Mongolia Brief July 3, 2014 Part II



Scientific conference held for 20th anniversary of Foreign Policy Concept

Ulaanbaatar, July 3 (MONTSAME) The Diplomatic Academy at the Ministry of Foreign Affairs Thursday hosted a scientific conference dedicated to the 20th anniversary of the Concept of the Foreign Policy of Mongolia.

Co-organized with the “Ambassador” club and the Konrad Adenauer Foundation (KAF), the scientific conference was attended by D.Terbishdagva, the Deputy Prime Minister; S.Oyun MP, the Minister of Environment and Green Development; N.Enkhbold, M.Batchimeg, Ts.Tsolmon MPs; B.Batbayar, a columnist; Ts.Gombosuren, a former Minister of Foreign Affairs; other diplomatic and scholars.
Director of the Diplomatic Academy Kh.Bekhbat made the opening remarks, saying that the conference’s main objective is to consider role and content of the document adopted in 1994, and ways of upgrading the concept and promoting the continuation of the foreign affairs of Mongolia.
After this, the Deputy Premier Terbishdagva gave a sceech, emphasizing Mongolia is one of the plenipotentiary members of the international community, and has become an internationally-recognized nation maintaining the active foreign policy based on global peace, security and democratic valuables.
A delegate from the KAF Johannes D.Rai conveyed a greeting, whereas the Minister of Foreign Affairs Mr Bold sent a message to the conference’s participants. “Mongolia has established the diplomatic relations with almost all countries in the world, and has become a partner of the NATO and a participating state of the Organization for Security and Co-operation in Europe. It means the Foreign Policy Concept of Mongolia has been fulfilling its goals,” the message says.
An advisor to the Foreign Ministry’s Department Professor G.Tomorchuluun gave the key report with a topic “Analyzing the 1994 Foreign Policy Concept of Mongolia: The Guideline of four Ds for modern foreign policy”.

Diagnosis center for western region to be upgraded

Ulaanbaatar, July 3 (MONTSAME) The cabinet meeting on Thursday decided to submit to parliament a credit agreement for a project on empowering a local diagnostic center.
This agreement has been established between the governments of Mongolia and Belgium for a project on upgrading the diagnosis and treatment center of western region to continue between 2014 and 2016.
In frames of the project, the local diagnostic center will be equipped with latest facilities and medical doctors will be trained.

General Consulate of China opens in Zamyn-Uud

Ulaanbaatar, July 3 (MONTSAME) The General Consulate of the People’s Republic of China has opened in Dornogobi aimag’s Zamyn-Uud soum.
The opening ceremony took place on Thursday with participation of Mr D.Gankhuyag, the Vice Minister of Foreign Affairs; and his counterpart of China Xie Hangsheng.
Present at the ceremony were Wang Xiaolong, the Ambassador Extraordinary and Plenipotentiary of China to Mongolia; P.Gankhuyag, the governor of Dornogobi; N.Bataa, deputy director of the Consular Department of the Foreign Ministry; and other officials.
This is the very first General Consulate of China to open in Mongolia, and is the first foreign diplomatic mission in Zamyn-Uud soum.

Stock exchange news for July 3

Ulaanbaatar, July 3 (MONTSAME) At the Stock Exchange trades held Thursday, a total of 5,796 shares of 18 JSCs were traded costing MNT 10 million 928 thousand and 210.00.
"Remikon” /3,702 units/, "Hai Bi Oil” /639 units/, "APU” /310 units/, "Sharyn gol” /273 units/ and "Tavantolgoi” /248 units/ were the most actively traded in terms of trading volume, in terms of trading value--"Sharyn gol” (MNT one million 992 thousand and 900), "UB hotel" (MNT one million and 800 thousand), "UB-BUK” (MNT one million and 600 thousand), "Tavantolgoi” (MNT one million 215 thousand and 200) and "APU” (MNT one million 131 thousand and 300).
The total market capitalization was set at MNT one trillion 573 billion 670 million 698 thousand and 143. The Index of Top-20 JSCs was 15,474.79, increasing by MNT 114.39 or 0.74% against the previous day.

Mongolia welcomes third woman grandmaster

Ulaanbaatar, July 3 (MONTSAME) Mongolian chess player A.Enkhtuul (20) is to be officially certified as a woman grandmaster during the 85th FIDE Congress in Tromso, Norway on August 4-15.
Thus, she will become the third Mongolian to achieve this high title after her country women B.Mongontuul and T.Batchimeg.
E.Enkhtuul earned FIDE titles of Woman Candidate Master in 2010, Woman FIDE Master in 2011 and Woman International Master in 2012. She is currently 180th at the rank of world active women players.

Opera and Ballet Theater releases July program

Ulaanbaatar, July 3 (MONTSAME) The Opera and Ballet Theater has released its programme for this month which has an open air show themed ‘Best of Classic’ on Chinggis Square this Sunday.
The program also includes three ballets and three operas. On the second day of Naadam festival (July 12), ‘Swan Lake’ by Pyotr Ilyich Tchaikovsky will be staged, followed by well-known Mongolian opera ‘Three Dramatic Characters’ by B.Damdinsuren and B.Smirnov on July 13.
At third weekend of the month, the theater will present classic art-lovers ‘La Boheme’ opera by Giacomo Puccini, and ‘Choijid Tara’ ballet by E.Choidog.
The last two performances of theater before opening again in October will be ‘Giselle’ ballet by Adolphe Adam, and ‘Chingis Khaan’ opera by B.Sharav on July 26-17.

“World known Mongolian folk art” grand performance

July 3 (news.mn) The “World known Mongolian folk art” grand performance by the State National Song and Dance Academic Ensemble of Mongolia is dedicated to the National holiday Naadam on the 93rd anniversary of the Mongolian People`s Revolution. The State National Song and Dance Academic Ensemble of Mongolia will stage the grand performance with a specific program including the best spectacles of national folk art between July 5th and 15th.
The grand performance will feature 62 dancers from the State contest for choreography, named after People's Artist Ts.Sevjid, 53 musicians from the National music choir, and  20 prominent singers including People`s Artist D.Sambuu, State Merit Artist of Mongolia L.Chuluunchimeg, State Merit Artist of Mongolia S.Erdenetsetseg, State Merit Artist of Mongolia N.Amgalan, State Merit Artist of Mongolia D.Shirmentuya, Cultural leading figure B.Batmend, Cultural leading figure D.Amarjargal and Cultural leading figure S.Tsogtsaikhan.
In addition, the State National Song and Dance Academic Ensemble of Mongolia has been performing the “Wonders of Mongolian Art” during the summer season at 6.00 pm from June 15th.

Slow Economic growth plus rising inflation

July 3 (Mongolian Economy) Even though Mongolia’s economic growth rate rested at 12% between 2010 and 2013, during the first quarter of this year, the economic growth rate fell to 7.4%. This is consistent with national inflation levels which rose to 13.7% last month compared to 12.4% in March. The inflation rate of the city of Ulaanbaatar is 11.9%.  
Food products account for the majority of the nation’s inflation growth, in other words 60.5%. Of this inflation rate, bread, flour and rice make up 18.5%, meat makes up 7.1% and milk and eggs make up another 11%. Alcoholic beverages, cigarettes and other drinks total 4% of the inflation rate from food products. Clothing, materials and shoes constitutes 9.3%, transportation is responsible for 8.2%, private medical services make up 3.8% and public food services such as restaurants and cafes add on another 7.1%.
By looking at these rates, the consumer basket this month showed that 125 out of 329 product prices rose, whereas 88 of these products and services showed diminishing prices.  

Government of Mongolia and Oyu Tolgoi LLC to Establish Agreement of Cooperation in Energy Sector in Southern Gobi Region

July 3 (infomongolia.com) On July 03, 2014, the Cabinet meeting was held and one of the issues resolved was agreed to establish an Agreement of Cooperation between the Government of Mongolia and Oyu Tolgoi LLC.
The Agreement between the parties is “Cooperation in Energy Sector in Southern Region” and entrusted to sign representing the Government of Mongolia by Minister of Energy M.Sonompil and Chairman of Energy Regulation Committee S.Otgonbayar.
The Government of Mongolia is proposing to develop the "Tavan Tolgoi Power Plant" mega project, a 450 MW coal-fired power plant in the Tavan Tolgoi (TT) area and a related distribution line of approximately 150 km from TT to the Oyu Tolgoi (OT) mine. By constructing this strategically important energy distributor in southern region of Mongolia, of which, OT is considered the main user of this power plant and OT’s participation is great, the cooperation between the parties will be regulated under this Agreement.
The TT is located in the Tsogttsetsii sum of Umnugovi Aimag in the South Gobi region of Mongolia, which is approximately 450 km south of Ulaanbaatar.
According to the Investment Agreement established between the Government of Mongolia and Ivanhoe Mines Mongolia Inc LLC and Ivanhoe Mines Ltd (now known as Turquoise Hill Resources) and Rio Tinto International Holdings Limited in 2009, the Clause 7.3 cites the Investor shall, within 4 (four) years of Commencement of Production, secure its total power requirements for the OT Project from one or more of the following sources within Mongolia to be selected by the Investor:
7.3.1. Coal-fired power plant developed or funded by the Investor;
7.3.2. Coal-fired power plant developed or funded by a third party; or
7.3.3. The Mongolian electricity grid;
Tavan Tolgoi Power Plant project
The Government of Mongolia resolved to provide 50 million USD in the form of mezzanine financing to the Project, and the final Government financing will not exceed amount equaling 1/3 of equity amount of the Project.
The purpose of the Project is to meet the power requirements of the Oyu Tolgoi (OT) copper-gold mining project. OT wishes to secure all its power requirements from Mongolia by early 2H 2017, as contemplated by the OT Investment Agreement with the Government of Mongolia. OT is currently importing power from China.

Mongolia No Longer subject to Financial Action Task Force’s Monitoring Process

July 3 (infomongolia.com) Under the Russian Presidency, the third Financial Action Task Force (FATF) Plenary meeting of FATF-XXV was held on Paris, France on June 25-27, 2014.
The main issues of this FATF Plenary were issuing the Public Statement on jurisdictions with strategic Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) deficiencies; Improving Global AML/CFT Compliance: on-going process - Jurisdictions with strategic AML/CFT deficiencies for which they have developed an action plan with the FATF, as well as Receiving an update on AML/CFT improvements in Kenya, Kyrgyzstan, Mongolia, Nepal and Tanzania.
Following the meeting, the FATF welcomes Mongolia’s significant progress in improving its AML/CFT regime and notes that Mongolia has established the legal and regulatory framework to meet its commitments in its action plan regarding the strategic deficiencies that the FATF had identified in June 2011. Mongolia is therefore no longer subject to FATF’s monitoring process under its on-going global AML/CFT compliance process. Mongolia will work with APG as it continues to address the full range of AML/CFT issues identified in its mutual evaluation report.
Improving Global AML/CFT Compliance: on-going process, June 27, 2014 Paris, June 27, 2014 - As part of its on-going review of compliance with the AML/CFT standards, the Financial Action Task Force (FATF) has to date identified the following jurisdictions which have strategic AML/CFT deficiencies for which they have developed an action plan with the FATF. While the situations differ among each jurisdiction, each jurisdiction has provided a written high-level political commitment to address the identified deficiencies. The FATF welcomes these commitments.
A large number of jurisdictions have not yet been reviewed by the FATF. The FATF continues to identify additional jurisdictions, on an on-going basis, that pose a risk to the international financial system.
The FATF and the FATF-style regional bodies (FSRBs) will continue to work with the jurisdictions noted below and to report on the progress made in addressing the identified deficiencies. The FATF calls on these jurisdictions to complete the implementation of action plans expeditiously and within the proposed timeframes. The FATF will closely monitor the implementation of these action plans and encourages its members to consider the information presented below.
Afghanistan
Albania
Angola
Argentina
Cambodia
Cuba
Ethiopia
Iraq
Kuwait
Lao PDR
Namibia
Nicaragua
Pakistan
Panama
Papua New Guinea
Sudan
Syria
Tajikistan
Turkey
Uganda
Yemen
Zimbabwe
Jurisdictions no longer subject to the FATF's on-going global AML/CFT compliance process
Kenya
Kyrgyzstan
Mongolia
Nepal
Tanzania
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