1 ‘ASIAN DOOR 2018’ FAIR KICKS OFF WWW.MONTSAME.MN PUBLISHED:2018/11/21      2 BEYOND BITCOIN: THE OTHER CRYPTOCURRENCIES YOU SHOULD KNOW TOO WWW.CNN.COM PUBLISHED:2018/11/21      3 ATTRACTING INVESTMENT FROM FRANCE TO AGRICULTURAL SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      4 MONGOLIA AND RUSSIA TO EXPAND COOPERATION IN TRANSPORT SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      5 NEWLY-OPENED CHINA-MONGOLIA FRIENDSHIP CULTURAL CENTER TO BOOST TIES WWW.CHINA.ORG.CN PUBLISHED:2018/11/21      6 UN APPRECIATES MONGOLIA’S CONTRIBUTIONS FOR NORTHEAST ASIA WWW.NEWS.MN PUBLISHED:2018/11/21      7 BHP OFFICIALLY DROPS 'BILLITON' FROM NAME WWW.MINING.COM PUBLISHED:2018/11/21      8 THE NOTICE: WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/11/21      9 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      10 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      ОРОН СУУЦНЫ БАРИЛГЫН ӨРТГИЙН ИНДЕКС III УЛИРАЛД ЖИЛИЙН ДҮНГЭЭР 15 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/21     САЙЖРУУЛСАН ТҮЛШНИЙ БОРЛУУЛАЛТ УДААШИРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/21     ЗАСГИЙН ГАЗРЫН ТОГТВОРГҮЙ БАЙДЛААС ҮҮДЭЖ “ГЭРЭГЭ” БОНДЫН ХАНШ БУУРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/21     ЭДИЙН ЗАСГИЙН ӨСӨЛТ 7.1 ХУВЬД ХҮРНЭ ГЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/21     ТӨРИЙН ҮЙЛЧИЛГЭЭ ЦАХИМД ШИЛЖЛЭЭ WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/21     УЛААН БУУДАЙ, ТӨМСНИЙ ДОТООДЫНХОО ХЭРЭГЦЭЭГ БҮРЭН ХАНГАНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/21     "ГУДАМЖ" ТӨСЛИЙН 14 БАЙРШЛЫН, 50 ТЭРБУМ ТӨГРӨГИЙН БАЙГУУЛАМЖИЙГ НИЙСЛЭЛИЙН ӨМЧИД БҮРТГЭЖ АВЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/21     САНАМЖ: WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2018/11/21     ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Livestock birthing at 52.1 percent www.gogo.mn

Ulaanbaatar /MONTSAME/ More than 14 million or 52.1 percent of total dams have delivered offspring on the national level.

This means an increase in the number of camel by 47.9 thousand, horse by 216 thousand, cattle by 506.9 thousand, sheep by 7 million 697 thousand and goat by 5 million 460 thousand. The number of offspring increased by 2.7 million against the previous week.
Kh.Aminaa

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Nalaikh district challenged by instability of thermal power plant www.montsame.mn

Ulaanbaatar /MONTSAME/ The most pressing issues in Nalaikh district are lack of heat supply and apartment re-planning, according to its Governor Ch.Radnaabazar, who reported these issues during a meeting of the managerial staff of the capital city administration on May 7.

“Heating is a number one issue in the district with the Nalaikh Thermal Power Plant overworking its capacity. Since the demand increases every year, we are developing a project to expand the power plant,” he said.

As for apartment re-planning, there are 101 buildings and facilities built with engineering design and 32 two-storey buildings that were built between 1956-1957. “Dwelling in these buildings was prohibited by the General Agency for Specialized Inspection in 2014. This is a worrisome matter that the residents still live in these buildings today,” the Governor said.

Nalaikh district has a population of 37 thousand, majority of which are youths. “If we ensure the economic independence of Nalaikh district and establish an industrial and technological park, we could create 1,500 new jobs, increase the production of construction material twice on the national level and significantly benefit,” he highlighted.
Kh.Aminaa

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Nestle pays Starbucks $7.1bn to sell its coffee www.bbc.com

Nestle has announced that it will pay Starbucks $7.1bn (£5.2bn) to sell the company's coffee products.

The Swiss giant, which boasts Nescafe and Nespresso amongst its brands, will have the right to market Starbucks' coffee in retail outlets outside the cafe chain.

That part of the business currently generates $2bn in annual sales.

The deal means Nespresso machine owners will be able to buy Starbucks coffee branded pods for use at home.

Consumers will also find Starbucks coffee beans, ground and instant coffee more readily available as Nestle, the world's largest food and drinks company, uses its vast distribution network to market Starbucks products worldwide.

Nestle's name will not appear alongside Starbucks's, but the deal could still help Nestle strengthen its US business, thanks to the powerful High Street coffee brand.

Boil it all down and this is a giant licensing arrangement, whereby Nestle is allowed to sell Starbucks products through Nestle distribution channels.

That means you'll see a lot more Starbucks branded coffee pods for use in Nespresso or Dolce Gusto devices which are all the rage - thanks in part to those George Clooney adverts.

Starbucks will continue to buy the raw (green) coffee beans from farmers but now Nestle will step in and roast and prepare those beans for consumers under strict Starbucks licensing rules. Nestle will not acquire any Starbucks infrastructure nor will any Nestle products appear in Starbucks coffee shops.

For that arrangement, Nestle is paying $7bn because it believes Starbucks products will appeal to premium coffee lovers around the world.

Despite the price tag, Nestle shareholders appear to like the deal. Nestle shares rose 1.5% today. While Starbucks investors kind of shrugged.

Mark Schneider, who in 2016 became the first outsider to run Nestle in almost 100 years, is attempting to boost the company's profit through expansion.

Last year, Nestle paid an estimated $425m for a 68% stake in Blue Bottle Coffee, a California-based company that sells coffee to customers online and has a number of shops in the US and Japan.

Kona Haque, of the commodities trading company ED&F Man said Nestle was aiming to further strengthen its position in the US market through this latest deal.

"At the moment Nestle is very much known for its instant coffee. This is an opportunity to go into roast and ground which for today's millennials is a big growing trend," she said.

Mr Schneider described the "global coffee alliance" with Starbucks as "a great day for coffee lovers around the world".

Nestle said 500 Starbucks employees will transfer over to its business but they will continue to be located in Seattle, which has been the group's headquarters for the last 47 years.

The company recently sold its US sweets and chocolate business, including brands such as Crunch and Butterfinger, to Ferrero Group for 2.7bn Swiss francs (£1.9bn).

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China's imports from Belt and Road countries grow faster than exports www.chinadaily.com.cn

BEIJING - China's imports from "Belt and Road" countries increased faster that of exports for the first time in 2017, according to a think tank report.

The value of China's imports from Belt and Road countries stood at $666 billion in 2017, an increase of 20 percent year-on-year, or 39 percent of China's total imports value, according to a report compiled by the State Information Center, a State Council think tank.

In the same year, China's exports to those countries came in at $774.26 billion, a rise of 8.5 percent year-on-year. The growth of imports outpaced exports for the first time since the Belt and Road Initiative was proposed five years ago.

China's combined trade with those countries reached $1.44 trillion, up 13.4 percent year-on-year, 5.9 percentage points faster than China's overall trade growth.

The Belt and Road Initiative was proposed by China in 2013 to boost trade and investment among countries along the ancient Silk Road trade routes from Asia to Europe and Africa.

China's trade with Central Asia countries grew at the fastest rate, followed by Eastern Europe. Countries including Republic of Korea, Vietnam, Malaysia, India and Russia rank among China's top 10 trading partners along the routes, contributing nearly 70 percent of China's trade with Belt and Road countries.

China mainly sells mechanical and electrical products to Belt and Road countries, and imports mechanical and electrical products as well as fossil fuel from them, the report said.

Chinese private companies do the biggest chunk of trade, followed by foreign-invested companies and State-owned firms.

Yu Shiyang, director of the department of big data development under the State Information Center, said that amid rising protectionism by some countries, China's trade with Belt and Road countries had risen at a brisk pace, showing the initiative was being implemented well, featuring free trade flow.

The report covers 71 countries along the Belt and Road summarizing the current trade picture and projecting future trends.

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Milk processing small plants to be established in six soums www.montsame.mn

Ulaanbaatar /MONTSAME/ On May 4, equipment of milk processing small plant were handed over to six soums of four aimags within the framework of a project ‘Increasing Job in Mongolia: Development of Value Added Network of Animal Product and Vegetable Production with Participation of Private Sector’.

Milk processing small plants named 'Ger kitchen’ are planned to be built in six soums in scope of UNFAO technical cooperation program ‘Improving Local Dairy Processing through promoting women’ (TCP/MON/3606), the subproject of the abovementioned project.

Each milk processing small plant will have daily capacity of processing up to 500 liter milk and producing 5-6 types of dairy products using up-to-date technology. Operation of a plant is expected to provide ten people with jobs and to make annual sale of MNT 127.9 million, earning MNT 7.1 million net profit.

Furthermore, 12 people who involved in teacher training conducted trainings to more than 120 women from six local milk processing groups on methods and practices to process traditional dairy products that meet food standards and sanitary requirements using ‘Ger kitchen’ equipment. The project is making contribution to develop production of diary products in rural area, to introduce modern technology and to increas types of products.

B.Batchimeg

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Balance of payments deficit falls 20 percent month over month www.ubinfo.mn

As of March, balance of payments deficit was USD 87.6 million, which is 20 percent lower compared to the previous month. Current account balance indicates a loss of USD 424 million.

Foreign trade balance resulted USD 352 million in profit as total export is currently higher than its import thanks to raw materials export. Therefore, goods account totalled USD 260.9 million.

In other words, while the goods account was profitable, the services account had USD 347.6 million deficit. In connection to tourists’ spendings, the outflow of foreign currency increased, which had impact on services account. In addition, balance of primary income account, which registers in and outflow of cash related to salaries and investment, had a deficit of MNT 386.4 million. This shows that outflow is dominant in the primary income account.

But the balance of financial accounts, which involves transaction of direct and portfolio investments, resulted with USD 332.2 million gains. In other words, financing of such amount was obtained from outside sources in the first three months. Furthermore, the private sector brought in a total of USD 552.9 million FDI, including debt instruments, in the first quarter of this year.

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Commercial banks grant MNT 49.5 billion mortgage loans to 495 applicants in March www.ubinfo.mn

According to the data provided by the Bank of Mongolia (BoM), a total of 585 mortgage loan applications were submitted to the bank in March. This is the highest number of applications in the first quarter. As such, 495 citizens were granted a total of MNT 49.5 billion as mortgage loan, of which over 50 percent were financed from commercial banks. Accordingly, the total balance of mortgage loan reached MNT 4.2 trillion.

Minister of Construction and Urban Development Badelkhan Khavdislam informed that the ministry is planning to grant MNT 220 billion mortgage loan from the repayment of BoM and MNT 120 billion from the State Budget. The State Budget funding is granted quarterly for the loan, while the BoM monthly transfers the finances. However, the mortgage loan is under deficit, the Minister noted. Therefore, a new regulation for the loan has been formulated and submitted to the Cabinet in order to increase accessibility. According to an estimate, the current financial sources of the mortgage program can only cover 5-6 thousand households.

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Spring cultivation commences www.ubinfo.mn

A total of 60 thousand tons of seed is required for spring cultivation of wheat this year. According to the Ministry of Food, Agriculture and Light Industry, 50.8 thousand tons were collected domestically and eight thousand tons were imported. In addition, six business entities, which requested to renovate their seeds at their own expenses, have been granted licenses for importing 2 thousand tons of wheat for producing seeds.

The ministry signed contracts with over 300 companies and individuals for granting 16.5 thousand seeds.

According to an estimation, a total of 7800 tons of diesel fuel is required for normal cultivation process this year. Under the agreement signed between the Fund for Cultivation Support (FCS) and NIC LLC, 3500 tons of fuel is being granted with 50 percent prepayment loan through local gas stations. The fuel price was established at MNT 1720-1800 per ton for wholesale and MNT 1949-2080 per ton for retail.

As reported by the ministry, a total of 3230 tractors, 2254 seeders for wheat, 5424 soil processing equipment, potato and vegetables cultivation seeders are required for the 2018 spring cultivation. The Ministry is organizing a purchase of agricultural and watering equipment from the fund of Chinese Government soft loan under relevant rules. In cooperation with the Development Bank of Mongolia, the ministry is implementing Agricultural Equipment Leasing project and conducting talks on purchasing agricultural equipment from Russia, Belarus and Germany.

Furthermore, the ministry has formulated a draft bill on customs duty exemption of agricultural equipment, fertilizer and plant protection products. Presently, proposals on the bill are being collected from stakeholders of the industry. The draft will soon be submitted to the Cabinet for discussion. In addition, the FCS is granting agricultural equipment including mid-size tractors with a loan that has 7-9 years maturity and 10 percent prepayment.

As of today, cellars throughout the country are capable of storing 56 percent of harvested potato and vegetables for the population needs. Therefore, the ministry is making efforts in increasing the capacity of storages, which include a project on establishing an elevator with a capacity of 15 thousand tons in Selenge with Russian soft loan, and cellars for storing potatoes and vegetables in Selenge, Bayan-Olgii and Khovd aimags with MNT 1.2 billion financing from the State Budget. In addition, Fruits and Berries, and Vegetables national programs were approved by the Cabinet early this spring.

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First turbine erected at Sainshand wind farm www.news.mn

The first wind turbine has been successfully erected at the Sainshand Wind Farm. A total of 24 wind turbines will be installed.

Once operational, the new Sainshand Wind Farm will make a significant contribution to reducing Mongolia’s carbon emissions and cater for an expected increase in power demand across the country. The scheme will significantly enlarge Mongolia’s renewable energy capacity and help the government to achieve the goal of renewable energy accounting for 20 per cent of all power by 2020, and 30 per cent by 2030.

The Sainshand Wind Farm is the third privately financed facility of its kind in Mongolia, will receive a USD 120 million project financing package from a group of international investors and financiers.

Located 460 km south-east of Ulaanbaatar in the Gobi Desert, the Sainshand Salkhin Park LLC is sponsored by French energy leader ENGIE, German project developer Ferrostaal, the Danish Climate Investment Fund (DCIF) and Mongolian entrepreneur, Radnaabazar Davaanyam, with long-term financing provided by the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD).

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Qatar steps in to buy Rosneft stake after China deal collapses www.mining.com

Qatar emerged as a major shareholder in Rosneft PJSC on Friday after a $9 billion deal to sell a stake in Russia’s state-run oil producer to China’s troubled CEFC Energy Co. collapsed.

Qatar Investment Authority stepped in after the sellers — a consortium of QIA itself and mining giant Glencore Plc — told CEFC it wouldn’t proceed with the original deal announced in October. A statement issued by Glencore didn’t explain why they were canceling the sale, but CEFC has been struggling with debt.

The sudden change cements Doha’s links with Moscow at a time when Qatar is facing isolation from Saudi Arabia and other Gulf countries. The Kremlin loses the prospect of China becoming a major shareholder in the country’s largest oil producer, however.

After the new deal, Qatar Investment Authority will own 18.93 percent of Rosneft, making it the third-largest shareholder after the Russian state, which holds 50 percent, and U.K. oil major BP Plc with 19.75 percent.

CEFC, a sprawling conglomerate with big interests in oil and gas, has come under increasing government scrutiny in Beijing amid concern rapid international expansion had stretched the group financially. Chinese media has reported that Ye Jianming, the founder and chairman of the rapidly expanding Chinese company, has been investigated by government authorities.

Under Ye, CEFC has been transformed from an obscure conglomerate focused mainly on the former Soviet Union into a conspicuous player on the world energy stage, mixing with the likes of mining giant Glencore. Starting as a small trading company in 2002, CEFC bought assets including storage, terminals, refineries and oil fields, as well as financial units.

More Oil
Led by Igor Sechin, a former deputy prime minister and a longtime associate of President Vladimir Putin, Rosneft produces more oil than any other publicly traded company in the world, about 4.5 million barrels of crude a day.

Rosneft said in an e-mail that it looked forward to “new mutually beneficial bilateral and international projects with our Qatari partners.”

Rosneft also signed a five-year oil supply agreement with CEFC last year, but that contract remains in force, Rosneft spokesman Mikhail Leontyev said. China will continue to remain a strategic market for Rosneft, the company’s press service added.

The Glencore-QIA consortium agreed to jointly acquire a 19.5 percent stake in Rosneft in December 2016, helping the Russian government to meet a target for privatization proceeds. They then cut a deal to sell most of those shares on to CEFC.

The Glencore-QIA venture will now be dissolved and Glencore will retain a 0.6 percent holding in Rosneft, according to Friday’s statement. Qatar will pay Glencore about 3.7 billion euros ($4.4 billion) for the shares it’s acquiring, but Glencore will use that cash to repay money it borrowed to buy its original stake.

A deal Glencore struck to buy 220,000 barrels a day of crude from Rosneft remains in place.

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