Prime Minister of Mongolia L.Oyun-Erdene received Minister of Foreign Affairs of the Russian Federation S.V. Lavrov on July 5.

Prime Minister L.Oyun-Erdene mentioned that the 100th anniversary of the establishment of diplomatic relations between Mongolia and the Russian Federation was commemorated last year, and it is in the mutual interests of our two countries to enrich the new century of relations with real content in accordance with the principles of good neighborly relations and comprehensive strategic partnership.

The PM exchanged views with the Foreign Minister on the Government of Mongolia’s ‘New Revival Policy’, which is aimed at enhancing post-pandemic economic recovery. They discussed the mega projects that will serve as a stepping stone to advance trade and economic cooperation between the two countries to a new level, particularly the construction project of a natural gas pipeline connecting Russia and China through the territory of Mongolia, the project to build railroads in eastern and western regions of Mongolia, the construction of Altanbulag-Zamyn-Uud highway and the establishment of Altanbulag free economic zone.

After emphasizing the issue of a reliable supply of petroleum products from Russia to Mongolia, the PM expressed his desire to expand cooperation in the energy sector, and for this purpose, to implement the Eg River hydropower plant project in Mongolia in cooperation with Russian companies.

The Russian Foreign Minister thanked the Prime Minister for the meeting, mentioning that relations and cooperation between Mongolia and Russia were full of rich historical events, and gave information on some issues of cooperation. In particular, he suggested closer cooperation with the Eurasian Economic Union in order to eliminate difficulties in increasing bilateral trade, and noted the possibility of providing support to Mongolia in this regard. He thanked the Government of Mongolia for paying special attention to the implementation of the projects within the economic cooperation between Mongolia and Russia, including the natural gas pipeline project, as well as the project to increase the efficiency of the Ulaanbaatar Railways JSC.

Also, at the meeting, it was mentioned that it is necessary to continue addressing bilateral issues through the Mongolia-Russia Intergovernmental Commission on Trade and Economic, Scientific and Technical Cooperation.

Copper prices extended a decline on Tuesday as aggressive interest rates, a spike in covid-19 cases in China, potential recession, and rising inventories weighed on investor sentiment.

Copper for delivery in September fell 4.8% from Monday’s settlement, touching $3.43 per pound ($7,546 per tonne) Tuesday morning on the Comex market in New York, the lowest since November 2020.

The most-traded August copper contract in Shanghai ended daytime trading down 1.9% to 60,110 yuan ($8,975.66) a tonne by midday trade.

“There was a bull trap set early at the open today as S&P and Nasdaq futures pointed higher. However, the rest of the bearish sentiment is just because of recession fear, which is almost certain for most US and Europe already,” a Singapore-based metals trader said.

Pulling down economic activity and inducing recession fears are soaring inflation and interest rate increases in many countries, including the United States, where the Federal Reserve is expected to deliver another 75-basis-point increase this month.

Meanwhile, copper stocks in LME-approved warehouses jumped 10,100 tonnes to 136,950 tonnes. They have risen more than 20% over the past week.

Cities in eastern China tightened covid curbs on Sunday as coronavirus clusters emerged.

(With files from Reuters)

Russian Foreign Minister Sergey Lavrov will pay a working visit to Mongolia on Tuesday on invitation from his Mongolian counterpart, Battsetseg Batmunkh.

Lavrov will hold talks with Mongolia’s foreign minister and meet with the country’s top political leaders, the Russian Foreign Ministry announced.

The two ministers last met in June 2021 in Moscow, while Lavrov last visited Mongolia in 2016.

The two countries’ top diplomats will have a detailed discussion of key issues on the bilateral agenda, and the progress Russia and Mongolia have made in the implementation of agreements reached at the highest and high levels to develop further mutually advantageous cooperation in economy, transport, infrastructure, energy and in the humanitarian sphere, the Russian Foreign Ministry said ahead of the talks. Enhancing cooperation both on the international arena and in the region will also be discussed.

Lavrov may also inform his Mongolian counterpart of the course of the Russian special military operation in Ukraine. Ulan Bator earlier said Mongolia would stick to its neutral principle regarding Ukraine and Russia’s special military operation. In March 2022, when the United Nations General Assembly (UNGA) voted on a resolution on the humanitarian situation in Ukraine, Mongolia abstained, and it did so again in April, when the UNGA voted to suspend Russia’s membership in the UN Human Rights Council.

A total of 33 people have been killed in 28 water-related accidents registered across Mongolia so far this year, the country's National Emergency Management Agency said Wednesday.

Eight of the victims were children, the agency said, adding that the main causes of the water-related deaths were swimming after consuming alcohol, negligence and leaving children unsupervised.

Heavy rainfall is expected in large parts of the country in the coming days, the emergency agency said, warning the public to remain vigilant and stay away from flooded lakes and rivers to prevent possible accidents.

The delegation of the Kyrgyz Republic has finished its visit to Mongolia, as part of the study tour "Mongolia's experience in creating a "green" financial corporation: issues of promoting sustainable financing" that was held on June 21-24 in Ulaanbaatar (Mongolia). The event was organized under UNDP’s PAGE programme activities in Kyrgyzstan in partnership with the Global Green Growth Institute (GGGI) of Mongolia by the direct initiative of the leadership of the Ministry of Economy and Commerce and the Union of Banks of the Kyrgyz Republic with the active participation of the Ministry of Finance of the KR as well as local commercial banks and microcredit organizations.

Green finance plays an important role in achieving carbon reduction policies and can be the driving force behind the transition to a carbon-neutral economy. As part of the implementation of Nationally Determined Contributions (NDCs), by 2030, Kyrgyzstan has committed to reducing emissions by 15.97% through domestic resources and by 43.62% with international support. According to the statement of the President of the Kyrgyz Republic at the Conference of Parties (COP) in Glasgow, with international support, Kyrgyzstan will strive to reach the platform of carbon-free green development by 2050.

The main goal of the study tour was to develop a partnership between the stakeholders of the two countries in matters of sustainable green finance, improve better understanding of the topic by studying the Mongolian experience, raise awareness of the delegation members and express commitment to the development and implementation of sustainable finance initiatives in the Kyrgyz Republic by improving regulatory legal acts as well as ensuring implementation of existing practices, models and solutions in the financial sector of the Kyrgyz Republic.

“Participation in the study tour on sustainable green finance in the framework of promoting the principles of the Green Economy in the Kyrgyz Republic was a necessary and useful initiative. I believe that each member of the delegation received valuable information that will be useful in their work. Soon, we plan to actively promote projects on the principles of sustainable financing and the green taxonomy project in Kyrgyzstan,” said Ashyrov Ermek, Head of the Strategic Planning Department of the Ministry of Economy and Commerce of the Kyrgyz Republic.

For a significant increase in green investments, an effective transition to sustainable banking and financial practices, financial institutions require a national system of sustainable financing, considering ESG aspects, social and environmental risk assessment, which should provide appropriate socio-economic incentives and benefits to support investment in green projects.

To facilitate the attraction of "green" investments from external sources and the consolidation of local resources, to implement the tasks set for mitigation and adaptation to climate change in various sectors of the Kyrgyz economy, the Ministry of Economy and Commerce, the Ministry of Finance and the Union of Banks of Kyrgyzstan began work on the development of the National financing mechanism (NFV) for sustainable projects. This work is being implemented with the support of the Partnership for Action in Green Economy (UNDP / PAGE) and the Global Green Growth Institute (GGGI). This partnership will be built in close collaboration with the Ministry of Natural Resources, Ecology and Technical Supervision of the KR, the National Bank of the KR and the State Service for Regulation and Supervision of the Financial Market under the ME of the KR.

The creation of a national financing mechanism in the form of the Green Financial Corporation was laid down in the Action Plan of the Cabinet of Ministers of the Kyrgyz Republic approved on 13 January 2022 for the implementation of the National Development Program of the Kyrgyz Republic by 2026, as part of the main task of introducing green financing tools.

At the moment, in Kyrgyzstan, with the support of UNDP / PAGE, a draft Roadmap for Sustainable Finance in the Kyrgyz Republic was developed, IFC experts were also involved in this process, including the expertise of the Sustainable Banking and Finance Network (SBFN), where our country is represented by the Union of Banks.

“The exchange of experience made it possible to better understand the process of creating the National Financing Frameworks - the Mongolian Green Finance Corporation, as well as their plans to develop green finance and increase the share of green loans in the portfolio of the banking and non-banking sectors. The trip undoubtedly exceeded all expectations and gave us hope and faith that we will be able to put what we saw in Mongolia into practice in the financial sector of the Kyrgyz Republic, and somewhere, perhaps even surpass the results. We would like to express our gratitude to the organizers and all members of the delegation for their professionalism and well-coordinated teamwork,” shared the representatives of Aiyl Bank OJSC Urmat Kerbenbaev and Maksat Akakov.

Prime Minister L.Oyun-Erdene will pay an official visit to the Republic of Singapore on July 6-9 at the invitation of his Singaporean counterpart Lee Hsien Loong. This will be a visit by the Prime Minister of Mongolia to Singapore after 11 years.

During the visit, Prime Minister L.Oyun-Erdene will hold official talks with his counterpart Lee Hsien Loong, pay a courtesy on Singaporean President Halimah Yacob, and meet with Minister for Communications and Information Josephine Teo. Moreover, the PM intends to have several meetings with authorities of Central Provident Fund of Singapore, Housing and Development Board, Temasek investment company and others.

The visit is believed to be a real contribution to strengthening friendly relations with Singapore, a member of ASEAN and an influential country in Southeast Asia, stimulating political talks, and expanding mutually beneficial cooperation in trade, investment, economy and other sectors.

Moreover, it aims to study Singaporean good experiences in the projects and programs to be implemented within the framework of the New Revival Policy of Mongolia, civil service reform, development of e-governance, urban planning, information technology, and in human resource capacity building, as well as to reach a certain agreement on the introduction of Singapore’s good practices and sign cooperation documents.

Today morning, Minister of Foreign Affairs of the Russian Federation Mr. Sergey Viktorovich Lavrov has arrived in Mongolia to pay a working visit.

During the visit, heads of the foreign ministries of the two countries B.Battsetseg and S.V.Lavrov will be going to hold talks. As well as, Mr. Lavrov will pay a courtesy call on President U.Khurelsukh, Parliament Speaker G.Zandanshatar and Prime Minister L.Oyun-Erdene respectively.

At the meetings, the parties plan to discuss about accelerating the projects that will enrich the comprehensive strategic partnership between Mongolia and the Russian Federation with real content, as well as some important economic issues of Mongolia.

Specifically, it is intended to discuss the modernization of the Mongolia-Russia border checkpoint, cooperation and investment from the Russian side in the ‘Altanbulag’ and ‘Tsagaannuur’ free zones, reliable supply of oil products and cooperation in the fields of energy, culture and education.

Moreover, they will express their position on the Mongolian-Russian cooperation within international organizations, and on the issues of international relations.

Within the framework of the ‘New Revival Policy’ being implemented by the Government of Mongolia, the construction project of the Choibalsan-Khuut-Bichigt railway in the eastern region was launched on July 2.

The opening ceremony of the project was attended by Prime Minister of Mongolia L.Oyun-Erdene along with corresponding officials from the Parliament and Government. Mongolia was connected to China’s Erlian border checkpoint through Zamyn-Uud more than 60 years ago. Now, a foundation of a new export gateway between the two countries is being laid. The Choibalsan-Khuut-Bichigt railway is planned to be constructed with length of 415 kilometers and the construction work has started from the Bichigt border checkpoint.

“The national railway network in the eastern region is strategically important as it will be the shortest way to reach China Sea for not only Mongolia but also the Russian Far East passing through the Bichigt-Zuunkhatavch border checkpoint. In short, Bichigt is the main gateway to the sea of the economic corridor of Russia, Mongolia and China. With the commissioning of the Choibalsan-Khuut-Bichigt railway, there will be a lot of opportunities such as putting mineral resources in the eastern region into economic circulation, reducing the cost of transport and logistics by 2-3 times, carrying 25 million tons of freight through the Bichigt border checkpoint annually to reach overseas markets through the territories of China and Russia. By doing so, it will become possible to have new export gateway. As for landlocked Mongolia, three out of 42 terrestrial border checkpoints namely Sukhbaatar, Ereentsav, and Zamyn-Uud are connected by rail. In addition, about 50 percent of the mining products is being exported through the Gashuunsukhait border checkpoint alone, while more than 70 percent of the consumer goods is being imported through the Zamyn-Uud border checkpoint currently. By changing the current situation completely, Mongolia will have five export gateways and the competitiveness of transport and logistics will double,” said L.Oyun-Erdene.

With the resolution No.116 dated March 16, 2022, the Cabinet ordered Minister of Road and Transport Development L.Khaltar to meet with and select from foreign and domestic investors interested in cooperating on the projects to be implemented under ‘design-build-operate-transfer’ concession agreements for ‘Khuut-Choibalsan’ and ‘Khuut-Bichigt’ railway with the involvement of ‘Mongolian Railway' state-owned shareholding company. The Japanese company ‘Nippon Koei’, which was selected as a technical consultant, carried out works including conducting detailed environmental assessment and developing technical blueprint for the Tavantolgoi-Sainshand, Sainshand-Khuut, Khuut-Bichigt, Khuut-Choibalsan railways.

As part of the ‘Revival of Border Ports’ set out in the government’s New Revival Policy, the Government is working to not only connect border checkpoints by infrastructure, but also develop them comprehensively in line with international standards and establish port-based satellite cities In this context, Bichigt border checkpoint is planned to be developed as a Mongolian model port that meets international standards, and to complete its construction work within two years with financing from the Asian Development Bank.

Prime Minister L. Oyun-Erdene said, “This great construction work will pave the way for the establishment of the free economic zone and city relied on the border checkpoint aside from creating about 800 jobs, opening up the opportunities to transport 12 million tons of freight per year, as well as having cooperation in the energy, industrial park, tourism sector, laying a foundation for the rapid development in the eastern region.

Therefore, a great construction work is underway to bring the Bichigt border checkpoint, which was first opened on July 2, 1992, to international standards and lay the Choibalsan-Khuut-Bichigt railway track.

Minister of Foreign Affairs of Mongolia B.Battsetseg held official talks with Minister of Foreign Affairs of the Russian Federation S.V. Lavrov on July 5.

While noting the successful development of the Mongolia-Russia comprehensive strategic partnership, the Foreign Ministers expressed their commitments to further strengthening bilateral relations and cooperation. They discussed the implementation of the works agreed upon during the visit of Mongolian President U.Khurelsukh to the Russian Federation last year, assessed the current state of relations, and exchanged views on future cooperation, high-level reciprocal visits, and major events and projects. In this context, the Foreign Ministers underlined the necessity to stimulate trade and economic cooperation, advance the joint projects, and pay attention to the implementation of documents signed by the sides.

Emphasizing the need to intensify the issue of establishing the China-Mongolia-Russia Economic Corridor, Foreign Minister B.Battsetseg noted that the construction project on the natural gas pipeline connecting Russia and China through the territory of Mongolia is progressing according to the schedule. She also presented the works being done within the scope of the project to build railroads in western and eastern regions of Mongolia.

Moreover, the Foreign Ministers of the two countries discussed in detail the measures to intensify the activities of the Ulaanbaatar Railways JSC, advance the joint projects in the fields of energy and agriculture, and determine the ways to overcome the problems that have recently arisen in the trade sector of the two countries.

Foreign Minister B.Battsetseg emphasized the recent intensification of the regional relations between Mongolia and Russia, while noting that new opportunities for cooperation are being opened up, creating conditions for further enhancing bilateral trade.

As part of the cooperation in the humanitarian sector, it was agreed to intensify the establishment of a Mongolia-Russia joint general education school, to put joint efforts into combating soil degradation and desertification, to cooperate within the framework of the ‘One Billion Trees’ national movement, and to restore cooperation in the field of space science.

In addition, the meeting touched on the continuation of traditional cooperation between the Ministries of Foreign Affairs of the two countries, the promotion of people-to-people links, and the Foreign Ministers expressed their respective positions on the current issues of international relations.

Tokyo | China is unlikely to resume importing Australian coal even if bilateral relations improve, as Beijing ramps up both domestic production and imports of the commodity from Russia and Mongolia, traders and analysts say.

While there has been talk recently in China’s commodities markets that Beijing was considering lifting an unofficial ban on Australian coal, analysts said the country did not need the fuel, even though it was of a higher quality.

The value of Russian coal imports into China doubled between February and May this year, following the start of the Ukraine war, further reducing Beijing’s need for Australian coal, an analysis of China Customs data by The Australian Financial Review this week showed.

“If the import of Australian coal is restarted, it will take time,” analysts at industry consultancy MySteel wrote in a recent report.

“Second, even if the Australian coal is released, compared with domestic coal, the current price of imported Australian coal is not ideal.

China is also ramping up coal imports from Russia despite sanctions against Moscow by Western powers over its invasion of Ukraine. Imports from Mongolia have also climbed since pandemic-related border restrictions were eased.

Coal consultant Today Think Tank said Mongolia’s coking coal exports to China jumped 37.7 per cent month-on-month to 1.8 million tonnes in May – a 124 per cent year-on-year jump. Coking coal, used to turn iron ore into steel, accounted for 1.8 million tonnes.

Data showing the number of vehicles passing through border ports increasing to 372 in May from 119 in April highlighted the impact of the eased restrictions.

China is also ramping up domestic coal production, which it hopes will give it more control over price fluctuations and stave off a repeat of last year’s power crunch when some manufacturers lost access to power for several weeks.

Analysts said China would produce an additional 200 million tonnes of thermal coal this year, particularly in the provinces of Shanxi, Shaanxi and Inner Mongolia. Last week, Shanxi said it wanted to increase annual production by 107 million tonnes this year, to 1.3 billion tonnes, by restarting 124 inactive mines.

Analysts in China say the impact of imported coal on domestic prices is weakening. China’s thermal coal imports fell 37 per cent from January to May, to 29.7 million tonnes.

Meanwhile, demand for coking coal used to make steel was also declining as China’s economic growth slowed, and mills struggled to remain profitable.

Officials said that production cuts at China’s steel mills were inevitable given high inventories, capital constraints and concerns about the rising price of fuel.

China’s Metallurgical Industry Information Standards Research Institute said rising coke prices were hurting profit margins for steel mills.

While the price of imported iron ore has also dropped by nearly 800 yuan ($174) per tonne year-on-year, the price of coke used to make steel was at a record high of 3200 yuan per tonne.

Zhang Longqiang, an official at the institute, said the profit margins for steel were almost completely eroded by rising coke prices.

“The steel industry is basically on the verge of a loss,” he told China National Radio. “Costs are critical. The price of iron ore has been lowered appropriately, and the current level we think is acceptable, but the coke is a bit too expensive.”

Growing Steel inventories would reduce the need for coal.

Small shipments of Australian thermal coal that had arrived in China but not been allowed through customs were released late last year when the country was facing severe power shortages. This was reflected in an increase in Australian coal imports between October and February.

Since then, China has not imported any Australian coal, Customs data up to the end of May showed.

Customs data for June will be released on Wednesday next week.

Prime Minister Anthony Albanese has said China must remove bans or restrictions on Australian exports if it is serious about a reset in diplomatic relations. Beijing has indicated it is not prepared to do that for the time being.

BY: Michael Smith is the North Asia correspondent for The Australian Financial Review. He is based in Tokyo. Connect with Michael on Twitter. Email Michael at michael.smith@afr.com