1 CONSTRUCTION OF TAVANTOLGOI-GASHUUNSUKHAIT ROAD TO BE INTENSIFIED WWW.MONTSAME.MN PUBLISHED:2019/02/20      2 OVER 30 MEASURES PLANNED FOR REDUCTION OF ENVIRONMENTAL POLLUTION WWW.MONTSAME.MN PUBLISHED:2019/02/20      3 MONGOLIA SAYS IT EARNS OVER 169 MLN USD FROM COAL EXPORTS TO CHINA IN JAN WWW.HELLENICSHIPPINGNEWS.COM  PUBLISHED:2019/02/20      4 RUSSIA’S GAZPROM TO START CHINA GAS PIPELINE BY DECEMBER 1 WWW.RT.COM PUBLISHED:2019/02/20      5 MONGOLIA'S FOREIGN TRADE UP 41.6 PCT IN JAN. WWW.XINHUANET.COM PUBLISHED:2019/02/20      6 EIGHT COMPANIES ANNOUNCE TO DISBURSE DIVIDENDS SO FAR WWW.ZGM.MN PUBLISHED:2019/02/20      7 MONGOLIA'S PROSTITUTION ZONES, WHERE WOMEN TRADE SEX FOR FUEL IN SUB-ZERO TEMPERATURES WWW.TELEGRAPH.CO.UK PUBLISHED:2019/02/20      8 MONGOLIA TO SUSPEND KFC OUTLETS FOR INQUIRY AFTER FOOD POISONING REPORTS WWW.CNBC.COM PUBLISHED:2019/02/20      9 MIAT TO FLY BETWEEN ULAANBAATAR AND GUANGZHOU WWW.NEWS.MN PUBLISHED:2019/02/20      10 NEW BOOK ABOUT MONGOL EMPIRE’S IMPACT ON ISLAM WWW.NEWS.MN PUBLISHED:2019/02/20      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     II/19-НИЙ ДОТОР 24 ХК НОГДОЛ АШИГ ОЛГОХТОЙ ХОЛБООТОЙ ШИЙДВЭРЭЭ ГАРГАЖ , СЗХ-НД ХҮРГҮҮЛСЭН БАЙНА WWWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/20     ӨНГӨРСӨН САРД 23.9 МЯНГАН ЖУУЛЧИН ХҮЛЭЭН АВЧЭЭ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     ЭРЧИМ ХҮЧНИЙ ИМПОРТ БУУРЧЭЭ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     ТАТВАР ТӨЛДӨГ 191 МЯНГАН ААН-Н 95.9 ХУВЬ НЬ БИЧИЛ БИЗНЕС ЭРХЭЛДЭГ WWW.EAGLE.MN  НИЙТЭЛСЭН:2019/02/20     НИЙТ НУТГИЙН 70 ОРЧИМ ХУВЬ НЬ ЦАСТАЙ БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2019/02/20     ХАНБОГД-ОЮУТОЛГОЙГ ХОЛБОСОН ЗАМЫН НЭЭЛТ БОЛЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2019/02/20     ЗГҮЦ-ЫН АНХДАГЧ ЗАХ ЗЭЭЛИЙН АРИЛЖАА МХБ-ИЙН ҮЙЛ АЖИЛЛАГААНЫ ОРЛОГО БУУРЧЭЭ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/19     “TEMASEK HOLDINGS” КОМПАНИ “TRQ” ДЭХ ЭЗЭМШЛИЙН ХУВИА 28 ХУВИАР БУУРУУЛАВ WWW.BLOOMBERGTV.MN  НИЙТЭЛСЭН:2019/02/19    

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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2020 Olympics to cost a maximum of 1.8 tril. yen www3.nhk.or.jp

The organizing committee of the 2020 Tokyo Olympics and Paralympics says the cost of hosting the Games could reach a maximum of 1.8 trillion yen, or about 15.3 billion dollars.

The estimate was presented at a meeting in Tokyo on Wednesday between 4 groups preparing for the Games.

Tokyo Governor Yuriko Koike, the president of the organizing committee, Yoshiro Mori, and the cabinet minister in charge of the Tokyo Games, Tamayo Marukawa, attended the meeting. The Vice President of the International Olympic Committee, John Coates, participated through a video-conference system.

At the start of the talks, Governor Koike revealed her decision to build a new volleyball arena in Tokyo's Ariake waterfront district as initially planned for the 2020 Games.
The decision on the volleyball venue had been postponed at their meeting last month.

The organizing committee said the total cost of the games would be between 13.6 billion dollars and 15.3 billion dollars.

It proposed it would pay up to 4.2 billion dollars, and other organizations would shoulder the remaining 11 billion dollars.

Committee president Mori called Wednesday's meeting a new start. He said the Tokyo Metropolitan government and his committee share the same goal of reducing expenses.

Mori added that he hopes to begin discussions on role-sharing arrangements with Tokyo and other related municipalities as soon as possible.

Koike indicated that detailed talks will be needed on ways to divide the costs other than those shouldered by the organizing committee. She said methods to reduce expenses and increase the organizing committee's revenues also need further discussion.

Koike added that the decision on role-sharing is a domestic matter, and she hopes the Japanese government, the organizing committee, and the Tokyo government can start discussions early next year.

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Japan cancels failed $9bn Monju nuclear reactor www.bbc.com

 Japan is a scrapping an experimental reactor which has worked for just 250 days of its 22-year lifespan and cost $9bn (£7.2bn).
The Monju reactor, in western Japan's Fukui city, was designed to burn most of its own spent fuel, eliminating the need to deal with the nuclear waste.
But it suffered its first problems months after it went live, and has not worked properly since.
It would now need billions more for safety upgrades to be restarted.
"We have decided to decommission Monju because restarting it would require significant time and cost," chief cabinet secretary Yoshihide Suga said.
But officials are not giving up altogether, as it had been hoped the reactor would prove to be the solution for Japan's scant natural energy resources.
They are understood to be seeking another fast reactor to replace Monju, despite opponents saying Japan should give up the programme and shift to direct burial of spent fuel as waste.
According to the Japan Times, Monju will cost at least 375bn yen ($3.2bn; £2.6bn) to decommission and will only be fully dismantled by 2047.
Local officials oppose losing Monju, which rakes in subsidies and provides jobs.

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BRICS bank issues its first loan for solar project in Shanghai www.rt.com

A rooftop solar power project in China will become the first venture to get financial assistance from the BRICS New Development Bank (NDB). The lender has agreed an $81 million loan.

The financing comes from NDB’s first package of loans, worth a combined $811 million, which was approved by the bank's board in April to fund projects in China, Brazil, India and South Africa.

The project will equip the roofs of office buildings in Shanghai’s industrial parks with solar panels to generate up to 100 MW of electricity for the companies operating there.

"China which is already a world leader in the use of clean energy sources is now to embark on the path of promoting green technologies. In 2015, Beijing invested in renewable energy more than Europe and the United States together. This project is a demonstration of China's green technology commitment," said NDB’s President Kundapur Kamath on Wednesday after the signing ceremony.

Chinese Deputy Finance Minister Yaobin Shi said the project was a good example of "farsightedness and investment in clean technologies" and showed the bank’s commitment to promote infrastructure projects and sustainable development projects among BRICS countries.

The decision to approve the first loans, which are to be handed out in tranches, has been endorsed by the NDB on the sidelines of the International Monetary Fund and the World Bank spring meetings in Washington DC.

The NDB decided to provide $300 million to Brazil, $81 million to China, $250 million to India and $180 million to South Africa.

In Russia, the NDB has financed the construction of two small hydroelectric power stations at the cost of $185 million.

The bank estimates that renewable energy projects with a capacity of 2.37MW can help reduce harmful emissions by 4 million tons annually.

Headquartered in Shanghai, the BRICS bank was founded in 2014 by China, Russia, Brazil, India and South Africa and officially opened for business a year later. The goal of the bank, with an initial authorized capital of $100 billion, is to fund sustainable development infrastructure projects in emerging economies.

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Japan's TDK to buy U.S. chip maker InvenSense for $1.3 billion www.reuters.com

 
Japanese electronic parts maker TDK Corp (6762.T) said it had agreed to buy InvenSense Inc (INVN.N), a U.S. chip maker that produces motion sensors for Apple Inc (AAPL.O) and Samsung Electronics Co (005930.KS), for $1.33 billion.
 
In a statement on Wednesday, TDK said it will pay $13 per share to buy all of InvenSense, representing a 19.9 percent premium to the U.S. company's closing price on Tuesday.
 
Earlier this month, Reuters reported TDK was in talks to buy InvenSense.
 
The deal would allow TDK, already a major smartphone components supplier, to boost its sensor technology offerings. InvenSense designs gyroscopes which help smartphones calculate motion, enabling augmented reality games such as Pokemon Go.
 
BofA Merrill Lynch was the financial adviser for TDK, while Qatalyst Partners advised InvenSense.
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Coca Cola buys African bottling from AB InBev for $3.15 billion www.reuters.com

 
Anheuser-Busch InBev (ABI.BR) has agreed to sell its majority stake in Africa's largest Coke bottler to the Coca Cola Company (KO.N) for $3.15 billion, the final planned divestment following its purchase of rival brewer SABMiller.
 
The world's largest beer maker and Coca Cola said in a joint statement on Wednesday that they had agreed the transfer of AB InBev's 54.5 percent stake in Coca-Cola Beverages (CCBA).
 
CCBA has operations in South Africa, Namibia, Kenya, Uganda, Tanzania, Ethiopia, Mozambique, Ghana, Mayotte and Comoros.
 
The companies have also reached an agreement in principle for Coca Cola to acquire AB InBev's interest in bottling operations in Zambia, Zimbabwe, Botswana, Swaziland, Lesotho, El Salvador and Honduras for an undisclosed amount.
 
The transactions, subject to relevant regulatory and minority approvals, are expected to close by the end of 2017.
 
Coca Cola said it planned to hold all operations temporarily until they can be refranchised to other partners. Its existing bottling partners include Coca-Cola European Partners and Coca-Cola Hellenic (CCH.L).
 
AB InBev has now raised some $27 billion from divestments of SABMiller's European, U.S. and Chinese interests, recouping more than a quarter of the 79 billion pounds ($97.7 billion) it paid for the world's second largest brewer.
 
Coca-Cola Co said in October it would exercise its right to buy AB InBev's stake in Africa's CCBA after the brewer's takeover of SABMiller. AB InBev is a major bottler of Coke rival Pepsi in Latin America.
 
Coke, which formed CCBA along with SABMiller and the South African owners of bottler Coca-Cola Sabco in 2014, had retained the right to buy SABMiller's stake in the event of a change of control at the brewer.
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MPs poised to investigate VAT fraud on Amazon and eBay www.theguardian.com

 
An influential committee of MPs is poised to launch an investigation into Britain’s £1bn online shopping VAT fraud crisis after sellers on Amazon and eBay evaded hundreds of millions of pounds in tax in the run-up to Christmas.
 
Conservative MP Richard Bacon, who sits on the public accounts committee, said: “I think this is absolutely an issue we need to look at.
 
“We’ve already been discussing VAT fraud in online retailing informally and I expect that it is something the committee will want to turn to.”
 
The National Audit Office could also be asked to examine the subject, and how well it has been addressed by HM Revenue & Customs.
 
In recent years, overseas sellers, particularly from China, have come to dominate many popular goods categories on eBay and Amazon, illegally selling goods without VAT.
 
As a result, many small British businesses have been left unable to compete.
 
Parliament’s public accounts committee has previously played a central role in shining a spotlight on other tax scandals involving the likes of Starbucks, Google and Amazon.
 
Its work has helped trigger international tax reforms as well as generating important evidence for European commission inquiries into alleged sweetheart tax deals for multinational corporations.
 
Now the MPs are expected to turn their attention to the issue of overseas traders committing VAT fraud on an industrial scale through well-known online shopping sites – a scandal first highlighted by a Guardian investigation last year.
 
HMRC has since admitted VAT evasion in online shopping had become a “very big issue”, estimating it cost up to £1.5bn a year in lost tax. But officials have been frustrated by what is seen as the uncooperative approach taken by some big websites, including Amazon.
 
In January, Lin Homer, then head of HMRC, told a parliamentary committee: “We do feel, just as with beer and alcohol, that those people who manage the supply chain should ensure enough diligence is built into it. Marketplace providers [such as Amazon and eBay] have responsibilities.”
 
Two months later, the Treasury announced new powers for HMRC to make large marketplace websites liable – in some circumstances – for VAT revenues lost to fraudulent overseas sellers.
 
News of a likely parliamentary inquiry came as the Treasury minister Jane Ellison claimed HRMC’s new measures, which came into force in September, were already proving successful.
 
Latest figures show 7,185 overseas sellers have come forward to register for VAT since January, compared with just 695 in 2015 – a rush, she said, in anticipation of tough action from HMRC.
 
But Ellison’s claim that HMRC was now tackling online VAT fraud “in time for Christmas” was greeted with scepticism by Bacon and tax fairness campaigners.
 
“I think it’s a bit early to declare HMRC’s actions an unbridled success,” said Bacon, who added the public accounts committee would want to scrutinise such claims closely.
 
Last month, a second Guardian investigation showed widespread evidence of ongoing VAT fraud by sellers on Amazon and eBay – despite the HMRC’s new powers.
 
HMRC insists action is being taken. “We are already using new powers granted from September to directly tackle these overseas businesses,” it said.
 
Meanwhile, Amazon and eBay have repeatedly said they cooperate with HMRC where required, but that they are not responsible for policing the VAT compliance of independent sellers.
 
A spokesman for Ellison would not comment on whether HMRC had recovered back taxes and penalties from the influx of overseas traders now belatedly registering for VAT.
 
A spokesperson for campaign group VATfraud.org said: “It’s all well and good HMRC handed out 7,185 VAT numbers to internet retailers in the last year; it just proves this fraud is enormous.
 
“What HMRC failed to say is how much undeclared VAT they have recovered from these retailers. We want to know if HMRC is simply giving out VAT numbers without any due diligence or investigation into these retailers’ online trading history.”
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National Council on EITI reviews annual report for 2015-2016 www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The 15th meeting of the National council on Extractive Industries Transparency Initiative chaired by Prime Minister of Mongolia J.Erdenebat was held in Ulaanbaatar on December 20 to review the 2015-2016 annual reports and to consider a number of important issues.
 
The meeting discussed a new working plan for 2017, rules of on-line delivery of documents, policy of information access, a road map of making public owners of mining companies who are benefitting from the mineral resources.
 
Currently, EITI Standard is implemented in 51 countries around the world. Each of these countries has to publish an annual EITI Report to disclose information on: contracts and licenses, production, revenue collection, revenue allocation, and social and economic spending and goes through an EITI Validation process at least every three years. Validation serves to assess performance and promote dialogue and learning at the country level. It also safeguards the integrity of the EITI by holding all EITI implementing countries to the same global standard.
 
Mongolia joined the EITI in 2006. The last annual report was the 10 report for Mongolian EITI.
 
The Extractive Industries Transparency Initiative (EITI) is a global standard to promote the open and accountable management of extractive resources. It seeks to address the key governance issues in the oil, gas and mining sectors.
 
The EITI Standard requires information along the extractive industry value chain from the point of extraction, to how the revenue makes its way through the government, to how it benefits the public. This includes how licenses and contracts are allocated and registered, who are the beneficial owners of those operations, what are the fiscal and legal arrangements, how much is produced, how much is paid, where are those revenues allocated, and what is the contribution to the economy, including employment.
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Gold price drops again as ETF investors, hedge funds flee www.mining.com

 
Gold was coming under renewed pressure in late trading on Tuesday as negative sentiment swamps retail and institutional investors in the yellow metal.
 
Gold for delivery in February, the most active contract on the Comex market in New York, hit a low of $1,127.30 an ounce, levels not seen since the beginning of February this year. Gold has now trimmed its year to date gains to just under 7%.
 
In July hedge funds or so-called managed money investors in gold futures and options built up long positions – bets on a rising price – to 28.7 million ounces, the highest on record.
 
Investors in physically-backed exchange traded funds also poured money into gold right from the get-go this year and when large scale speculators began to cut back on bullish bets in earnest in September, ETF investors kept on buying.
 
But that all changed following the election of Donald Trump. Net longs held by hedge funds are now down 78% or more than 22 million ounces while gross shorts have risen three-fold since September. And this time ETF investors followed suit, pulling some 216 tonnes from vaults since November 8.
 
The sharp rise in real yields on US government bonds and the relentless dollar rally since November 8 has been a key driver behind the changed sentiment towards gold says Ole Hansen, head of commodity strategy at Saxo Bank, in a new research note and trading strategy:
 
Investors have continued to liquidate longs and at this stage the price needs to rally back above $1,150/oz in order to escape the current steep downtrend.
 
The market remains oversold on the 9-, 14- and 30-day horizons, but so far there has been no let up in the long liquidation with $1,100/oz. being the next big level should $1,124/oz give way.
Higher interest rates boosts the value of the dollar and makes gold less attractive as an investment because the metal is not yield-producing and investors have to rely on price appreciation for returns.
 
The dollar measured against a basket of the currencies of major US trading partners has surged since the US elections hitting fresh 14-year highs above 100 on Tuesday.
 
The greenback's all-time peak of 164.7 was reached in February 1985. That coincided with a bottom in the price of gold of $284.25 an ounce.
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Speaker M.Enkhbold meets Prince Abdul-Rahman www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ A visit of the Chairman of the State Great Khural of Mongolia, Mr M.Enkhbold to the gulf countries continued with a working visit to the Kingdom of Saudi Arabia. This is the first ever high level visit from Mongolia to Saudi Arabia.
 
He met with His Highness, the Prince Abdul-Rahman bin Abdulaziz Al Saud in Riyadh to discussed about the current state and future perspectives of bilateral cooperation.
 
Speaker M.Enkhbold said “Mongolia maintains active partnerships with the Middle Eastern countries. We should exploit all opportunities to draw investment and promote cooperation in the mining, construction and urban development sectors with Saudi Arabia, one of the most developed economies in its region. Collaboration in justice system is equally significant”, and informed that Mongolia is interested in receiving loan and financial assistances in these times of economic constraints in Mongolia.
 
His Highness said in response that Saudi Arabia aspires to build stronger ties with Mongolia. “Once the Kingdom’s foreign policy had been focusing on the relations with Europe. However, nowadays its foreign policy is aiming at developing mutually beneficial and equal relations with all countries of the worlds. Cooperation in trade and investment with Mongolia will be in our ambition. We are also aware of the economic situation of Mongolia. Therefore, the Speaker’s request will be considered carefully. It is our pleasure to help our friend Mongolia”, he said.
 
The Prince expressed interest in intensifying trade of meat and crops, and proposed to work together not only in the mining, the country has abundance of expertise in, but also in the agricultural sector. He pledged to send a research team to Mongolia to study the feasibilities of further bilateral trade and economic cooperation.
 
Prince Abdul-Rahman also noted the sides have to increase frequency of high-level visits.
 
Mongolia and the Kingdom of Saudi Arabia established diplomatic ties in 2007. The Prince and the Minister of Oil of Saudi Arabia have visited Mongolia for private purposes. In April of 2014, former Minister of Foreign Affairs of Mongolia L.Bold paid a visit to Saudi Arabia.
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BOJ keeps policy, upgrades economic view www3.nhk.or.jp

 
The Bank of Japan has kept its current policy of monetary easing unchanged, while revising its view of the country's economic prospects upward.
 
BOJ policymakers wrapped up their 2-day meeting on Tuesday.
 
They said they decided to maintain their massive easing program to achieve a 2-percent inflation target.
 
The central bank upgraded its assessment of Japan's economy for the first time in a year and 7 months. It said a moderate recovery trend will continue.
 
The policymakers will stick to a framework introduced in September to achieve the inflation goal. That approach is aimed at managing short- and long-term interest rates.
 
The interest rate on a portion of deposits that commercial banks hold at the central bank will remain at minus 0.1 percent.
 
They also maintained their target for the bank's annual purchase of Japanese government bonds at about 80 trillion yen, or roughly 680 billion dollars. That's so the yield on the benchmark 10-year government bonds will be at around zero percent.
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