At the regular meeting of the Cabinet dated March 2, Minister of Energy N.Tavinbekh presented the progress of the Erdeneburen hydropower plant project, which is being implemented as part of the ‘New Revival Policy’.

The Ministry of Energy signed a turnkey contract with the project’s contractor last September to ensure the timely construction of the Erdeneburen 90 MW hydropower plant. Construction of the plant will begin on April 1 and be completed within 61 months.

The western region where more than 390 thousand people reside imports 75 percent of its energy needs from Russia and China, which means it uses five or six times expensive energy than that being produced at Durgun HPP. The establishment of the hydropower plant will create the possibility to provide the country’s western region with domestically produced energy.

At the Cabinet’s regular meeting, Minister of Finance gave updates on budget funding earmarked in the law on 2022 Budget and procurement for the projects and actions.

Bids have been announced for 575 or 80.3 percent of the 716 projects and actions to be implemented with funding from the budget, but not for 141 projects and actions.

Budget governors were ordered to make the procurements arrangements for the 575 projects and actions with promptitude and establish contracts by April 1, 2022.

At its regular meeting on March 2, the Cabinet approved the Bill to amend the Law on Procurement of Goods, Works and services with State and Local Funds and decided to submit it to the State Great Khural for a very urgent consideration.

The amendments propose that projects and actions on the list of development projects to be implemented as part of the New Revival Policy be processed with the establishment of contracts and not to follow the law if less than 30 percent of the funding for a project or an action is provided from a state owned or state controlled enterprise.

It has become possible to make procurement arrangements online and retrieve necessary information from state databases. Therefore, the proposed amendments also include the reduction of the timeframe for the client to make a decision and establish a contract from 30 days to 15 days.

As there are times when the budgeted cost rises beyond the control of the client or the contractor for some long-term projects and actions, an amendment enables to increase the contract price if the budgeted price has been renewed.

The client can establish a contract with a term of up to three years upon reaching agreement of the price per unit and other terms for the procurement of goods and products in regular demand. To reduce the financial burdens on the bidding individuals or companies, a reduction of the tender guarantee amount is also proposed.

Due to the international situation, the number of international flights over the Mongolian territory have decreased by 50 percent, said S. Munkhnasan, chief of the Civil Aviation Authority.

At the Cabinet meeting on March 2, he introduced about the establishment of air freight logistics center and improvement of air freight circulation. At the press briefing following the cabinet meeting, he said, “In 2019 there were about 500 flights a day flying over the territory of Mongolia, but fell to 150 during the pandemic. It rose back to about 200 flights at the end of last month, but has fallen by about 50 percent in the last three days, which connects with restrictions on airspace by countries.

A draft of general procedures on trade and services in the capital city is being developed, and polls are open for relevant organizations, citizens, businesses, and NGOs for suggestions. We had an interview with Head of the Food and Agriculture Department of Ulaanbaatar T.Zoljargal on the motives for updating the procedures and the regulations that are being renewed.

-Why the general procedures on trade and services in the capital city have been changed?

-The procedure has been renewed several times since 2004. Recently, in 2019, certain provisions were renewed and approved by the City Council. In the past, our general service procedures were considered legally incompetent. With the amendment of the Law on Legal Status of Ulaanbaatar City on January 1, 2022, the opportunity has been opened up for the capital city to approve and enforce common service procedures. Therefore, it has been redesigned. A working group with 27 members consisting of representatives from the government, private sectors, and citizens is preparing to get approval for the draft procedure next month.

-What new changes are included in the draft procedure?

-Several changes have been made over time. A number of changes have been made in connection with the allowance to conduct 74 types of trade and services without permission in the capital city. There have been changes in the regulation of markets and shopping centers and in the e-services of online centers. This is an advantage over the previous general procedure.

-Trade services provided in the capital city were divided into 18 categories. These include convenience stores, exhibition halls, outlets, and boutiques. Also, includes all kinds of services such as seasonal tent trade and recycling points?

- Yes. It covers all areas of trade and services which have been emerging in the last 4-5 years. The convenience store standard has been added to the 2019 trade and service standard. Trade and service providers are also adapting to new services. The standard includes convenience stores, wireless internet, self-service fast food chains with standard heating and refrigeration equipment. International stores, large national chain stores offer convenience store services. Retailers are also moving their services to the convenience store standard.

-Convenience stores are mainly located in the city center. How do you focus on providing a service to ger district residents?

-According to the research, in the last two years, large supermarkets have sprung up in the suburbs due to the pandemic. There are a lot of convenience stores in the suburbs. A network of convenience stores is growing in ger districts. In the future, our department is working on a plan to introduce convenience store service in ger districts.

-The range of household services includes moving services and cleaning households and offices. Although it is widely used in foreign countries, is there a license, requirements, and standards for this service that is becoming more and more popular in our country?

-There are no approved standards and permits for moving services and cleaning services for households and organizations. We have started to get feedback from relevant organizations. Based on that proposal, standards will be developed and get approved. This type of service requires responsibility and standards.

-There is a fee for using the toilets of trade and service organizations. Does it seem new to make it free of charge in the newly developed common service regulations?

-Another provision added to the public service regulations is to make service toilets free of charge. It may seem simple, but we have to focus on meeting basic human needs. It's time to introduce this service, which is not common in our country. A business organization can attract customers only if it introduces a comfortable and humane service. Today, there are 18,664 business entities operating in the capital city. Whoever is able to create a comfortable environment for customers, offer favorable prices and provide satisfactory services, the organization's business will expand. Therefore, organizations and companies must pay attention to the operation and cleanliness of public toilets in order to attract customers.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

SHANGHAI, March 3 (Reuters) - Russia's invasion of Ukraine and the imposition of tough sanctions on Moscow has put landlocked Mongolia in a tight spot economically and diplomatically, and experts warn that its delicate balancing act between East and West could be upset.

On Tuesday, a small group of protesters gathered on Ulaanbaatar's Sukhbaatar Square to call for an end to hostilities in Ukraine, only to be confronted by residents worried about antagonising Russia.

The stand-off reflected the faultlines in a country that underwent a democratic transition in 1990 following decades of Soviet hegemony, and now worries about the growing regional dominance of China.

Surrounded by Russia in the north and China in the south, Mongolia has cultivated allies such as Japan, South Korea and the United States in a "third neighbour" diplomatic strategy aimed at reinforcing its political independence, but its economy has continued to rely on its two giant neighbours.

Mongolia's central bank warned at the start of the week that most of its foreign trade is facilitated through Russian banks and it sources nearly all of its oil from its northern neighbour, which is now facing international isolation.

Bank Governor Lkhavgasuren Byadran warned there were risks that payments could not be made, and deliveries of food and consumer goods from Europe also faced disruption.

“We are too dependent on Russia and it will hit us in many aspects, not only petrol," said Sumati Luvsandendev, a Mongolian political analyst and opinion pollster, noting that Mongolia sourced large amounts of grain from Russian suppliers.

"Our banks are reliant on transfer through Russian banks so SWIFT will hit our import-export operations as well," he said.

Mongolia also remains one of the few remaining member countries of the Russia-led International Bank for Economic Cooperation and the International Investment Bank, following the withdrawal of five European nations on Wednesday. read more

SANDWICHED

By making Russia more dependent on China as a market for its raw materials, the crisis in Ukraine could undermine years of Mongolian efforts to escape from its neighbours' shadow.

"For a country like us, sandwiched between two giants, a landlocked but extremely open economy relies on smooth border trade," said Otgochuluu Chuluuntseren, economist and former government official. "The situation was tense anyway. Now, this war has made the Mongolian economy even more troubled."

Following a decision by Germany to cancel the Nord Stream II gas pipeline, Mongolia is also likely to become more strategically important for Russia's energy-dependent and increasingly east-facing economy.

Mongolia signed an agreement this week to build the Mongolian section of a transnational gas transmission project aimed at supplying 50 billion cubic metres of Russian gas to China, known as Power of Siberia 2.

Mongolia has usually tried to keep out of geopolitical disputes. It did not comment on Russia's decision to send troops to Kazakhstan to help quell protests last year, or on the U.S. withdrawal from Afghanistan – even though its own soldiers have been deployed there.

So far, it has stayed silent over the invasion of Ukraine, and it was one of 34 countries to abstain on a U.N. resolution demanding the withdrawal of Russian troops on Wednesday.

“The current leadership... is disinclined to rustle Putin or Xi's feathers," said Julian Dierkes, an expert in Mongolian politics at the University of British Columbia.

But it could come under pressure to take sides in an increasingly polarised geopolitical conflict, especially if Moscow – ostracized by Europe and the West – pivots eastwards.

"I used to think that Russia didn't really pay enough attention to Mongolia to be upset, but in the current circumstances that may not be the case," said Dierkes.

The more it is forced to take sides on issues like Ukraine, the less room for manoeuvre Mongolia will have when it comes to its strategy aimed at counterbalancing Russian and Chinese economic and political influence through the cultivation of "third neighbours" like the United States and Japan.

"Regarding our third neighbours, we hope that they understand our unique situation," said Otgochuluu. "Mongolia is committed to universal values of freedom and democracy. But its economy is not self-sufficient."

Reporting by David Stanway in Shanghai; Additional reporting by Anand Tumurtogoo in Ulaanbaatar; Editing by Simon Cameron-Moore

Japan is one of the few countries that contributed to Mongolia’s development not only financially but by contributing to tangible assets. In 1993, Japan provided technical assistance in railway transportation rehabilitation projects, the rehabilitation of a thermal power plant in Ulaanbaatar, and Baganuur coal mine. By 1996, Mongolia and Japan set a goal to build a comprehensive partnership. Most recently, Mongolia constructed its second international airport, located in Khoshig Valley, which required $493 million in investment.

Furthermore, Japan has become a favorable destination for Mongolian students, scholars, and intellectuals to study abroad. As of 2022, there are around 4,500 Mongolian students who have studied in Japan’s leading universities, such as Tokyo University and Kyoto University.

In 2010, Japan became Mongolia’s strategic partner and signed the Economic Partnership Agreement (EPA). The EPA aimed to tackle legal and technical aspects of the trade, tax, customs, investment, intellectual property, and cyber trade as such.

This year, Mongolia and Japan’s is marking the 50th anniversary of establishment of diplomatic relations.

The commemoration of the 50th anniversary highlights the two countries’ consistent and friendly relations. Last week, the Foreign Ministry of Mongolia organized a symposium titled “The strengthening of Mongolia-Japan strategic partnership in business and economic development” and “Mongolia-Japan Strategic Partners-50, Years,” a photo exhibit that sheds light on the two countries’ bilateral relations.

Mongolia reports 323 new cases of COVID-19, including 169 in Ulaanbaatar and 154 cases in the regions.

The total number of cases has increased to 466,254.

533 hospitalized patients are in mild condition, 1,374 are in moderate condition, 169 are in serious condition, and 28 are in extremely serious condition.

1 death linked to the coronavirus was recorded per day raising the death toll from COVID-19 in Mongolia to 2,100.

On March 1, the Ministry of Energy and the Japan International Cooperation Agency (JICA) established a Memorandum of Cooperation on a project on improving the stability of the country’s power system and building capacity.

Over the course of three years, the two parties will be jointly organizing training to build the capacity of the sector’s engineers and technicians in the mid- and long-term, and carry out corresponding studies in the framework of the project. With this, the project aims to improve the stability of Mongolia’s power system by using renewable energy, and develop a ‘smart’ system for planning and regulating urgent works, creating more opportunities to increase renewable energy production.

The signing of the memorandum is considered to be significant in reaching the objective to have renewable energy sources to produce 30 percent of the country’s power demand by 2030, which is reflected in the ‘Vision-2050’ long-term development policy and the Government’s action plan for 2020-2024.

The ceremony was attended by Minister of Energy N.Tavinbekh, JICA Chief Representative in Mongolia Tamura Eriko, and other corresponding officials.

Previously, projects on modernization of the Fourth Thermal Power Plant, and improvement of its efficiency were previously carried out with soft loans and non-refundable aid through JICA.

Even without downplaying the shock and disappointment most felt when Russia invaded Ukraine, it is perhaps more disheartening how many astute and highly-respected analysts/academics around the world deftly argued for a strategy that should have worked but was roundly shoved aside by Western powers: pushing for and explicitly formalizing Ukrainian neutrality might have entirely avoided this 8-year morass that has engulfed Ukraine since the Crimean conflict.

Stephen Walt, even before the current incursion, lamented what he saw as Western hubris, wishful thinking, and liberal idealism as powering an arrogance that dismissed Russian security concerns even when they were fairly conservative and rational.

Anatol Lieven talked of a “golden bridge” left by Russia for the West to positively capitalize on…if only it would.

Hall Gardner pulled no punches in going all the way back to strategic mistakes made with the initial dissolution of the Soviet Union, but also emphasized how NATO’s strategy of “double enlargement” was basically a diplomatic thumb to the nose of Russia that should have been seen as causing inevitable blowback.

Pascal Lottaz, while still calling Russia a “rational crook,” astutely pointed out how it was impossible for Russia to not recognize NATO membership offerings to Ukraine and Georgia in 2008 as a direct provocation (or worse, confirmation of Western indifference to Russia), but also highlighted something many in the West have ignored: that failing to get Ukraine to implement the Minsk II agreement was tantamount to the West telling Russia that its strategic needs and opinions just didn’t matter.

Perhaps more importantly, Lottaz also highlighted something I have argued for more than 15 years: that Russia has always studied American international behavior carefully and will follow the realism-power principles it displays (note, this is different from the international governance normative principles America often publicly espouses). Consequently, for the current crisis in Ukraine, it matters to Russia that it can highlight an American display of invasive power backed by dubious provocation claims (Iraq), an American acknowledgement of territorial status change without larger international consent (Kosovo), or unilateral American recognition of border changes that resulted only through a non-internationally approved war (Golan Heights). While Lottaz went on, as the list can truly be made expansively if not exhaustively, the strategic relevance is unquestionable: as America behaves, so Russia feels justified in pursuing like-minded behavior aligned to its own security interests. That the West has routinely rejected this fact or simply ignored it seems based on the dubious idea that no one should have a problem with American actions because America deems itself the “good guy.” Russia, in this world view, is obviously the “bad guy” and therefore cannot be allowed to utilize the same strategic security largesse. Not surprisingly, Russia has always rejected this rather weak “good guy/bad guy” theory of international relations.

Which is why the concept of pushing for a formally recognized neutral Ukraine is so important. In the most basic of terms, it means Ukraine is off-limits to everyone. Russia would have no authority to forcefully assert its interest over Ukraine just because it is more powerful and the bigger regional player. The West would also be obligated to end all the flirtation (real and imagined) when it comes to Ukraine being part of NATO. Thus, just as Switzerland has been with so many major powers surrounding it historically in Europe and Mongolia in greater Asia, Ukraine would be an effective buffer state that is able to openly and prosperously engage both sides to its own advantage, but never for the purpose of setting both sides on edge and against each other. While the above-mentioned fine scholars have argued for quite some time as to the mutually beneficial nature of such a strategy, a nod of acknowledgment again has to go to Lottaz, who graciously recognized that in many ways, before the incursion, Russian policy on Ukraine pushed the basic structure of neutrality for years, but to no avail.

This fact leads to an uncomfortable diplomatic elephant in the room: if so many astute Western scholars can agree on a policy direction and some even explain how it likely aligns with professed Russian security perspectives, then why did the idea go ignored until after Russia actually felt compelled to invade? The answer to that awkward question is what needs greater examination and far greater airplay across international mainstream media. Arguably, this idea of Ukrainian neutrality went ignored because the West was simply unwilling to admit that it needed to let Ukraine be neutral. In other words, why let Ukraine go neutral (which would be to most a semi-acceptance of Russian priorities) when it could be brought at least symbolically into the Western fold (which delivers a much more satisfying slap to the Russian security/diplomatic face)? So, when one accepts that Russian policy on Ukraine since the 2014 Minsk II agreement has pushed for de facto neutrality and the precedent for accepting neutrality exists (Russia basically gives the same consideration for Moldova, Turkmenistan, and Mongolia within what it considers its natural sphere of influence), but that neutrality has never been seriously acknowledged by either Ukraine or the West, then it suddenly starts to be a little less murky as to why Russia might feel a more radical (and unfortunately more violent) maneuver was needed to get their attention.

The fact that the neutrality argument is finally being spoken by Ukraine and Russia to each other (even if it is still just the very beginning of bargaining at a formally-recognized negotiating table) and the West seems diplomatically amenable means three things for the global community: first, whatever the overall loss of life in Ukraine because of the incursion, it could have been easily avoided; second, this new status for Ukraine is likely the superior option not because it is the best for any one side but exactly because it leaves all sides a little dissatisfied but able to claim political contentment; third, it is finally time that all sides abandon their Cold War instincts when it comes to dealing with each other and start recognizing the need to establish a new 21st century relationship that isn’t stubbornly frozen onto the logic and suspicions of the 20th. That stubbornness sacrifices innocent lives and prevents innovative peace in favor of familiar discontent and mistrust. It is time the world became disenchanted with this familiarity.

BY: Dr. Matthew Crosston

Dr. Matthew Crosston is Executive Vice Chairman of ModernDiplomacy.eu and chief analytical strategist of I3, a strategic intelligence consulting company. All inquiries regarding speaking engagements and consulting needs can be referred to his website: https://profmatthewcrosston.academia.edu/