1 FOREIGN RELATIONS OF MONGOLIA’S ROAD TRANSPORT SECTOR BROADENING WWW.MONTSAME.MN PUBLISHED:2019/02/21      2 MONGOLIA EXPRESSES READINESS TO CONTRIBUTE TO STRENGTHENING ASIA-EUROPE COOPERATION WWW.MONTSAME.MN PUBLISHED:2019/02/21      3 OYU TOLGOI FUNDED 35.1 KM ROAD OPENS IN KHANBOGD WWW.GOGO.MN PUBLISHED:2019/02/21      4 POLYMER BITUMEN TO BE DOMESTICALLY PRODUCED WWW.MONTSAME.MN PUBLISHED:2019/02/21      5 KHURELBAATAR CHIMED: 319 ENTITIES DREW LOANS FROM TWO FUNDS WWW.ZGM.MN PUBLISHED:2019/02/21      6 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      7 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      8 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      9 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      10 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      УГСАРМАЛ ОРОН СУУЦНЫ ДУЛААЛГАД ЗОРИУЛЖ 12.7 ТЭРБУМ ТӨГРӨГИЙГ УЛСЫН ТӨСВӨӨС ГАРГАХААР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/21     2018ОНД ЦАГААН БУДАА , ЭЛСЭН ЧИХЭР , ТАХИАНЫ МАХНЫ ИМПОРТ 24-32 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ДЦС IV: 2018 ОНД НИЙТ АШИГ 4.7 ДАХИН ӨСӨЖ , 4.48 ТЭРБУМ ТӨГРӨГ БОЛСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     ТУСГАЙ САНГУУДААС ГАРГАСАН ЗЭЭЛИЙН 100 ОРЧИМ ТЭРБУМ ТӨГРӨГ ХУГАЦАА ХЭТЭРСЭН ӨР БОЛЖЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/21     МОНГОЛ УЛСЫН БОРЛУУЛАЛТЫН МЕНЕЖЕРҮҮДИЙН ИНДЕКС СҮҮЛИЙН 12 САРД АНХ УДАА УНАЛТЫН БҮСЭД ШИЛЖИВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     2018 ОНД ХАМГИЙН ЧИНЭЭЛЭГ БҮЛГИЙН ХЭРЭГЛЭЭ ЯДУУ БҮЛГИЙНХНЭЭС 5.1 ДАХИН ИХ БАЙВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2019/02/21     ХОВД ГОЛД ОСОЛДСОН 6 НАСТАЙ ХҮҮХДИЙН ЭРЛИЙГ ЗОГСООЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/21     ДБНХ-НООС П.ОРХОНЫ БАРИЛДАХ ЭРХИЙГ 4 ЖИЛЭЭР ХАСАВ WWW.MONTSAME.MN  НИЙТЭЛСЭН:2019/02/21     УУХҮЯ: II САРЫН БАЙДЛААР НИЙТ НУТАГ ДЭВСГЭРИЙН 5.6 ХУВЬД АШИГТ МАЛТМАЛЫН ЛИЦЕНЗ ОЛГОСОН WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     300 ОРТОЙ ТӨРӨХ ЭМНЭЛГИЙН БАРИЛГЫН АЖИЛ 80%-Д ХҮРЧ ГУРАВДУГААР САРЫН 1-НЭЭС ДУЛААНД ХОЛБОГДОХООР БОЛЖЭЭ WWW.IKON.MN НИЙТЭЛСЭН:2019/02/20    

Events

Name organizer Where
“Doing business with Mongolia”, “UK Investors show” бизнес хөтөлбөр March 27-April 02. 2019 ЛОНДОН ХОТ, ИХ БРИТАНИ Mongolian Business Database London UK
SYMPOSIUM ON GLOBAL MARKETS Nationalism and Protectionism: The United States in the International Arena June 17-18, 2019 The Center for American and International Law Plano, Texas, USA The Center for American and International Law (CAILAW) Plano Texas June 17-18 2019
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Mongolia borrows $1 billion from India to set up oil refinery www.newsbharati.com

Ulaanbaatar, December 26: To decrease the dependency on China, Mongolia had approached India for funding it for establishing an oil refinery that could boost the nation’s gross domestic product by 10%. In response Mongolians got a smile on face as India has decided to give $1 billion as a loan to Mongolia.

The Mogolian government intends to use $700 million of the loan for an oil refinery and $264 million for oil pipelines, according to a statement on its website last week. Mongolian PM Erdenebat Jargaltulga has instructed relevant ministries to negotiate with the Export-Import Bank of India, according to the statement.
Mongolia is looking to India and other investment partners as its economy contracts and its debt burden grows. Last month, China backed off from talks with Ulaanbaatar over a loan package to help the economy after a dispute over the visit to Mongolia by the Dalai Lama.
The refinery will have a capacity to process 1.5 million metric tonnes of oil per year. It will produce 560,000 tonnes of gasoline, 670,000 tonnes of diesel fuel and 107,000 tonnes of liquefied gas annually. The refinery could boost Mongolia’s GDP by 10%, according to the statement.
The 20-year loan will have an interest rate of 1.75% and principle payments will be waived during the five years.

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MSE revises price limit for block trades www.mse.mn

According to the provision number 8.10.11 of 'Mongolian Stock Exchange' JSC Charter of Incorporation and the provision number 33.1 of the Mongolian Stock Exchange Trading Rules and the CEO Order number A218 dated 25 December 2017, the lower price limit for block trade is set to be 15% from the previous day close, removing the upper price limit. The changes are made based on the suggestions from the market participants and are reflected in the revised 'Trading Rules' approved by the MSE Board of Directors on 13 December 2017 that is pending approval by the FRC.

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China wants Afghanistan's ancient trade routes to be part of new 'Silk Road' www.rt.com

China and Pakistan are looking to include Afghanistan in their $57 billion economic corridor, as part of Beijing's Belt and Road initiative, said Chinese Foreign Minister Wang Yi, as quoted by Reuters.
The economic corridor is expected to benefit the whole region and act as an impulse for further development, according to the minister. Under the broader Belt and Road project Beijing is planning to build a new “Silk Road” connecting China to Southeast and Central Asia by land and the Middle East and Europe by sea.

“So China and Pakistan are willing to look at with Afghanistan, on the basis of win-win, mutually beneficial principles, using an appropriate means to extend the China-Pakistan Economic Corridor to Afghanistan,” the agency quotes Wang as saying.

Relations between Afghanistan and Pakistan have been strained since Pakistan's independence in 1947 with China trying to promote talks between the parties. In recent years, the task has been even more complicated as Afghanistan accused its neighbor of supporting Taliban insurgents fighting the US-backed government in Kabul to restrict India's influence in the country. Pakistan has denied the allegations.

It is important for Afghanistan to join the inter-connectivity initiatives as it is a vital necessity to improve its people’s lives, according to Wang Yi, who said Pakistan and Afghanistan have agreed to mend their uneasy relations.

“The successful implementation of China-Pakistan Economic Corridor (CPEC) projects will serve as a model for enhancing connectivity and cooperation through similar projects with neighboring countries, including Afghanistan, Iran and with Central and West Asia,” said Pakistani Foreign Minister Khawaja Asif.

The Indian authorities are reportedly wary of the project due to its long-time row with Pakistan over Kashmir. New Delhi sees Pakistan-administered Kashmir as its own territory. However, the plan has nothing to do with territorial disputes, according to Wang.

Beijing has been looking to bring Kabul and Islamabad together, partly because of rising concerns over the potential expansion of Islamist militancy from Pakistan and Afghanistan to the Chinese far-western region of Xinjiang, which is engulfed in a separatist conflict.

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Special Envoy Ambassador appointed for Mongolia's removal from EU tax haven blacklist www.gogo.mn

Minister of Foreign Affairs D. Tsogtbaatar appointed B.Mandakhbileg as a Special Envoy Ambassador to work with the European Union (EU) for Mongolia's removal from the EU's tax haven blacklist.

The Special Envoy Ambassador will manage efforts from the Ministry of Foreign Affairs and Ministry of Finance, and will join the Organization for Economic Co-operation and Development’s Global Forum on Transparency and Exchange of Information for Tax Purposes, being responsible for signing multilateral tax treaties and introducing standards to eliminate tax evasion measures such as base erosion and profit shifting.

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Workers oppose income tax increase www.montsame.mn

Ulaanbaatar /MONTSAME/Mongolian Trade Union of Energy, Geology and Mining Workers (MTUEGMW) protests against increased tax rate on individual income that is set to be effective starting January.

Under the three-year-arrangement with IMF, Government decided to increase income taxes of individuals with a monthly salary of more than MNT1.5 million progressively to 15, 20, 25 percent. “This is a huge blow to mining workers who do labor-intensive work at night”, said Kh.Buyanjargal, head of MTUEGMW.

“Average salary of a mining worker is MNT 2.3 million. This includes field allowances, overtime wages and a bonus for non-standard working conditions. What’s more, we spend 8 months away from our homes and families. For these reasons we can not accept the increase on income tax.”

G.Bayarmaa, Head of Labor Union at Oyutolgoi company said, “The revised law on Personal Income Tax involves 80 percent of employees working in mining industry (37,256 people) , 46 percent of employees working in energy industry (7,360 people). Developed countries like USA and Germany have progressive tax policies that distinguish between single workers and workers with families. For example, US mining worker that has a family pays 15 percent income tax. Our authorities trying to make all workers pay high taxes. Instead, they should seek other ways to improve the economy, like cutting redundant costs.” 
O.Onon

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Oil near June 2015 high as production cuts tighten market www.reuters.com

SINGAPORE (Reuters) - Oil prices were stable on Tuesday, with Brent crude lingering near 2015 highs on the back of an outlook for healthy demand amid ongoing production cuts led by OPEC and Russia.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $58.52 a barrel at 0650 GMT, up 5 cents from their last settlement.

Brent crude futures LCOc1, the international benchmark for oil prices, were at $65.25 a barrel, unchanged from their last close, but near the $65.83 per barrel briefly on Dec. 12 - the highest since June 2015.

Trading activity was extremely low on Tuesday due to the ongoing Christmas holiday in many countries.

Brent has risen by 47 percent since mid-2017. The Organization of the Petroleum Exporting Countries (OPEC), the Middle East-dominated producer club, and Russia - the world’s single biggest oil producer - have been withholding output in order to tighten the market and prop up prices.

The agreement to cut started last January and is set to cover all of 2018.

Jabar al-Luaibi, oil minister of OPEC-member Iraq, said on Monday there would be a balance between supply and demand by the first quarter of 2018, leading to a boost in oil prices.

“During the first quarter of next year there will be more balance between supply and demand, which will reflect positively on improving global oil prices,” he said.

The production cuts come amid healthy global demand, which many analysts expect to hit 100 million barrels per day (bpd) for the first time at some point next year or in 2019.

Jeffrey Halley of futures brokerage Oanda in Singapore said oil prices were “making slow but steady gains on optimism about the global economy in 2018”.

Potentially keeping a lid on prices is the expected return of the Forties pipeline system in the North Sea, which can supply up to 450,000 bpd of crude underpinning Brent futures.

The pipeline shut down earlier in December due to a crack, but operator Ineos said the system was being tested following repairs and full flows should return in early January.

In the longer term, OPEC and Russia efforts to prop up prices could be undermined by U.S. production C-OUT-T-EIA, which has soared by more than 16 percent since mid-2016, to almost 10 million bpd.

Only OPEC king-pin Saudi Arabia and Russia produce more, but the United States is fast catching up, largely thanks to shale drillers.

The U.S. rig count RIG-OL-USA-BHI, an early indicator of future output, held at 747 in the week to Dec. 22, according to the latest weekly report by Baker Hughes. That’s much higher than a year ago, when only 523 rigs were active, and most analysts expect U.S. output to rise past 10 million bpd within weeks.

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China Top Copper Producer Halts Output After Pollution Order www.bloomberg.com

Jiangxi Copper Co., China’s largest producer, is halting all output in the province after the local government ordered the curbs to reduce pollution, a company official said Tuesday.

The smelter received the order on Monday evening to stop production for at least a week before a further assessment based on local pollution levels, the official said, asking not to be identified because of company rules. The firm, which has 1.02 million metric tons of annual capacity in the southeastern province, remains in talks with the government to halt only smelting and not refining operations to minimize losses, according to the official.

China is intensifying its campaign against air pollution by extending its winter manufacturing curbs in 28 northern cities to other provinces. Tongling Nonferrous Metals Group Co., the nation’s second-largest copper producer, said earlier this month that it’s halting as much as 30 percent of smelting capacity at its main production hub in the eastern province of Anhui after a similar order.

Calls to the Jiangxi provincial government and environmental protection bureau weren’t answered Tuesday. The cuts come as China’s smelters plan to resume talks with overseas miners on 2018 processing fees next month. The output curbs would reduce smelters’ demand for concentrate and support their position in the annual negotiations.

Copper on the Shanghai Futures Exchange surged as much as 0.8 percent to 55,160 yuan a ton before trading at 55,080 yuan as of 1:50 p.m., extending gains from the the highest close in two months on the prospect of improving global demand amid supply constraints.

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Technologies on display ahead of 2020 Olympics www3.nhk.or.jp

State of the art technologies that will help visitors to the 2020 Tokyo Olympics and Paralympics have been displayed in Tokyo.

About 40 firms, including major electronics makers, took part in the event held on Monday and Tuesday. A council of Japanese business organizations for the 2020 games sponsored the event.

Fujitsu presented an ID card-sized translation device that can be worn by users. It weighs only 65 grams and gives translations between Japanese and English or Chinese.

Officials showed how the device can be used. A woman pretending to be ill explained her symptoms in Chinese, and her comments were translated into Japanese by the device.

The Japanese electronics firm also exhibited a device for people with hearing impairment. It allows them feel applause through vibrations. The device can be worn like a hairpin.

Another electronics maker, Panasonic, displayed an electric wheelchair. The wheelchair is equipped with a sensor and stops automatically when it detects obstacles. The wheelchair still needs some manual operation. But the company hopes to put a version with a self-driving system into use at Tokyo's Haneda airport as early as the next fiscal year starting in April.

Noriaki Murai of the business council said that in the spirit of the 2020 Games, he hopes to see products developed that are helpful to people.

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Financial stability council meets www.montsame.mn

Ulaanbaatar /MONTSAME/ The Financial Stability Council's regular meeting convened at the Conference Hall of the Financial Regulatory Commission (FRC) on December 25. The council is conprised of the FRC Chairman, the Governor of the Bank of Mongolia and the Finance Minister and the meeting is chaired in turns.

Chaired by Chairman of the FRC S.Davaasuren this time the council discussed review of non-bank financial sector and a research work report themed 'Trading stocks of domestic commercial banks to public through the Mongolian Stock Exchange’ conducted by independant research team. 

The Financial Stability Council’s activities are targeted to ensuring stability of financial system, preventing from possible risks, and analyzing occurred risks and to making decisions and taking measures within the council members' rights and responsibilities. 

Moreover the Financial Stability Council regularly get informed and exchanges information as well as submit recommendations to the parliament if necessary.

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Real price of bitcoin could be $0.00, warns Morgan Stanley www.rt.com

Bitcoin could be worth literally nothing, if the cryptocurrency is not recognized as a rival of the US dollar and other fiat currencies, analysts of the banking giant Morgan Stanley have warned.

"If nobody accepts the technology for payment, then the value would be 0," analyst James Faucette and his team wrote in a note to clients.

Faucette is referring to a list of online retailers who accept bitcoin. The table is titled "Virtually no acceptance and shrinking" and shows the data.

Bitcoin is not like a currency because there is no interest rate associated with bitcoin, the analyst wrote.

It's not like gold either, as it doesn’t have any intrinsic use like gold.

According to Faucette, bitcoin is tiny compared to traditional financial instruments.

“Bitcoin average daily trading volume of $3 billion (last 30 days) vs. $5.4 trillion in the FX market. Estimated $300 million in daily purchase volume vs. $17 billion for Visa,” he wrote.

Coinmarketcap data says Faucette’s numbers are not correct, as an average daily volume of bitcoin is $11.5 billion. The whole cryptocurrency market’s daily volume is almost $27 billion.

One of the biggest bitcoin bulls, John McAfee of McAfee antivirus, says there is no reason for panic despite the correction in the cryptocurrency market.

Bitcoin has fallen more than 25 percent from its recent all-time highs of $20,000 spurred by futures listings on major derivatives exchanges.

Bitcoin enthusiast, billionaire Michael Novogratz who has also been very bullish on cryptocurrencies, has revised his forecast and said bitcoin could drop to $8,000 by year-end. Previously, he predicted bitcoin would be worth $40,000 by 2019.

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