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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China Still Has a Treasure Chest of Overseas Real Estate to Sell www.bloomberg.com

China’s biggest-ever overseas property buying spree reversed course in dramatic fashion in 2018. But even after the record unwinding, many lucrative real estate assets remain in Chinese hands.

They include the 245 Park Ave skyscraper in Manhattan, New York’s famed Waldorf Astoria Hotel and Chicago’s Vista Tower, under construction but envisaged as one of the city’s tallest buildings.

With economic growth slowing, keeping a tight rein on capital outflows is expected to remain a key theme for Beijing. That could see disposal records smashed again in 2019.

Beijing put an end to the party in mid 2017, telling the nation’s four largest private conglomerates -- HNA Group Co., Anbang Insurance Group Co., Fosun International Ltd. and Dalian Wanda Group Co. -- they had borrowed too aggressively.

A forced liquidation was mandated and a “banned list” produced that dumped offshore property and hotels in the restricted basket, and casinos in the don’t even think about it one.

Still, it wasn’t until the end of that year the spending tapered off. In 2016 and 2017 combined, Chinese companies splashed out an unprecedented $89 billion on real estate.

In 2018, the deleveraging drive really started to take effect. Real estate asset sales by Chinese companies have surged to $12.3 billion since January, up from $5.3 billion the year prior, preliminary data compiled by Real Capital Analytics show.

“While capital controls remain in place, China won’t be the main driver of Asian outbound investment,” said Stephanie Yang, CBRE Group Inc.’s senior director of global capital markets. Buyers from places including Singapore and South Korea are already taking the place of Chinese in markets such as the U.S. and Europe, she said.

The asset sales were “driven in part by the government’s push to reign in the most aggressive buyers, but also by a requirement to reduce debt levels,” said Jeffrey Langbaum, a commercial real estate analyst at Bloomberg Intelligence.

HNA was arguably the worst offender on the trophy collection front, amassing stakes in airlines, catering companies, tech distributors, hotels, asset managers and a currency exchange. Wanda got into cinemas --- it’s now the world’s largest movie-theater operator -- while Fosun, run by Guo Guangchang, a self-styled Chinese Warren Buffett, bought Club Med and a stakes in overseas fashion houses.

Anbang’s unfettered spending, meanwhile, saw authorities seize control of the conglomerate in February and the insurer’s former chairman, Wu Xiaohui, sentenced in May to 18 years in prison after being convicted of fundraising fraud and embezzlement.

HNA has gone some way to making amends, ending 2018 as the No. 1 seller among the four and accounting for five of the 10 biggest property disposals. Even so, affiliate units have been missing loan and bond payments for months, evidence more cash needs to be brought in the door to overcome HNA’s liquidity challenges.

“The deleveraging trend will continue through the first half of next year,” said James Shepherd, the managing director of Greater China research at Cushman & Wakefield Inc. He said Chinese investors had often relied upon local banks to back their buying sprees. With that tap turned off, and refinancing pressures mounting, further assets sales are inevitable.

And there are willing buyers. A consortium including Ping An Real Estate Co. and China Life Insurance Co. sold a 13-story Boston building for $450 million in August, setting a record for an office transaction in the city.

“The ongoing uncertainties of the trade conflict will put pressure on foreign reserves and the value of the yuan, so capital controls will most likely continue in 2019,” Tom Moffat, CBRE’s Hong Kong-based head of capital markets Asia, said. That will mean ongoing “selective disposals from Chinese investors, whether they’re looking to strengthen their balance sheets or realize a decent profit from their early investments.”

— With assistance by Emma Dong, and Jinshan Hong

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Emperor Akihito: Huge crowds as Japan monarch gives emotional farewell www.bbc.com

More than 80,000 people have paid their respects to Japan's Emperor Akihito as he gave his final birthday address before his abdication in April.

The emperor, 85, said he took "deep comfort" that his reign had passed without Japan again engaging in war.

He became emotional as he thanked the people of Japan and his wife Empress Michiko for their support.

Akihito is the first living monarch to relinquish the Chrysanthemum throne in nearly 200 years.

The emperor, who has had heart surgery and treatment for prostate cancer, will be succeeded in April by his eldest son, Crown Prince Naruhito.

His three-decade reign is known as the "Heisei" era, which means "achieving peace" in Japanese.

During his brief address, Emperor Akihito also offered condolences and sympathy to Japanese who had lost family members or suffered damage - a reference to the earthquakes, severe storms and heatwaves that have hit the country over the past year.

More than 80,000 people attended Emperor Akihito's final birthday appearance
Although his position is ceremonial and he has no political power, Akihito has spent much of his reign spreading awareness of Japan's actions during World War Two under the rule of his father, Emperor Hirohito.

He has expressed regret over Japan's military actions in both China and the Korean peninsula, and has also visited several Pacific battlefields to honour the dead, actions that have brought him into conflict with right-wing groups at home.

Ahead of his birthday he told reporters: "It is important not to forget that countless lives were lost in World War Two... and to pass on this history accurately to those born after the war."

In October the head priest at Japan's controversial Yasukuni Shrine - which honours Japan's 2.5 million war dead but also enshrines convicted criminals of World War Two - agreed to resign after criticising Emperor Akihito, saying he was trying to destroy the shrine by not visiting it.

Some top politicians including Prime Minister Shinzo Abe have visited the shrine, sparking an angry response from critics including China.

In his address, Emperor Akihito also said he hoped Japan would be able to welcome immigrants to the country under new legislation to let in more foreign, blue-collar workers to ease a labour shortage owing to an ageing population.

Japan has hitherto had restrictive immigration laws and accepts few workers from other countries.

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MNB World channel launches www.montsame.mn

Ulaanbaatar /MONTSAME/ An official launching of the first English channel ‘MNB World’ of the Mongolian National Public Radio and Television (MNB), which will deliver news and media programs in English, took place on December 20.

Within its duty reflected on Public Radio and Television Law, a project on launching ‘MNB World’ channel started in September, 2017. MNB World channel, a new gateway to promote Mongolia to the world, will strive to become an internationally recognized, trustworthy and reliable information source, authorities of the MNB noted.

Head of National Council of MNB B.Enkhmandakh said MNB is responsible for reporting about Mongolia to the world. To accomplish this goal, Voice of Mongolia radio channel was set up at the MNB. Programs and news provided by the radio channel are broadcast in Russian, Chinese, Japanese and English. We see that MNB World channel will be a new window to promote Mongolia to the world. Through the channel, various contents that show development of all fields such as history, culture, tradition, trade, economy and tourism, will be broadcast in English.

“MNB World is an international channel running at MNB. MNB runs operation in seven platforms including 2 TV channels, 2 radios and a website. We create media programs equal to 51 hours a day. Today, we are opening up the new channel and ready to air,” initiator of MNB World project and Director General of MNB L.Ninjjamts said.

Present at the opening ceremony were Parliament and Cabinet Members, representatives from the Embassy and international organizations and press industry.

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Former Inner Mongolia bank chief handed death sentence with two-year reprieve www.globaltimes.cn

A former bank chief in north China's Inner Mongolia Autonomous Region was sentenced to death with a two-year reprieve on Friday by a local court for accepting bribes and embezzling public funds worth tens of millions of US dollars.

According to the Intermediate People's Court in Inner Mongolia's Baotou City that handed down the sentence, Yang Chenglin, former chair of the Bank of Inner Mongolia, was found to have illegally demanded and accepted money and property worth 307 million yuan (44.54 million US dollars) alone or in collusion with two other people and embezzled 298 million yuan of public funds alone or in collusion with another person from 2000 to 2013.

In the same case, defendant Yang Hai was sentenced to 19 years in jail for bribery and embezzlement, and defendant Zhang Ting got a five-year sentence for accepting bribes.

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Engagement plan for Mongolia Country Partnership Framework www.worldbank.com

The World Bank Group is organizing second round of public engagements with diverse stakeholder groups to gather their views and recommendations as it prepares the new Country Partnership Framework (CPF) for Mongolia. The CPF identifies and prioritizes critical areas where the World Bank Group support would have the biggest impact in promoting sustainable poverty reduction and shared prosperity, from 2019 to 2024.

Face-to-face meetings will be organized with government, Parliament, civil society organizations, donors and development partners as well as private sector groups from January 28 to February 1, 2019. Online consultations will continue from December 24, 2018 to February 28, 2019 to enable participation of the broader population.

BACKGROUND

The first round of engagements to gather feedback on key opportunities and challenges to ending poverty and boosting shared prosperity in Mongolia as well as potential WBG support areas was organized in August–October 2017. More than 400 stakeholders from government, Parliament, development partners, civil society organizations and private sector in Ulaanbaatar and 4 regions shared their views through face-to-face meetings and online surveys. The analytical document on Mongolia’s development challenges and opportunities in which the feedback from previous round of engagement was considered is available at here . Summary of the feedback can be found at this link and is also available as an attachment to the Mongolia - Systematic Country Diagnostic (SCD).

KEY STAKEHOLDERS:

Second round of engagements will be conducted with a wide range of stakeholders in Ulaanbaatar as well as, including:

Government: government ministries and agencies
Parliament
Development Partners: UN agencies, donors, multilateral and bilateral development partners
Civil Society Organizations: Non-profit organizations and associations, labor groups, think tanks, academia and research groups
Private Sector: Representatives from the business sector, foreign and domestic invested businesses, small and medium enterprises, chambers of commerce, business councils.
ENGAGEMENT PROCESS:

The engagements process will include both face-to-face meetings as well as online/web-based platform to enable participation by a wide range of stakeholders. The structure of face-to-face meetings will allow plenary presentations and discussions and, if needed, small group discussions, and reporting with a neutral facilitator. For online engagement, interested stakeholders will be able to send feedback and comments by email.

LANGUAGE:

The engagements with UN and development partners, academia, private sector will be conducted in English with simultaneous translation to Mongolian language. The engagements with the government, Parliament, civil society organizations and other local groups will be conducted in Mongolian with simultaneous translation to English.

INVITATIONS AND BACKGROUND MATERIALS:

Invitations and relevant background materials in English and Mongolian will be sent to the participants before the scheduled meetings.

STAKEHOLDER FEEDBACK:

Meeting summaries, in both Mongolian and English, will be posted on the consultation website for Mongolia.

After the final approval, the CPF will be made publicly available and posted on the World Bank in Mongolia website.

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Mongolia's foreign trade up 23.6 pct in first 11 months www.xinhuanet.com

ULAN BATOR, Dec. 21 (Xinhua) -- Mongolia's goods trade went up 23.6 percent year-on-year to 11.9 billion U.S. dollars in the first 11 months of 2018, official data showed Friday.

Exports rose 14.0 percent year-on-year in the January-November period to 6.5 billion U.S. dollars while imports increased 37.6 percent to 5.4 billion U.S. dollars, resulting in a trade surplus of 1.1 billion U.S. dollars, the Mongolian National Statistics Office said.

Mining is the main economic sector of the mineral-rich country. The industry accounted for 88.6 percent of total exports in the period, according to the statistical agency.

The landlocked Asian country has traded with a total of 155 countries in the first 11 months of this year and exported its goods and services to over 70 countries among them.

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“Eco & Innovative" Mining and Construction supply seminar www.urantusul.com

Uran tusul LLC is successfully growing on mining and construction supply business since 2003. The company is going to organize “Eco & Innovative Technology in Mining and Construction supply” seminar on the occasion of its 15th anniversary by the support of British Embassy in Mongolia and Mongolian Business Database (MBD).
At the event, representatives and directors of British “Monaflex”, “Airboss” brands which the company represents in Mongolia and other partners will introduce their innovative new eco-technologies and products.

Seminar and reception are going to take place on the 17th of January 2019, at Ulaanbaatar receptions hall, 5th floor of “The Corporate Hotel and Convention Center” at 15:30.
Please be welcome to our event to celebrate to our anniversary with great opportunity to meet with relevant industry technologies.

Please contact Ms.T.Narantsatsralt at 88097092 for information in details.

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Domestically produced petroleum to be sold at MNT 850 per litre www.zgm.mn

Ministry of Mining and Heavy Industry (MMHI) held its monthly meeting Transparent and Responsible Mining yesterday, during which the Minister Sumiyabazar Dolgorsuren disclosed that the construction of oil refinery is currently 80 percent complete.

The ministry estimates the average petroleum price produced by the factory to be around MNT 850 per litre. “We had a conference call with Igor Sechin, Head of Russian oil company Rosneft. The working group of MMHI and oil refinery will pay a working visit to Russian Federation soon after the new year, prepare necessary documents and sign the cooperation agreement within the first quarter,” said Mr. Sumiyabazar.

As of November, mining sector and heavy industry allocated MNT 1.9 trillion to the state budget, which is 37 percent higher than the same period of last year. In the reporting period, the industrial sector production reached MNT 14.1 trillion, growing 19.5 percent year over year.

Preparatory works of Erdenes Tavan Tolgoi IPO is currently underway. Open selection for audit, legal, financial and technical assistants have been selected and advisory firm selection is in process at the moment. MMHI also reported that the international underwriter and other partners necessary for the IPO will be picked in between January and February.

Regarding the gold royalties, Mr. Sumiyabazar expressed that the 2.5 percent royalties must be extended. “Gold sector annually create USD 800 million for the budget. The ministry has negotiated with the Bank of Mongolia (BoM) to establish a gold purifying plant in 2019, signing cooperation agreement in the working group level,” informed Mr. Sumiyabazar and added, “The purifying plant will also have a gold purchase service and within this frame, a bill involving the BoM, Ministry of Finance and MMHI has been prepared and will be submitted to the Parliament for approval soon.”

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45-meters deep underground cave discovered in Mongolia www.akipress.com

An underground cave 45-meters deep was discovered in Mongolia on the territory of Dashbalbar, Dornod aimag, Mongolian media report.

The cave is unique, it occupies 5 km2 territory and has a water pit.

It was discovered for the first time and even locals did not know it existed.

It was discovered by local herdsman accidentally. The bones of marmots were found in the cave.

Local authorities plan to protect the territory and invite researchers.

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Nissan's Ghosn re-arrested, chances of imminent bail dashed www.reuters.com

TOKYO (Reuters) - Japanese prosecutors re-arrested Nissan Motor Co Ltd’s (7201.T) ousted chairman Carlos Ghosn on Friday on fresh allegations of making Nissan shoulder $16.6 million in personal investment losses, dashing chances he would be released on bail imminently.

The move comes a day after a Tokyo court unexpectedly rejected prosecutors’ request to extend Ghosn’s detention, which raised the possibility that he could go free on bail as early as Friday.

The re-arrest means he could be detained for at least another 10 days in a Tokyo jail, where he has been confined since he was arrested last month on initial allegations of financial misconduct.

The Tokyo prosecutor said the new allegations were based on suspicions that around October 2008, Ghosn shifted personal trades to the automaker so that he could avoid paying for 1.85 billion yen ($16.6 million) in losses.

His lawyer, Motonari Otsuru, was not available for comment. The lawyer has previously declined to return calls regarding the Ghosn case.

The Tokyo court said in a statement that the lawyer for Ghosn’s former deputy Greg Kelly, who was arrested along with Ghosn, has requested his client’s release. Kelly’s detention extension was rejected along with Ghosn’s.

The dramatic turn of events on Friday came hours after Ghosn, through his lawyer and quoted by Japanese public broadcaster NHK, vowed to restore his good name in court and to hold a news conference after his release.

“Things as they stand are absolutely unacceptable,” he was quoted as saying. “I want to have my position heard and restore my honor in court.”

Television camera crews had gathered outside the Tokyo jail on Friday morning in hopes of catching sight of Ghosn being released.

Ghosn was initially arrested on Nov. 19 for allegedly understating his income by about half over a five-year period from 2010. He was later re-arrested for a similar alleged crime covering the past three years.

Nissan said after his arrest that it unearthed multiple instances of possible wrongdoing in an internal investigation triggered by a whistleblower.

The internal probe is ongoing, and has included allegations of diverting company funds to pay for personal expenses. Sources have told Reuters that investigators have been looking into the use of an internal “CEO Reserve” fund and the role of overseas subsidiaries in alleged financial misconduct.

The Ghosn case has put Japan’s criminal justice system under international scrutiny and sparked criticism for some of its practices, including keeping suspects in detention for long periods and prohibiting defense lawyers from being present during interrogations, which can last eight hours a day.

Documents seen by Reuters showed that some discussions about compensating Ghosn out of the public eye were not confined to Nissan, but also included Renault executives.

While Nissan ousted Ghosn from his role as chairman shortly after the initial arrest, Renault has so far not replaced him.

A Nissan spokesman declined to comment on the re-arrest, saying only that the internal investigation was ongoing and expanding into new areas.

Reporting by Kiyoshi Takenaka, Ritsuko Ando, Tim Kelly, Linda Sieg and Malcolm Foster; Writing by Ritsuko Ando; Editing by Stephen Coates and Christopher Cushing

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