDUSTRIAL OUTPUT DROPS BY 24.4 PERCENT IN THE FIRST QUARTER
By preliminary results, in the first quarter of 2022, the gross industrial output reached MNT 3.5 trillion, decreased by MNT 1.1 trillion (24.4%) from the previous year. This decrease was mainly due to MNT 1.2 trillion (34.7%) decrease in mining and quarrying and MNT 5.7 billion (0.7%) decrease in manufacturing production gross output. Also, the electricity, thermal energy and water supply production output increased by MNT 29.1 billion (7.1%) and the water supply, and sewerage, waste management, and remediation activities production output increased by MNT 6.5 billion (17.7%) from the previous year.
By preliminary results, in the first quarter of 2022, the mining and quarrying gross output reached MNT 2.2 trillion, decreased by MNT 1.2 trillion (34.7%) from the same period of previous year.
The sales of mining and quarrying output decreased by MNT 1.7 trillion (34.8%) compared to the same period of the previous year.
Source: Montsame
MONGOLIA'S ETT REPORTS 2021 COAL SALES AT USD 385 MLN
Erdenes Tavantolgoi JSC, one of the major miners in Mongolia, reported its coal sales reached $385 million in 2021, contributing $147 million in taxes, thanks to efforts of risk management plan that mitigated the impact from a sharp decline in coal exports.
The company said during the Annual General Meeting on April 22 that its coal exports slumped in 2021 due to the closures of major border crossings amid the global pandemic. It still earned a net profit of $38.5 million last year.
ETT expects its coal exports to markets in China and beyond to improve after the Tavantolgoi-Zuunbayan and Tavantolgoi-Gashuunsukhait railway projects are completed as scheduled in the summer of 2022.
The company also reviewed the implementation of the A6-20 business plan and the pressing issues of delivering the medium-term business plan and long-term strategy during the meeting.
Source: SXCoal.com (soft paywall)
See also: ETT Holds its Annual General Meeting and Vows to Create 21,000 Jobs By 2025
TAX REVENUE INCREASED BY 40 PERCENT Y/Y
According to the preliminary results in the first quarter of 2022, the total revenue of the general government budget was MNT 3.9 trillion, increased by MNT 1.0 trillion (36.1 percent) compared to the same period of the previous year. The equilibrated revenue of the general government budget was MNT 3.6 trillion increased by MNT 940.2 (35.8 percent) billion compared to the same period of the previous year.
On the other hand, the total expenditure and net lending was MNT 3.8 trillion, resulting in deficit of MNT 254.7 billion. In March 2022, the total equilibrated revenue and grants of general government budget was MNT 1.1 trillion, decreased by MNT 422.1 billion (27.7 percent) compared to the previous month. The total expenditure and net lending were MNT 1.4 trillion, increased by MNT 255.1 billion (22.5 percent) compared to the previous month.
Source: Montsame
EXPORT OF PRECIOUS METALS AND FOREIGN BANKNOTES AMOUNTING TO MNT 20 MILLION RESTRICTED FROM APRIL 22
In connection with the law on preventing the rise in price and shortage of key commodities caused by the international crisis and reducing their impact that was adopted last week, the State Great Khural made certain amendments to the Law on Anti Money Laundering and Combatting the Financing of Terrorism.
In its framework, the decision to restrict the export of precious metals and foreign banknotes amounting to MNT 20 million in cash comes into effect from today, April 22, reported the Customs General Administration.
The aforementioned decision will be implemented until January 1, 2023.
The decision to restrict the export of foreign banknotes and precious metals was made by the Cabinet at an irregular meeting on April 4.
Source: Montsame, Metallurgprom.org
GREEN DEVELOPMENT MODEL TO BE DEFINED BY MONGOLIA
Mongolia cannot afford to spend USD 11.5 billion on its national contribution. It is important to attract investment from the private sector, investors, international organizations and partner countries, as it is not possible for Mongolia to fully finance the fight against global warming in Mongolia. For example, the participants emphasized that attracting funding with green bonds, which are relatively new to Mongolia but are already commonly used internationally, is the best practice. In her speech, EU Ambassador to Mongolia Axelle Nicaise expressed that the EU, as a world leader in sustainable financing and a key issuer of green bonds, is proposing a credible EU green bond standard to support the expansion of the green bond market in Mongolia.
Countries are allowed to issue green bonds based on a number of factors, including evaluating and determining the importance of funding.
Source: Montsame
FRC HOLDS MEETINGS WITH ASIA FOUNDATION, ADB, AND JICA
The FRC held meetings with various international development organizations:
Source: FRC
U.GANBAATAR: COOPERATIVES WILL NOT BE TAXED AS THEY ARE AGENTS - INTERVIEW
The Government of Mongolia declared 2022 the Year of Cooperative Promotion, We interviewed U.Ganbaatar, Head of the Cooperative development department of the National Association of Mongolian Agricultural Cooperatives on the efforts being made to develop cooperatives in the country.
-The revised law on cooperatives was approved by the State Great Khural and came into force on January 1, 2022. What new articles and clauses were added to support the development of cooperatives?
A number of important amendments were made. In particular, it was difficult when it came to spending the cooperative funds, taking out loans, and attracting investment as those funds were considered a shared asset in cooperatives. It was required to collect the signatures of members of the cooperative to use the asset. But it was impossible to get the signatures of dispersed herders together with copies of their identification cards as cooperatives can have 100 to 500 members.
Source: Montsame
POLITICS
BUDGET AMENDMENT TO CANCEL 33 MEASURES
On Wednesday, Parliament discussed draft amendments to the 2022 Budget Law, the Budget Laws of the Social Insurance Fund and the Future Heritage Fund, the Law on Budget Framework Statement for 2022 and Budget Assumptions for 2023 to 2024, as well as their accompanying bills, which were submitted by the government.
During the parliamentary plenary session, Premier L.Oyun-Erdene informed that the government considered all possible measures to reduce the negative impact of the external climate on the Mongolian economy and society, implement cost-saving measures, prevent food shortages and price increases, protect citizens’ incomes, and resolve other social issues.
A bill on state austerity has been submitted to Parliament for the first time. Each government agency has tried to regulate austerity through sectoral laws, regulations and rules, but has so far failed to make drastic changes in line with societal expectations, the prime minister highlighted.
Source: The UB Post
PARLIAMENTARIANS TO BOYCOTT IF LRT PROJECT IS NOT RE-DISCUSSED
During the parliamentary plenary session on April 22, 24 parliamentarians elected from Ulaanbaatar stated that they will not attend the plenary session in opposition to the rejection of the Project on Constructing Ulaanbaatar Light Train (LRT) Line with Pier Bridge Structure.
In specific, the Standing Committee on Budget rejected the draft resolution on the government’s guarantee for the LRT project, set to be implemented in Ulaanbaatar as part of the New Revival Policy.
A draft resolution was developed in accordance with the draft amendment to the 2022 Budget Law in order to provide a government guarantee of 510 million MNT for the project.
Lawmaker B.Enkh-Amgalan criticized, “The Standing Committee on Budget, chaired by Ch.Khurelbaatar, rejected the draft resolution, which will affect the interests of Ulaanbaatar residents. On the contrary, lawmaker Ch.Khurelbaatar has fully allocated the budgeted money for Uvs Province where he was elected from. It seems that only the life of Uvs residents is important to him…”
Source: The UB Post
BILL ON STATE AUSTERITY TO CANCEL ALL COURT BUILDING RENOVATIONS
On April 26, the Standing Committee on Justice reviewed draft amendments to the 2022 Budget Law, Budget Laws of the Social Insurance Fund and the Future Heritage Fund, Law on Budget Framework Statement for 2022 and Budget Assumptions for 2023 to 2024, as well as their accompanying bills.
In specific, lawmakers expressed their views on the bill on state austerity, which sets obligatory restrictions on the activities of all budget organizations and state-owned and partially state-owned legal entities.
During the meeting, Minister of Labor and Social Protection A.Ariunzaya informed that the bill bans the state use of large cars in urban areas. In accordance with the bill, government officials will drive full-size cars only during business trips to rural areas.
In accordance with the draft law, directors of state-funded organizations will not make arbitrary decisions on staffing, basic salaries, additional pay, compensation or bonuses.
Source: The UB Post
See also: Mongolia’s Government plans to cut budget for newly established Ministry
JAPAN'S TOP DIPLOMAT TO VISIT CENTRAL ASIA, MONGOLIA, PACIFIC ISLANDS
Foreign Minister Yoshimasa Hayashi will visit two Central Asian countries, Mongolia and two Pacific island nations, the Japanese government said Thursday, as Tokyo seeks cooperation in responding to Russia's aggression in Ukraine and other issues.
Hayashi will first make a five-day trip through Monday, visiting Kazakhstan, Uzbekistan and Mongolia. Then he will make a three-day tour from May 6 to Fiji and Palau.
He will meet with his counterparts and leaders of the countries, according to Foreign Ministry officials.
Kazakhstan and Uzbekistan maintain close relations with both Russia and Ukraine.
In Mongolia, Hayashi will seek support in resolving the issue of North Korea's past abductions of Japanese nationals, the officials said. Ulaanbaatar keeps close ties with Pyongyang.
The visit to Fiji and Palau comes as Japan is promoting a "free and open Indo-Pacific," a vision advocated by Japan and the United States and widely seen as a counter to China's growing military and economic clout in the region.
Source: The Mainichi, Montsame
MONGOLIA SEEKS TO COMBAT PRICE RISES CAUSED BY EXTERNAL FACTORS
Mongolia is striving to combat a rise in consumer prices driven by external factors.
On Wednesday, the Mongolian government decided to issue a soft loan worth 230 billion Mongolian Tugriks (74.8 million U.S. dollars) to flour producers and meat processing enterprises, according to the Food and Agriculture Ministry.
The decision is part of government efforts to combat rising prices caused by the pandemic and the ongoing geopolitical conflict between Russia and Ukraine, the ministry said, stressing the need to ease growing meat and flour prices.
The loan is expected to be allocated through commercial banks with an interest rate of 3 percent, it added.
An average Mongolian household consumes 373 types of goods per month, of which more than 200 are imported, Batmunkh Batdavaa, head of the country's National Statistics Office, said in a statement.
Source: News.cn
See also: MNT 230 billion in loans to be provided to flour producers and meat processing enterprises
PRESIDENT U.KHURELSUKH VIRTUALLY PARTICIPATES IN BOAO FORUM FOR ASIA
President of Mongolia U.Khurelsukh virtually participated in the Boao Forum for Asia, which is being held on April 20-22 under the theme “The World in COVID-19 and Beyond: Working Together for Global Development and A Shared Future”.
President U.Khurelsukh noted in his speech that the Boao Forum for Asia is an important platform for dialogue that combines the cooperation and efforts of the parties to ensure sustainable economic development in the region.
He stressed the need to take into account the post-pandemic period and the difficult international situation, and to work together to improve economic recovery, relations, and cooperation without delay. He emphasized that Mongolia welcomes China's Global Development Initiative, as well as the Belt and Road Initiative. He stressed the importance of ensuring equality as well as balanced and sustainable development in the world, and the implementation of the United Nations 2030 Agenda for Sustainable Development.
Source: Montsame
See also: Boao Forum is a Chinese message about world collaboration in the post-pandemic era: envoy
TRADE COSTS CAN BE REDUCED BY 13 PERCENT IF MONGOLIA ACCEDES TO FRAMEWORK AGREEMENT ON CROSS-BORDER PAPERLESS TRADE FACILITATION
The Seventh Meeting of the Interim Intergovernmental Steering Group on Cross-Border Paperless Trade Facilitation was held on April 25-26 in Bangkok, Thailand.
At the meeting, the participants discussed the advancements in the development of cross-border paperless trade in the region, and reviewed the progress of the implementation of the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific.
A. Tumur, Permanent Representative of Mongolia to the United Nations Economic and Social Commission for Asia and the Pacific, was chair of the meeting.
Despite of not having yet acceded to the Framework Agreement on Facilitation of Cross-Border Paperless Trade in Asia and the Pacific, the Ministry of Foreign Affairs of Mongolia is working to have it ratified by the State Great Khural of Mongolia in the near future.
It will be possible for Mongolia to reduce its current trade costs by up to 13 percent by coordinating its e-data with other member countries and exchanging information.
Source: Montsame
MONGOLIAN AMBASSADOR URGES RUSSIA TO JOINTLY SEEK WAYS TO BOOST TRADE IN CHANGING WORLD
Mongolia and Russia, in the wake of contemporary shifts in the global economy, should jointly seek incentives for development and more fully unleash their potential, Mongolian Ambassador to Russia Olziisaikhany Enkhtuvshin said on Wednesday.
The Russian-Mongolian business Cooperation Forum: Trade-Logistics kicked off in Vladivostok on Wednesday. In addition to Enkhtuvshin, the opening ceremony was attended Primorsky Region premier Vera Scherbina, representatives of the Mongolian Chamber of Commerce and Industry and a number of Mongolian and Russian businesses. The forum focused on expanding bilateral economic cooperation and unlocking the logistic potential for trade.
"Today the global economy is experiencing an increasing influence of political and social factors. The challenges that it is facing require coordinated efforts for the sake of sustainable and balanced growth. We should collectively search for additional development incentives, to realize more fully the industrial, scientific, technological, innovative potential of countries and integration structures, to timely respond to changing environment," Enkhtuvshin said at the ceremony.
Source: UrduPoint.com
See also: Roundtable on ways to increase Mongolian exports to Russia held
LAW ON CYBER SECURITY
On June 30, 2021, the Government of Mongolia submitted a draft Law on Cyber security and supplementary draft laws to the State Great Khural (or the Parliament). On December 17, 2021 at the plenary session, the State Great Khural approved the draft Law on Cyber security. The law has adopted the first time in Mongolia and has been discussed and developed 7 times over the past decade.
Within framework of the Fourth Industrial Revolution, our country has established a legal system for ensuring national cybersecurity, a vital law that creates legal conditions for the development and security of the country, as well as information security, which is an integral part of national security1.
In case of violation of the Law on Cyber security and investigating the violation, the terminology, element of crime and the concept of Chapter 26 of the Criminal Code of Mongolia have been amended in accordance with the Law on Cyber Security and the UN Budapest Convention.
Source: Mondaq.com
BACKLASH OVER DEVELOPMENT BANK OF MONGOLIA EXPOSES SOCIAL AND POLITICAL TENSIONS - EDITORIAL
Around $800 million international bond repayment of the state-owned Development Bank (DB) is due at the end of 2023. However, since early 2022 it witnessed a political witch hunt against major businesses that borrowed long-term project loans from the DB since 2012.
DB was set up a decade ago to finance large “development” projects with low rates to support the economy. DB raised bonds internationally in external currencies (US dollars and yen). Some of the loans went to controversial businesses linked to well-known politicians and lawmakers.
Allegedly, a total of 69 companies fell behind on repayments due to the recent economic slowdown and over-optimistic projections.
Bad loans on DB’s book ballooned to USD 500 million.
A corruption probe was initiated by the government a couple of years ago and the criminal investigation has targeted a dozen of borrowers, including high profile politicians.
Source: Mongolia Weekly
WHY MONGOLIANS WON'T TAKE SIDES IN THE UKRAINE WAR - EDITORIAL
Managing the fallout from the Ukraine war, especially energy and food import disruptions from Russia is creating more concerns for import-dependent Mongolia.
A new concern is that the China-Europe freight transportation that transits via Mongolian territory could be disrupted and delayed, which is a significant earner for Ulaanbaatar. Also, Europe-bound flights, which pass through Russia, have been rerouted through Central Asia prolonging flight hours.
What’s more, Mongolia imports wheat and fertilizers and farmers are concerned about rising fertilizer pricing as they need key nutrients to plant spring crops in May. Low crop growth and agricultural import interruptions may cause more food prices to rise later.
Farmers are getting more agricultural subsidies and credits from the government as some of them still aren’t fully paid for their sales last fall.
But the Ukraine war doesn’t bring all bad news for Mongolia.
Source: Mongolia Weekly
INFLATION, YOUTH, AND PROTESTS IN MONGOLIA - EDITORIAL
Following the massive violent January protests in Kazakhstan, there were attempts to analyze the potential of protest movements in Mongolia, the country whose peculiar geographic location makes it especially susceptible to political whims of its only two neighbors: Russia and China. Thus, some suggested that, unlike Kazakhstan, where sectoral or professional solidarity often became the instigator of protests in industrial monotowns, Mongolia would witness only occasional demonstrations instigated by political scandals or staged by rivaling political parties. In this regard, the massive peaceful youth protests “with no political affiliation” held April 7-8, 2022, at Sükhbaatar Square, the central square of Mongolia’s capital Ulaanbaatar, seemed a little odd even for the usually emphatic political life in the country, especially given the absence of youth engagement in it. Moreover, the protests triggered an unusually violent response reaction from security forces, as the videos of police violence, beatings and arrests spread across the Mongolian segment of social media, causing bewilderment and outrage.
Source: GlobalVoices.org
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