MINSK, 8 October (BelTA) –Belarus has handed over the first batch of firefighting, emergency response, and rescue vehicles based on MAZ chassis to Mongolia. The ceremony took place in Ulaanbaatar. Ambassador Extraordinary and Plenipotentiary of Belarus to Mongolia Stanislav Chepurnoi took part in it, the Belarusian Ministry of Foreign Affairs press service told BelTA.

The Belarusian vehicles were handed over to the National Emergency Management Agency of Mongolia. They represent the first batch of vehicles that have been delivered to the country as part of a bilateral intergovernmental agreement.

At the ceremony the Belarusian ambassador spoke highly of Belarus-Mongolia cooperation and mentioned that more joint projects relying on export loans might be implemented in the future. He underlined the particular importance of successfully implementing the first project for supplying Mongolia with Belarusian firefighting vehicles.

Deputy Prime Minister of Mongolia Yangugiin Sodbaatar also took part in the ceremony. He and the ambassador discussed the practical implementation of the project meant to renew the vehicle fleet of the National Emergency Management Agency of Mongolia.

Ulaanbaatar /MONTSAME/. A new 126.7 km-long auto road connecting Altai city of Gobi-Altai aimag with Bayankhongor city of Bayankhongor aimag has been commissioned with an opening ceremony held today, October 8. Prime Minister of Mongolia U.Khurelsukh took part in the ceremony and delivered an address.

He said “Over the past four years between 2016 and 2020, 95 soums of 17 aimags and 5 checkpoints have been connected to the capital city of Ulaanbaatar with paved roads within the framework of the government’s action plan. All 21 aimags of Mongolia now have been connected Ulaanbaatar city with paved roads as a result of today’s launch of this 126.7 km long road from Bayankhongor to Altai, completing the construction of horizontal segment of the Millennium Road highway road network project, which began two decades ago.”

The new road with number A0303, which will definitely bring various social and economic benefits and provide safety and comfort for road users, was built under Build-Transfer concession contract with domestic company Max Road LLC under supervision and counseling of Avarga Road LLC in less than a year, underlined the Prime Minister expressing gratitude for all companies and their engineering employees who participated in the road construction on behalf of the Government of Mongolia.

The construction of the Bayankhongor-Altai road was launched by ‘Energy Construction Trust’ company in line with the government resolution of 2015 in the scope of the public-private partnership. However, the construction was suspended due to certain reasons, to fully resume in 2019 by the Max Road company. A total of 800 workers, 400 machineries and equipment and 11 factories were engaged in the construction that lasted for 11 months.

The new paved road now allows the western aimags of the country, Gobi-Altai, Khovd and Bayan-Ulgii to easy reach to Ulaanbaatar city, contributing hugely to the social and economic growth of Mongolia. For instance, fuel consumption of vehicles travelling to the western region will be saved by up to 30-40 percent while the time spending will be reduced twice.

The Eurasian Economic Commission (EEC) is exploring a possibility to establish a free trade zones with Mongolia and Indonesia, Iya Malkina, Aide to the Chairman of the Board of the Eurasian Economic Commission, said at a briefing.

According to Iya Malkina, the decision to embark on negotiations on the free trade zones with these two states has not been made yet. “The feasibility of free trade agreements with Mongolia and Indonesia will be carefully studied by joint research groups that have already been established and started working,” she said.

Mongolia failed to fulfill its goal to export 40 million tonnes of coal this year due to the COVID-19 restrictions. However, the Mongolian Cabinet is planning to increase coal exports to 42 million tonnes in 2021 based on optimistic forecast of the Chinese economy as it recovers from the pandemic shocks. In addition, Mongolia is implementing the ‘Green Gateway’ temporary custom regulation with the Chinese Government for increasing capacity of coal deliveries.

Mongolia is expecting to earn MNT 1.3 trillion revenue from exports of 42 million tonnes of coal in 2021.

Ulaanbaatar /MONTSAME/ With an aim of discussing challenges and solutions of digital transition, “Digital Nation” Forum was organized on October 8 at Tuushin hotel. During the forum, corresponding officials underlined the importance of coherence and collaboration of public organizations in digital transition.

"There were some barriers even though we digitized state services. But now, more attention is being given on solutions to receive state services at all stages from mobile phone. We have introduced “E-Mongolia” digital system, which provides citizens with 181 types of state services from their mobile phone, at starters. Further development of the system will allow citizens to receive around 1500 types services at all levels of government organizations using their mobile phone. This renovation work will be carried out in seven years. If we become a digital nation through successful realization of digital transition, we can resolve issues related to corruption. Bureaucracy in government services causes corruption. At today's forum, public and private organizations are discussed together how to improve coherence between public organizations and ensure information security. The digital transition will also provide possibilities to transfer into performance-based salary system by eliminating duplication of functions of government agencies," Chief of the Cabinet Secretariat L.Oyun-Erdene said.

According to the statistics, a citizen spends 1.30 hours on an average to receive a state service. Introduction of E-Mongolia system has many advantages including saving of citizens’ time and money and balancing work loading of civil servants.

Director of the National Road Transport Center B.Gursoronzon said that government organizations should work coherently. Within the digital transition works, our organization needs to develop cooperation with Hur system, Dan system, Communications and Information Technology Authority, License Center of General Police Agency and registration system of the General Authority for State Registration. In general, it is necessary for government organizations to exchange information through Hur system. Currently, E-Mongolia system is offering nine types of road transport services to the citizens.

Head of Information Technology Department of Mobicom Corporation LLC B.Munkhzorig noted the importance of public-private partnership in digital transition. As having a smart city, we can resolve traffic jam with the help of artificial intelligence. In other words, it is possible to tackle traffic jam issues based on data by using technological achievements. Smart city is a data-based solution to solve problems.

Mongolia is not overly religious, conservative, or liberal. Mongolians have a reputable history of having an open-minded attitude towards all religions. Historical records reveal that there were 12 Buddhist temples, 2 Islamic mosques, and a Christian church in the ancient capital city of the Great Mongol Empire in the Karakorum.

If you plan to visit any temples or monasteries, there are some social etiquette tips to avoid offending the locals. Such as, if you walk around a stupa or prayer wheels always walk in a clockwise direction. long-sleeved clothing is appropriate. Remove any hats, sunglasses before entering any monasteries and temples. Photography is not allowed in most monasteries.

Be respectful and do your best to go with the flow in order to have a good time. Religion in Mongolia has been traditionally dominated by the schools of Mongolian Buddhism and by Mongolian shamanism. Historically, through the Mongol Empire, the Mongols were exposed to the influences of Christianity (Nestorianism and Catholicism) and Islam, although these religions never came to dominate. Gradually, during the socialist period of the Mongolian People's Republic (1924-1992) all religions were prohibited, but with the transition to the republic in the 1990s, there has been a general revival of faiths.

The latest survey was conducted that 53% of the Mongolians identify as Buddhists, 38.6% as not religious, 3% as Muslims (predominantly of Kazakh ethnicity), 2.9% as followers of the Mongol shamanic tradition, 2.2% as Christians, and 0.4% as followers of other religions. Other sources estimate that a significantly higher proportion of the population follows the Mongol ethnic religion (18.6%).

Mongolia has a world beating record on combating the coronavirus with currently no recorded deaths. Moreover, the Mongolian Government has suspended all commercial flights into the country for the last six months. All the more noteworthy then that last week a Mongolian Airlines plane took off from London Heathrow bound for Ulaanbaatar for the first time since 2013. Seven years ago, the passengers were the military band of the Mongolian army heading home after a successful debut at the Edinburgh Tattoo. This time on board were five representatives of the Financial Action Task Force (FATF) with a mission to Mongolia of crucial significance to the nation’s economy. Experts from the U.K., USA, Japan, China and Russia were considering whether Mongolia should be removed from the organisations grey list.

Based in Paris the FATF is an intergovernmental organisation founded in 1989 on the initiative of the G7 to develop policies to combat money laundering. Since 2000 FATF has maintained a blacklist and a grey list. Like the blacklist, countries on the FATF grey list represent a much higher risk of money laundering and/or terrorism financing but unlike those on the blacklist they have formally committed to working with the FATF to develop action plans that will address their deficiencies.

Dulguun Bayarsaikhan writing in the UB Post in October 2019 summed up Mongolia’s recent relations with the FATF which resulted in the nation being added to the grey list for the second time in 2019.

‘Mongolia entered FATF’s grey list in 2013, but narrowly slipped out of it with specific conditions as the country managed to meet some of the requirements and made specific commitments.

In 2016, FATF strongly urged Mongolia to enforce the laws with a set of recommendations. The recommendations included enhancing economic transparency, improving oversight on the financial market, and holding those who break laws accountable. Complying with the recommendation, the Mongolian government formed the National Council to Combat Money Laundering and Terrorism in April 2017.

However, failing to produce the desired outcomes, Mongolia was put under strong scrutiny from the FATF.’

The importance of getting off the grey list to the people of Mongolia is clear from the fact that last week the Prime Minister, Finance Minister and Chairman of the State Great Khural (Parliament) separately made presentations to the FATF officials socially distanced behind screens in the Kempinski hotel. Mongolia has borrowed heavily on the world’s bond markets over the last decade and between 2021 and 2024 much of this will come to term. Refinancing costs will be much more affordable if the country can establish a reputation for financial integrity and honesty.

The signs look promising that the Government under Prime Minister Khurelsukh which has recently achieved a stunning election victory is prepared to walk the walk as well as talk the talk. Substantial progress seems to have been made on implanting the necessary technical regulations. There is also the need to ensure that for the first time there are the institutions with the resources available to implement the law and the fearless independence to do so. This is surely in the interests of the Mongolian people but also Mongolian as well as foreign investors. Ministers know that the proof of the pudding is in the eating though and have also set up a special unit within the Cabinet office to speak directly with international investors who have been the victims of fraud and money laundering. There are a number of well documented cases of wrongdoing which thanks to Mongolia’s free press have received some attention within the country itself. The issue of the Zasag Chandmani Mine is one that also needs to be resolved. British investors are owed $50m+, which they have been trying to recover for a long time, whilst the Mongolian owner of the project has evaded arrest and fled the country. Such stories detract from the incredible success of Mongolia’s entrepreneurs in establishing a thriving private sector in just thirty years with many dynamic companies boasting both substantial growth and impeccable business practices.

Mongolia also needs to put behind it the jibe of ‘Hotel Mongolia ‘which is a reference to a number of foreign investors who in dispute with powerful business interests have found themselves put behind bars. It would be a gesture of strength and goodwill for example if the British Australian businessman Mo Munshi who is in poor health could be released having completed half of his seven-year sentence.

Mongolia has the potential to be a great democratic success story and deserves the full support of the international community. The amazing success in combating the Coronavirus is the world’s underreported story of 2020. The imminent opening of a new international airport and a new rail line into China will strengthen the country’s infrastructure. Coking coal transported from the Gobi area into the Chinese market will now have a significant price advantage over Australian exports. The price of copper essential to the development of green energy is rising which is good news for the flagship mine at Oyu Tolgoi operated by Rio Tinto. The project could alone account for nearly a third of national output by 2027. When I visited the mine as the plane took off in a snowstorm from Ulaanbaatar I got chatting to the passenger sitting next to me. He was an engineer of about 30 who had been brought up in the Ger district at the edge of the capital and had won a scholarship. Now he had a well paid position of real responsibility at Oyu Tolgoi and had a family of his own. That has to be a success story for all involved.

Furthermore, with gold priced at over $2,000 per ounce, Mongolia should prioritise policies and initiatives which stimulate the sustainability of this sector so that the country’s gold reserves held by international banks for safe-keeping can stand tests of probity and help to strengthen the legitimate wealth of the nation which can be borrowed against to finance development projects. There are still gold investments made by international investors which remain blocked by the inconsistent application of policy and regulation. There is also the real social issue concerning the welfare of up to 100000 artisanal gold miners which must be addressed by all involved in the industry. As elsewhere economic conditions are currently tough, but most analysts predict significant growth in 2021. Pride in the nation means that many qualified Mongolians return from study and professional work abroad to make their own contribution to development. The Government was elected on a social democratic platform and there is a healthy debate about the boundaries between state intervention and the market and the best way to combat poverty and expand opportunity. The new Parliament has already held an Investors Roundtable which will help dialogue going forward. The people are weary of corruption and it is worthy of note that no less than four former Mongolian Prime Ministers have recently received jail sentences in relation to this.

The 2020’s could be a decade of rising prosperity for Mongolia with a rapid rise in GDP per capita from the current $4500 per head. The imminent decision to remove Mongolia from the grey list will be a real boost. If Mongolia is to become a magnet for much needed foreign investment it is essential that the country fully commits to a new era of transparency and probity. Never again must the nation find itself on the FATF grey list – twice is already two times too many. In return those with capital to invest need to fully respect the traditions and democracy of the land of the blue sky. The second verse of the Mongolian National Anthem perhaps provides a good text for all to work to:

‘With all honest nations of the world

Strengthen our bonds

With all our will and strength

Let’s develop our beloved Mongolia’

John Grogan

Chairman

Mongolian British Chamber of Commerce

October 7, 2020

The Mongolian government on Wednesday decided to upgrade toilets in schools and kindergartens across the country by 2022.

All pit latrines or traditional wooden toilets in schools and kindergartens will be phased out within 2022, the government's press office said in a statement.

Pit latrines, usually two to five meters in Mongolia, are a type of toilet that collects human feces in a hole in the ground, and are used by the majority of Mongolia's population but reportedly have a negative impact on public health.

Most of the country's rural schools and kindergartens use such toilets.

There are several toilet-related injuries and deaths in the Asian country every year. Enditem

Ulaanbaatar /MONTSAME/. Commending Mongolia for fulfilling all its commitments to the EU and ratifying the Multilateral Convention on Mutual Administrative Assistance in Tax Matters, the Economic and Financial Affairs Council of the EU made a decision, during its meeting held on October 6, to officially remove Mongolia from the EU grey list of non-cooperative jurisdictions for tax purposes.

In 2017, the EU adopted its black list of jurisdictions that do not share information on tax issues, do not ensure transparency, and lack a legal framework against tax evasion and Mongolia was added to the list on December 5, 2017. However, as a result of the joint efforts made by the Ministry of Foreign Affairs and the Ministry of Finance of Mongolia, the country was removed from the “black list” in January 2018 and moved to the “grey list”.

In aims to be removed from this list, the Government of Mongolia adopted Resolution No.350 in 2017 to ensure tax transparency, information exchange, and the implementation of international rules to combat tax evasion, as well as joining “Global Forum on Transparency and Exchange of Information for Tax Purposes” of OECD (Organization for Economic Co-operation and Development) as a member country. In line with the organization's recommendations, the legal framework for information exchange, transparency, cooperation, and tax evasion has been incorporated into domestic legislation as part of the tax reform package.

In addition, within the framework of its obligations to the European Union, the Convention on Mutual Administrative Assistance in Tax Matters was ratified by the Parliament of Mongolia on January 3 and entered into force on June 1 which played an important role in Mongolia’s removal from the grey list.

It should be noted that this is not a list of countries with strategic deficiencies or so-called ‘Grey List’ of Financial Action Task Force (FATF).