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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
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