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

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O. Batsaikhan: More than 30,000 people were executed, but the number of the repressed probably exceeded 100,000 www.montsame.mn

There are reports that 35 thousand people were executed in Mongolia during the years of political repression, but the number of the repressed probably exceeded 100,000, said Prof. Sc.D O. Batsaikhan.
It was noted during his speech that the victims of political repression were mainly state and social dignitaries and Buddhist monks.
In 1929, Mongolia had a population of 721 thousand. 17,000 of the 25,000 Mongolians who were condemned for false political crimes and executed between 1937 and 1940 were Buddhist monks.
In August 1922, D. Bodoo, the first prime minister of the revolutionary period, and 14 others were executed without trial after confessing under torture by Soviet agents to conspiring to overthrow the government. Two years later, S. Danzan, one of the founding members of the Mongolian People’s Revolutionary Party (MPRP) was executed during the Third Party Congress for representing "bourgeois interests".
In 1928, several prominent MPRP members including A. Danzan, J. Tseveen, Ts. Dambadorj, and N. Jadambaa, were imprisoned or exiled in a widescale purge of suspected rightwingers as the country launched its "Leftist Period" of more rapid collectivization, land expropriation, and persecution of the Buddhist Church. After those drastic measures resulted in popular uprisings throughout the country in 1932, several of the MPRP's most hard-line leftists including Z. Shijee, U.Badrakh, and Prime Minister Ts. Jigjidjav were blamed, officially expelled from the party, and later executed during the Great Repression.
In 1933–34, in what is viewed as a dress rehearsal for the repressions of 1937–1939, MPRP General Secretary J. Lkhumbe and other MPRP elements, particularly Buryat-Mongols, were falsely accused of conspiring with Japanese spies. Over 1,500 people were implicated and 56 were executed.
Statistical documents prepared by the State Commission on Rehabilitation reveal some heart-breaking numbers. Within the two years between 1937 and 1939, the institute called the Extraordinary Commission falsely charged 25 thousand and 824 people for political crimes, and the court sentenced 20 thousand of them to execution by shooting.
In addition to countless lives that were lost during the repression, some of Mongolia’s cultural and religious heritages were also lost along with 1,000 churches, added O. Batsaikhan.
“False confessions obtained through torture have not entirely stopped in our nation. Additionally, it is necessary to make regulations for the National Commission for Human Rights to simultaneously review information related to torture and false confessions, to legalize the methodology for calculating emotional damage, and to enhance the knowledge and attitude of the judicial and investigative authorities toward human rights”, said B. Enkhbold, a member of the National Commission for Human Rights.
The National Commission for Human Rights presented the State Great Khural with 413 proposals along with 21 reports on the status of human rights and freedoms in Mongolia. The prohibition against torture was cited in 13 of these reports.
To establish cooperation with governmental organizations that carry out comparable functions in other nations, the State Commission on Rehabilitation invited representatives of the Truth and Reconciliation Commission of the Republic of Korea led by Lee Jae-sun and organized a discussion themed “Human Rights and Repression” to exchange experience in eliminating the harmful effects and consequences of political repression.
Established in 2005, the Truth and Reconciliation Commission of South Korea is responsible for investigating incidents in Korean history that occurred from Japan's rule of Korea in 1910 through the end of authoritarian rule in South Korea.
The body has investigated numerous atrocities committed by various government agencies during Japan's occupation of Korea, the Korean War, and the authoritarian governments that ruled afterwards. The commission estimates that tens of thousands of people were executed in 1950. The victims include political prisoners, civilians who were killed by foreign troops, and civilians who allegedly collaborated with communist North Korea or local communist groups.
Professor Lee Jae-seung of the law department at Konkuk University gave a presentation on "Korea's efforts to promote reconciliation and peace" during the aforementioned discussion. Stating that the Republic of Korea has now become a stable and successful country despite the hardships of feudalism, colonialism, dictatorship, division, war, and the communist system in the past, he underscored that it is necessary for the regional and international community to accelerate the joint efforts to solve the issues of Korean Peninsula.
In 2005-2010, The Truth and Reconciliation Commission of the Republic of Korea investigated and resolved 11,175 applications submitted by the citizens, issuing compensation of about USD 75,000 to the families of the victims.
As of December 2021, the State Commission on Rehabilitation rehabilitated 31,460 victims in Mongolia, and since 1998, compensation of MNT 6 billion 589 million had been granted.
Chairperson of the State Commission on Rehabilitation S. Odontuya noted during the discussion that it is regrettable that the protection of human rights and the avertance of abuses are not fully fulfilled while expressing her willingness to intensify cooperation with the Truth and Reconciliation Commission of the Republic of Korea to effectively protecting human rights.
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Banks Lifted Their Limitations on USD Transactions www.montsame.mn

Commercial banks have set a daily limitation on USD transactions since May and restricted some long-term loans. Thereby, banks started lifting their daily limit on USD.
According to economists, the exchange rate of the USD against the MNT will continue to rise, and the economic situation will worsen in the coming year. Last October, the USD exchange rate decreased to MNT 3,150-3,250 in foreign exchange marketplaces, while it reached MNT 3,420 in the Bank of Mongolia. But at the “Naiman Sharga” currency exchange, it reached MNT 3,440-3,450 making the difference between the market exchange rates MNT 30-40.
The USD exchange rate rose from MNT 2,950 to MNT 3,350 within a week in April and May. However, this bubble started to subside when commercial banks eased their restrictions to some extent.
However, economists warn of the possible risk that the bubble will re-emerge and the USD exchange rate might exceed MNT 3,500.
Banks are beginning to take off their daily limit on USD and are issuing certain restrictions on obligatory large transactions.
The Bank of Mongolia announced that the USD’s exchange rate equals MNT 3,420 as of today /12.02/2022/. Consequently, the gap between the central bank’s exchange rate and the “Naiman Sharga” started to fluctuate within two digits.
But commercial banks such as State Bank, Khaan Bank, Golomt Bank, and Trade and Development Bank are offering USD to people without any limitations.
 
 
 
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Mongolia pays off USD 1.5 billion Chinggis Bond www.montsame.mn

Today, on December 6, the Prime Minister of Mongolia, L. Oyun-Erdene, announced that the Mongolian government has repaid in full its inaugural USD 1.5 billion Chinggis bond in a bid to manage its debt profile.
Before the meeting with the press, the Prime Minister authorized the Minister of Finance to transfer the remaining USD 136 million of Chinggis Bond debt and signed the relevant order.
In 2012, the Government of Mongolia issued Chinggis Bond, raising USD 1.5 billion with a condition to repay USD 500 million in 2018 and the remaining USD 1 billion in 2022. According to the condition, the first part of the debt and its interest were repaid on January 5, 2018.
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Number of Passenger Flights and Visas to be Increased www.montsame.mn

The government has announced 2023-2025 as “The Years to Visit Mongolia.” Within the framework of this context, the revised draft Law on Tourism included no restrictions on passenger flights to Mongolia following 3 years.
After starting the liberalization of the air transport sector, Mongolia will accept all passenger flights from any country with no restrictions in the next three years. In addition to this decision, our country will double the number of countries for e-visas and issue visas online within 48 hours through the digital system.
The government has prepared and submitted the revised draft of the Law on Tourism which was initially approved in 2000 to the Parliament to improve the legal framework of the industry.
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DR Congo: Miner Glencore pays $180m in latest corruption case www.bbc.com

The Swiss-based mining company, Glencore, has said it will pay $180m (£147m) to the Democratic Republic of Congo to settle corruption claims.
The agreement covers an 11-year period from 2007 to 2018.
It is the latest in a series of corruption cases which has seen Glencore agree to pay out more than $1.6bn in fines this year.
In May it admitted bribing officials in several African nations including DR Congo (DRC).
The Congolese government has told the BBC it is not commenting.
It followed an investigation by American, British and Brazilian authorities that also covered corruption claims in Latin America.
Despite the fines Glencore is expected to make record profits of around $3.2bn this year.
There have been various investigations into the miner's activities in the DRC between 2007 and 2018 which uncovered evidence of bribery.
In May, the US Department of Justice said that Glencore had admitted to corruptly conspiring to pay around $27.5m to third parties to secure "improper business advantages" in DRC, while "intending a portion of the payments to be used as bribes".
Glencore owns several assets in the country, including the Mutanda copper-cobalt mine and a controlling stake in KCC, a large copper-cobalt project.
The mining firm said the settlement with the Congolese government would cover "all present and future claims arising from any alleged acts of corruption" by the Glencore Group between 2007 and 2018.
"Glencore is a long-standing investor in the DRC and is pleased to have reached this agreement to address the consequences of its past conduct," Glencore's chairman Kalidas Madhavpeddi said.
In May, Glencore also admitted to paying millions in bribes to officials in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria, South Sudan, Brazil and Venezuela.
It has received a series of penalties, with a UK court last month ordering the company to pay more than £285m over African bribes linked to its London-based commodities trading desk.
Remarking on the culture that developed at Glencore, Mr Justice Fraser said that "bribery was accepted as part of the West Africa desk's way of doing business".
"Bribery is a highly corrosive offence. It quite literally corrupts people and companies, and spreads like a disease," he added.
Glencore's chairman has admitted "unacceptable practices" have taken place but that the firm today is "not the company it was".
Glencore is one of the world's largest commodities companies, employing around 135,000 people in more than 35 countries.
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Protesters in Mongolia try to storm state palace www.aljazeera.com

Thousands of people have braved freezing temperatures in Mongolia’s capital to protest against alleged corruption in the country’s coal industry and soaring inflation, with some later attempting to storm government house.
Protesters, many of them young people, rallied in Ulaanbaatar’s central Sukhbaatar Square in -21C (-6F) temperatures on Monday, demanding “justice” against corrupt officials and calling for the country’s parliament to be dismissed.
“Help us our country is collapsing,” read one placard. Some herders also travelled to the city to take part in the rallies.
Protesters are frustrated with the country’s ailing economy, with inflation soaring to 15.2 percent in the wake of Russia’s invasion of Ukraine and closed borders affecting trade with neighbouring China.
People are “suffering incredibly economically,” Jana Zilkova, country director for the aid group Caritas Czech Republic in Ulaanbaatar, told Al Jazeera.
Whistleblower claims that a group of legislators with ties to the coal industry had stolen billions of dollars have added to the discontent.
“People are upset and angry over this case because they were promised the wealth of the country would be shared with them,” Zilkova added.
The police tried to break up the demonstration at 9pm local time (13:00 GMT) but some protesters tried to force their way into the government building, knocking down barriers and breaking windows, according to local media reports. Police intervened and most protesters had left the square a couple of hours later.
Last month, Mongolia’s anti-corruption authority announced that more than 30 officials — including the chief executive of the state-owned coal mining company Erdenes Tavan Tolgoi — were under investigation for embezzlement.
The firm controls the Erdenes Tavan Tolgoi deposits, which contain 7.5 billion tonnes of coking coal — an essential ingredient in the steelmaking process and a key component of Mongolia’s state budget revenue. It is yet to comment on the allegations.
The implicated legislators are alleged to have leveraged their ownership of coal mines and companies that transport coal across the border into China to make illegal profits.
Mongolia sends 86 percent of its exports to China, with coal accounting for more than half the total. A quarter of the country’s gross domestic product (GDP) comes from mining.
Monday’s rally came a day after several hundred protesters gathered in the capital, according to the US embassy in Ulaanbaatar.
Protesters attempted to march on Ikh Tenger, the official residence of the President and Prime Minister, “where they were stopped by a police barricade,” the embassy said.
Khurelsukh Ukhnaa was elected president in June last year, months after he had been forced to resign as prime minister amid public outrage over the treatment of a COVID-19 patient and her newborn baby.
SOURCE: AFP, AL JAZEERA
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Environmental and human rights assessment of Rio Tinto’s former Panguna copper mine begins www.mining.com

A historic independent environmental and human rights legacy impact assessment of Rio Tinto’s former Panguna copper mine will begin in Bougainville this week.
The Panguna mine was operated by BCL, majority-owned by Rio Tinto, for 17 years from 1972 until 1989, when operations were suspended due to an uprising against the mine and subsequent civil war. A peace agreement was signed in 2001.
Bougainville had a history of small-scale mining. But the identification of a major gold, copper and silver orebody at Panguna in the 1960s prompted Bougainville Copper Ltd, (BCL) a subsidiary of Rio Tinto, to start operations of a major mine.
Last year, Rio Tinto publicly committed to fund the independent assessment in response to a human rights complaint brought by 156 local community members, represented by the Human Rights Law Centre.
The human rights complaint alleges that the massive volume of mine waste pollution left behind by Panguna is putting communities’ lives and livelihoods at risk.
Over a billion tonnes of waste tailings were released directly into the Jaba and Kawerong rivers during operations. Pollution from the mine continues to contaminate the rivers and flood large areas of land downstream, which is having devastating impacts on the lives of thousands of Bougainvilleans, the Human Rights Law Centre said in a press release Monday.
The Legacy Impact Assessment is being overseen by a committee comprised of community leaders, landowners, government representatives, the Human Rights Law Centre and representatives from Rio Tinto and Bougainville Copper Limited.
“This is an important step towards addressing insecurity and pain for the people in the impacted community areas. Thus, we welcome the assessment into the impacts of the Panguna mine as soon as possible,” committee member and traditional landowner Theonila Roka Matbob, said in the statement.
“We are always worrying that the food we eat, the water we drink and the air we breathe is not safe. We worry about levees collapsing and mine waste flooding our lands and communities,” she said. “We welcome Rio Tinto’s commitment to this process,” she said.
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Mass Protests in Mongolia Decry ‘Coal Mafia,’ Corruption www.thediplomat.com

For the second time this year, Mongolians are protesting against the government in significant numbers. In April, protests seemed to primarily grow out of younger Mongolians’ disappointed expectations with the government. Today’s protests were sparked by apparent revelations about grand corruption, involving coal deliveries by state-owned Erdenes Tavan Tolgoi, one of the country’s largest mining companies, to China.
Interpretations in Mongolia continue to focus on political conspiracies rather than actually addressing issues around corruption or the government’s puzzling strategy to stake its fiscal fate on coal at a time when the global energy transition and Mongolia’s potential role in it are pointing in very different directions.
This fall has seen several strands of discussions on coal in Mongolia. First, the government placed the management of state-owned Erdenes Tavan Tolgoi under closer supervision because of allegations regarding shady dealings in its deliveries of coal to China. Then the budget that was passed by the government in November made some fairly heroic assumptions about resumption and volume of coal exports of China to fund a looming round of payments on sovereign debt.
The third string has been a loud chorus focused on energy transition from international donors, many of whom are eager again to engage Mongolia in a values-based cooperation policy following Russian aggression against Ukraine and the changed geopolitical situation that Mongolia finds itself in.
Tavan Tolgoi, a coal deposit in the South Gobi desert, has been the focus of international attention and Mongolian government initiatives for some time. One of the three operators is state-owned Erdenes Tavan Tolgoi (ETT). In contrast to Energy Resources, a private operator, ETT’s reputation in terms of governance but also operational issues is rather poor. While there are frequent expressions of a view that state-owned enterprises should be better at working toward positive outcomes for not only the government but also the general population, ETT’s record on the environment, on community engagement, and on delivering value to Mongolians has been spotty.
There was some good news earlier this year when the completion of a railroad link from the Gobi to the Chinese border was announced, which would move some of Mongolia’s coal transport onto rail. In the fall, however, there were several announcements of increased scrutiny of the ETT management in response to allegations of improper dealings surrounding export contracts of coal. A further decision on ETT came in late November when the government announced the ambition to turn its operational nature into more of a sovereign wealth fund. Today, there were further discussions following a press conference that alleged more corruption at ETT.
It is this announcement of corruption findings that prompted protests by what images suggest to be hundreds if not thousands of Mongolians on December 5. Protesters can be seen storming Government House and dismantling the fences around the building in scenes that are more reminiscent of the cycles of protest and revolutions in other Asian countries like Kyrgyzstan. Government House includes Mongolia’s parliamentary chambers and officers, as well as some offices of the executive.
Yet, Mongolia’s twittering classes are primarily exercised by various conspiracy theories that allege President Khurelsukh Ukhnaa’s involvement in orchestrating protests just ahead of a Mongolian People’s Party congress that is likely to add further pressure on Prime Minister Oyun-Erdene Luvsannamsrai’s government.
Allegations of grand corruption or the existence of a “coal mafia” in parliament seem to be interpreted primarily in terms of backroom dealings rather than the reality of the existence of such corruption. Curiously, the political discourse has little connection to Mongolians’ frustration with corruption at a time when post-COVID economic challenges, including corruption, are leading to real daily struggles of consumer survival.
Further complicating the question of coal and corruption is the very future of the coal industry. As one of the dirtiest energy sources, coal use has been a particular target for those advocating reduced global emissions. Yet Mongolia’s fiscal planning seems content to ignore that trend.
The budget that was passed in the Mongolian parliament in mid-November was drafted partly with significant payments on sovereign debt that are due in 2023 in mind. The budget included revenue projections that assume significant demand from China in volume and at prices that seem rather optimistic.
While copper exports from the very large Oyu Tolgoi mine that is majority-owned by Rio Tinto will power future Mongolian budgets, the budget imagines that immediate fiscal needs will be met by coal exports. Regardless of the realism of the price and volume assumptions behind this budget, it seems unlikely that sovereign debt payments will be met entirely by these projected revenues and another round of re-financing conversations with international organizations seems likely.
All this comes at a time where many parts of the world are waking up to the realities of a climate catastrophe that will demand radical changes to energy policies. Many Mongolian politicians and business people feel aggrieved by expectations on Mongolia to atone for the environmental sins of developed countries when coal is one of Mongolia’s main resources and is seen as a necessary element in economic development domestically.
Yet, many donor organizations and many of Mongolia’s Third Neighbors are looking to encourage an energy transition domestically that not only mitigates against emissions but makes a positive contribution to the global energy transition by developing Mongolia’s ample alternative resources in solar, wind, and hydropower. As these Third Neighbors are re-embracing Mongolia in a changed geopolitical context cognizant of the country’s dependence on Russia when it comes to fuels, for example, creative thinking will be needed about how to bring about a “just transition” in the particular case of Mongolia.
Responses to the protests on December 5 were limited initially, but parliament also voted on and ultimately rejected the declaration of a state of emergency. These kind of large protests have been rare in winter in Mongolia in the past; spring has been the most active “protest season.” They are especially surprising at a time Ulaanbaatar is experiencing very cold weather after an initially fairly mild fall.
Even if some of these demonstrations are being instrumentalized for political purposes, they do seem to be a further expression of Mongolians’ frustrations with their government and its inability to deliver on promises made and expectations raised.
GUEST AUTHOR
Julian Dierkes
Julian Dierkes teaches in the Master of Public Policy and Global Affairs at the University of British Columbia.
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Stolen coal revenue: Mongolians demonstrating for third day www.news.mn

Today (5 December), an increasingly angry demonstration has entered its third day in Ulaanbaatar, capital city of Mongolia after large amount of coal revenue was stolen. According to unofficial sources, some 6.5 million tonnes of coal worth of MNT 60 trillion were stolen.
Justice Minister Kh.Nyambaatar told news.mn on Monday that Mongolian Government has requested Beijing through diplomatic line to cooperate with Prosecutorial Agency In the Republic of China investigating the coal theft case.
Considering one truck transports approximately 90-100 tons of coal or produces more than 10 million tons of coal in a year, Mongolian officials have begun comparing the Chinese customs information of registrations of cars that entered and exited the country, with our customs data.
Mongolia sends 86 percent of its exports to China, with coal accounting for more than half of that total. Mongolia is keen to chip in, shipping 19 million metric tons of coal to China so far this year, according to the National Statistical Office, already exceeding 2021’s 16 million total.The value of Mongolia’s coal exports jumped to $4.5 billion in the first nine months of 2022, almost triple what they were over the same period last year.
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Mongolian Airways Cargo purchases 2 Airbus planes www.news.mn

The Mongolian air carrier Mongolian Airways Cargo purchased 2 Airbus A330-200 and A320-200 planes.
These planes landed at the former Buyant-Ukhaa airport on 2 December.
The planes will fly to transport hubs in Asia and Europe, such as Berlin, Moscow, Yekaterinburg, Singapore, Urumqi and Shanghai. In addition to meat, meat products, wool, cashmere and rare-earth elements, it is possible to transport mining equipment, large items and special cargo from Mongolia.
Mongolia has the exclusive rights to make frequent cargo flights to the Russian Federation and the People’s Republic of China, which have not been used until now.
With the completion of its cargo terminal, ‘Mongolian Airways Cargo’ will provide international express mail and a comprehensive logistics services to the customers.
 
 
 
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