Tomsk regions boost oats exports to Mongolia www.rusexporter.com

Tomsk, Siberia, producers of oats boosted their exports to Mongolia 20 times in January and February 2018 from the first two months of 2017, the Russian Agriculture Supervision Directorate for Tomsk Region said.

Mongolia can make MNT 2.2-4.3 trillion by implementing 'Cashmere' program www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia will implement 'Cashmere' program for 4 years with two stages.

Biocombinat expansion project expected to commence this June www.montsame.mn

Ulaanbaatar /MONTSAME/ Mongolia and Hungary have agreed to make active efforts to launch the Biocombinat expansion project in June this year.

Nariin Sukhait railway- on track for 2018 completion www.news.mn

The Mongolian government is planning to conclude some major infrastructure construction projects during 2018. Among them are the 45.3 km railway from the Nariin Sukhait mine to the Shivee Khuren border crossing and airport extension projects in Khovd, Dornod and South Gobi (Umnugobi). The current status of work has been discussed by parliament.

Russia and China to work on joint uranium mining project www.mining.com

Rosatom announced on Monday that the Russia-China Investment Fund for Regional Development will kickstart the financing for a uranium mining project in Russia’s Zabaikalsky Territory.

Mongolia Strengthens Cooperation With Russia in Fields From Nuclear Research to Transit Rail www.jamestown.org

When Khaltmaa Battulga assumed the presidency of Mongolia in July 2017, most foreign and domestic observers believed he would pursue a much more pro-Russian policy than his globalist-minded predecessor, Tsakhia Elbegdorj. Battulga’s anti-Chinese rhetoric buttressed this prediction during the political campaign, followed by his first trips abroad to meet Putin at the Hungarian 2017 World Judo Championships (Kremlin.ru, August 28, 2017) and in Vladivostok, Russia, later in September. Among his “Mongolia First” principles was the promise of stronger ties with Moscow to alleviate Mongolia’s overwhelming economic dependency on China (UB Post, September 12, 2017). In the last few months, further concrete steps toward a closer Russo-Mongolian relationship have become evident.

During the 21st Meeting of the Mongolia-Russia Intergovernmental Commission on Trade, Economic, Scientific and Technical Cooperation, held in Moscow, on February 26–28, Mongolia and Russia agreed to expand cooperation in trade, economy, education, health, social protection and sports. One of the major agreements that emerged was a Memorandum of Understanding to establish a Nuclear Science and Technology Center (CNST) in Mongolia. Mongolia’s Nuclear Energy Commission Secretary Gun-Aajav Manlaijav and Rosatom’s (Russia’s State Atomic Energy Corporation) Deputy Director General for International Relations Nikolay Spassky signed the document (Xinhua Net, March 1). The center’s primary focus will be civil nuclear energy use, with Russian specialists assisting their Mongolian partners to establish the CNST facilities, as the two sides design a preliminary roadmap for the CNST project via specialized expert groups (Rosatom, February 28). Mongolian physicists for the past 50 years have been trained at Russia’s Joint Institute for Nuclear Research (JINR). The Nuclear Energy Agency of Mongolia, along with the Center of Nuclear Research at the Mongolian State University and the Institute of Physics and Technology at the Academy of Sciences are traditional JINR partners in Mongolia (Jinr.ru, March 7).

During the same timeframe, an interbank lending agreement between the Development Bank of Mongolia (DBM) and the International Investment Bank (IIB), headquartered in Moscow, was also concluded. The deal raised the IIB’s lending limit for the DBM to 50 million euros ($62 million) for a period of up to seven years to implement socially and economically significant projects in Mongolia. Since 2012, the total volume of IIB investments in the Mongolian economy has amounted to over $650 million. Starting from November 2016, the DBM has executed 24 trade finance deals to supply 8.6 million euros’ ($10.6 million) worth of products from the Czech Republic, Japan, Oman, Switzerland, Russia, Belgium, Spain and Germany to Mongolia. The IIB’s loan portfolio in Mongolia includes syndicated loans with the International Finance Corporation and the Dutch Development Institution FMO (Iib.int, February 28).

On the eve of the intergovernmental commission meeting, Russia and Mongolia agreed to a plan to create three trans-boundary protected areas in the Trans-Baikal region, Buryatia and the Altai Republic. This plan is a positive step toward deescalating a variety of trans-water disputes in the Baikal region, which led to Russia labeling Mongolia an “eco-threat” (Siberiantimes.com, May 13, 2016). According to Sergey Donskoy, the Russian minister of natural resources and ecology, the first cross-border reserve of Istoki Amura would connect more than 318,000 hectares of the Zabaykalsky Krai’s security zone, the Sokhondinskii reserve, with the Mongolian National Onon-Balwinski Park. The second cross-border territory would be in Buryatia, located within the Russian Tunkinsky National Park and the Mongolian Khubsugul Park. The third border area would stretch from the Saylyugemskiy Park in the Altai Republic to the Selham reserve in Mongolia. The establishment of joint protected areas will enable the two countries to conduct long-term ecological monitoring of certain species of migrating animals across the borders and to protect flora and fauna (RIA Novosti, February 28).

Just a week earlier, Russian Prime Minister Dmitry Medvedev authorized his minister of transport to sign a railway transit transportation agreement with Mongolia to promote flexible tariff policy over the next 25 years with the purpose of enhancing cooperation on freight transportation trade. The objectives of this new agreement include easing border checkpoint procedures on transit freight, increasing freight volumes, stimulating infrastructure development of railway transport and assisting Mongolian exporters to overcome maritime transport obstacles (Ubinfo, February 28). One of the clauses covers modernization the infrastructure of the Ulaanbaatar Railway (UBR), a Russian-Mongolian governmental 50/50 joint venture, which is Mongolia’s sole north-south railroad connecting Siberian Russia to North China. Freight turnover in 2017 for the UBR was 23 million tons, a 16 percent increase from 2016 (UB Post, February 5). The Russians reported that the draft agreement on renovating the UBR was prepared by the Mongolian side and presented to them at the end of 2017. Early in February, Oleg Belozyorov, the president of Russian Railways (RZD), met in Ulaanbaatar with President Battulga and his cabinet to discuss the draft document on reforming the UBR as part of Mongolia’s goal to become a cost-effective economic transit corridor, especially for its two border neighbors, Russia and China. During the meeting with Belozyorov, Battulga said that railways development was of great significance for Mongolia’s economic growth and proposed to advance the talks on renovating the Ulaanbaatar Railway JSC (Montsame.mn, February 5).

The railroad transportation agreement was the culmination of September 2017 discussions between Battulga and Putin at the third annual Eastern Economic Forum in Vladivostok. Although the economic corridor was the policy of President Elbegdorj (see EDM, January 24, 2014), Battulga enthusiastically embraced it and promised to export coal from Mongolia’s largest coal deposit of Tavan Tolgoi to third markets over Russian Railways. In Vladivostok, the Mongolian president also put forward a proposal to establish a free trade agreement with countries of the Eurasian Economic Union to maximize trade turnover with Russia and abolish tariffs and non-tariff obstacles (Mongol Messenger, September 8, 2017). In May 2017, the UBR restarted its transport of Russian oil from Rosneft and Transoil from Russia to Chinese customers. The two oil companies had suspended the transportation since 2005. The revival is connected to China’s One Belt One Road initiative, which promises to include Mongolia in its economic network linking Asia and Europe, as well as developing Mongolian transit infrastructure to Russian Siberia with Chinese loans (Ubinfo, February 28).

China to become co-owner of Russia's biggest oil company www.rt.com

Chinese state-controlled Huarong Asset Management has bought a 36.2 percent stake in the unit of CEFC China Energy through which CEFC is acquiring a $9.1 billion stake in Russian oil giant Rosneft.

Ministry of Agriculture's Cashmere Program launches www.gogo.mn

For the launch of the Cashmere Program, Minister of Agriculture, Food and Light Industry (MoFALI) B. Batzorig visited several cashmere factories in Ulaanbaatar.

PDAC attendance best since 2013 www.mining.com

The Prospectors & Developers Association of Canada said 2018's convention attendance hit 25,606, the best turn out since 2013.

Door opens to lifetime rule as China scraps presidential term limit www.asia.nikkei.com

BEIJING -- China on Sunday abolished term limits on the presidency, opening a path for President Xi Jinping to rule the country as he pleases for decades to come, absent some unforeseen blow to his substantial political support.

The National People's Congress voted to remove a clause in the constitution limiting the president and vice president to two consecutive five-year terms. A total of 2,958 delegates voted for scrapping the clause. Only two delegates voted no, three abstained and one ballot was spoiled. The amendment vote required a two-thirds majority to pass.

The last major change to China's constitution -- which dates to 1982 -- enshrined the political ideology of former President Jiang Zemin. It drew 10 opposing votes and 17 abstentions.

The vote on Sunday was carried out by secret ballot, Shen Chunyao, a legislative spokesman, told reporters. The Communist Party, however, controls the legislature and the leadership's proposals are never rejected.

Vice President Li Yuanchao is not expected to stay on in his role. On Sunday, attention was focused on Wang Qishan, a Xi confidant who, according to some media reports, will be named vice president next week as part of the new leadership lineup for Xi's second term.

During Wang's five years as head of the party's anti-graft body, 254,419 officials were investigated for possible wrongdoing, according to government data. Probes involving officials of at least vice ministerial rank grew fourfold over the period, highlighting Xi's public commitment to weed out malpractice at all levels.

Xi's other posts, including secretary-general of the Communist Party and head of China's armed forces, carry no explicit term limits. The president's political ideology has also been written into the constitution with his name attached, making him China's third leader after Mao Zedong and Deng Xiaoping to receive that honor. Given Xi's knack for consolidating and maintaining power, the leader has an excellent chance of holding on to control of the party, state and military beyond 2023, when his second presidential term would otherwise expire.

Chinese state media have played down the abolition of term limits. Amending the constitution "is a major decision made by the CPC Central Committee from the overall and strategic height of upholding and developing socialism with Chinese characteristics in the new era," Xinhua quoted Xi as saying Wednesday. In a news conference after the amendment was approved, a government spokesperson said that concerns about a power struggle like that seen during China's Cultural Revolution were "invalid," in response to questioning by a foreign reporter.

But the official line aside, the removal of term limits is highly significant, dismantling one of the most effective checks on power in a country where citizens do not have the right to vote. Deng, a reformer, introduced the limits to curb abuses of power like those seen under Mao, who led the party as chairman until his death at 76.

Given the ease with which Xi has removed this check, some say absolute rule as party leader, a la Mao, may not be far off in China. If the next Communist Party congress in 2022 effectively abolishes the customary retirement age of 68 for senior officials, Xi could rule the party and state into the mid-2030s, when he would be well into his 80s.