On April 08, 2022, the Union Cabinet has approved the proposal for signing a bilateral Memorandum of Understanding (MoU) between Securities and Exchange Board of India (SEBI) and Financial Regulatory Commission, Mongolia (FRC).

Major impact:

FRC, like SEBI, is a co-signatory to International Organization of Securities Commissions’ Multilateral MoU (IOSCO MMoU). However, the IOSCO MMoU does not have under its scope the provision for technical assistance. The proposed bilateral MoU would, in addition to contributing towards strengthening the information sharing framework leading to effective enforcement of securities laws, also help in establishing a technical assistance programme. The technical assistance programme would benefit the Authorities by way of consultations on matters relating to capital markets, capacity building activities and training programmes for the staff.

The Bank of Russia is lifting temporary capital control measures that banned individuals from buying foreign currency, the central bank said in a statement on its website on Friday.

Starting April 18, Russian citizens will once again be allowed to buy foreign currency at banks, as well as withdraw funds from their foreign currency accounts in both US dollars and euros up to $10,000 or its equivalent in euros, while amounts above this limit can be withdrawn in rubles. This limit is in place until September 9. The central bank noted that banks are only allowed to sell foreign currency banknotes that they received after April 9, 2022.

The regulator also scrapped the previously introduced 12% commission for buying hard currency through brokerages.

Last month, Russia placed restrictions on buying and withdrawing foreign currency to stem the drop in the ruble, which slid to historic lows after a number of Western nations slapped Russia with sanctions in retaliation for Moscow’s military operation in neighboring Ukraine.

However, the national currency strengthened significantly over the past week after Russia unveiled a new ruble payment mechanism for natural gas exports. Also helping the ruble regain ground were the central bank’s restrictions on buying forex and a requirement that exporters convert to rubles 80% of their foreign currency revenues. On April 8, the Russian currency reached its strongest level against the US dollar since November 2021, at 72 rubles to the dollar, and broke below 78 rubles to the euro for the first time since the summer of 2020.

Apart from easing capital control measures, the Bank of Russia also cut its key rate on Friday to 17%, following a recent unprecedented hike to 20%. The central bank explained that the emergency steps taken to support the country’s economy throughout the past month had been successful. According to VTB Capital analysts, this week’s moves by the regulator are likely to further reduce volatility in the ruble.

Science Magazine reports that a genetic study conducted by an international team of researchers has revealed that a group of warriors known as the Avars traveled quickly from Mongolia to Europe some 1,500 years ago.

The scientists from the Max Planck Institute for Evolutionary Anthropology, analyzed the genomes of Avar elites whose remains were found in 27 sites in what is now Hungary.

The study found that DNA from the oldest of these burials was nearly identical to that of an individual who had been buried in eastern Mongolia several decades earlier.

“The DNA is so close it’s got to be within one generation, or less,” said Choongwon Jeong of Seoul National University.

DNA samples from the graves of Avar elites dated 200 years later retain a strong East Asian signature, although without signs of inbreeding, indicating that the population was large, or that additional migrants from Mongolia continued to arrive in Europe, added Walter Pohl of the University of Vienna.

The study also suggests that the non-elite living away from the Avar capital probably mixed with the local population. The Avars were eventually defeated by Charlemagne in the late eighth century.

The ‘Mongolia Economic Forum-2022’ is continuing for the second day today, with one of the discussions taking place on the revival of the tourism sector.

It is fully possible to develop winter tourism in Mongolia, highlighted the Minister of Environment and Tourism. “Aside from receiving foreign tourists during the summer, by renovating and upgrading domestic airports, the number of tourists attending the main tourism events in winter will increase,” said Minister B. Bat-Erdene.

Noting that there are many opportunities to support the development of tourism in the country through measures such as promoting the sales of wool and cashmere products during the season, and introducing deals and discounts for accommodation rates and admissions to museums, he then informed that the Ministry will be working together with the Mongolian Tourism Association on this matter.

“It is also important to develop transit transportation for the aviation sector. For instance, flights between Europe to Australia usually have a layover - there is an opportunity for this layover stop to be in Mongolia. The forum will discuss the potential to develop tourism through transit transport today.

If these opportunities are properly utilized, Mongolia is estimated to annually earn USD 20 million (MNT 60 billion) from international flights. As this will require lifting the visa requirements for travelers from over 10 countries such as Japan and South Korea, the Ministry will submit this issue for discussion by the Cabinet,” said the Minister.

At the plenary session of the Parliament on April 7, a draft resolution on ‘Establishment of Khushig Valley Free Economic Zone’ was approved.

The resolution states the establishment of a ‘Khushig Valley Free Economic Zone’ based on the new Chinggis Khaan International Airport in Sergelen soum, Tuv aimag, and sets the zone’s area to be 1,000 hectares, reflecting its geographical location and the boundary coordinates.

Between April 7 and 8, young Mongolians with no political affiliation gathered at Sukhbaatar Square in the capital of Ulaanbaatar for a peaceful protest, demanding the current government change a number of policies. Their messages varied from concerns about the economy to general social dissatisfaction with taxation, job opportunities, allocation of resources, inflation, and an independent judiciary that can provide checks-and-balance for parliamentarian’s financial report.

According to some of the protesters, after the peaceful protest disbursed on April 7, about 20 individuals were caught by the police and beaten. This happened around 4 a.m. Pictures of multiple police officers stomping on an individual went viral, sparking social media outrage. Participants in Mongolia’s youth movement do not believe that the police should use violence to maintain order, especially in a democratic society.

On April 8, more protesters turned out to oppose police brutality, marking one of the biggest peaceful protests among Mongolia’s youth since the beginning of the COVID-19 pandemic. As the crowd, including thousands of students, represents a variety of messages, it’s likely that the older generation will begin to join this developing movement, since many of the economic concerns touch all generations. One protest message stated, “Want to become a producer country not an importer.”

While the youth movement was taking place, the government was organizing an economic forum, which has been canceled two years in a row due to COVID-19. The timing of the two events is serendipitous; however, the government is not taking the youth dissatisfaction lightly. As the protest crowd on April 8 surpassed the previous day, Prime Minister Oyun-Erdene Luvsannamsrai spoke to the youth and agreed to convene an extraordinary session to meet their demands.

Thirty years into democratization, Mongolia has experienced a number of pop-up protests, decrying issues ranging from air pollution, election, mining, economy, and inhumane treatment of civilians. In one of the most notable recent incidents, protests against mistreatment of COVID-19 patients resulted in the shock resignation of the prime minister.

This current protest marks a potent force, because the youth taking to the street are nonpartisan, without any specific political agenda. Many of the protesters simply feel the government is not fulfilling its duties, such as providing economic prosperity, equal job opportunities, health, and wellness for its youth. An overriding demand is to alter government policies in order to promote and support the youth as opposed to the conglomerates that have benefitted from the government for decades.

The voice of the youth and their peaceful protests have historical resonance for Mongolia’s democracy. On April 8, as the sun set on Sukhbaatar Square – where once upon a time, thousands gathered to overthrow socialism in Mongolia – the younger generation of Mongolians sang the national anthem, waving their arms in a peaceful protest.

GUEST AUTHOR

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.

On April 7, 2022, State Councilor and Foreign Minister Wang Yi had a phone conversation with Mongolian Foreign Minister Batmunkh Battsetseg at the latter's request.

Wang Yi said, not long ago, Prime Minister Luvsannamsrai Oyun-Erdene made a special trip to China to attend the opening ceremony of the Olympic Winter Games Beijing 2022. During the meeting with Oyun-Erdene respectively, President Xi Jinping and Premier Li Keqiang reached important consensus with him, injecting new impetus into the development of bilateral relations. The more turbulent the international situation is, the more China and Mongolia, as close neighbors, should strengthen communication, enhance mutual trust and deepen cooperation.

Battsetseg completely agreed and said the Mongolian side is ready to work with China to implement the important consensus reached by the leaders of the two countries, keep close exchanges at all levels and strengthen communication and cooperation in various fields. The Mongolian side looks forward to giving full play to the Mongolia-China "green lanes" to further improve port operation capacity and shipment, and effectively cope with the negative impact caused by the spillover of the Ukraine crisis and the COVID-19 pandemic.

Wang Yi said that as good neighbors and friends, China and Mongolia have always stuck together through thick and thin and overcome difficulties together, and that China is willing to strengthen cooperation with Mongolia on recovery and boost Mongolia's economic and social development. Recently, the "green lanes" between China and Mongolia have been reopened, and positive progress has been made in railway transportation, road freight, customs clearance and energy and mineral trade. China is willing to work with Mongolia to speed up the construction of the China-Russia-Mongolia Economic Corridor and promote the connectivity of railway lines between China and Mongolia. China will continue to provide Mongolia with anti-pandemic materials and equipment, support Mongolia's efforts in pandemic prevention and control and ensure the smooth operation of the border ports.

The two sides agreed to continue to firmly support each other in safeguarding sovereignty, security and development interests, avoid external interference and promote the sound and stable development of bilateral relations. Battsetseg said, Mongolia respects China's core concerns, and will as always handle its religious affairs independently.

The two sides also exchanged views on multilateral affairs. Battsetseg appreciated China's sense of responsibility as a major country in the joint fight against COVID-19 and the Ukraine crisis, and spoke highly of China's commitment to promoting peace talks, resolving differences and providing humanitarian assistance. Wang stressed that the spillover effects of the Ukraine crisis have an impact on the normal economic and social operation of all countries, and Asian countries should strengthen communication and coordination to jointly safeguard regional peace, stability and development.

April 9 (Xinhua) -- Strong winds and yellow dust storms are hitting large parts of Mongolia, the country's National Agency for Meteorology and Environmental Monitoring said Saturday.

The storms have swept through the southern provinces of Umnugovi and Dundgovi, the western provinces of Govi-Altai and Bayankhongor, and central areas, such as the capital city Ulan Bator and provinces of Uvurkhangai and Tuv, as well as the eastern provinces of Khentii and Sukhbaatar, the agency said in a statement.

The volatile weather is expected to continue in large parts of the country in the coming days, with the wind speed expected to reach 18-24 meters per second, the agency said, warning citizens, especially nomadic herders, to take extra precautions against possible disasters.

Strong winds, yellow dust and snow storms are common weather events during spring in Mongolia.

Ten people as well as hundreds of thousands of livestock died in Mongolia due to strong winds and heavy dust storms in March 2021.

In purely geographical terms, in relation to Ukraine, Mongolia lies on the far side of Eurasia. But Mongolians have enduring ties with Ukraine and Russia that are evident in their responses to and engagements with the Russian invasion.

Recently, the Mongolian government has strengthened ties with Russia through top-level diplomatic meetings and infrastructure agreements – and it has maintained official neutrality in the conflict, abstaining in the two UN General Assembly votes naming and condemning the Russian invasion of Ukraine. There have also been, despite initial suppression by police, growing demonstrations of support for Ukraine, which feature not only Ukrainian national symbols but Mongolian ones as well.

Strong historical and systematic links

Mongolia is still in Russian-language contexts referred to as the ‘sixteenth Republic’ (of the former USSR) causing many in the country to identify with the Ukrainian commitment to independence from Russia. As evidenced by the ‘sixteenth Republic’ label this independence is still all too often not recognised by Russian counterparts, with whom Mongolian and Ukrainians’ history, social networks, and critical physical infrastructures are deeply entangled.

Ukrainian President Zelenskyy himself spent part of his childhood in the Mongolian city of Erdenet, where his father was involved in the establishment and early years of the Erdenet mining and metallurgical complex. At the time, this complex was the largest open pit mine of any kind in Asia, shipping copper concentrates directly to smelters in Kazakhstan and producing molybdenum necessary for high-grade steel alloys.

While maintaining ‘strategic partnerships’ with its two neighbours, Russia and China, Mongolia has also pursued a ‘third neighbour’ policy.

Since the first democratic elections following a student-led Democratic Revolution in 1989-1990, Mongolia has built a system of wide-ranging international relationships. While maintaining ‘strategic partnerships’ with its two neighbours, Russia and China, Mongolia has also pursued a ‘third neighbour’ policy, maintaining strong relations with the United States and NATO countries, including fellow former members of the Warsaw Pact.

Mongolians in support of Ukraine

Up until 2020, since the hunger strike of 1989-1990 that pushed the Mongolian Politburo to call for elections, there had been a vigorous tradition of frequent demonstrations on Ulaanbaatar’s capacious Sukhbaatar Square. Situated in front of the main government building, where the parliament now assembles and which until 2005 hosted the mausoleum of ‘Mongolia’s Lenin’ Damdin Sukhbaatar and ‘Mongolia’s Stalin’ Khorloogiin Choibalsan (nearly identical in appearance to Lenin’s Mausoleum on the Red Square).

However, since the parliamentary and presidential elections of 2020 and 2021, which solidified the political dominance of the Mongolian People’s Party (the rival of the Democratic Party founded by the 1989-1990 student demonstrators), the ensuing restrictions have affected the number of protests. The party enforced lengthy Covid-19 lockdown measures and the arrest of several prominent demonstrators-. While this resulted in demonstrations becoming smaller and less frequent, this has completely changed since the invasion of Ukraine.

The Mongolian government had lifted all Covid-related measures restricting assembly on 14 February. And on 28 February, a group of about twenty demonstrators assembled on Sukhbaatar Square with a long yellow and blue banner representing the flag of Ukraine. They were confronted by police and members of ultranationalist groups.

In the following days, a Ukrainian flag appeared on the storage silos of Altan Taria, a major Mongolian flour producer. According to a few Twitter users, the Mongolian police then visited Altan Taria. But all in vain, since the beginning of March, demonstrations have continued without reports of direct interference by police. Demonstrations were carried out on the square in front of the State Drama Theatre, diagonally adjacent to the Sukhbaatar Square.

Tough balancing act

On 25 March, demonstrators assembled at the Russian Embassy in Mongolia, also in the centre of Ulaanbaatar, a few blocks west of Sukhbaatar Square, calling for the Russian ambassador to Mongolia to leave the country. Apart from the Ukrainian flag, these demonstrators were also carrying the Mongolian, Buryat, Kalmyk, and Tuvan flag.

The demonstrations beginning on 25 March were precipitated by posts by the Twitter and Facebook accounts of the Russian Embassy to Mongolia days prior, which directly challenged ‘the Mongolian Democratic Party and other supporters of American liberal hegemony’ and cited former Trump adviser Roger Stone’s comments that there were American-funded ‘bio-labs’ in Ukraine.

There have been reports that Russian forces have been disproportionately made up of soldiers from these and other of the Russian Federation’s poorest, ‘ethnic’ republics.

The latest phase is characterised by demonstrations asserting not only the independence and sovereignty of Ukraine, but also of Mongolia, and solidarity with the republics of the Russian Federation that have often been included in pan-Mongolian formations, Buryatia, Kalmykia, and Tuva. There are reports that Russian soldiers are disproportionately recruited from these and other of the Russian Federation’s poorest, ‘ethnic’ republics.

There’s a certain overlap between these protesters and Mongolians who have voiced their support for ‘neutrality’, or even more strongly for the Russian government or Putin. Their statements are also often accompanied by concern about Mongolia’s independence vis-à-vis China, or knock-on effects to the Mongolian economy that have already been felt as a result of sanctions against Russia: foreign currency has been nearly unavailable in Mongolia in recent days, and international flights, already heavily reduced because of Covid-19 restrictions, have been even further restricted as Europe-based lessors bar their planes from entering Russian airspace.

by Marissa J. Smith

April 6 (Xinhua) -- Mongolia's economic growth is expected to stay muted in 2022, constrained by high inflation, persistent trade disruptions, tighter external financing conditions and complex geopolitical risks in 2022, said an Asian Development Bank (ADB) report released on Wednesday.

The Asian country's economic growth is projected to expand 2.3 percent in 2022 before climbing to 5.6 percent in 2023, supported by domestic demand, investment, and recovery in industry, agriculture and services, the ADB said in its flagship annual economic report, Asian Development Outlook 2022.

"Previously, the ADB forecast that Mongolia's economy would grow by 5.7 percent in 2022. However, the continued border restrictions caused by the COVID-19 pandemic and an ongoing geopolitical conflict that began on Feb. 24 has been affecting not only the Mongolian economy but also the regional and global economic growth," said Sandagdorj Bold, a senior economics officer of the ADB.

Persistent high inflation and continued trade disruptions limit monetary and fiscal room, requiring a comprehensive macroeconomic policy adjustment plan to safeguard the economy, the ADB said.

Average inflation in Mongolia will accelerate further to 12.4 percent in 2022 as supply shocks and trade disruptions continue, and significantly higher fuel prices translate into higher business costs, according to the bank.

Under the impact of the COVID-19 pandemic and subsequent border closures, Mongolia's economy contracted by 4.6 percent in 2020 and expanded by an anemic 1.4 percent in 2021