The Russian invasion of Ukraine war has caused thousands of casualties, displaced 1 million refugees, and sent foreign governments scrambling to get their citizens to safety using diplomatic and emergency evacuation measures. Mongolia, too, has been carefully coordinating with its Eastern European partners, including Ukraine, Poland, Hungary, and Czechia, to evacuate Mongolian citizens.

In late February, before the Russian troop movements into Ukraine, the Embassy of Mongolia in Warsaw began recommending that its citizens leave Ukraine as tensions escalated and diplomatic efforts were derailed. On February 28, the Foreign Ministry of Mongolia stated that the Mongolian embassies in Poland, Hungary, and Czechia were responsible for contacting Mongolian citizens residing in Ukraine and mobilizing an evacuation plan and executing those plans using government funds.

So far, 23 Mongolian citizens have been evacuated from Kharkiv, using the Kharkiv-Lviv train to reach the Poland-Ukraine border – a journey of approximately 1,100 km. Another 11 citizens, mostly students from Odessa, Kyiv, and Kirovohrad, travelled by car to meet Mongolian consulate workers at Poland-Ukraine border crossing points. According to a source from the foreign ministry, all those students were on scholarships, and may see their educations permanently disrupted by the war.

As of March 2, thanks to the Mongolian foreign ministry and collaboration of Eastern European partners, Mongolia had successfully evacuated 58 of its citizens from Ukraine.

While some Mongolia observers are conflicted about how Mongolia should respond to the current Russia-Ukraine war, others familiar with Mongolian foreign policy understand and predicted Mongolia’s response.

On March 2, the United Nations General Assembly convened an emergency session to condemn Russia’s invasion of Ukraine. Mongolia abstained along with 34 other nations, including China and India. No doubt, Mongolia’s abstention raised some eyebrows in diplomatic circles. However, from both a security and a foreign policy standpoint, given Mongolia’s geopolitical challenge, its relations with its neighbors – Russia and China – cannot be hindered by external instabilities. At the same time, Mongolia’s abstention does not mean it will miraculously avoid the economic damages that are already following the war and widespread sanctions on Russia.

Moreover, in response to the current events, Mongolian people have begun to speak out in support of peaceful dialogues between Russia and Ukraine.

On March 3, eight peace advocates gathered in Sukhbaatar Square in Ulaanbaatar. One of the advocates, B. Bilguun, wearing a white T-shirt that said #nowar, told a journalist “In our generation—in 2022—we should not be worried about tanks destroying cities and bullets going through windows. The current Russia-Ukrainian crisis is really about global oligarchs fighting for resources, where superpowers bully smaller players. I am here because I would like to show the world that Mongolia stands with peace.”

Peace activists gathered again in Sukhbaatar Square on March 5 to call for an end to the war. They were joined this time by former President Elbegdorj Tsakhia.

Just one month before Russian troops entered Ukraine, on January 21, Mongolia and Ukraine celebrated 30 years of diplomatic relations in the Ukraine parliament in Kyiv. The event celebrated the countries’ history, shared values, and political, economic, and business cooperation. The ceremony was attended by the Mongolian ambassador to Ukraine, Dorj Barkhas; the chairman of the Mongolia-Ukraine Friendship Committee, I. Krishoviv; and Ukrainian Deputy Foreign Minister Dmytro Senik, as well as geologists, businesspeople, and research representatives.

Earlier, in October 2021, 40 business entities from Mongolia and Ukraine organized an online summit to improve the two countries’ business environment. Given the war’s current escalation, these opportunities will inevitably be delayed.

Mongolians, for generations, have traveled to work and study in both Russia and Ukraine. Mongolian leaders have traveled to Kyiv and Crimea, inspired by its maritime capabilities, only to return to a landlocked economy. But Mongolian leaders also understand that in order for Mongolia to develop, its foreign policy must be flexible yet shrewd, capable of prioritizing national interest. Governments, parties, and superpower ambitions change over time, but the one constant in a bilateral relationship is the people-to-people ties. These values should be protected at all times.

The elephant in the room is how Mongolia will handle the newly emerging geopolitical changes and economic pressures, all while maintaining stable bilateral and multilateral relations with both Russia and China, and with the rest of the world.

GUEST AUTHOR

Bolor Lkhaajav

Bolor Lkhaajav is a researcher specializing in Mongolia, China, Russia, Japan, East Asia, and the Americas. She holds an M.A. in Asia-Pacific Studies from the University of San Francisco.

Mongolian surgeons operated on two children from Kyrgyzstan for free. Press center of the Ministry of Health reported.

According to it, Dastan and Bilal’s heart surgeries were performed at a clinic in Ulaanbaatar. All expenses were covered by the Mongolian side. The boys returned home the day before.

«We arrived in Mongolia on February 20, and already on February 21 doctors operated Bilal, on February 22 — my son Dastan. A week later they were discharged from the hospital, but the children continued to be observed by doctors. The children are doing very well now. We were paid for the flight, food, accommodation and the operation itself, everything was absolutely free. I am very grateful to the Mongolian doctors,» mother of one of the boys, Gulzat Toktomusheva, told.

The children were selected for the operation in Mongolia by the specialists of the Research Institute of Heart Surgery and Organ Transplantation of Kyrgyzstan. Both patients had one of the most common congenital heart defects — an atrial septal defect.

«The operations were successful. Special long-term rehabilitation is not needed for children with such a heart disease. They will be completely healthy in 2-3 months. Mongolian doctors are planning to perform several more such operations. The Research Institute of Heart Surgery and Organ Transplantation is working on further cooperation,» the Minister of Health Alymkadyr Beishenaliev, who met the boys at the Bishkek airport, said.

The Ministry of Health added that Mongolian doctors from the National Center for Organ Transplantation and Cardiovascular Surgery were in Kyrgyzstan from February 2 to February 7. As part of their cooperation, they conducted examinations and consultations for children from low-income families. A joint operation of two children was also performed with the surgeons of the Research Institute of Heart Surgery and Organ Transplantation in Bishkek.

On March 4, a project on ‘Integrated production system for sustainable cashmere – II’ implemented by AVSF Mongolia NGO held its next round Steering Committee meeting to present the achievements of the action and to introduce plans to upgrade the initiative nationally.

As of 2022, the project is working with seven cooperatives in Bayankhongor aimag to support and engage herders to adopt sustainable practices and adopt the Sustainable cashmere certification. According to the project team, as a result of project interventions 4500 are composed into Pasture Users’ Groups and as of 2022, 440 households have obtained SC Certification. The certified households, with the support from the Sustainable Cashmere Union, supply over 50 tons of raw sustainable cashmere to around 10 international buyers at a value-added price within the last six years. Moreover, as a result of project support within the last six years the annual turnover of beneficiary cooperatives increased by five times from MNT42 million.

SC Certification is a proof document that certifies that herders and their organizations prepare and supply cashmere in an environmentally-friendly, socially responsible and economically viable way. This includes sustainable management of pastoral resources, improved herding practices, democratic and transparent governance of their organizations, or strengthened capacities to manage cashmere quality and support traceability claims.

The project is synergetic with other AVSF initiatives aiming at empowering women as actor of change for rural economic development, or at supporting the development of sustainable textile sector in Mongolia with all value chain stakeholders as well as relevant authorities and business intermediaries. It is a model that was initiated by AVSF Mongolia in 2013 to help promoting an integrated approach encompassing all steps of sustainable cashmere value chain development, from production to consumption, considered as necessary to induce systemic change.

In the coming years, the team is planning to expand its intervention to promote sustainable cashmere in several soums of Arkhangai and Khentii aimags and to strengthen the institutional capacity of the Sustainable Cashmere Union and its member cooperatives.

Source: AVSF Mongolia

A regular meeting of the capital city authorities was held on March 7. In accordance with the fire that broke out recently in the capital city, The Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar reminded the relevant officials to pay attention to the quality and safety of the constructions in the city. Officials were also instructed to take concrete measures to prevent forest and steppe fires.

The tender evaluation rate in the capital city is 61.7 percent

The Capital City Governor instructed to ensure the implementation of his ordinance issued in intensifying investment activities and to oversee the implementation. As of March 4, 2022, there are 393 projects to be implemented in the capital city with the state and capital city budget, local development funds, and other sources.

Procurement of 386 projects and activities was announced by 81 orders issued by the Capital City Governor, 253 projects and activities were procured, and 109 projects and activities were not procured. The tender evaluation rate in the capital city is 61.7 percent.

Influenza and influenza-like illnesses are more common among children

Head of the Health Department of the Capital City B.Byambadorj introduced the current situation of the coronavirus. He said "An average of 300 to 500 people being infected with coronavirus every day. Influenza and influenza-like illnesses are on the rising among children. Therefore, we are cooperating with the Ministry of Health to regulate the balanced workload”.

26,447 children were additionally enrolled in kindergartens

Ulaanbaatar Mayor clarified children’s education backwardness and learning methods, and how they plan to improve the education sector due to the two-year quarantine. Head of Education Department of the Capital City J.Gantulga highlighted that the attendance of the capital city's secondary schools last week was 96.1 percent. The Minister of Education and Science has issued an order to eliminate the delays and is implementing it. Additional kindergarten enrollment was organized and 26,447 children enrolled, and the pre-school enrollment rate was 78 percent. During the 14 days of the change in the start time of 59 schools, traffic congestion was disrupted at 08:00 in the morning”

There are 340 trade areas in public space

The Governor of the Capital City instructed relevant officials to determine trade areas in public space and to develop a landscaping assignment. M.Shijirbayar, Deputy Director of the Urban Development Department of the Capital City said "340 trade areas and services have been determined in nine districts of the capital city.

Rules of the Capital of Ulaanbaatar is being developed

G.Batzorig, Head of the Land Management Department of the capital city said “We have included 74 development projects in our plan to resolve the issue of land allocation and issue land certificates and conclude contracts within the framework of the Capital City Governor's Order on Intensifying Investment Work. Of these, 31 are roads, 22 are school and kindergarten buildings, eight are engineering networks, and 13 are other works. Senior Adviser in charge of Administration and Legal Affairs of the Capital City Governor D.Munkh-Erdene said “There is a working group on the city rules. The first draft will be presented at a regular meeting in March”

Demolition of 4860 garages planned

Head of the Land Management Department of the Capital City G.Batzorig introduced the demolition process of fences and garages. 457 violations are planned to be eliminated at 63 locations in the Baga Toiruu area. Land acquisition will begin on March 15”

Following instructions were given to the city officials:

-To improve control and timely manner of investment projects and activities to be implemented in 2022 with the state and capital city budgets, local development funds, and other sources.

-To inform citizens about the new electricity, heating, and sewerage networks and landscaping and construction works being invested and constructed this year.

-To monitor the safety of school and kindergarten gymnasiums and playground equipment, and to organize activities to prevent injuries to children;

-To prohibit the use of sharp, sharp-edged, or unsafe tools and equipment that may cause injury to children, and, if necessary, install a barrier, guard, and appoint a supervisor.

-To take necessary measures to prevent children from being involved in road and traffic accidents in kindergartens, schools, and public streets and roads.

-To ensure unimpeded access to public transport on the first lane of the road, to impose a fine to drivers who block bus stops, and deduct points for violating the traffic rules.

-To paint road signs and markings in the territory of the capital city, to construct dams, storm water drainage networks, ravines, public land waste, and snow removal.

-Under the Capital City Governor's Order No. A / 1008 “On Establishment of a Working Group” for 2021, the relevant officials were instructed to develop the Capital City Charter following the law and introduce it to the regular meeting of the capital city officials.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

Gold extended its biggest weekly advance since July 2020 amid reports of the US and its allies contemplating an embargo of Russian oil, raising concerns about higher inflation and slowing economic growth.

However, the metal eased back after a spokesperson for the German government said it was against entering into the next sanctions spiral, possibly signaling disunity when it comes to the oil ban. The US is considering whether to act without help from its allies in Europe, according to Bloomberg sources.

Spot gold was up 0.3% by noon ET, trading at $1,982.16 an ounce after surpassing the $2,000 level for the first time in 18 months. US gold futures gained 0.8% to $1,982.60 an ounce.

Meanwhile, benchmark real Treasury yields have fallen deeper into negative territory in recent weeks, as expectations for higher inflation and lower growth are priced in, making non-interest bearing gold more attractive.

The precious metal has rallied even as the dollar rose to the highest since July 2020, a sign of its investment appeal as a haven.

Any escalation of the war “could push the world economy toward a stagflation scenario, which we see as very bullish for gold,” Carsten Menke, head of next generation research at Julius Baer Group, wrote in a Bloomberg note.

“Investors who see the potential for worsening could seek some protection in gold, but need to be aware that prices will likely retreat if their assumption does not hold true,” Menke added.

Investors in both exchange-traded funds and futures are now upping their bullish bets. Inflows into ETFs last week took holdings to the most in almost a year, while the net-long position of hedge funds trading the Comex are now the highest since August 2020.

(With files from Bloomberg)

The war in Ukraine will deliver a shock to the global supply and cost of food, the boss of one of the world's biggest fertiliser companies has said.

Yara International, which operates in more than 60 countries, buys considerable amounts of essential raw materials from Russia.

Fertiliser prices were already high due to soaring wholesale gas prices.

Yara's boss, Svein Tore Holsether, has warned the situation could get even tougher.

"Things are changing by the hour," he told the BBC.

"We were already in a difficult situation before the war... and now it's additional disruption to the supply chains and we're getting close to the most important part of this season for the Northern hemisphere, where a lot of fertiliser needs to move on and that will quite likely be impacted."

Russia and Ukraine are some of the biggest producers in agriculture and food globally.

Russia also produces enormous amounts of nutrients, like potash and phosphate - key ingredients in fertilisers, which enable plants and crops to grow.

"Half the world's population gets food as a result of fertilisers... and if that's removed from the field for some crops, [the yield] will drop by 50%," Mr Holsether said.

"For me, it's not whether we are moving into a global food crisis - it's how large the crisis will be."

His company has already been affected by the conflict after a missile hit Yara's office in Kyiv. The 11 staff were unharmed.

The Norwegian-based company isn't directly affected by sanctions against Russia, but is having to deal with the fall-out. Trying to secure deliveries has become more difficult due to disruption in the shipping industry.

Just hours after Mr Holsether spoke to the BBC, the Russian government urged its producers to halt fertiliser exports.

He pointed out that about a quarter of the key nutrients used in European food production come from Russia.

"At the same time we're doing whatever we can do at the moment to also find additional sources. But with such short timelines it's limited," he said before the news emerged.

Analysts have also warned that the move would mean higher costs for farmers and lower crop yields. That could feed through into even higher costs for food.

Huge amounts of natural gas are needed to produce ammonia, the key ingredient in nitrogen fertiliser. Yara International relies on vast quantities of Russian gas for its European plants.

Last year, it was forced to temporarily suspend production of about 40% of its capacity in Europe because of the spike in the price of wholesale gas. Other producers also cut supplies.

Combined with higher shipping rates, sanctions on Belarus (another major potash supplier) and extreme weather - this prompted a big jump in fertiliser prices last year, adding to a surge in food prices.

The company says it's making day-to-day evaluations on how to maintain supply and that it is too early to say if more shutdowns may be on the cards.

It acknowledges it has a "very strong obligation" to keep production running at what it describes as a critical point.

But Yara's boss says the world must, in the long-term, reduce its dependency on Russia for global food production.

"On the one hand, we're trying to keep fertiliser flowing to the farmers to keep up the agricultural yields.

"At the same time... there has to be a strong reaction. We condemn the Russian military invasion of Ukraine so this is a dilemma and one that frankly is very difficult."

Climate change and growing populations had already been adding to the challenges the global food production system faces - all before the pandemic started.

The Yara International chief executive describes the war as "a catastrophe on top of a catastrophe", highlighting just how vulnerable to shocks the global food supply chain now is.

It will increase food insecurity in poorer countries, he adds.

"We have to keep in mind that in the last two years, there's been an increase of 100 million more people that go to bed hungry... so for this to come on top of it is really worrying."

The Government of Mongolia recently made a decision to establish the Foreign Investment Agency. By establishing the agency, policy and planning as well as investors will be connected with large-scale construction projects and other sectors. Furthermore, the rights and legal interests of investors will be more protected. The agency will be in charge of stabilizing the investment environment and provide investors with support and services, highlighted Deputy Minister of Justice and Internal Affairs B.Solongoo during a discussion that took place at the Mongolian National Chamber of Commerce and Industry (MNCCI).

Co-organized by the Ministry of Justice and Internal Affairs and the MNCCI under the topic, ‘Pressing issues in the legal environment for investment, and necessity for reform’, the discussion was attended by officials of the newly established Ministry of Economy and Development, the General Authority for State Registration, and the Immigration Agency of Mongolia, and representatives of organizations such as the World Bank and the Business Council of Mongolia.

Informing that a working group has been established at the ministry to amend the Law on Investment, Deputy Minister B.Solongoo stressed the importance of clearly defining the legal environment for foreign investors to run businesses in Mongolia and have fair, mutually beneficial partnerships with domestic entities. She then highlighted the necessity to appropriately define the country’s foreign investment policy and ensure its stable implementation.

As for representatives of entities and businesses, they informed the Deputy Minister about how certain regulations of laws have yet to be implemented due to the lack of correlation with other laws, and noted the necessity of ensuring their implementation.

The business owners agreed with the government officials about how it has become necessary to resolve the pressing issues of the country’s legal environment on investment.

During the discussion, the participants also discussed looking at the issue on a wider scale by taking other corresponding laws into account, and increasing investment in sectors other than mining. In particular, investment in sectors such as IT, transport and logistics, and energy should be promoted alongside creating correlation between policy and legislation through the approval of the unified policy on foreign investment, they noted.

Suggestions were also put forth concerning issues such as foreign workers quota, issuance of visas and residence permits, active promotional works aimed at foreign investors, and facilitation of the process to register an entity with foreign investment.

Mongolian cardiac surgeons operated two kids from Kyrgyzstan in Ulaanbaatar on February 21-22.

Children returned home yesterday. They were met upon arrival in airport by Health Minister Alymkadyr Beishenaliev. All expenses were covered by Mongolian side.

"We arrived in Mongolia on February 20. Bilal was operated on February 21. My son Dastan was operated on February 22. They were discharged from hospital in a week, but children remain under medical observation. They feel well. Airfare, meals, accommodation, surgeries were covered by the Mongolian side. All that was free for us. I am grateful to Mongolian doctors," Gulzat Toktomusheva, mother of one of the operated boys, said.

The kids were selected by the National Cardiac Surgery and Organ Transplantation Research Institute. Both of them had one of the most common congenital heart defects - atrial septal defect.

"The surgeries were successful. Children with such heart defect do not need a long rehabilitation. They will be absolutely healthy in 2-3 months. Mongolian surgeons plan to make several more similar operations. The National Cardiac Surgery and Organ Transplantation Research Institute works on other cooperation projects," Health Minister Beishenaliev said.

The Mongolian surgeons from the National Organ Transplantation and Cardiovascular Surgery Center visited Kyrgyzstan from February 2-7. They examined children from poor families. Two children were operated by them in Bishkek together with surgeons of the Kyrgyz Cardiac Surgery and Organ Transplantation Research Institute.

Last year, Mongolia’s officials confidently promised a “COVID-free summer”; however, the plan has failed.

On 14 February, 2022, Mongolian Government scrapped almost all remaining Covid-19 restrictions, but keeping face mask, hand sanitizing and the one-metre rules. Majority of measures that have been in place for almost three years are now lifted.

And as we begin to finally inch past the Omicron winter surge that infected hundreds in the past few months, many Mongolians are looking forward to the promise of a post-pandemic summer, free from mask mandates and social distancing.

COVID-19 infections are decreasing in Mongolia, with 200-400 new infections reported on average each day. There is 9% of the peak at the highest daily average reported on September 7, 2021.

There have been 465,326 infections and 2,173 coronavirus-related deaths reported in the country since the pandemic began.

The Law on Virtual Asset Service Provider and accompanying laws (adopted on December 17, 2021) were published in №6 of the Government Information bulletin on February 14, 2022. The above-mentioned laws entered into force from March 1, 2022 according to Paragraph 26.3 of the Constitution of Mongolia.

Accordingly, legal entities shall not provide virtual asset services without registering with the Financial Regulatory Commission of Mongolia. Please note that legal entities that are not registered as virtual asset service providers by the FRC, shall be subject to liabilities specified in related laws, if they offer virtual assets to the public, organize trading activities, participate in financial activities, and/or provide services.

Please click the links below to see the details.

The Law on Virtual Asset Provider

Amendments to the accompanying laws

Source: Financial Regulatory Commission