1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

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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China's ICBC opens office in Mongolia www.news.xinhuanet.com

ULAN BATOR, Sep. 5 (Xinhua) -- Industrial and Commercial Bank of China (ICBC) opened its Mongolia representative office in Ulan Bator on Tuesday.

The opening ceremony was attended by Choijilsuren B., minister of finance of Mongolia, Chinese Ambassador to Mongolia Xing Haiming and President of ICBC Gu Shu.
At the ceremony, Gu said Mongolia is an important country along the Belt and Road Initiative.
He noted that China and Mongolia signed cooperation agreements under the initiative in May, which would bring huge opportunities for the two countries' cooperation in industrial capacity and finance.
Gu also said that ICBC always attaches great importance to the Mongolian market, adding that with ICBC's internationalized service network and diversified business lines, its Mongolia office will proactively devote itself to market research and project organization, and strive to become a bridge for China-Mongolia economic and trade exchange.
In recent years, China and Mongolia have witnessed rapid development in political mutual trust, economic and trade cooperation and people-to-people exchanges. China has remained Mongolia's largest trading partner and a major investor in the country for several years. In 2014, the two established a comprehensive strategic partnership, a more advanced form of bilateral relationship China holds with another country.
Over the past years, ICBC has taken the initiative to adapt to consumer demands for diversified financial services, closely followed China's foreign trade and investment moves to refine its overseas business layout, and has been an obvious enhancement in its capability to provide service globally.
Currently, the bank has established overseas institutions in 44 countries and regions worldwide, and extended its presence in 20 African countries indirectly through holding shares of the Standard Bank of South Africa.

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China cracks down on cryptocurrencies with ban on initial coin offerings www.rt.com

Beijing has outlawed raising funds through launches of token-based digital currencies or so-called initial coin offerings (ICOs). The ban means trading and usage of all cryptocurrencies, including bitcoin, could now be illegal in China.

The People’s Bank of China (PBOC) said in a statement ICOs are “essentially a form of non-approved illegal public financing behavior and raises suspicions of illegal selling of notes and bills, illegal securities issuance, illegal deposit-taking, financial fraud, illegal direct marketing and related criminal activity.”

It added that individuals and organizations that have completed ICO fundraisings should make arrangements to return the money.

According to cryptocurrency analysis website Cryptocompare, $2.32 billion has been raised through ICOs, with $2.16 billion of that being raised since the start of 2017.

The PBOC added that "any so-called tokens financing trading platform shall not engage in the exchange of legal currency and tokens." It even goes so far as to ban platforms from "provid[ing] pricing, information, [and] intermediary services."

ICOs have surged in China this year as entrepreneurs could raise large sums, sometimes even hundreds of millions of dollars in minutes, by creating and issuing digital tokens.

Government data showed there had been 65 ICOs so far during the year, raising a combined 2.62 billion yuan ($394.6 million) from 105,000 individuals in the country.

In July, the US Securities and Exchange Commission warned that some ICOs should be regulated like other securities. Authorities in Singapore and Canada have issued similar warnings.

Some experts claim China’s ICO ban could be temporary. The director of the Shanghai-based financial technology consultancy Kapronasia, Zennon Kapron said he suspected regulators are putting the brakes on ICOs to better understand the phenomenon, but that could ease off in the future.

“Regulators globally are struggling to understand what ICOs are, what the risks are, and how to ring-fence and regulate them,” he told Reuters.

“China, in many ways, is no different than the US or Singapore in saying, ok, we need to push back on these for now until we figure out how to deal with them...I think it will be slightly a temporary measure,” Kapron added.

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Three countries hold meeting on economic corridor establishment www.montsame.mn

Ulaanbaatar /MONTSAME/ The second expert-level trilateral meeting on implementation of the Program on Establishing Economic Corridor among Mongolia, China and Russia was held in Moscow, Russia on August 29, 2017.

The meeting was co-chaired by V.Enkhbold, Director of the Mongolian Foreign Ministry Department of Foreign Trade and Economic Cooperation, Xiao Weiming, Deputy Director of the western development division of the China's National Development and Reform Commission (CNDRC), and Ye.N.Popov, Head of the Asia, Africa and Latin America Department of the Russian Ministry of Economic Development.

The parties initialed a Memorandum of Understanding on setting up a mechanism to accelerate the Economic Corridor’s implementation after coming to an agreement over the document’s context.

In addition, the countries prioritized 32 projects, which are reflected in the Program, and discussed those projects to be realized in the first turn. The parties then included three of them in the Memorandum’s appendix on building up a central corridor of railways and learning a chance for Chinese companies to getting involved in renovation of the electricity network in Mongolia and Russia.

In order to implement the projects in the first turn, the countries concurred to establish a joint center for investment and projection in Ulaanbaatar.

Present at the meeting were representatives and officials from the Mongolian Ministry of Foreign Affairs, the Ministry of Road and Transportation, the Ministry of Energy, the Mongolian Embassy in Russia, the CNDRC, the Chinese Embassy in Russia, the Russian Ministry of Foreign Affairs, the Ministry of Economic Development, the Ministry of Environment, the Ministry of Transportation, the Ministry of Energy and the Russian Railways JSC. 
B.Ooluun

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Mongolia Foreign Direct Investment: % of GDP www.ceicdata.com

Mongolia's Foreign Direct Investment (FDI) registered a growth equal to 6.1 % of the country's Nominal GDP in Mar 2017, compared with a growth equal to 3.7 % in the previous quarter. Mongolia's Foreign Direct Investment: % of Nominal GDP data is updated quarterly, available from Mar 2000 to Mar 2017. The data reached an all-time high of 50.5 % in Dec 2011 and a record low -145.3 % in Jun 2016. CEIC calculates Foreign Direct Investment as % of Nominal GDP from quarterly Foreign Direct Investment and quarterly Nominal GDP. The Bank of Mongolia provides Foreign Direct Investment in USD. The National Statistics Office of Mongolia provides Nominal GDP in local currency based on SNA 2008. The Bank of Mongolia average market exchange rate is used for currency conversions. Nominal GDP prior to Q1 2010 is based on SNA 1993.

In the latest reports of Mongolia, Current Account recorded a deficit of 98.8 USD mn in Jul 2017. Foreign Direct Investment (FDI) increased by 148.4 USD mn in Jul 2017. Mongolia's Direct Investment Abroad expanded by 0.2 USD mn in Jul 2017. Its Foreign Portfolio Investment fell by 43.3 USD mn in Mar 2017. The country's Nominal GDP was reported at 3.0 USD bn in Jun 2017.

Please review in details on the link https://www.ceicdata.com/indicator/mongolia/foreign-direct-investment--of-nominal-gdp 

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Mongolian President to hold meeting with Moon and Putin www.news.mn

Mongolian President Kh.Battulga will hold summit talks with leaders of South Korea and Russia during his visit to the Russia Far Eastern city of Vladivostok.

Kh.Battulga is set to attend the Eastern Economic Forum on Thursday and Friday. It will be his first visit to Russia since taking office on 10th of July. During the visit, Kh.Battulga and Russian President Vladimir Putin will hold a meeting. Before this, two held informal meeting in Hungary on 27th of August during the 2017 World Judo Championships.

Following the meeting with President Putin, Kh.Battulga will hold talks with South Korea`s President Moon Jae-in to seek a means to develop bilateral relations and discuss North Korean missile and nuclear issues.

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KAMCO to conduct financial consulting project in Mongolia www.news.mn

The Korea Asset Management Corporation (KAMCO) and Financial Access (FA), which is a financial consulting firm headquartered in the Netherlands, have been selected as the preferred bidders for the Asian Development Bank’s consulting project for the recovery and stabilisation of the banking industry of Mongolia.

The project is a part of the Technical Assistance (TA) projects of the ADB. The TA projects are for international organisations and developed countries to send their experts to developing countries in order to provide consulting related to industrial development, technological development, etc.

The project in Mongolia is worth a total of more than USD 1 million. The KAMCO has become the first South Korean public enterprise to lead the ADB’s TA project of that size. Before the selection of the preferred bidder, the ADB looked into each candidate’s degree of understanding of the purpose of a public asset management corporation in Mongolia, past consulting history, methodology, etc. The candidates included consulting firms and accounting firms located in Great Britain, Canada, Ireland and New Zealand.

The KAMCO and FA are planning to conduct their consulting for approximately 24 months following negotiations with the ADB.

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Caa1 - the lowest credit rating in Mongolian history www.mongolia.gogo.mn

ULAANBAATAR (GoGo Mongolia) - In Nov 2016, Moody's Investors Service ("Moody's") downgraded Mongolia's government long-term issuer and senior unsecured ratings to Caa1 from B3. 

Several green lights have turned on in Mongolian economy since then. Specifically, current account deficit stood at 358 million USD, meaning that it has dropped by 37 percent or 212 million USD from the same period of last year.
Goods and services account deficit dropped by 470 million USD and had a surplus of 248 million USD. Moreover, the balance of financial account had a surplus of 313 million USD. 
Mongolia has received 645 million USD foreign investment in the same period of last year while as of Jul 2017, foreign investment amounted 313 million USD which decreased by 332 million USD compared to the same period of last year. 
Meanwhile, the total balance of payments deficit was 48.8 million USD as of July 2017. A year ago, this amount was 41 million USD.
However, Caa1 ratings have not moved up and it is the lowest credit ratings in Mongolian history. 
"Invest Mongolia 2017" conference which is being held in Ulaanbaatar during Sep 4-5 raised this issue. Private sector representatives noted that with the Caa1 rating, it is almost impossible to attract investment from foreign countries. If one could find investment, the cost would be high. The biggest banks of Mongolia including Trade Development Bank, Khas and Khaan are determined their credit rating separately. However, their ratings are directly affected by the country`s rating. 
The Government pays for providers of credit ratings such as Moody`s, Fitch and S&P. Thus, private sector representatives recommended inviting representatives of these organizations to introduce the latest economic data and move the rating up. If Mongolia still has the Caa1 rating, Western investors consider Mongolia as a high-risk country to invest.

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Russian firm seals energy exploration deal to drill South African shelf www.rt.com

Russia’s geological research company Rosgeo and South African national oil company PetroSA have signed an offshore drilling agreement on the sidelines of the of the BRICS Summit in Xiamen, China.

The deal is worth an estimated $400 million over the next 10 years.

Rosgeo aims to start exploring two blocks off the country's south coast. The agreement covers a huge amount of geological exploration work, including drilling exploratory wells.

The company is expected to undertake 1,500 square miles of 3D seismic operations and over 8,000 miles of gravity-magnetic exploration activities.

The Russian company will get a 70 percent stake in the project with the remaining 30 percent going to PetroSA, according to Rosgeo’s CEO Roman Panov.

He stressed the project is aimed at oil and gas extraction and will be financed in partnership with Russian and South African banks.

The contract is seen as lucrative for the Russian company as it allows to employ its capacities, including drilling equipment and staff all year round.

Estimated reserves in the two blocks reportedly total 50 million tons of crude and 1.2 trillion cubic meters of natural gas.

Under the terms of the agreement, the daily volume of extracted gas is set to reach four million cubic meters. The gas will then be delivered to a gas-to-liquid refinery at Mossel Bay.

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Finland to get rid of coal by 2030 www.mining.com

The director general of Finland’s energy department, Riku Huttunen, announced that the country will introduce legislation to phase out coal and increase carbon taxes.

The new rules, which Huttunen said would “leave room for manoeuvre,” are expected to be in place by 2018 and the goal is to get rid of coal by 2030.

Flexibility in the legislation is needed to ensure supply and avoid the risk of blackouts, he added, particularly taking into account that 10 per cent of the country’s energy is produced by coal. In fact, Finland uses the most coal of all the Nordic countries.

To replace this source of energy, the Sauli Niinistö government will focus its efforts on making sure that the Olkiluoto 3 reactor comes online in 2018 and the Hanhikivi 1 reactor follows suit in 2024. Once this happens, about 60 per cent of Finland’s demand will be met by nuclear power. At present, operative reactors cover roughly 30 per cent of the country’s energy needs.

Instability in power supply could be in sight in the short term, however, as Sweden has plans to phase out two reactors. This means that there will be less energy available through the two countries’ interconnected grids.

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Boeing declares victory in Airbus subsidies dispute www.bbc.com

US aircraft manufacturer Boeing has won a victory in a long-running dispute with European rival Airbus.

The World Trade Organization has reversed on appeal a ruling that Boeing received some state aid to help build its newest aircraft, the 777X.
"The WTO has rejected yet another of the baseless claims the European Union has made," Boeing said in a statement.
However, Airbus said ‎"the 'game' is far from over" as other complaints over alleged aid are still to be resolved.
The two aviation giants have been locked for years in a sprawling set of disputes at the Geneva-based WTO.
Last year, the WTO backed a European Union complaint that Boeing got tax breaks to site a production facility in Washington state.
The US, acting on behalf of Boeing, appealed the decision and secured an outright victory that is not subject to further appeal, the WTO ruling said.
According to Airbus, Washington state has given Boeing tax breaks worth about $9bn (£7bn) and which were sufficient to shut out imports.
However, Boeing said the tax breaks amounted to no more than $1bn.
The WTO's appeals body has now ruled that the tax breaks were not explicitly to prevent free trade, removing them from its most severe category of banned aid known as "prohibited" subsidies.
However, the trade dispute is not over. Brussels and Washington have two larger cases pending at the WTO, centred on multiple claims and counter-claims about illegal subsidies for their respective aviation industries.
Boeing's general counsel, J. Michael Luttig, said in a statement: "The latest of the false claims Airbus and its government sponsors have made has now been rejected by the WTO.
"The EU and Airbus, meanwhile, continue to be in flagrant breach of WTO rulings and must eliminate the massive illegal subsidies the WTO said a full year ago had not been addressed, or risk US sanctions against European exports."
Airbus, which estimates it has lost $100bn in sales because of Boeing subsidies, said: "Boeing illegal subsidies are still illegal and need to be removed. The 'game' is far from over."

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