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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Why Russia isn’t worried about lower oil prices www.rt.com

Even as Saudi Arabia has scrambled to prevent a bust in the oil market, so far failing to head off a dramatic price slide, Russia seems just fine with prices where they are.
Russia is a key piece of the oil price puzzle. OPEC, once a coalition of oil-producing members that made joint decisions to maintain market stability, has morphed into a Saudi-led cartel that desperately needs Russian cooperation to strengthen the group’s efforts. Many OPEC members are either at maximum capacity, are suffering from production declines at aging fields, or are characterized by instability, making any promises to boost or cut production hollow. The only countries unaffected by such issues are Saudi Arabia and its new strategic partner, Russia.

But Russia is not as desperate for higher oil prices as is Saudi Arabia. There are a few reasons for this. One of the key reasons is that the Russian currency is flexible, so it weakens when oil prices fall. That cushions the blow during a downturn, allowing Russian oil companies to pay expenses in weaker rubles while still taking in US dollars for oil sales. Second, tax payments for Russian oil companies are structured in such a way that their tax burden is lighter with lower oil prices.

Saudi Arabia needs oil prices at roughly $84 per barrel for its budget to breakeven. The international outrage over the murder of Saudi journalist Jamal Khashoggi has also left Riyadh isolated. The hyped-up economic reform plans from crown prince Mohammed bin Salman are in tatters, and Saudi Arabia is back at the drawing board, in desperate need of higher oil prices.

Russia is more stoic in the face of an oil price meltdown. “The drop in oil prices hardly bother us because our budget is based on $42 a barrel,” First Deputy Prime Minister Anton Siluanov told reporters in Moscow on December 26. “The price can stay around $40-$50 for a time — six months or a year,” Siluanov said, before adding: “We think this won’t last long.” But even if the price downturn does persist, Russia won’t be in trouble because of its ample foreign exchange reserves, he said.

Igor Sechin, the head of Russia’s state-owned Rosneft, said that oil prices “should have stabilized, because everyone was supposed to be scared” by the enormous OPEC+ production cuts. “But nobody was scared,” he said, according to Bloomberg. He blamed the Federal Reserve’s rate tightening for injecting volatility into the oil market, because traders have sold off speculative positions in the face of higher interest rates.

The bottom line is that Russia does not feel the same urgency as Saudi Arabia. It was only a matter of days after Russia agreed to the OPEC+ agreement — which called for production cuts of 1.2 million barrels per day (mb/d) beginning in January — that Russian officials suggested that their output would only decline slightly at the start of the New Year.

Russia’s oil minister Alexander Novak said in mid-December that output could dip by a modest 50,000 to 60,000 bpd in January, far short of the roughly 230,000 bpd of cuts Russia is supposed to take on. That would put Russian output at about 11.35 mb/d, not far from the post-Soviet high of 11.41 mb/d hit in October. “Everything will depend on technological and climate possibilities. We will get proposals from the companies,” Novak said, according to Reuters. “We will see how the situation would evolve.”

At the same time, Novak offered the market some assurances that the OPEC+ coalition would step in to stabilize the market if the situation deteriorates, suggesting that OPEC+ has the ability to call an extraordinary meeting. He told reporters in late December that the market still faces a lot of unknowns. “All these uncertainties, which are now on the market: how China will behave, how India will behave... trade wars and unpredictability on the part of the US administration... those are defining factors for price volatility,” Novak said.

Nevertheless, Novak predicted the 1.2 mb/d cuts announced in Vienna would be sufficient.

Some analysts echo Novak’s sentiment that, despite the current panic in the market, the cuts should be sufficient. “We are looking at oil prices heading towards $70 to $80…quite a recovery in 2019. That’s really predicated on the thought that first of all, OPEC still is here. And I think that the market is underestimating that they are going to cut supply by 1.2 mb/d,” Dominic Schnider of UBS Wealth Management told CNBC. “And demand looks healthy…so we might find ourselves into 2019 in a situation where the market is actually tight.”

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Elon Musk breaks ground on first Tesla factory outside US www.bbc.com

Tesla boss Elon Musk has broken ground at a new factory in Shanghai, the electric carmaker's first manufacturing plant outside the US.

The facility will produce Model 3 and Model Y cars as it pushes to grow its presence in the world's largest car market.

The American automaker faces rising competition from local rivals in China.

But the new factory would help Tesla avoid US tariffs on car imports into the country.

In a series of tweets on Monday, Mr Musk said the plant would build "affordable versions" of the Tesla Model 3 - the carmaker's mass market vehicle - and its proposed Model Y for the Greater China region.

He said the so-called Gigafactory - which could cost as much as $5bn (£4bn) according to reports - would start Model 3 production at the end of year.

"Aiming to finish initial construction this summer, start Model 3 production end of year [and] reach high volume production next year" the entrepreneur tweeted.

US carmakers have been vocal critics of President Donald Trump's tariffs, which have targeted the car sector among others.

In October, Tesla warned that tariffs in China were creating challenges.

China has raised import duties on US-made cars as part of the broader trade fight with the US.

At the time, Tesla said the costs that go into its cars are roughly 55% to 60% higher than for local firms, when tariffs and sea transport costs are take into account.

Negotiations aimed at resolving the bitter trade dispute between US and China taking place in Beijing this week.

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Iran, Mongolia foreign ministers arrive in Delhi www.sify.com

[India], Jan 8 (ANI): Mohammad Javad Zarif, Minister of Foreign Affairs of the Islamic Republic of Iran and Damdin Tsogtbaatar, the Foreign Minister of Mongolia arrived here on Monday. The two are expected to attend the fourth edition of the Raisina Dialogue which will begin on Tuesday. The inaugural address will be delivered by the Prime Minister of Norway, Erna Solberg. Prime Minister Narendra Modi is also expected to attend the inaugural session of the event. Several Foreign Ministers are attending the three-day conference on geo-politics and geo-economics, co-hosted by the Ministry of External Affairs (MEA) and the Observer Research Foundation (ORF). The speakers at the event include Foreign Ministers of Spain, Iran, Australia, Mongolia and Nepal, besides India's Foreign Minister Sushma Swaraj. Other global leaders taking part in the conference include former British Prime Minister Tony Blair, former Italian Prime Minister Paolo Gentiloni, former Canadian Prime Minister Stephen Harper, former Swedish Prime Minister Carl Bildt and former Afghanistan President Hamid Karzai. Malaysian leader Anwar Ibrahim, who is tipped to succeed incumbent Mahathir Bin Mohamad, will deliver the valedictory address. Ministers and leaders from Africa, West Asia, U.S., Europe and Russia are among the speakers at the Dialogue. India's Foreign Secretary Vijay Gokhale, Chief of Army Staff, General Bipin Rawat and Chief of Naval Staff, Admiral Sunil Lanba will also speak at the conference. (ANI)

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Ownership of Asgat silver deposit to be transferred to Erdenes Mongol LLC www.montsame.mn

Ulaanbaatar /MONTSAME/. Chief of the Cabinet Secretariat of Government G.Zandanshatar received the executives of Mineral Resources and Petroleum Authority, Erdenes Mongol LLC and Mongolrostsvetmet LLC.

He charged the corresponding officials to transfer the ownership of Asgat silver deposit to Erdenes Mongol LLC as no work has been done since the Government's resolution that gave right to Mongolrostsvetmet LLC to use the mine in 1993.

Furthermore, illegal mining of wolfram in Tsagaan Ereg of Khovd aimag is to be stopped. Thus, Chief of the Cabinet Secretariat of Government G.Zandanshatar charged the relevant officials to make preparations to urgently transfer the ownership of the deposit to Erdenes Mongol LLC.

The officials are also assigned to develop plans on how to use the Asgat, Salkhit and Tsagaan Ereg deposits and to introduced the plan this week and to put the deposits into economic circulation before Tsagaan Sar (Lunar New Year).

During the meeting, Mr.Zandanshatar also charged the Mineral Resources and Petroleum Authority to discuss lowering the price of petrol with the executives and representatives of importing companies and report back the outcomes.

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Mongolian engineers earned MNT 11 billion from aircraft maintenance www.montsame.mn

Ulaanbaatar /MONTSAME/ Aircraft Maintenance Department of MIAT Mongolian Airlines obtained a revenue of MNT 11 billion in 2018. The department repaired 12 foreign airplanes last year. Chief of the Production Planning Division at MIAT J.Chuluunjav noted that the company provided aircraft maintenance services to 62 foreign airplanes since 2014.

“Heavy maintenance service per aircraft lasts 10-14 days, receiving revenue of about USD 250-500 thousand. In 2017, we have repaired 25 airplanes, earning USD 5.2 million. Last year, the number reached 12. Despite the low number of repaired planes, the company still earned an income of MNT 11 billion from maintenance services as the ‘Boeing 737-800’ is twice as big as ‘Boeing 737-300’ and requires more time for maintenance as well as costs twice as much,” said Mr J.Chuluunjav.

MIAT holds legal certificate of the European Aviation Safety Agency (EASA) and offers competitive prices for the service. Engineers and technicians of the company are also highly appreciated, so the foreign airlines are interested in their services.

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Metal Mania From Mongolia Invades YouTube With Guitar Riffs, Guttural Singing www.sputniknews.com

Centuries after Genghis Khan raged across Eurasia, Mongolians have launched a new kind of offensive, which might outshine the conquests of their ancestors. The band Hu, mixing rock music with traditional themes, has found inspiration in their country’s long history, making nomadic life great again.

Two clips, released by the Mongolian rockers from the band named Hu (which means human) in autumn 2018, are sending shockwaves across YouTube, conquering news fans all over the globe. The clips titled Yuve Yuve Yu and Wolf Totem have already gained over 8 million views and almost 300 thumbs-up.

They may have exchanged the horses that once terrified thousands of people across Eurasia for motorcycles, but have kept the tribal and warlike spirit. Commentators seemed to enjoy this authenticity a lot and voiced a readiness to surrender.
"Awesome!!!I was expecting some Metallica clone and I received very authentic and delightful tribal rock, with Mongolian roots”, one YouTuber posted below the Wolf Totem video.

Some even confessed that this musical discovery made them want to be Mongolian.

"So much Mongolian pride! The song and video gave me chills down my spine and goosebumps! I really enjoyed it and can’t wait to see more of your groups work!” a user wrote, while another claimed that although he had no Mongolian ancestry, this spoke to something inside of him as if he had.

References to the era of Genghis Khan could not be avoided.

"The last time these folks went on tour, they totally slayed. Most of Europe. It was mostly death metal, back then. Serious rockers”, one of the netizens posted.

The band, defining their style as "hunnu rock", apparently takes pride in their nation’s storied past. So, they plan to call their first album, which they have been putting together for seven years already, Gereg after the name of a passport from Genghis Khan’s Empire and even mention the conqueror’s name in one of their hits.

Additionally, the Hu incorporate the sound of traditional instruments, like a horsehead fiddle, Jaw harp and a local type of guitar as well as throat singing into the more familiar heavy metal sound of pounding bass and rock drums.

According to National Public Radio, all the band’s members have a solid music education as they learned to play historic instruments at the Mongolian State conservatory. They felt they would eventually achieve success beyond Mongolia’s borders.

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Michael S.Klecheski appointed as Ambassador of the USA to Mongolia www.montsame.mn

Ulaanbaatar /MONTSAME/ The United States House of Representatives confirmed the nomination of to be Ambassador Extraordinary and Plenipotentiary of the US to Mongolia Michael S.Klecheski on January 2.

Mr. Michael S.Klecheski was included in the list of political appointments presented by the President of the United States Donald Trump last August.

The newly appointed Ambassador previously served as Deputy Chief of Mission at the United States Embassy in Manila, Philippines since 2015. He has also served as Deputy Chief of Mission at the United States Embassy in Kazakhstan and in other overseas assignments in Russia, Iraq, Switzerland, and Poland.

Mr. Klecheski earned a Bachelor of Science in Foreign Service from Georgetown University and a Master of Philosophy from Columbia University, speaks Russian, Polish, French and Tagalog. He lives with his wife and three children.

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Cabinet ratifies President-initiated bill on dissolving Parliament www.zgm.mn

Chief of Staff to the President of Mongolia Enkhbold Zandaakhuu submitted a draft bill on Amendment to the Law on the Procedure of the Plenary Session of the Parliament to Speaker Enkhbold Miyegombo last week. The bill was then approved by the Cabinet.

The draft legislation contains two articles. The first article states that the Parliament would discuss a proposal to dismiss the Parliament Speaker in an urgent manner when it is submitted by majority of the Parliamentarians. The second article specifies the time when the legislation will take effect.

“The initiator of the bill, President of Mongolia Battulga Khaltmaa, sees that the adoption of the bill will produce positive outcomes, including the resumed functions of the Parliament, the resolution of pending economic and social issues, and the strengthening of rule of law. No extra expenses will emerge with the enactment of the bill,” reported the President’s Office.

Accordingly, the ruling party requested the Parliament to delay plenary session to this week as the Mongolian People’s Party caucus will discuss the bill today.

According to the Secretary General of the Parliament Tsolmon Tsedev, Speaker Enkhbold views that “The bill has to be discussed immediately. Many issues, including a public demonstration, took place regarding the ousting. Parliament itself is in a deadlock because of it. The bill has been submitted in accordance with the law. Thus, it will be settled within the legal frame.”

On the other hand, Erdenebat Dondogdorj, Chairman of the Democratic Party caucus, remarked, “Law-making process has been delayed for many week. We believe that there are two options here. First, the Parliament Speaker should submit his resignation letter.” He also informed that the DP caucus will discuss the matter today.

As for the President-initiated bill, the Standing Committee on State Structure will reach a final decision this week. According to Mr. Erdenebat, there is a chance that the bill could be approved within this week.

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New railway for coal transport opens in north China www.en.silkroad.news.cn

TAIYUAN, Jan. 6 (Xinhua) -- A new railway for coal transport has opened in north China, according to China Railway Taiyuan Group.

The railway runs 214 km between the city of Shuozhou in Shanxi Province and Zhungeer in Inner Mongolia Autonomous Region.

It is designed to have an annual transport capability of 5.26 million tonnes to serve as a major coal outlet for the mineral-rich Inner Mongolia.

The Shuozhou-Zhungeer railway is a vital part of northern China's railway network for coal transport and will offer new opportunities for local industries, said an official with China Railway Taiyuan Group.

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Mongolia’s coal exports hit all-time high in 2018 www.daily-sun.com

ULAN BATOR: Mongolia's coal exports hit an all-time high in 2018, the country's finance ministry said Friday.

The landlocked Asian country exported a total of 36.5 million tons of coal in 2018, the ministry said in a statement.

The figure is an increase of 3.2 million tons from the previous year, the added the ministry, reports Xinhua.
The rise was largely attributable to Prime Minister Ukhnaa Khurelsukh's first official visit to China in April since assuming office in 2017, according to the ministry.

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