The National Statistics Office (NSO) gave a briefing on the social and economic statistics of Mongolia in 2022.

The money supply (M2) reached MNT 29.7 trillion at the end of December 2022, which increased by MNT 1.8 (6.4%) trillion compared to the same period of previous year. The main reasons for this increase were MNT 2.6 (2.1 times more) trillion increase in the current account in foreign currency and MNT 936.9 (23.6%) billion increase in time deposits in foreign currency.

At the end of December 2022, the money supply (M1) amounted to MNT 7.2 trillion, increased by MNT 1.3 (21.6%) trillion from the previous month and increased by MNT 691.9 (10.6%) billion from same period of the previous year. In money supply (M1), MNT 6.4 (88.5%) trillion was demand deposits and MNT 831.1 (11.5%) billion was the currency outside depository corporations.

At the end of December 2022, the quasi money amounted to MNT 22.5 trillion, increased by MNT 1.0 (4.8%) trillion from the previous month and increased by MNT 1.1 (5.1%) trillion from same period of the previous year. In the quasi money, MNT 12.6 (56.1%) trillion was time deposits in domestic currency, MNT 4.9 (21.9%) trillion was time deposits in foreign currency, and MNT 4.9 (22.0%) trillion was current accounts in foreign currency.

The national currency in circulation reached MNT 1.1 trillion at the end of December 2022, increased by MNT 96.1 (9.7%) billion from the previous month while decreasing by MNT 16.3 (1.5%) billion from same period of the previous year.

At the end of December 2022, the net foreign assets amounted to MNT 2.5 trillion, increased by MNT 1.8 (3.5 times more) trillion from the previous month which decreased by MNT 1.3 (34.6%) trillion from same period of the previous year. The net domestic assets amounted to MNT 27.2 trillion, which increased by MNT 504.3 (1.9%) billion from the previous month and increased by MNT 3.1 (12.9%) trillion from same period of the previous year. Net domestic assets have been composed of the annual growth of the money supply.

Source: National Statistics Office

When Vladimir Putin on December 22 announced his plan to expand the size of the Russian Army by around a third, Mongolia braced for the next wave of Russians fleeing conscription and the prospect of fighting in Ukraine.

Putin’s war has driven large numbers of Russians, particularly those of military age, to flee to the handful of countries where Russians do not need visas. Those countries include Mongolia. Once there, however, those who have sought sanctuary find that it is not only the predictable issues of language and culture that pose difficulties. For a start, they find that their Russian bank cards do not work. Then there’s the not so small matter of earning a living. Most of the Russians are unable to find jobs in Mongolia, a small, developing nation, with an average salary of around $400 per month.

Many of the arrivals, however, are simply intent on using Mongolia as a temporary stopover on their way to Vietnam or Thailand, where at least the weather is better. Currently, daily temperatures in Ulaanbaatar, the nation’s capital, are hovering around -23 Celsius.

Regardless of whether they remain in Mongolia or travel on to sunnier climes, the Russians’ futures are, of course, uncertain. They do not know when or if they will be able to return to their homes.

Some of the Russians in Ulaanbaatar are prepared to discuss the hurdles they have to overcome and the senselessness of the war that has forced them to give up all that they knew.

“I don’t know if we’ll have an opportunity to go back to Russia, because … my dad can just be taken away into the army,” said 15-year-old Valeria, from St Petersburg, one of tens of thousands of Russians who have fled to Mongolia since the beginning of the Ukraine war.

They have left everything behind, and are now living in Ulaanbaatar, facing an uncertain future. “To me, it feels like going back is still a big risk,” said Valeria.

Last September 21, Vladimir Putin issued his mobilisation order. Those whose names were called became legally obliged to serve in the Russian Army, ostensibly, to fight in Ukraine. The State Duma, the Russian Federation’s legislature, announced that it had amended the Criminal Code. Severe punishments were outlined for surrender, desertion, or refusing conscription. The penalty now stands at 15 years in prison.

Immediately after the mobilisation announcement, Russian citizens began to exit their country. Since the war began, an estimated 1.4mn have left, either because of the impact of economic sanctions, or to avoid being drafted into the war. Many of the Russians arriving in Mongolia are of Mongolic ethnicity, being Buryat, Kalmyk, or Tuvan.

There have also been smaller numbers of Yakut and Slavic people turning up in Mongolia. So far, 22,540 Russian citizens have entered the country. Most transited through, travelling on to one of the few other countries that offer visa-free entry to Russians, such as the Central Asian republics, Vietnam, Thailand and Israel. Around 98% of those who have remained in Mongolia are in the capital city.

Fled Russians in Mongolia use social media to communicate and establish new lives. A Telegram group called “Mongolia/Adaptation 03” has 7,638 members, “Apartments for Rent in Mongolia” has 1,457, while “Jobs in Mongolia” has 2,562. In addition to these new arrivals, many of the Russians who were already in Mongolia have been extending their visas, and seeking legal advice on immigration.

Ivan Sergeevich, a 47-year-old businessman from Irkutsk who has been in Mongolia for five years, said that lots of Russians have arrived since the beginning of the war. “The situation in Russia isn’t the most optimal. The economic situation is worsening. Russia’s automotive industry used to be one of the best in the world. But it has suffered great losses … almost no one is still in business. After the war started, people started to get called up to go to Ukraine.”

He said that the number of Russians arriving increased significantly during September and October, because of the mobilisation. “Nobody wants to kill someone on the battleground, nobody wants someone’s life on their hands. They don’t want to lose their family members or their own lives at war. That’s why they started leaving their country,” he added.

Mongolia’s position on the map between Russia and China has always been problematic, with the two larger countries exerting political and economic pressure. In general, the majority of Mongolian politicians are more pro-Russia than they are pro-China. It therefore surprised many when the Mongolian Immigration Agency announced that it would issue residency permits to the Russians, rather than sending them back home. Across the former Soviet satellites, including Mongolia and the Central Asian ‘stans’, there seems to have been a pivot towards China in the wake of the Ukraine invasion.

The first influx of Russians, who arrived soon after the war started, came to exchange rubles for US dollars, eventually causing a shortage of dollars in the country. The banks have since imposed very strict limits on the amount of dollars that can be purchased. But this only affects the cash people carried with them. Unfortunately, Russians trying to survive in Mongolia, have no access to their money back home.

Valeria told how Russian bank cards do not work. “They have all been blocked. You can’t withdraw or deposit money, you can’t do anything.”

Speaking from Vietnam, where he travelled to from Mongolia, 28-year-old Vladislav said: “Russian cards are blocked worldwide, with a few exceptions. In Vietnam, we’re still able to withdraw money from ATMs at the Vietnam Russian Bank.” For that reason, he relocated to Vietnam, where at least he has access to his money.

Valeria’s family also want to leave, but it is not easy for Russians. “Actually, I want to go to another country, but I think it’s too late to go somewhere else now, because everywhere is closed. You can’t go to Europe, and you can’t go to the US, of course. There are still countries where Russian people can go, but that remains in question.”

Until they find a way to move on, Valeria’s family are facing a tough time. “My parents lost their jobs. Here in Mongolia, they haven’t found work yet. Currently, we’re surviving off our savings,” she added. “My parents have been saving their whole lives. Then we came to Mongolia and honestly I feel like we’ll soon end up homeless.”

Ivan Sergeevich explained the huge problems obtaining employment faced by Russians coming to Mongolia, such as the language barrier. Mongolians in their fifties or older generally speak some Russian, but most young people speak only Mongolian and English. Said Ivan: “Most Russians can’t find a stable income, and working as a part-timer for a minimum-wage job isn’t easy. I try to help them find somewhere to at least work and earn a living.”

Vladislav used to work in the Irkutsk Regional State Universal Scientific Library of Molchanov-Sibirskiy, until he fled Russia to avoid military conscription. “I arrived in Mongolia with friends and I’ve also met many other Russians forced to leave the country for the same reason.” He said that the Ukraine invasion changed his life completely. “I was planning my life in Russia and didn’t plan to go anywhere at this time. I had to change all my plans.”

Vladislav said he believed that the trend of Russians coming to Mongolia would continue, if the war did not end: “Most people left the country in the first week after September 21, because of the mobilisation. Right now, the flow of Russians into Mongolia has tailed off, but still there are people who are going to leave Russia soon.”

Asked if he had any final words about the situation, Vladislav said, “The whole situation about the war is nonsense and it’s the most dark and shameful part in Russian contemporary history. Free Ukraine. Putin is a criminal.”

In a similar vein, Ivan Sergeevich reflected: “I think it’s about time the war ends. In the long run, no matter what, Russia will suffer a big loss. It’s a pointless war that should never have happened. I feel like Ukraine will keep its land. But Russia, no matter what, is on the losing side. It’s a war that should never have started and it’s a war that’s destroying both sides.”

Article compiled with research and translation assistance from Tengis, Temuulen Khaliunbat and B. Khuslen.

BY:

Antonio Graceffo, PhD, China-MBA, is an economist and China analyst. He has spent over 20 years living in Asia, including seven years in China, two and a half in Taiwan and three in Mongolia. He conducted post-doctoral studies in international trade at the School of Economics, Shanghai University, holds a PhD. from Shanghai University of Sport, and a China-MBA from Shanghai Jiaotong University. Antonio is the author of seven books about Asia, three of which are about the Chinese economy. For the past 10 years, he has been reporting on the Chinese economy, the US-China trade war, investment, geopolitics and defence. In recent years, he has written a diverse range of articles on Mongolian economics and society.

3 new COVID-19 cases were registered in Mongolia in past 24 hours.

3 of them were contacts in Ulaanbaatar. No imported cases were found. 10 patients were sent to hospitals in Ulaanbaatar and 5 provinces.

The death toll remained 2,136.

The opening ceremony of the Lexus brand, which is the luxury vehicle division of the Japanese automaker Toyota, in Mongolia was held successfully on January 19 at the Zaisan Hill Complex.

“Lexus is a choice of customers who prefer luxury with high quality and workmanship and hold value and heritage in high regard,” said Akio Toyoda, Founder of Lexus.

The Lexus brand is sold in more than 100 countries worldwide. Thus, the company expanded its scope and selected Mongolia as the next dealership country. From now on, Mongolian customers can buy cars and spare parts, and get maintenance services through Lexus official dealer.

During the opening ceremony, noting their commitment to making every customer's moment with the Lexus brand valuable and memorable, Executive Director of “Toyota Sales Mongolia” LLC Yasuo Ouchi expressed his excitement about the opportunity to make Lexus even closer to Mongolians.

Mitsuhiro Amo, East Asia & Oceania Div. (General Manager) of Toyota Motor Corporation, Hiroo Togashi, the general manager of Lexus Global Brand Management, Kikuma Shigeru, Deputy Ambassador Extraordinary and Plenipotentiary of Japan to Mongolia took part in the opening ceremony.

According to the report on the average market price of livestock in December 2022, the average price of the castrated camel was MNT 1.4 million, which increased by MNT 37.7 thousand, and the average price of cattle was MNT 1.4 million, which increased by MNT 21.9 thousand compared to the same period of the previous year.

The average price of gelding was MNT 1.1 million, which decreased by MNT 10.5 thousand, the average price of wether sheep was MNT 192.0 thousand, which decreased by MNT 15.9 thousand and the average price of wether goat was MNT 135.9 thousand, which decreased by MNT 14.7 thousand compared to the same period of the previous year.

The highest average cattle price was in Ulaanbaatar at MNT 1.8 million in December 2022, whereas the lowest was in Bayan-Ulgii aimag at MNT 810.0 thousand.

The average price of cattle hides (more than 2 meters) was at MNT 7.1 thousand in December 2022, remained same as previous month, while white cashmere was at MNT 85.6 thousand per kg, decreased by MNT 2.2 thousand from the previous month.

The highest average price of a bale of hay (20kg) was in Govi-Altai aimag at MNT 18.0 thousand in December 2022, whereas the lowest was in Dornod aimag at MNT 5.4 thousand.

Source: National Statistical Office

It is reported that US dollars equivalent to at least MNT 10 billion are outflowing from Mongolia through illegal casinos and gambling companies. This is one of many reasons which caused increase in the value of the US dollar as a foreign currency.

On December 26, 2022, the Minister of Justice and Internal Affairs, Kh.Nyambaatar, said that the government should take specific measures to improve the legal environment for foreign companies operating in casinos and online gambling.

Unlicensed foreign companies such as “1xBet”, “Linebet”, “Bet365” were operating illegally in Mongolia. The Communications Regulatory Commission of Mongolia blocked the access to the “1xbet.mn” website from the country and blacklisted it. Further steps are being taken to block mobile phone numbers and applications using to access those sites.