1 MONGOLIA MARKS CENTENNIAL WITH A NEW COURSE FOR CHANGE WWW.EASTASIAFORUM.ORG PUBLISHED:2024/12/20      2 E-MART OPENS FIFTH STORE IN ULAANBAATAR, MONGOLIA, TARGETING K-FOOD CRAZE WWW.BIZ.CHOSUN.COM PUBLISHED:2024/12/20      3 JAPAN AND MONGOLIA FORGE HISTORIC DEFENSE PACT UNDER THIRD NEIGHBOR STRATEGY WWW.ARMYRECOGNITION.COM  PUBLISHED:2024/12/20      4 CENTRAL BANK LOWERS ECONOMIC GROWTH FORECAST TO 5.2% WWW.UBPOST.MN PUBLISHED:2024/12/20      5 L. OYUN-ERDENE: EVERY CITIZEN WILL RECEIVE 350,000 MNT IN DIVIDENDS WWW.GOGO.MN PUBLISHED:2024/12/20      6 THE BILL TO ELIMINATE THE QUOTA FOR FOREIGN WORKERS IN MONGOLIA HAS BEEN SUBMITTED WWW.GOGO.MN PUBLISHED:2024/12/20      7 THE SECOND NATIONAL ONCOLOGY CENTER TO BE CONSTRUCTED IN ULAANBAATAR WWW.MONTSAME.MN PUBLISHED:2024/12/20      8 GREEN BOND ISSUED FOR WASTE RECYCLING WWW.MONTSAME.MN PUBLISHED:2024/12/19      9 BAGANUUR 50 MW BATTERY STORAGE POWER STATION SUPPLIES ENERGY TO CENTRAL SYSTEM WWW.MONTSAME.MN PUBLISHED:2024/12/19      10 THE PENSION AMOUNT INCREASED BY SIX PERCENT WWW.GOGO.MN PUBLISHED:2024/12/19      КОКС ХИМИЙН ҮЙЛДВЭРИЙН БҮТЭЭН БАЙГУУЛАЛТЫГ ИРЭХ ОНЫ ХОЁРДУГААР УЛИРАЛД ЭХЛҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     "ЭРДЭНЭС ТАВАНТОЛГОЙ” ХК-ИЙН ХУВЬЦАА ЭЗЭМШИГЧ ИРГЭН БҮРД 135 МЯНГАН ТӨГРӨГ ӨНӨӨДӨР ОЛГОНО WWW.MONTSAME.MN НИЙТЭЛСЭН:2024/12/20     ХУРИМТЛАЛЫН САНГИЙН ОРЛОГО 2040 ОНД 38 ИХ НАЯДАД ХҮРЭХ ТӨСӨӨЛӨЛ ГАРСАН WWW.NEWS.MN НИЙТЭЛСЭН:2024/12/20     “ЭРДЭНЭС ОЮУ ТОЛГОЙ” ХХК-ИАС ХЭРЛЭН ТООНО ТӨСЛИЙГ ӨМНӨГОВЬ АЙМАГТ ТАНИЛЦУУЛЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     Л.ОЮУН-ЭРДЭНЭ: ХУРИМТЛАЛЫН САНГААС НЭГ ИРГЭНД 135 МЯНГАН ТӨГРӨГИЙН ХАДГАЛАМЖ ҮҮСЛЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/20     “ENTRÉE RESOURCES” 2 ЖИЛ ГАРУЙ ҮРГЭЛЖИЛСЭН АРБИТРЫН МАРГААНД ЯЛАЛТ БАЙГУУЛАВ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     “ORANO MINING”-ИЙН ГЭРЭЭ БОЛОН ГАШУУНСУХАЙТ-ГАНЦМОД БООМТЫН ТӨСЛИЙН АСУУДЛААР ЗАСГИЙН ГАЗАР ХУРАЛДАЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/20     АЖИЛЧДЫН САРЫН ГОЛЧ ЦАЛИН III УЛИРЛЫН БАЙДЛААР ₮2 САЯ ОРЧИМ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     PROGRESSIVE EQUITY RESEARCH: 2025 ОН “PETRO MATAD” КОМПАНИД ЭЭЛТЭЙ БАЙХААР БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2024/12/19     2026 ОНЫГ ДУУСТАЛ ГАДААД АЖИЛТНЫ ТОО, ХУВЬ ХЭМЖЭЭГ ХЯЗГААРЛАХГҮЙ БАЙХ ХУУЛИЙН ТӨСӨЛ ӨРГӨН МЭДҮҮЛЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2024/12/19    

Category

Events

Events

Name organizer Where
MBCC “Doing Business with Mongolia seminar and Christmas Receptiom” Dec 10. 2024 London UK MBCCI London UK Goodman LLC

NEWS

64x64

Australia sees lithium exports matching thermal coal by 2028 www.bloomberg.com

Australia sees its booming lithium sector matching thermal coal’s importance within five years as the world increasingly shifts from fossil fuels to clean energy.
Exports of the battery metal are seen at A$19 billion ($13 billion) in the year to June 2028, matching the record seen for the current financial year, according to government projections released Monday. Meanwhile, the value of power station coal shipments will drop 71% in the period.
Australia has benefited from the global shock to commodities markets following post-Covid supply bottlenecks and Russia’s invasion of Ukraine in February last year. Mineral exports are set to reach a record A$464 billion in the year through June 2023, despite a recent cooling of prices, before plunging to A$289 billion by 2027-28, nearer levels from a decade earlier.
The data show the growing role the metals vital to global electrification, such as lithium and copper, are set to play in Australia, one of the world’s biggest fossil fuel exporters. Mining and energy accounts for almost 14% of the economy in the nation, which is currently the biggest shipper of lithium and the second-biggest provider of thermal coal.
Australia Sees Lithium Exports Matching Thermal Coal by 2028
While lithium prices are unlikely to return the records set last year, partly a result of global carmakers competing over limited supply to meet ambitious electric vehicle targets, increased output should see the battery metal match thermal coal as the fifth-biggest export. Along with copper it is the only one of the 12 biggest energy and metal exports that will hold or increase its value, according to the report.
Earnings from shipping copper are set to rise to A$15 billion in 2027-28 from A$13 billion this year. Demand for the red metal, which is used in electrical wiring and is vital in most clean energy technologies, will as much as double over the next decade, according to S&P Global.
Australia has no existing industry that could fill the gaps left by the declining values of fossil fuels, which are expected to drop as the world moves to carbon-free energy, and of iron ore, which is set to see demand plateau over the next decade as China’s growth slows.
Green hydrogen is the only industry that could match fossil fuel export earnings, according to a government report released in January. But while many massive-scale projects have been proposed, none has begun construction and a wide market for the zero-carbon fuel doesn’t yet exist.
(By James Fernyhough)
...


64x64

China's loans to Africa worry World Bank President David Malpass www.bbc.com

The president of the World Bank has told the BBC that he is concerned about some of the loans China has been making to developing economies in Africa.
David Malpass says the terms and conditions need to be "more transparent".
It comes amid worries that countries including Ghana and Zambia are struggling to repay their debts to Beijing.
China says that any such lending is done within international rules.
Developing countries often borrow money from other nations or multilateral bodies to finance sectors that will grow their economies such as infrastructure, education and agriculture.
However steep increases in interest rates in the US and other major economies over the last year are making loan repayments more expensive because lots of that borrowing is done in foreign currencies such as US dollars or euros.
It is a particularly acute problem for developing economies who can struggle to find the extra money that is required as the relative value of their own currency falls.
It is a "double whammy and it means that [economic] growth is going to be slower", says Mr Malpass.
US-China rivalry
Tackling that challenge and its consequences was one of the main reasons for this week's visit by US Vice-President Kamala Harris to three African countries. It is a visit that comes with big commitments of financial support to Tanzania and Ghana.
There is a growing rivalry with China for influence in the continent, whose abundance of natural resources include the metals, such as nickel, crucial for the batteries needed for technology such as electric cars.
Speaking in Ghana's capital, Accra, she said "America will be guided not by what we can do for our African partners, but what we can do with our African partners".
While highlighting a new nickel processing facility in Tanzania Ms Harris said the project would be supplying the US and other markets by 2026 and that it would "help address the climate crisis, build resilient global supply chains, and create new industries and jobs".
That collaborative approach was praised by Mr Malpass who said the competition between the world's two biggest economies was "maybe healthy for developing countries" as it provided different options.
"What I encourage strongly is that they be transparent in their contracts. That's been one of the problems; if you write a contract and say 'but don't show it to anybody else', that's a minus. So get away from that."
There was also a warning that "for governments in Africa, they shouldn't be offering collateral as an inducement to make a loan, because it locks it up for generations. That's been happening with China."
Beijing has become one of the biggest sources for loans to developing economies in recent years. A new study led by the Kiel Institute for the World Economy shows that globally China lent $185bn (£150bn) in bailouts to 22 countries between 2016 and 2021.
China refutes suggestions that it is exploiting other countries with its financial support.
At a press conference this week Foreign Ministry Spokesperson Mao Ning said China "respects the will of relevant countries, has never forced any party to borrow money, has never forced any country to pay, will not attach any political conditions to loan agreements, and does not seek any political self-interest".
Mr Malpass said the problems were not unique to Chinese financing but things were improving.
"If you think of the history of Western lending, sometimes it's not for the full benefit of the people in the countries [being lent to]. Even World Bank loans haven't always been for the best that could have been done in a country."
"So what we're trying to do, and I think everyone should be trying to do, is improve the quality of the lending.
"One of the techniques is to unbundle the loan, meaning if there's an investment project, let's say you're building a train, describe the project and what the cost will be. And then separately, arrange the financing.
"If you bundle them together, it makes it very hard to know, am I getting a good deal on the train or on the financing."
Food and energy concerns
The outgoing World Bank president is also concerned that higher food, fertiliser and energy prices, as a result of the war in Ukraine, are sapping government budgets in poorer countries. While that could deepen the economic challenges they face there is relief that price rises are now starting to ease.
"The immediate crisis is over but one thing that's been left is that countries didn't use enough fertiliser, so their soil is depleted. So the yields are expected to be lower next year than normal."
"So a farmer that was just making ends meet, she didn't get fertiliser, and now her land is not as productive. And so where's the food going to come from for the family and for the community? That's the big immediate problem. What we're trying to do is help countries directly with fertiliser [and] with food."
The World Bank is concerned that these challenges will worsen a first-ever increase in the global extreme poverty rate - people getting by on less than $1.90 per day. As a result of the coronavirus pandemic it rose from 8.4% to 9.3%.
The planet's leading development body hopes that its upcoming showpiece joint Spring Meetings with the IMF in Washington will help it raise more money to tackle its key mission.
"The ambition is there," says Mr Malpass, "but the needs are much bigger than the amount of flows" of money coming in.
BY: By Jonathan Josephs
You can watch David Malpass' interview in full on Talking Business with Aaron Heslehurst on the BBC News Channel at 15:30 on Saturday, BBC iPlayer and on BBC World News on Saturday at 10:30 and 23:30 GMT and Sunday at 05:30 and 16:30 GMT.
...


64x64

ADB to Promote Green Regional Development www.montsame.mn

The Asian Development Bank has approved an investment program of USD 448 million to support green and inclusive development of Mongolia's aimags and soums. According to the ADB, this Investment Program for regionalized "Green Development" of aimags and soums will promote a transformative model for green territorial development and urban-rural linkages. In this way, the program aims to turn the centers of provinces and soums into anchors of climate-smart agricultural businesses that support sustainable, climate change-resistant and carbon-absorbing pasture management. It will be done through:
Ensuring the balance of territorial development of Mongolia,
Reducing migration towards Ulaanbaatar city,
Restoring natural resources that absorb carbon.
ADB Principal Portfolio Management Specialist Mr. Arnaud Heckmann said that an integrated solution to handle the multifaceted challenges facing the country would be piloted.
Grasslands cover 82 percent of Mongolia's land area, but they are on the verge of “extinction” due to overgrazing and unsustainable management practices. Due to climate change, the productivity of fragile pastures has deteriorated and herders face more risk of natural disaster.
Therefore, sustainable pasture management that is resistant to climate change and able to absorb a lot of carbon will be applied in order to support herdsman groups in the western aimags of Mongolia, train and empower them in sustainable management practices in animal husbandry and agriculture.
By supporting renewable energy and low-carbon solutions through urban services, it will create an opportunity to develop the centers of aimags and soums as centers for a green agricultural value chain and a place pleasant to live in.
The Project will establish a regional green and inclusive agribusiness fund to increase financial access to climate-resilient and low-carbon agribusiness value chains. The fund will create climate-based multilateral financial mechanisms and institutions to address the financial challenges faced by agribusiness SMEs.
The total cost of this Program, jointly financed by the Government of Mongolia, the private sector, European Investment Bank, the European Union and the Green Climate Fund, is USD 735 million. A USD 3 million grant is sourced from the Asian Development Fund (ADF). The project will be implemented in three stages (tranches) and is expected to be completed in 2033.
 
 
 
...


64x64

Snow, dust storms sweep parts of Mongolia www.xinhuanet.com

Snow and snowstorms are now hitting central parts of Mongolia, including capital Ulan Bator and Tuv province, the country's weather monitoring agency said Saturday.
Meanwhile, strong wind and dust storms are sweeping through eastern provinces and southern Gobi parts of the country, the agency said in a statement.
The unstable weather is expected to continue during this weekend, it said, urging the public, especially nomadic herders and drivers, to take extra precautions against possible disasters.
In addition, large parts of Mongolia are expected to see extreme cold weather in the coming days, it said, noting that overnight temperature is expected to drop to minus 30 degrees Celsius in western and northern provinces of the country.
Mongolia has a harsh continental climate as strong winds, snow and dust storms are common during the spring.
 
 
 
...


64x64

Rio Tinto, First Quantum partner to move La Granja copper project in Peru to development www.mining.com

Rio Tinto (NYSE, ASX: RIO) announced it has reached an agreement with First Quantum Minerals (TSE: FM) to form a joint venture to unlock the development of the La Granja copper project in Peru, one of the largest undeveloped copper deposits in the world.
La Granja is a complex orebody located at high altitude in Cajamara, northern Peru, that has the potential to be a large, long-life operation, with a published indicated and inferred mineral resource totalling 4.32 billion tonnes at 0.51% copper, Rio said.
First Quantum will acquire a 55% stake in the project for $105 million, and commit to further invest up to $546 million into the joint venture to sole fund capital and operational costs to take the project through a feasibility study and toward development. The transaction is expected to complete by the end of Q3 2023.
As majority owner, First Quantum will then operate the La Granja project with initial work focussed on completing the feasibility study.
Rio Tinto acquired the La Granja project from the government of Peru in 2006 and has since carried out an extensive drilling program that expanded the declared resource and understanding of the orebody, and established partnerships with host communities, local and national governments.
La Granja currently ranks as the fourth largest copper project in the world, and Peru is the world’s second biggest copper producer.
“La Granja is an exciting but complex project that has the potential to be a significant new source of the copper that is needed for the energy transition,” Rio Tinto Copper chief executive Bold Baatar said in the statement. “We are pleased to enter into this agreement with First Quantum, that will bring our combined development capabilities and deep knowledge of La Granja to progress the project.”
Baatar added that developing La Granja would also further strengthen Rio Tinto’s copper portfolio following the acquisition of Turquoise Hill Resources and beginning of underground mining at Oyu Tolgoi in Mongolia.
“Rio Tinto’s work on La Granja has been extensive to date and we share our partner’s view that the project has the potential to be a Tier 1 copper mine,” First Quantum CEO Tristan Pascall said. “We look forward to working together to build on this foundation, leveraging First Quantum’s core strengths in mine design, project development and community engagement to progress La Granja to the next stage.”
First Quantum has been in recent headlines over a dispute with the Panamanian government over royalties that resulted in halting operations at its giant Cobre Panama mine in February. After reaching an agreement that guarantees a minimum annual income of $375 million to the Central American government, the mine resumed operations in March.
...


64x64

Why 2023 is the year to visit Mongolia www.cnn.com

Due to its remoteness and short summer season, Mongolia has long been a destination overlooked by travelers.
But as the country moves to further open up to tourism by easing its entry conditions for international visitors and upgrading its infrastructure, 2023 might just be the best time yet to get there.
Here are 10 reasons travelers should start planning their long-dreamed-of Mongolia visit now.
A growing visa-free list
With the government of Mongolia declaring 2023 through 2025 the “Years to Visit Mongolia,” citizens from an additional 34 countries can now visit the country visa-free through the end of 2025.
The addition of several European countries, including Denmark, France, Greece, Italy, Norway, Spain, and the UK, as well as Australia and New Zealand, now brings the total number of countries and territories on the visa-exempt list to 61.
A new $650 million airport opens its doors
After years of delays, a pandemic and several controversies, the newly built Chinggis Khaan International Airport finally opened in the summer of 2021.
With the ability to handle approximately 3 million passengers a year (double that of the old airport), the addition of 500 new aircraft parking spaces and the infrastructure to support an increase in domestic as well as budget flights, the airport is a welcome addition to the country’s efforts to grow tourism.
Budget flights to Hong Kong from EZNIS Airways have been relaunched since the airport’s opening, and talks to resume direct flights to the United States are reportedly underway.
A modern new museum
The recently opened Chinggis Khaan Museum offers a beautiful, fresh look at Mongolia’s tumultuous history.
With more than 10,000 artifacts spanning over 2,000 years, the museum explores the history of the Mongols and the empire they created – and eventually lost.
The museum’s artifacts are presented over eight floors, with six permanent and two temporary exhibition halls. Guided tours are offered in English every Saturday and Sunday from 10 a.m. to 4 p.m. free of charge.
Mongolia’s answer to Coachella
When most people think of Mongolia, music festivals and conservation-focused art installations in the heart of one of the world’s largest deserts are the last things to come to mind.
But that’s all changing thanks to festivals like Playtime, Spirit of Gobi, INTRO Electronic Music Festival and the Kharkhorum 360 Visual Art & Music Experience.
Placing international bands, DJs, and musicians from around the world alongside Mongolia’s eclectic mix of rappers, bands and folk singers, the country just might be one of the world’s most underrated places for festival lovers.
Celebrate Naadam as it turns the century
The annual Naadam event has always been a great reason to visit Mongolia, but now that the festival has just celebrated its 100 year anniversary, 2023 is as good a time as ever to attend.
While the festival’s origins are rooted in the days of Genghis Khan, when he used horse racing, wrestling and archery competitions to keep his warriors in shape between battles, Naadam only officially became a national holiday 100 years ago.
Today, the festival – held in Ulaanbaatar at the National Sports Stadium, has a few more bells and whistles than it did during the days of the Great Khan.
A seat at July 11’s opening ceremony is always one of the hardest tickets to score in town.
Try your hand at archery the Mongolian way
Mounted archery is seeing a resurgence in Mongolia thanks to guys like Altankhuyag Nergui, one of the most accomplished archers in the sport and his archery academy, Namnaa.
Here, locals learn the fundamentals of Mongolian archery before mounting a horse and taking their new found skills to another level.
In the summer months, students and academy members put on weekly shows for interested spectators. The academy also offers day-long training sessions for those wanting to try this intense sport.
Learn about Mongolian calligraphy from a master
Speaking of giving life to Mongolia’s most ancient traditions, the resurrection of Mongol bichig, or the traditional Mongolian script written from top to bottom and read from left to right, has also seen a major resurgence in recent years.
Visit the Erdenesiin Khuree Mongolian Calligraphy Center in Karakorum to learn from master calligraphist Tamir Samandbadraa Purev about this important cultural heritage. And, while you’re there, browse the yurts filled with Tamir’s works.
Ditch the horse for horsepower
Pair the release of Husqvarna’s new Norden 901 Expedition motorbike with Nomadic Off-Road’s newly announced Eagle Hunter Tour, and you have one of the fastest adventures in Mongolia.
The tour takes six riders 1,700 kilometers from Ulaanbaatar to Bayan-Ulgii, where riders eventually meet their hosts, Mongolia’s famous eagle hunters.
The only thing faster than this adventure is the rate at which Nomadic Off-Road’s tours sell out.
Winter tours offer new insights
Professional musher Joel Rauzy has been leading dogsledding tours across the frozen Lake Khuvsgul for 18 years.
With fewer crowds, lower hotel rates and the chance to see one of the largest freshwater lakes in the world completely frozen over, winter in Mongolia is something else to see and experience.
Rauzy’s company, Wind of Mongolia, offers tours of the lake, where each person is assigned their own sled and dogs for the journey. Following Rauzy’s lead, mushers will make a loop of the lake. Activities include ice fishing, while travelers stay in winterized yurts and spend time with nomadic families along the journey.
Scandinavian design hits Mongolia at Yeruu Lodge
Nestled in the heart of Selenge province on the Yeruu River, Yeruu Lodge is the brainchild of Norwegian founder Eirik Gulsrud Johnsen, who first visited Mongolia in 2017.
With a minimal Scandinavian-style restaurant and dining area, a handful of fully kitted out yurts for guests to stay in, two pétanque courts, kayaks, a driving range, mountain bikes and a yoga area, the lodge is a destination for nature lovers.
Completely off-grid, the lodge runs off solar panels, uses of thermal heating, and all of the property’s water comes from an on-property well and is recycled after use.
Additionally, all glass, metal and plastic used at the lodge is also recycled, and food waste is turned into compost used to grow vegetables, berries and herbs onsite.
The lodge is set to open in April 2023.
...


64x64

The Mongol Khan to run at The London Coliseum this November for a Strictly Limited Season www.theatreweekly.com

The epic Mongolian production The Mongol Khan is to run at the London Coliseum this November for a strictly limited season.
Mongolia. 2000 years ago. A brutal succession battle threatens the very heart of the Empire. As the great Khan struggles to maintain his supremacy, a plot unfurls that will forever alter the balance of power.
The Mongol Khan is a lavish, large-scale production, with an ensemble of over 70 performers, that has played to packed houses in Mongolia for over a year. Based on historical events, the show explores the evolution of Mongolian culture through a gripping story, brought to life with a stunning original score, dance, puppetry, and elaborate sets and costumes inspired by traditional nomadic culture.
The Mongolian creators are now collaborating with an international team of world-renowned artists and practitioners on the show’s development, including prolific historian and travel writer John Man, an expert in Mongolian history and culture.
This spectacular production celebrates 60 years of Anglo-Mongolian relations and cultural exchange. Bordered by China and Russia, Mongolia is one of the world’s best kept secrets as a travel destination for adventure-fuelled people and lovers of luxury alike. Captivating, rugged expanses, stunningly beautiful landscapes, a vast unspoilt wilderness, extremely welcoming people and nomadic tribes with rich traditions, Mongolia has it all. The Mongol Khan serves as an introduction to the country and its history, giving audiences and would-be travellers a taste of the rich culture of this remarkable nation.
The Mongol Khan has all the ingredients of a classic tragedy: jealousy, mistaken identity, adultery, rivalry, sacrifice, succession and the struggle for power. With the stability of an empire at stake, the story culminates in an epic battle for the future of the Hunnic Empire. It’s a multi-sensory feast, the like of which audiences will have never experienced before.
Oyun-Erdene Luvsannamsrai, The Prime Minister of Mongolia said: ‘Welcome to Mongolia! 2023-2025 are ‘The Years to Visit Mongolia’. We are landlocked, but not mind-locked so come and see what we have to offer and enjoy a holiday of a lifetime.
‘To celebrate the 60th anniversary of diplomatic ties between Mongolia and the United Kingdom of Great Britain and Northern Ireland, the classic play The Mongol Khan will play at the London Coliseum. The very first time a Mongolian play has been presented to a European audience, The Mongol Khan offers audiences a unique insight into the mentality and philosophy of early eastern civilisations.’
The Mongol Khan was written in 1998 by renowned Mongolian writer and poet Lkhagvasuren Bavuu and was revived in April 2022 at the Mongolian State Academic Theatre of Drama. The production takes inspiration from historical events, archaeological findings, traditional nomadic dances, and the music of the ancient Hun culture of Central Asia from the period of the Hunnic Empire.
Performances run from the 17 November – 2 December and are on sale now.
...


64x64

Mongolia in the middle of the Russia–Ukraine war www.eastasiaforum.org

At the onset of Russia’s invasion of Ukraine, it was widely expected that the war would have a profoundly negative impact on the Mongolian economy. Mongolia is Russia’s direct southern neighbour and its economy significantly depends on the import of strategically important goods from Russia.
Mongolia imports around 28 per cent of its goods from Russia and is fully dependent on Russian petroleum products. The country’s vulnerability to this dependence has been exposed several times in the past. In 2008, Russian oil and petroleum company Rosneft proposed to build 100 gas stations in Mongolia. Though the Parliament of Mongolia did not approve the plan at first, Ulaanbaatar later recognised the significance of the Russian company as the country’s primary fuel supplier and subsequently signed contracts that were favourable to Rosneft.
The economic, geographical and historical ties between Mongolia and Russia have made it difficult for Mongolia to resolve its dependency on Moscow. As Mongolian political leaders and diplomats have a strong desire to preserve their relationships with Russia, Mongolia has chosen to remain politically neutral about the war in Ukraine by repeatedly refusing to support resolutions of the United Nations General Assembly that condemn Russian acts of aggression.
Unlike Mongolia, former Soviet Union countries such as Kyrgyzstan, Georgia and Armenia rely on Russia for trade, investment, tourism and remittance. International sanctions on Russia have led to a rise in Russian capital flows, foreign trade and tourism to these countries, deepening their dependence on Russia.
The war’s risk to the Mongolian economy is limited to its dependency on imported petroleum products. But heavy international sanctions on Russia have made it difficult for Mongolia to maintain its petroleum imports. To reduce the cost of importing petroleum products and to stabilise its supply, diesel fuel has been exempted from Mongolia’s excise tax until July 2023. After prolonged discussions with Russian suppliers, Mongolian authorities have secured a steady supply of major petroleum products until 2027.
The war is also affecting Mongolia’s economy through other channels, particularly through global inflation. Transportation costs have increased and the supply of major consumer products such as wheat and oil have been disrupted. The International Monetary Fund anticipates that rising global prices will continue to hurt the Mongolian economy.
Transportation costs have increased due to significant COVID-19-related expansionary fiscal and monetary policies as well as China’s zero-COVID policy, which has contributed to a soaring 16.1 per cent inflation in June 2022, the highest level since 2014. Of this, rising import prices — especially of food and petroleum products — accounted for 9.2 per cent.
Rising fuel and food prices have increased import costs, putting additional pressure on Mongolia’s balance of payments. The value of petroleum imports grew by 52 per cent in 2022, while the volume rose by only 3.9 per cent. This adversely impacted Mongolia’s foreign exchange reserves — between February and December 2022, foreign exchange reserves decreased by 7.7 per cent and the Mongolian togrog depreciated by 20.1 per cent. In response to rising inflation, the Bank of Mongolia tightened its monetary policy throughout 2022 and increased the policy rate to 13 per cent, while fiscal policy remains expansionary.
The war is affecting not only the national economy but also individual households. Surging inflation has put more pressure on low-income and welfare-dependent households. In July 2022, the lowest income group faced 18.2 per cent inflation while the highest income group faced only 12.9 per cent (UNDP, forthcoming).
The groups that have suffered the most from price increases are single parents with three or more children and households that have members with disabilities or who need special care. Inflation pressure on female-headed households is 1–2 per cent higher than on male-headed households (UNDP, forthcoming).
As inflation intensifies, pensions, welfare incomes and wages remain unchanged. Households are increasingly using their savings and taking out new loans, which leads to a further deterioration in household livelihood. This impact is especially pronounced for vulnerable groups. For herders and farmers, rising fuel prices have notably increased their cost of business and supply. As a result, rural households are also reducing purchases of essential products, selling more livestock and taking out loans.
The Russia–Ukraine war and the ongoing impact of COVID-19 are also causing significant hardship to small- and medium-sized enterprises that face supply disruptions, human resource shortages and declining demand.
As transportation through Russia is significantly delayed and import and transit from China has slowed, businesses in the manufacturing and trade sectors face significant complications. The rapidly rising prices of raw materials is hurting enterprise operations across the board. This is especially true for businesses in remote areas that greatly depend on transportation.
With the global economic fallout from Russia’s protracted invasion of Ukraine showing no sign of ceasing, Mongolian families, farmers and businesses will continue to feel the squeeze.
BY:
Oyuntugs Davaakhuu is a researcher at the Economic Research Institute, Mongolia.
Tuvshintugs Batdelger is Director at the Economic Research Institute, Mongolia and Associate Professor at the National University of Mongolia.
...


64x64

Export Increases by 8.2 Percent www.montsame.mn

According to the National Statistics Office of Mongolia, in the first two months of 2023, Mongolia traded with 118 countries from all over the world, and the total trade turnover reached USD 3.4 billion, of which USD 2.2 billion were exports and USD 1.2 billion were imports.
The total foreign trade turnover increased by USD 1.5 billion (55.2 percent), where imports increased by USD 160.5 million (15.5 percent) and exports increased by USD 1.1 billion (90.1 percent) compared to the same period of the previous year.
In February 2023, exports increased by USD 88.1 million (8.2 percent) and imports decreased by USD 177.8 million (25.8 percent) compared to the previous month.
The foreign trade balance was in surplus of USD 1 billion, an increase of 7.3 times compared to the same period of the previous year. In February 2023, the trade balance surplus increased by USD 265.9 million from previous month. Trade with China reached USD 2.5 billion in the first two months, which is standing for 71.4 percent of the total trade turnover.
Copper concentrates and bituminous coal accounted for 18.3 percent and 61.1 percent of total exports to China, respectively, gold accounted for 99.9 percent of total export to Switzerland.
Exports increased by USD 1.1 billion in the first two months of 2023, mainly due to the increase of exports of coal by USD 955 million, zinc ore and concentrate by USD 4.2 million, iron ore concentrate by USD 39.5 million and fluorspar ore and concentrate by USD 22.4 million.
During the same period, 35.5 percent of the total imports from China, 28.1 percent from Russia, 8.7 percent from Japan, 4.3 percent from South Korea, 3.4 percent from the USA, and 2.3 percent from Germany, collectively constitute 82.4 percent of the total import.
Exports of mineral products, natural or cultured stones, and precious metals accounted for 93.4 percent of the total export. However, 77 percent of the total imports were mineral products, machinery, equipment and electric appliances, base metals and articles thereof, transport vehicles and spare parts, and food products.
...


64x64

Chairman says Gazprom close to maximum gas supply to China www.asahi.com

BO’AO, China--Russia’s Gazprom is increasing gas supplies to China and expects soon to reach the maximum planned level through a Siberian pipeline, its chairman said Wednesday, highlighting Beijing’s importance as his country’s top export market in the face of Western sanctions over its invasion of Ukraine.
Gazprom is negotiating with China over a possible additional supply project across neighboring Mongolia, Viktor Zubkov said at a government-organized economic forum. He said the company is open to serving other Asian markets.
Chinese leader Xi Jinping’s government sees Moscow as a diplomatic partner in opposing U.S. domination of global affairs and has refused to criticize its invasion of Ukraine. Beijing has called for a cease-fire and negotiations but not a Russian withdrawal.
China’s imports from Russia, mostly oil and gas, surged 31.3% over a year ago in January and February to $18.6 billion. That helps President Vladimir Putin offset lost revenue after the United States, Europe and Japan blocked or limited imports.
“Russia is increasing its gas supply to China,” Zubkov said at the Boao Forum for Asia. “The gas supply through the Power of Siberia pipeline will soon reach the contracted annual volume of 38 billion cubic meters,” or 1.3 trillion cubic feet.
Gazprom is negotiating with state-owned China National Petroleum Corp. on a gas supply project through Mongolia that is designed to carry 50 billion cubic meters (1.8 trillion cubic feet), according to Zubkov.
“Russia is open to cooperation with other Asian countries in clean energy supplies,” Zubkov said.
Also at the forum, the deputy chairman of the Chinese Cabinet’s planning agency said Beijing will balance its plans to reduce carbon emissions with its need for energy security. China is the biggest emitter of climate-changing industrial gases.
The ruling Communist Party stepped up mining of coal and construction of coal-fired generating stations after power shortages in late 2021 caused blackouts and forced factories in some areas to shut down temporarily. Xi said in 2020 that carbon emissions would peak by 2030 but announced no target level.
“We will actively and prudently promote carbon peaking and carbon neutrality,” said Zhao Chenxin of the National Development and Reform Commission. “However, we must balance its relations with energy security and development.”
...


  • Terms of Reference
  • About
  • Contact Us

Managed by: B2BMongolia www.b2bmongolia.com

Events

News

Facebook