On Wednesday, Russian energy giant Gazprom halted gas supplies to Bulgaria and Poland via the Yamal-Europe pipeline for not complying with the mandate to pay in rubles. It is the first supply disruption since Russian President Vladimir Putin demanded “unfriendly countries” pay for natural gas in Russian currency from April 1 or risk being cut off from vital supplies.

How will EU countries cover the supply shortfall?

The European Union reportedly plans to significantly increase purchases of Russian gas through states that are ready to pay in rubles to compensate for the shortfall in supplies to Poland and Bulgaria. The so-called ‘reverse flow’ mechanism could allow the two countries to boost imports from their neighbors in the short-term. Liquefied natural gas (LNG) imports could be another option, but there is a limit to how much LNG suppliers can produce and transport. Moreover, the global liquefaction capacity is almost fully utilized, experts say. Some EU countries have no alternative as they are landlocked and therefore unable to receive shipments. According to experts, those options won’t be able to help the EU members replace any missing supplies from Russia.

What is Gazprom’s position?

The Russian energy giant has made it clear that the suspension of gas supplies would persist until the payments are made in rubles. Gazprom warned both Poland and Bulgaria, which are transit states, against any “unauthorized withdrawal” of gas supplies flowing through their territories. Otherwise, supplies for transit will be “reduced by this volume.”

How has the EU responded?

The European Commission has accused the Russian company of contract breach, describing the decision to halt supplies as attempted “blackmail.” Brussels said it was coordinating a response among EU member states.

What does the cut-off mean for Poland and Bulgaria?

Both countries heavily rely on Russian natural gas. Supplies from Gazprom cover about 50% of Poland’s consumption and about 90% of Bulgaria’s. According to the Federal Customs Service of Russia, gas supplies to Poland increased by 9.4% in 2021 to 10.58 billion cubic meters. Deliveries to Bulgaria have doubled to 3.15 billion cubic meters. Polish officials say the country has sufficient gas reserves and there will be no shortage of gas in Polish homes as its gas storage was 76% full. Bulgaria’s government also said there would be no domestic restrictions on consumption, pointing out that supplies to customers were guaranteed for at least another month. Both countries are also trying to boost LNG imports.

Could the halted imports be restored?

Gazprom said supplies would resume once the payments in Russian currency were made. The new payment mechanism allows buyers to pay in their currency of choice, but they must open up a ruble account in Russia’s Gazprombank so that the payments can be converted into rubles and reach Russian gas providers.

Which European countries are most dependent on Russian gas?

The engines of the continent’s overall economy – Germany, Italy, and France – are the biggest EU importers of Russian gas. Germany imports around half of its gas from Moscow, while France gets a fifth of its supply, according to the latest data by Statista. Italy is also among the major consumers, relying on Russia for 46% of its imported gas. Some smaller European countries, such as North Macedonia, Bosnia and Herzegovina, and Moldova rely exclusively on Russian energy. Finland and Latvia get 90% of their gas supply from Russia, and Serbia 89%.

Is anyone willing to pay rubles for gas?

Despite their heavy reliance on Russian energy, some of the EU buyers have rejected the Kremlin’s payment terms. However, others, like Austria and Hungary, say they have accepted the new mechanism and are ready to abide by it. Hungary’s next payment obligation for Russian gas is due in mid-May, and the country will transfer its payment in euros to Gazprombank, where the amount will be converted into rubles, the country’s foreign minister said. Meanwhile, Bloomberg reported on Wednesday, citing sources close to the Russian gas giant, that ten European companies have already opened ruble accounts at Gazprombank. Four European gas buyers have paid for the supplies in Russian currency, the sources said.

What happens if they refuse?

President Putin has clearly demanded that buyers from ‘unfriendly’ countries pay for gas in rubles or be cut off, starting from the date payments are due for April. “If such payments are not made, we will consider this a default on the part of buyers, with all the ensuing consequences. Nobody sells us anything for free, and we are not going to do charity either – that is, existing contracts will be stopped,” he said last month.

Can Europe replace Russian gas?

It won’t be an easy task, economists say, noting that doing so would require major changes. The European Union relies on Russian natural gas to heat homes, cook meals, and generate electricity in most of the bloc’s 27 member states. Weaning Europe off of cheap and abundant Russian gas would be a far more disruptive prospect, experts warn. Some EU officials acknowledged that a sudden shift from Russian energy would be hard, causing a recession and inflation in the European economy.

On Tuesday, May 3 at 19:30 GMT: In Mongolia a protest that began in the city centre of Ulaanbaatar has now mostly moved online, and has become known as the Ажлаа хий (Do your job) protests.

In early April, young Mongolians gathered in Sukhbaatar Square for two days of peaceful demonstrations. They said they had no political affiliation but gathered to voice their concerns about the state of the economy, dissatisfaction with taxation, a lack of job opportunities, poor allocation of resources, and to call for an independent judiciary that can provide checks and balances for parliamentarians’ financial reports. They delivered a list of fifteen demands to the government, including measures to prevent inflation and support industrialisation.

But the demonstration was not completely peaceful. According to some protesters, after the gathering dispersed about 20 individuals were arrested by the police and beaten, with images going viral on Mongolian social media.

In response, Prime Minister Oyun-Erdene Luvsannamsrai convened an extraordinary session of parliament to discuss the protesters’ grievances.

Mongolia has been devastated by the global pandemic. In 2020 it closed its borders, shut down businesses, and banned international travel. The economy then suffered its worst decline since the 1990s and almost 260,000 more people fell into poverty. The Russian invasion of Ukraine has fuelled inflation, food shortages, and high fuel prices as Mongolia remains highly dependent on Russia.

In this episode we’ll look at the “do your job” movement, the economic problems facing young Mongolians, and how the Russian invasion of Ukraine has affected the country.

In this episode of The Stream, we are joined by:

Zhar Zardykhan

Greater Central Asia Editor, Global Voices

Anand Tumurtogoo, @AnandDairtan

Mongolian journalist

Khulan Jugder, @KhulanJ

Creator, The Media Show Mongolia podcast and newsletter

The Communist Party of China (CPC) Central Committee has appointed Sun Shaocheng as new Party chief for the Inner Mongolia Autonomous Region.

Shi Taifeng, who no longer serves as secretary of the Inner Mongolia Autonomous Regional Committee of the CPC, will be given another appointment, according to a decision by the CPC Central Committee.

We had an interview with consultant economist, leader of the research team to develop a feasibility study for light rail transit B.Davaasuren regarding the LRT project.

“In Ulaanbaatar, there is no possibility to reduce traffic congestion by paving a road due to the annual import of 70-80 thousand vehicles on average. Therefore, the LRT project is a key solution to reducing traffic congestion. it was considered more appropriate for LRT to have a pier bridge in Ulaanbaatar”, he says.

-How much is the LRT project needed in Ulaanbaatar?

-Centralization and traffic congestion have become a long-standing issue in Ulaanbaatar. Also, there is a necessity to connect new sub-centers and satellite cities. Citizens can't be provided with potential service with only high-capacity vehicles, buses, and private cars.

Therefore, major upgrades are needed in the transport system. According to the study of many years, the most convenient and sizeable vehicle in our country is LRT. Traffic congestion is expected to reduce by 25 percent with the introduction of LRT in public transport.

-People tend to assume that the subway is more suitable for Ulaanbaatar than LRT. What are the advantages of the LRT over the subway?

-A lot of research has been made on public transportation over the years. As a result, it was suggested that LRT could be the beginning of a major change in public transport due to several factors. First, the subway costs at least USD 150 million per kilometer. This price will increase depending on the geographical location and depth, so the subway is not suitable for our current state of the economy. Building a subway in Ulaanbaatar city which has a population of almost 1.5 million is not the ideal option. Subway and LRT are similar in content, both of which are unobstructed, serve citizens according to a set schedule, are accident-free and comfortable, and LRT offers many other economic benefits. For example, a favorable business environment can be created with the establishment of LRT stations.

-What are the cost estimates for the project?

The project is estimated to cost USD 926 million to build an 18.1 km road with 15 stations. Land and high voltage line acquisition, road expansion costs, as well as rising commodity prices, and exchange rate fluctuations were also taken into account.

-The Standing Committee on Budget has concluded that it is not possible to include the cost estimates in the 2022 budget amendment. How accurate do you think the conclusion was? How well did the standing committee get acquainted with the project?

The decision has to be made based on a thorough study and opinions of the members of the State Great Khural. Of course, it is difficult to allocate such an amount of funding amid Mongolia’s current situation of external debts. However, the development issues facing the country should not be postponed. Addressing these types of issues will significantly contribute to the city’s economic development.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

In the framework of ensuring the implementation of the One Billion Trees national movement initiated by the President of Mongolia, Chief of Staff of the Office of the President Ya.Sodbaatar made a working visit to Istanbul, Turkey.

During his visit, he held a meeting with Istanbul Regional Director of Forestry Yusuf Sahin to discuss the current policy being implemented for the forestry sector in Turkey as well as forestry management and afforestation.

In the country, a sectoral policy is currently being implemented through the Ministry of Agriculture and Forestry, the General Directorate of Forestry of Turkey, and its regional offices. Established in 1839, the Istanbul Regional Directorate of Forestry is in charge of the local forests which make up over 40 percent of the city’s territory.

The Chief of Staff of the Office of the President highlighted the opportunity to cooperate with the Republic of Turkey in developing Mongolia’s forestry sector, building capacity, increasing the types of trees and shrubs planted in the country, and developing green spaces near cities.

The sides agreed to cooperate in carrying out works, and discussed organizing mutual visits and exchanges between the two countries.

A project that was implemented on protecting Terkos Lake, a source of drinking water for Istanbul’s residents, from desertification was introduced during the meeting. In the framework of the project, species of trees that were considered suitable for the region began to be planted from 1961, afforesting 2,102 hectares of area by 1987.

Domestically sourcing the seedlings and saplings to be planted for the year, the country of Turkey currently plans to plant 160 million trees nationwide in 2022.

Arizona Sonoran Copper Company (TSX:ASCU) has entered into a strategic partnership with Rio Tinto (ASX: RIO) focused on the world’s second biggest miner’s Nuton technologies, that includes participation in a private placement of up to C$35 million ($27.3m).

On completion of the offering, Rio Tinto is expected to hold 7.2% of the outstanding share capital of the company. Arizona Sonoran Copper’s asset, Cactus, is a brownfield copper mine located on private land in western Pinal County, Arizona.

Last month, Lion Copper and Gold entered into an option to earn-in agreement with Rio Tintoto advance studies and exploration at Lion CG’s copper assets in Mason Valley, Nevada. Under the agreement, Rio Tinto has the option to earn a 65% interest in the assets, comprising 34,494 acres of land.

At both sites, Rio will evaluate the potential commercial deployment of its Nuton copper heap leaching technologies, which it developed to deliver increased copper recovery from mined ore and access new sources of copper such as low-grade sulphide resources and reprocessing of stockpiles and mineralised waste.

With very few new copper mines coming online, combined with existing mines getting progressively more challenging in terms of declining grades and depth, the industry is looking at new technology to produce more out of existing operations.

Rio estimates that more than 100mt of copper is contained in tailings globally.

The technologies, the company said, have the potential to deliver improved environmental performance through more efficient water usage, lower carbon emissions, and the ability to reclaim mine sites by reprocessing waste.

According to the company, the Nuton technologies have the potential to economically unlock low-grade sulphide resources, copper bearing waste and tailings, and achieve higher copper recoveries on oxide and transitional material, increasing copper production with a lower corresponding carbon footprint.

One of the key differentiators, the company said, is the potential to deliver ESG performance, such as more efficient water usage, lower carbon emissions, and the ability to restore and reclaim mine sites by reprocessing mine waste

“We see Nuton as a venture that’s innovative and really intended to help grow our copper business and accelerate our decarbonization agenda,” Adam Burley, Rio Tinto’s lead of the Nuton venture told MINING.com.

“We see real opportunity in the Nuton portfolio of technologies to unlock new sources of copper — that may come from lower grade material in existing mines, or potentially material with complex mineralogy at new greenfield projects, or copper in mine waste,” Burley said.

“In the leaching of oxides we’ve been doing that as an industry for decades, it’s really that primary, chalcopyrite-dominated material that holds the key,” he said. “What we see through Nuton is a step change in the recovery of copper from that chalcopyrite. We expect to deliver copper recoveries in excess of 80% on those chalcopyrite-dominant ores.”

Burley said the Nuton portfolio is the product of nearly 30 years of in-house research and development, and that the aim is to deliver carbon- neutral copper and that based on its averages, Rio estimates it can deliver 0.4 tonnes of Co2 equivalent for Scope 1 and 2 emissions per tonne of Nuton copper produced, compared to 5.2 tonnes of C02 equivalent as per standard, conventional primary copper production.

“It’s heads and shoulders above the next best,” Burley said. “We’re really excited to market it at this point and roll the technology out across the industry.”

Canadian miner Teck Resources Ltd on Wednesday beat market estimates for quarterly profit on the back of higher copper and coking coal prices, sending its shares 8% higher.

Copper prices climbed to record highs in the first three months of the year on fears that Russia’s invasion of Ukraine and the resulting sanctions from the West would upend supply. The metal has also benefited from demand sparked by its key role in the transition from fossil fuels to electrification.

Teck said its average realized price for copper rose about 15% to $4.51 per pound in the quarter, while its realized steelmaking coal prices more than doubled to $357 per tonne.

US-listed shares of the miner rallied 13%.

Diesel drives up costs

But Teck saw some pressure from rising inflation, especially in diesel prices, with operating costs surging 13%.

That prompted the company to raise its view for steelmaking coal unit cost in 2022 by around 9%. Teck kept its cost outlook for copper and zinc unchanged.

Miners have in recent months been grappling with logistical delays and rising costs of key supplies such as equipment and explosives, particularly after the Russia-Ukraine conflict erupted in March.

“The fact that the company maintained its base metals guidance and carries some natural protection from inflation via its oil and zinc asset is likely a win in our view,” JP Morgan analyst Michael Glick wrote in a note.

Copper production fell 6% to 67,200 tonnes in the quarter due to lower output from Teck’s operations in Highland Valley Copper, British Columbia, and Carmen de Andacollo in Chile.

Adjusted quarterly profit came in at C$2.96 per share, topping analysts’ estimate of C$2.89 per share, according to Refinitiv IBES data.

($1 = 1.2782 Canadian dollars)

(By Rithika Krishna; Editing by Vinay Dwivedi and Aditya Soni)

Mongolia's health ministry confirmed 42 new COVID-19 infections on April 28.

21 new cases were recorded in Ulaanbaatar, 21 cases were detected in the regions.

No new related deaths have been recorded in Mongolia since March 10, and the country's COVID-19 death toll remains at 2,108.

Mongolia is striving to combat a rise in consumer prices driven by external factors.

On Wednesday, the Mongolian government decided to issue a soft loan worth 230 billion Mongolian Tugriks (74.8 million U.S. dollars) to flour producers and meat processing enterprises, according to the Food and Agriculture Ministry.

The decision is part of government efforts to combat rising prices caused by the pandemic and the ongoing geopolitical conflict between Russia and Ukraine, the ministry said, stressing the need to ease growing meat and flour prices.

The loan is expected to be allocated through commercial banks with an interest rate of 3 percent, it added.

An average Mongolian household consumes 373 types of goods per month, of which more than 200 are imported, Batmunkh Batdavaa, head of the country's National Statistics Office, said in a statement.

"We cannot regulate the prices of imported goods because they are directly dependent on external factors. We can only regulate the prices of domestically produced products such as meat and flour," Batdavaa said.

In addition, Mongolia will exempt the excise tax on the gasoline brand AI-92 and diesel fuel until the end of the year as part of efforts to ensure stable prices.

The average retail price of the most commonly used gasoline brand AI-92 was 2,381 Mongolian Tugriks per liter at the end of the first quarter, up 64.8 percent compared with the same period last year, according to the NSO. As of Thursday, the price of gasoline was 2,390 Mongolian Tugriks. (1 USD = 3,090 Tugriks) ■