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

64x64

Mortgage budget may be cut to half in 2019 www.zgm.mn

According to the Bank of Mongolia (BoM), MNT 16 billion worth eight percent mortgage loans were granted to 239 people in September. Since the beginning of this year, a total of 2,724 people received mortgage loans, totalling MNT 203.3 billion, of which the bank sourced MNT 143.7 billion and the remaining were financed by the Government. The amount of mortgage loan issued in the reporting month decreased by around 30 percent from the previous month and by 32.2 percent from the same period of last year. The Government and the BoM, through previously issued mortgage loan repayments, are financing MNT 300 billion to the mortgage program this year. As for next year, the Government may allocate MNT 115 billion to the program according to the 2019 State Budget draft. That is less than half the allocation for this year when affordable housing program is seen as the most effective solution to air pollution. The draft of 2019 State Budget doubled the tax deduction to first-time accommodation buyers within the frames of air pollution reduction and housing policies.

...


64x64

Canada is not inviting the US or China to WTO reform meeting www.bbc.com

Canada has not invited the US or China to a high-level meeting on reforming the World Trade Organisation (WTO).

The country will host a "small group of like-minded" trade ministers in Ottawa in late October to discuss the global trade body.

Officials say countries like the US and China will be included at a later date in the reforms discussion process.

The European Union, Australia, Japan, Singapore, and South Korea are expected to attend.

Brazil, Chile, Kenya, Mexico, New Zealand, Norway, and Switzerland are also invited to the 24 and 25 October meeting.

"We recognize the challenges inside the WTO and believe in finding ways to do the work necessary to push for reforms," said Joseph Pickerill, a press officer for federal International Trade Diversification Minister Jim Carr, in a statement to the BBC.

"Canada is leading that effort."

US President Donald Trump has made no secret of his dislike of multilateral international trade deals, and has threatened to pull the United States out of the WTO "if they don't shape up".

The president has said he believes the global trade body too often rules against the US in disputes.

China, meanwhile, has been accused of not being completely transparent in opening up its economy the way it committed to under the WTO.

Both major powers have also been involved in a trade war that sees each imposing tit-for-tat tariffs on billions of dollars of goods ranging from suitcases to cutlery, wheat and wine.

Analysts warn the dispute will have an economic knock-on effect for the rest of the world.

The WTO is at the heart of the system of rules for international trade.

Bloomberg reported in September that Canada was seeking to forge an alliance of countries that support a rules-based multilateral trading system and that will defend it against rising protectionism.

Canada's plans focused on improving the effectiveness of the trade monitoring system, modernising trade rules, and strengthening dispute settlement mechanisms, the news agency said.

US and Canada relations have been tense in recent months as the two renegotiated the North American Free Trade Agreement, now renamed the US-Mexico-Canada Agreement (USMCA).

An agreement in principle on the USMCA was reached late on Sunday night after some 14 months of talks.

...


64x64

MP Ya.Sodbaatar appointed as Minister of Road and Transportation Development www.montsame.mn

Ulaanbaatar /MONTSAME/ MP Ya.Sodbaatar has been appointed as Minister of Road and Transportation Development. Today's plenary meeting of the parliamentary session discussed the appointment as the Government submitted its proposal. After the appointment he received the stamp of the Minister.

In relation to a murder incident at the the Ministry of Road and Transportation Development and a train accident in Dornogobi aimag in August, the Government made a decision to dismiss the top officials of the Ministry. Minister J.Bat-Erdene had also submitted his resignation request, admitting his responsibility for the incidents. And the Government's proposal on dismissal of Minister J.Bat-Erdene was discussed and approved by the Parliament yesterday.

Ya.Sodbaatar, physician-engineer, worked as Deputy Minister of Industry and Trade in 2006-2008, Deputy Chairman and Chairman of the State Professional Inspection Agency in 2009-2010, Secretary of Mongolian People's Party in 2010-2012 and member of parliament since 2012.

...


64x64

Lee Myung-bak, S Korea ex-president, jailed for 15 years www.bbc.com

Former South Korean president Lee Myung-bak has been jailed for 15 years for corruption.

Lee was sentenced in a Seoul court on Friday on charges of bribery, embezzlement and abuse of power, and ordered to pay a 13 billion won ($11.5m; £8.8m) fine.

The former president claims the charges are politically motivated.

He becomes the fourth South Korean former leader to be jailed, following his successor's imprisonment in April.

Park Geun-hye was sentenced to 33 years in jail after being found guilty of abuse of power and coercion.

The judge at Seoul Central District Court said "heavy punishment for the accused is inevitable" because of the serious nature of the crimes.

The court found the former leader accepted billions of won from major electronics firm Samsung in return for pardoning its chairman, Lee Kun-hee. The company denies having given the former president the money.

Links between political leaders and large family-owned conglomerates known as chaebols have often come under scrutiny, or been the focus of criminal allegations.

...


64x64

Modi and Putin to ink $5bn missile deal despite US threat www.asia.nikkei.com

NEW DELHI -- Indian Prime Minister Narendra Modi and Russian President Vladmir Putin are expected to sign a deal in New Delhi this week for Moscow to supply S-400 air defense missile systems at a cost of over $5 billion, despite the threat of U.S. sanctions.

The two countries have been negotiating the deal since 2015. The purchase of five S-400 Triumf missile systems and associated equipment is expected to boost India's defense capability along its borders with nuclear-armed Pakistan and China. The S-400 is Russia's most-advanced long-range surface-to-air missile system and is planned for induction in the Indian Air Force by 2022.

"The theme of military-technical cooperation will be on the agenda," said Russian spokesperson for the president Dmitry Peskov on Monday, according to Russian news agency TASS. "A package of agreements is to be signed."

A day after Peskov's remark, Putin's top foreign policy aide Yuri Ushakov was quoted by media as saying in Moscow that the Russian president will oversee the signing of the S-400 deal during his visit.

The S-400 Triumf, which NATO calls SA-21 Growler, is a mobile multichannel air defense missile system. It entered service of the Russian army in 2007 and is capable of engaging all types of aerial targets including aircraft, unmanned aerial vehicles, and ballistic and cruise missiles within a range of 400 km, at an altitude of up to 30 km.

China also bought this advanced missile system from Russia this year following a purchase of Su-35 combat aircraft in late 2017. Those purchases prompted the U.S. to impose sanctions on Beijing last month for violating the so-called "Countering America's Adversaries Through Sanctions Act" which decrees economic bans on those importing Russian military hardware.

S-400 missile air defense systems are seen during the parade at Red Square in Moscow on May 9. © Reuters
The administration of U.S. President Donald Trump has warned countries planning to buy S-400 and other Russian defense equipment of similar action.

"We hope that at least this step [sanctions on China] will send a signal of our seriousness and perhaps encourage others to think twice about their own engagement with the Russian defense and intelligence sectors," the U.S. State Department said on Sept. 20.

New Delhi -- which has a 70-year history of procuring military hardware from Russia from where it gets 60% of its defense equipment -- is hoping to get a waiver from the U.S. for the S-400 deal. After Russia, the U.S. is India's largest arms supplier.

In early September, U.S. and Indian defense and foreign ministers met in New Delhi for their "2+2" talks. U.S. Secretary of State Mike Pompeo said then: "We do understand the history, right, of India's relationship with Russia and legacy systems."

"Our effort here, too, is not to penalize great strategic partners like India, a major defense partner. The sanctions aren't intended to adversely impact countries like India. They are intended to ... have an impact on the sanctioned country, which is Russia," he said.

The Indian Air Force sees the S-400 Triumf as "an absolute necessity and part of its offensive-defense strategy of maintaining a credible deterrence along two fronts with China and Pakistan," according to a report in India Today.

Its Tombstone radar can sense up to 300 targets nearly 600 km away which means that the system "can peer deep inside Pakistani territory and pick up aircraft as soon as they are airborne," the report said. "Deployed along the eastern border with China, the missile system can easily monitor fighter jets taking off from airfields along the Tibetan plateau."

In the summer of 2017, India and China faced a 73-day military standoff on the Doklam plateau bordering Bhutan -- the longest such confrontation between the two countries in decades. The two sides agreed to improve communication earlier this year, but tensions have not dissipated.

As for Pakistan, relations have frayed in the last two years as direct talks stalled and the military exchanged fire in the disputed region of Kashmir.

...


64x64

Mining sector expected to generate 3 trillion MNT in state revenue in 2019 www.gogo.mn

Cabinet forecasted state revenue for 2019 to be 9.7 trillion MNT, while revenue was projected to be 7.2 trillion MNT in 2018. As for 2019 state expenditures, they've been estimated at 11.6 trillion MNT, while these were set at a maximum of 9.7 trillion MNT in 2018.

The mining sector is expected to generate 3 trillion MNT ( or 27.1 percent) of the state's revenue in the upcoming year, a YOY increase of 1.3 trillion MNT. State authorities have projected the price for coal to be 75.9 USD per ton and copper at 6,222.2 USD per ton

...


64x64

Gold reaffirmed as solution to economic challenges www.zgm.mn

Bloomberg TV Mongolia, in cooperation with the Bank of Mongolia (BoM) and Ministry of Mining and Heavy Industry, held the Gold Forum yesterday to address the current situation of gold sector and facing challenges of gold producers. Sectoral experts expressed that support on gold industry will help stabilize the weakening MNT rate and economy. Minister of Mining and Heavy Industry Sumiyabazar Dolgorsuren announced that the ministry has an objective to increase the annual revenue of gold sector to USD 1 billion. Within the frame, the ministry will implement a policy to shift from placer mining to lode deposits in the next five years as placer deposits are close to exhaustion. The minister also expressed his position to maintain the gold sector revenue during the shift period. According to the BoM, Mongolia generated over USD 730 million from gold purchases to foreign exchange reserves in 2017. The bank aims to grow gold purchase to 22 tons this year.

The Gold-2 national program has set a goal to increase gold production by 2-3 tons per year and 25 tons by 2020. Bayartsaikhan Nadmid, the Governor of the BoM, informed, “The rising external uncertainty is posing a risk for Mongolia as the country is heavily dependent on global market. We need to strengthen our immunity. It is important to constantly grow foreign exchange reserves in doing so. FX reserve can help protect us from debt repayments, reduce its impact and maintain the national currency rate. It is also important for financial independence. For instance, countries with high reserves of foreign exchange suffered less during the global crisis in 2008-2009.” After highlighting the sluggish explorations, depleting placer deposits and illegal artisanal miners as pressing issues in gold industry, the Mining Minister announced to commence exploration for major deposits soon. He then pointed out that there was a policy error in the rehabilitation of placer gold deposits and announced to take immediate actions. Minister of Environment and Tourism Tserenbat Namsrai remarked, “We demanded mining companies to fulfill their duties obliged by the law before the beginning of this year’s business cycle. We have drafted the bill on mining rehabilitation and its concepts, as well as the Rules of Procedure.”

...


64x64

Billions of British investment pounds predicted to enter Kazakhstan market www.mining.com

Kazakhstan is an “overlooked powerhouse” and one of the world’s next big investment destinations was the message delivered to over 200 business leaders who attended the Kazakhstan Global Investment Forum in London yesterday.

Several billion pounds of inward investment is expected to enter Kazakhstan over the next five years, as global organizations seek to benefit from a streamlining of government services, additional opportunities linked to the New Silk Road and increased investment support.

Kazakh Invest, the national organization for attracting global FDI, lead the charge for greater inward investment by highlighting the levels of support that Kazakh Invest offers potential investors across many sectors.

Kazakh Invest Chairman Saparbek Tuyakbayev told investors how Kazakh Invest acts as a “one-stop-shop” for investment support and said that it was actively working with dozens of global organizations already looking to invest in Kazakhstan.

Tuyakbayev told forum participants that Kazakh Invest had identified and prepared 70 specialist projects across agriculture, chemicals, mining and metallurgy, Kazakh Invest has identified and prepared 70 specialist projects across agriculture, chemicals, mining and metallurgy engineering, retail, tourism, and energy, offering opportunities for international investors.

Askar Zhumagaliyev, Deputy Prime Minister of Kazakhstan, said the country is “emerging as a regional hub for business, investment and transit.”

The UK Government’s Trade Envoy Baroness Emma Nicholson spoke of a growing number of areas for meaningful cooperation between British investors and Kazakh companies. She suggested that Kazakh businesses could learn much from UK companies about increasing their organizations’ ‘added value’ by moving towards a more knowledge-based economy.

Potential investors also heard from leaders of British businesses already operating in Kazakhstan. Nick Clarke, Chairman of extractive’s firm CAML praised the business-friendly environment and the highly-skilled, multilingual workforce.

The forum was the first of several senior level roadshows being co-hosted by Kazakh Invest internationally. The next event is scheduled in New York tomorrow.

...


64x64

Foreign stock exchange to be chosen to trade shares www.montsame.mn

Ulaanbaatar/MONTSAME/ The Cabinet held its regular meeting on October 3. At the meeting, D.Sumiyabazar, Minister of Mining and Heavy Industry and head of the working group responsible for ensuring preparations, was assigned to scrutinize and report on trading shares of a legal owner of the license of Tavan Tolgoi coal deposit through New York and Hong Kong Stock Exchanges. When choosing the stock exchange, general criteria will include investors’ knowledge on developing countries, in particular Mongolia’s market, experiences of issuing shares by state-owned and mining companies and market evaluation. Additionally, specific indices will be considered, such as the shortest period of making IPO to gain money and simplicity of post-trade regulation. New York Stock Exchange (NYSE) and the Stock Exchange of Hong Kong (SEHK) are often listed in the first five with their market capitalization.

...


64x64

Rosneft donates EUR 8 million to Mongolia www.news.mn

Chief of Staff to the President of Mongolia Z.Enkhbold has met with a high-level delegation from Russia’s Rosneft Public JSC, including First Vice-President Pavel Fedorov, Vice-President Otabek Karimov, Vice- President Yuri Kalinin, and Chief Geologist Andrey Lazeev. The meeting took place on 2 October.

At the meeting, the Rosneft authorities touched upon the increasing oil demand in Mongolia and held an extensive discussion on means to meet this demand and the exploitation, refinery and export of oil in Mongolia.

Furthermore, Rosneft Company has donated EUR 8 million for the purpose of redeveloping the Khalkhgol Soum Centre in Dornod Province, as a part of Mongolian-Russian joint celebration of the 80th anniversary of the victory at the battle of Khalkhin Gol. Chief of Staff Z.Enkhbold expressed his gratitude for the donation and wished the company a bright future.

...