The Khushigt Valley – New Settlement Zone, which is set to be home to 150,000 people by 2040 and become a thriving hub for business, tourism and culture, is part of an effort by the Mongolian Government to develop ‘satellite cities’ around the country’s capital Ulaanbaatar.

The development of the Khushigt Valley is a key part of the Mongolian Government’s New Recovery Policy and Vision – 2050 ambition, which aim to transform Mongolia into a leading regional power by the middle of the century through supporting economic development, improving the education system and promoting gender equality.

The Mongolian Government has already committed 30 billion MNT in this year’s state budget to the project, with this figure set to rise to over 200 billion MNT next year. Construction is initially focusing on creating new water wells and a 35kw power line. This is the first new city to be built in Mongolia since 1980.

China's Xi Jinping and Russia's Vladimir Putin both plan to attend the Group of 20 summit in Bali in November, Indonesian president Joko Widodo says.

"Xi Jinping will come. President Putin has also told me he will come," Mr Widodo, also known as Jokowi, told Bloomberg News in an interview.

This is the first confirmation that both leaders will attend the summit.

It will be the first global summit since Russia's invasion of Ukraine and the heightened tensions over Taiwan.

It would also be the first time Mr Xi has left China since January 2020 when the country shut its borders at the start of the Covid pandemic. Since then, he only left the mainland to mark the 25th anniversary of Hong Kong's return to China on July 1 this year.

The November summit will be much-awaited given that US President Joe Biden is also expected to attend - it's unclear if he will meet Mr Putin.

But reports have hinted at the possibility of a face-to-face meeting between Mr Biden and Mr Xi soon - ahead of the summit or on its sidelines.

Relations between Washington and Beijing have soured over human rights, trade and most recently US politician Nancy Pelosi's visit to Taiwan - the historic trip prompted China to conduct nearly a week of military drills around the self-ruled island, which it claims as part of its territory.

The US condemned the drills, which Taiwan described as a rehearsal for an invasion, as "irresponsible".

The summit is also happening in the wake of China and Russia declaring a "no limits" strategic partnership even as much of the world condemns Mr Putin's decision to invade Ukraine.

Washington earlier called for the G20 to remove Russia's membership and withdraw Mr Putin's invitation to the summit over the Ukraine war.

Indonesia, meanwhile, has positioned itself as a peacemaker between the countries.

"The rivalry of the big countries is indeed worrying," Jokowi told Bloomberg News in the interview. "What we want is for this region is to be stable, peaceful, so that we can build economic growth."

Earlier this week, the Indonesian leader said both Russia and Ukraine had accepted his country as a "bridge of peace".

In June, he was the first Asian leader to travel to Kyiv and Moscow to meet with Ukrainian president Volodymyr Zelensky and Mr Putin. During the meetings, he called for an end to the war and solutions to the global food crisis.

China purchased 7.42 million tons of Russian coal last month, according to data released by the General Administration of Customs on Saturday.

The figure marks the highest monthly level since comparable statistics were launched in 2017. It was up from 6.12 million tons China imported in June and 6.49 million tons in July 2021.

Western buyers opted to avoid shipments from Russia ahead of an EU ban on the country’s coal, which came into effect on August 11. The embargo, aimed at reducing Moscow's energy revenue, is part of sanctions over Russia’s military offensive in Ukraine.

The Western restrictions have created opportunities for Asian powers, particularly China and India, to boost purchases of Russian coal at discounted prices. Russian thermal coal with a heating value of 5,500 kilocalories reportedly traded at about $150 per ton in late July, while coal of the same quality at Australia's Newcastle port was priced at over $210 per ton.

READ MORE: India ramps up purchases of Russian oil – Reuters

China is Russia’s largest coal buyer, taking in more than 50 million tons of the commodity worth $7.4 billion last year via rail and sea, from Russia’s Far East. Russia accounted for roughly 15% of China’s total coal imports during that period, and was its second-largest supplier behind Indonesia.

China’s shipments of Indonesian coal, mostly cheaper and of lower quality, with a heating value below 3,800 kcal, amounted to 11.7 million tons in July, up 22% from June but down 40% from a year earlier. Meanwhile, the country’s customs data showed zero coal shipments from Australia last month.

Officials of the Ministry of Digital Development and Communications held an online meeting on August 16, 2022 with Ms. Gwynne Shotwell, President and COO of SpaceX and Elon Musk's team.

During the meeting, in addition to the Starlink project, Elon Musk's renewable energy projects, SolarCity and Hyperloop, were discussed.

In May 2022, the Ministry approved the ‘Guidelines for the use of low-orbit satellite networks’ and discussed how this policy document will be aligned with the operational strategy of Starlink.

Furthermore, both sides discussed the possibility of cooperation.

SpaceX announced that the renewable energy SolarCity and Hyperloop projects to reduce urban traffic jam can be implemented in Mongolia.

The Ministry of Digital Development and Communications expressed its interest in the above projects, connect SpaceX with the relevant officials, and focus on implementing them in Mongolia.

Source: Ministry of Digital Development and Communications

The Mongolia-Japan business forum is being organized on the occasion of the 50th anniversary of the establishment of diplomatic relations between Mongolia and Japan, the 25th anniversary of the establishment of JICA's representative office in Mongolia, and the 20th anniversary of the establishment of the Mongolia-Japan Human Resource Development Center.

The forum is being held with aims to create an opportunity to create mutually beneficial and long-term business relations and good partnerships when the pandemic situation subsides. On this occasion, representatives of Japanese companies running business in Mongolia are making presentations and exchanging information on the development of business and economic relations between the two countries, such as the environment, finance, information technology, and communication, and discussing future goals. Specifically, the discussions are being held on the introduction of Japanese technology to solve Mongolia's climate change and environmental problems, expectations from the Japanese market, and the possibility of investing in Mongolia's financial market.

In his opening remarks, Ambassador Extraordinary and Plenipotentiary of Japan to Mongolia Kobayashi Hiroyuki said, "Mongolia and Japan should review the history of the past 50 years, learn from the lessons, and reflect them in the development of future cooperation. In terms of business relations, an economic partnership agreement has been signed between the two countries, and Japanese companies are running business in Mongolia and their investments are gradually increasing. The pandemic situation had a negative impact on the economy. By making efforts to overcome this crisis, the countries of the world aim to move to a new phase of restoring normal social and economic life alongside this virus”.

Minister of Foreign Affairs B.Battsetseg underscored that Japan is the first third partner of Mongolia to have a strategic partnership relationship and to sign an economic partnership agreement. The Minister also called for the expansion of the economic partnership established between the two countries and further development of communication, information technology, and electronic areas.

Mongolian business representatives will officially participate in the international exhibition ‘Osaka-Kansai EXPO’ in Japan in 2025. In 1970, Mongolia first participated in the ‘Expo 70’ exhibition held in Osaka, Japan. Currently, more than 670 enterprises with Japanese investments are operating in Mongolia.

More than 300 representatives from Mongolia and 100 representatives from Japan are participating in the forum, which is jointly organized by the Ministry of Foreign Affairs of Japan, JICA's representative office in Mongolia, and the Mongolia-Japan Human Resources Development Center.

According to the preliminary results in the first 7 months of 2022, the total revenue of the general government budget was MNT 9.4 trillion, increased by MNT 773.8 billion (8.9 percent) compared to the same period of previous year. The equilibrated revenue of the general government budget was MNT 8.7 trillion increased by MNT 1.0 (13.7 percent) trillion compared to the same period of previous year.

In the first 7 months of 2022, the total expenditure and net lending was MNT 9.5 trillion, resulting in deficit of MNT 788.4 billion. In July 2022, the total equilibrated revenue and grants of general government budget was MNT 1.4 trillion, decreased by MNT 47.6 billion (3.4 percent) compared to the previous months. The total expenditure and net lending were MNT 1.3 trillion, decreased by MNT 408.1 billion (23.8 percent) compared to the previous months.

The equilibrated balance of the general government budget was in deficit of MNT 304.9 billion in June 2022, while in July, and was in surplus of MNT 55.6 billion. In the first 7 months of 2022, tax revenue reached MNT 8.2 trillion, increased by MNT 1.5 trillion (21.7 percent) compared to the same period of previous year. This increase was mainly due to MNT 679.5 billion (2.2 times) increase in other taxes revenue MNT 533.2 billion (34.6 percent increase in value added tax revenue and MNT 421.4 billion (35.9 percent) increase in social security contributions revenue while income taxes revenue decreased by MNT 430.6 billion (18.2 percent) compared to the same period of previous year.

In July 2022, tax revenue reached MNT 1.3 trillion, increased by MNT 109.6 billion (9.5 percent) compared to the same period of previous year. This increase was mainly due to MNT 74.3 billion (37.7%) increase in value added tax revenue MNT 29.5 billion (16.3 percent) increase in social security contributions revenue and MNT 125.5 billion (2.3 times) increase in other taxes revenue while MNT 135.0 billion (26.3 percent) decrease in income taxes revenue and MNT 14.8 billion (18.0 percent) decrease in excise taxes revenue.

Source: National Statistics Office of Mongolia

The American Chamber of Commerce in Mongolia (AmCham Mongolia) organized a discussion and meeting on August 17, 2022, on investment opportunities and challenges in Mongolia. Ambassador Extraordinary and Plenipotentiary to Mongolia Michael S. Klecheski gave a speech at the meeting and shared details of the 2022 Investment Climate Statement issued by the U.S. State Department, touching on issues that deserve further attention. He noted, "The U.S. Embassy in Ulaanbaatar’s 2022 Mongolia Investment Climate Statement drew input from the foreign and domestic business community and others to describe Mongolia’s investment climate. It highlights that Mongolia’s natural and human resources remain a real draw for foreign and domestic investors; and underscores that a more stable, predictable, and transparent legal and regulatory framework would help increase investments and jobs in Mongolia.”

The Deputy Minister of Justice and Home Affairs, B. Solongoo, also attended the AmCham Monthly Meeting. She provided an update on the development, substance, and conceptual direction of revised amendments to the Investment Law and addressed questions from attendees. She highlighted, "It is clear that Mongolia's investment is overly dependent on a single industry because it is closely tied to a well-known mega-project. The fundamental purpose of the law under consideration is to boost investment, the economy, and investor confidence and conviction. Priority one is to draw in new investment prospects, but before that, we are trying to ensure that the ‘transitional arrangements’ take existing investors' suggestions and grievances into account.”

Michael Richmond, the Senior Commercial Specialist at the U.S. Embassy, served as moderator for an engaging panel discussion with Deputy Chairwoman of AmCham Mongolia and Chairman of the Board of Directors of Monpolymet Group N. Munkhnasan, Country Director of PwC Mongolia Shaukat Tapia, and economist and associate professor at the University of Finance and Economics J. Delgersaikhan. According to Shaukat Tapia, improving the FDI environment is essential since Mongolia has great potential to draw in investment. J. Delgersaikhan stated that laws not only need to be written but also implemented, noting that the application of the rule of law, law enforcement, and the justice system should be thoroughly examined and developed for the investment legal framework.

The Chairman of the Board of Directors of Monpolymet Group and Deputy Chairwoman of AmCham Mongolia, N. Munkhnasan, said, "I believe that the revisions to the Law on Investment will focus on the inequality of previous laws and legal regulations, improving their coordination and ensuring the practical implementation of the law."

In concluding the discussion, Michael Richmond stated that the government and legislators should solicit feedback from business owners to fully represent the views of all stakeholders when developing legislation, and that frequent meetings and discussions be held while revising the Investment Law. AmCham Mongolia stated that it was ready to keep collaborating with the executive and legislative branches of government to strengthen the business environment.

More than 80 people attended the August Monthly Meeting, including AmCham Mongolia members, foreign and domestic investors, and media representatives.

Source: amcham.mn

At an invitation of the Mongolian National Film Council (MNFC) under the Ministry of Culture, producers and managers of the world’s major film studios, production companies, and companies such as Netflix, HBO, Warner Bros, Paramount Pictures, Discovery, National Geography, Living films and MTV will arrive in Mongolia. Specifically, producers of films namely as ‘Wonder Woman 1984,’ ‘Greenland,’ ‘Hangover,’ ‘Sweet home’ and ‘All of us are dead’ will arrive in the country, meet with Minister of Culture Ch.Nomin and participate in a ‘Fam-Tour’ event to be co-organized by the MNFC.

During their visit, they will exchange views with Mongolian filmmakers, directors and producers on making works jointly, participate in meetings to promote artists, and also get acquainted with studios, shooting areas, and productions made by Mongolian filmmakers.

Since 2012, Mongolia has issued seven international bonds worth USD 5.2bn, with all but the first sovereign bond, the Chinggis Bond—named after founder of the Mongol Empire, Chinggis Khaan, or Genghis Khan—used to finance state budget deficits. It’s also a time to once more observe that the Chinggis Bond, the only bond used to finance projects, has been mismanaged.

Since 2013, Mongolia has drawn nearly USD 3.7bn in swap agreement loans from China’s central bank. As of 2020, it had repaid $1.5bn of the lent capital, while receiving another extension on debt repayment stretching to the end of 2023. This loan is one of the first Mongolia must repay.

With the exception of 2018, Mongolia’s annual state budget expenditure has exceeded its income throughout the past decade. (source: bne IntelliNews )