SEBI signed a pact with Mongolia's Financial Regulatory Commission for mutual cooperation and technical assistance in the area of securities market rules.

Capital markets regulator Sebi on Wednesday said it has entered into a pact with Mongolia's Financial Regulatory Commission for mutual cooperation and technical assistance in the area of securities market rules.

The objective of the memorandum of understanding (MoU) is to strengthen cross-border cooperation in the area of securities regulation, the Securities and Exchange Board of India (Sebi) said in a statement.

The pact will facilitate mutual assistance, contribute towards the efficient performance of the supervisory functions, help in sharing technical domain knowledge, and enable effective enforcement of the laws and regulations governing the securities markets, it added.

Sebi has signed bilateral MoUs with securities regulators of various jurisdictions. It is also a signatory to the International Organization of Securities Commissions' multilateral MoU and enhanced multilateral MoU.

The Russian government has issued an order for the shares held by Norway’s energy company Equinor and France’s TotalEnergies in a major oil field, to be transferred to the project’s operator, state-run Zarubezhneft.

The European companies decided to pull out of the Kharyaga oil project due to international sanctions against Russia. Equinor held a 30% stake in the field, and Total owned 20%. The terms of the equity transfers have not been disclosed.

Both firms had been part of the Kharyaga onshore oil development, located in Russia’s Arctic, for over 20 years. It is one of three production sharing projects in Russia, with two others – Sakhalin 1 and Sakhalin 2 – operating larger offshore oil and gas deposits near Sakhalin Island in Russia’s Far East.

Zarubezhneft will now hold a 90% stake in Kharyaga, with locally owned Nenets Oil holding the remaining 10%.

Other Western energy giants, including Shell, BP and ExxonMobil, have also left Russia in recent months due to sanctions.

A new poll by the International Republican Institute’s (IRI) Center for Insights in Survey Research (CISR) shows Mongolians have concerns over the economy and corruption, while demonstrating strong support for democratic governance.

When asked about the most important problems facing the country today, most Mongolians chose issues related to the economy. The top three responses show 58% citing high prices and the cost of living, 26% stating unemployment, and 14% declaring other general economic issues.

In a poll fielded from March to April 2021, 34% cited healthcare and COVID-19 as the top issue in Mongolia.

The survey also finds that 74% of Mongolians feel that corruption is a very serious problem and there is little faith with institutions to address it. Sixty-four percent have a negative opinion about the Independent Authority Against Corruption, 66% have a negative opinion of the Courts, and 62% of have a negative opinion of the State Great Hural, the unicameral parliament.

“Our research clearly shows that Mongolians are not happy with the current economy or the government’s efforts to tackle corruption,” said Johanna Kao, IRI Regional Director for the Asia-Pacific. “Elected officials need to do more to address these pressing concerns and they need to act with urgency.”

Additionally, the poll highlights that 67% of Mongolians believe that democracy is the best form of government.

“Despite some of the problems confronting the people of Mongolia, it’s reassuring that a strong majority believe in democratic governance,” said Kao. “Increasing accountability, transparency, and inclusivity for more people in the political process will only strengthen the government’s ability to move the country in the right direction.”

Methodology

The survey was conducted on behalf of the International Republican Institute’s Center for Insights in Survey Research by Independent Research Institute of Mongolia (IRIM) and made possible by the generous support of USAID. Data collection was conducted between March 01 – April 26, 2022, through computer-assisted telephone interviews. The sample consisted of n=2,500 residents of Mongolia aged 18 and over.

A multi-stage probability sampling method was used to design a nationally representative sample. The contact information list of the households was compiled from the IRIM’s internal database. The sample was stratified by region and by urban/rural residency. Households were selected by simple random sampling, and respondents were selected by the last birthday method.

The data was weighted by gender and age groups based on the NSO data for population of Mongolia. The response rate was 19 percent. The margin of error for the full sample is ± 1.9 percentage points. Charts and graphs may not add up to 100 percent due to rounding.

Mongolia's foreign-exchange reserves fell to 2.8 billion U.S. dollars, down 1.7 billion dollars from the beginning of this year, the press office of the country's parliament said Thursday.

The significant decrease in forex reserves is largely related to the surge in gasoline and fuel prices, said the Bank of Mongolia.

The average price of the gasoline brand AI-95 per liter rose to 4,210 Mongolian tugriks (1.3 dollars) from 2,770 tugriks (0.87 dollars) in February, while a liter of diesel fuel is priced at 1.28 dollars currently, up from 0.9 dollars in February, according to the country's Mineral Resources and Petroleum Authority.

Currently, the landlocked Asian country has no oil refineries and relies heavily on neighboring Russia for gasoline and diesel fuel.

World Taekwondo (WT) and the Asia Development Foundation (ADF) kicked off their new WT-ADF Cares Program in three countries - Mongolia, Kyrgyzstan and Timor-Leste - on July 1, 2022 for a one-year period.

The new WT-ADF Cares projects, funded by the ADF, are designed to help empower the powerless, such as orphans, reformatory inmates and street children, in developing countries in the Asian region through the education of taekwondo and the Korean language.

Under the theme “Bright Future with Taekwondo,” the 2022-2023 Mongolia WT-ADF Cares Program started last week with a total budget of $30,000 for about 200 reformatory inmates in Ulaanbaatar, the capital of Mongolia.

Under the slogan “Dream through Taekwondo,” the 2022-2023 Kyrgyzstan WT-ADF Cares Program will assist some 150 orphans, 75 in Bishkek and 72 in Cholpon Ata with a total budget of $30,000. The orphans will receive free taekwondo and the Korean language education.

In cooperation with the Timor-Leste Taekwondo Federation and under the slogan “Building Self-Resilience through Taekwondo,” the 2022-2023 Timor-Leste WT-ADF Cares Program will benefit about 60 orphans and 40 female household-violence victims in Dili City with a total budget of $33,000. The Korean Embassy in Timor-Leste will assist the Cares students in the education of the Korean language.

WT President Chungwon Choue said, “the ongoing 2022-2023 WT-ADF Cares projects in Mongolia, Kyrgyzstan and Timor-Leste are meaningful as the Cares students receive education of both taekwondo and the Korean language.”

Since 2016, WT has carried out its Cares programs under the mission “Taekwondo for All,” and “World Peace through Taekwondo.” The vision of the WT Cares Program is to provide taekwondo to those in deed and empower the powerless in developing countries.

New WT-ADF Cares Projects Kick Off in Mongolia, Kyrgyzstan, Timor-Leste

In January 2019, WT and the ADF, headed by Kim Joon-il, signed a memorandum of understanding on the WT Cares Program to donate 100 million Korean won (about $90,000) to WT. The ADF donated WT in Cares funds $150,000 in 2020, $200,000 in 2021 and $15,000 in 2022.

Besides the three new WT-ADF Cares projects, WT-ADF Cares projects are under way in four countries – Nepal, Cambodia, Sri Lanka and Bhutan. WT plans to start new Cares projects in late August 2022 in Afghanistan and in Nepal for students of the Um Hong Gil Human Foundation school near Pokhara.

WT wishes to expand the WT Cares projects outside Asia with new donations.

Rio Tinto Group said it’s close to a breakthrough in a landmark deal to unlock the world’s biggest untapped iron ore mine.

Efforts to develop the massive Simandou project in Guinea have been stymied for years by a litany of disputes over ownership and infrastructure, and by political changes in Guinea. Negotiations between investors and the Guinean government to build a railway for exporting ore may now be nearing a resolution, said Rio Chief Executive Officer Jakob Stausholm.

“We might be very close,” he said in an interview after the company reported first half results on Wednesday. “It could happen very quickly.”

Simandou is divided into four blocks, with blocks 1 and 2 controlled by the Winning Consortium Simandou, backed by Chinese and Singaporean companies, while Rio Tinto and Aluminum Corp. of China, known as Chinalco, own blocks 3 and 4.

Simandou offers a potentially huge new source of supply for Rio, the world’s largest iron ore producer, while China sees the project as key to easing its steel industry’s dependence on Australian output. The world’s top steel-producing nation recently embarked on one of the biggest shake-ups of the global iron ore market in more than a decade by setting up a new state-owned group, designed to be a hub for huge overseas mine investments and buying the steelmaking material from international suppliers.

Earlier this year, the two consortiums at Simandou struck a deal to jointly build a 650 kilometer (404 mile) railway linking the mine to a planned port. As part of the deal, the government received a 15% stake in the infrastructure, matching its ownership stake in the mines. Yet talks about how the rail line will be paid for have dragged on.

Rio Tinto’s negotiating team, led by executive Bold Baatar, is currently in the capital Conakry, where talks with the parties are ongoing, Stausholm said. He declined to comment on the specifics of the discussions.

Negotiations have been centered over whether the government should have to pay for its share of the rail and port building costs, according to people familiar with the situation. Rio and the Winning consortium had offered an interest-free loan to cover the government’s costs, while the government pushed for a free carry for its stake, the people said. Rio had been willing to renegotiate the point but the Winning group’s stance was less clear, the people said.

Spokespeople for Winning and Guinea didn’t immediately respond to requests for comment.

The railway could cost more than $10 billion, according to earlier estimates, although an updated cost forecast is not expected until after an agreement is struck.

The Guinean government has sought to force the hand of the companies involved. Earlier this month, the government ordered both consortiums to halt activity in the country, citing their failure to reach a deal on collaboration. Mining Minister Moussa Magassouba also said the country was prepared to develop the project without the two consortiums if an agreement wasn’t forthcoming.

“I don’t have much concern,” said Stausholm. “If we’re not able to sign a deal in the foreseeable future I’ll be more concerned.”

Getting Simandou under development would be a second major win for the CEO, after striking a deal with Mongolia earlier this year on Rio’s flagship copper project. Since taking the helm just over a year ago, the CEO has prioritized getting stalled projects moving, while rebuilding the company’s reputation after a series of missteps.

(By Thomas Biesheuvel and Alfred Cang, with assistance from Ougna Camara)

At its regular meeting dated July 27, Prime Minister L.Oyun-Erdene tasked the relevant organizations such as Ministry of Finance, Independent Authority Against Corruption of Mongolia, and National Police Agency to;

- check the implementation of the Law on State Austerity as it has been three months since its approval,

- investigate whether the officials who started the process of selecting road contractor for the Ulaanbaatar-Darkhan route are guilty or not,

- and to promptly organizing works, such as inspecting the reason why the Zuunbayan-Gashuunsukhait railway line was not constructed in 2008-2019, estimating the lost opportunities, and setting up an inspection team.

The Cabinet has decided to spend MNT 6.5 billion from the government’s reserve fund to keep the price of diesel fuel at the same level as it was during the last spring’s sowing.

The price of diesel fuel was MNT 3,380 per liter during the last sowing season. However, it is MNT 4,030 today, increasing by 19.6 percent. An average of 20-25 thousand tons of fuel is needed every spring sowing and autumn harvesting. The price of 10 thousand tons of diesel will be kept at the same level as the last spring’s sowing.

The decision is aimed at keeping the price of wheat, flour, and other food products stable, highlighted the Minister of Agriculture and Light Industry Z.Mendsaikhan.

This year, sowing has been made to 478.7 thousand hectares nationwide, of which grain in 347.7 thousand hectares (wheat in 331.0 thousand hectares), potatoes in 17.9 thousand hectares, vegetables in 7.9 thousand hectares, fodder plants in 16.8 thousand hectares, and oil plants in 81.2 thousand hectares.

A week ago, I went on a trip to Mongolia. The country was more vibrant than ever, as if the pandemic was already well in the past. The impetus for this particular trip was Dr. Yeosang Yoon and his team’s research on the lives and human rights situation of overseas North Korean workers, which was published by the Database Center for North Korean Human Rights (NKDB) back in 2016. Between sanctions against North Korea and the pandemic, I naturally wanted to get out in the field and investigate how the North Korean workers dispatched to Mongolia were faring. Ultimately, I found that due to sanctions there were no North Korean workers officially staying in Mongolia.

North Korean labor in Mongolia can be broadly divided into three types. First, there are those working and running North Korean restaurants, much like the kinds operated in China, Russia, and parts of Southeast Asia. Second, there are workers dispatched to construction projects in urban areas, such as Mongolia’s capital, Ulaanbaatar. Third, there are the workers dispatched to factories manufacturing cashmere, one of Mongolia’s key industries.

As for North Korean restaurants in Mongolia, there used to be three thriving restaurants operating in central Ulaanbaatar under the names “Pyongyang Baekhwagwan,” “Pyongyang Restaurant,” and “Pyongyang Koryo Folk Restaurant.” I verified that none of these three restaurants were operating. At “Pyongyang Baekhwagwan,” the restaurant sign had an “under construction” notice still up, and new shops had moved into the locations of the other two restaurants. According to a source in Mongolia, the North Korean embassy in Mongolia owned “Pyongyang Baekhwagwan,” which meant that it was not completely shut down; rather, it had temporarily suspended operations. The source also told me that the restaurant’s sign remained up and embassy officials regularly came by to inspect the shops.

Meanwhile, construction workers have become scarce in Mongolia, at least officially. In Russia, crowded flights and trains prevented some workers from returning to North Korea following the onset of the COVID-19 pandemic. Even now, some workers are tacitly employed on house remodeling projects and other small-scale construction projects. However, North Korea had already officially pulled workers out of the country before the UN-mandated deadline of December 22, 2019. Since then, COVID-19 has made it difficult for North Korea to send large numbers of workers to the country.

A photo of the Pyongyang Baekhwagwan restaurant. The photo on the left shows a note saying the restaurant is closed for construction work. (Kang Dong Wan)

North Korea’s largely female workforce in Mongolia’s cashmere factories has also disappeared. During my trip, I paid a visit to a cashmere factory that had once employed about eight hundred North Korean workers. Factory officials there told me that they no longer employ North Korean laborers. I found that the situation at local hospitals was much the same. North Korean doctors, who had primarily practiced traditional Korean medicine such as acupuncture and physical therapy, had all left the country. On the signboard advertising the hospital, only the North Korean and Mongolian flags hanging side-by-side remained and there were no North Korean doctors to be found. Was that why nothing but a sense of desolation seemed to hang over the North Korean embassy in the heart of downtown Ulaanbaatar?

Some people are calling for sanctions on North Korea to be lifted. However, we need to look back on why North Korea was slapped with sanctions in the first place. The sanctions began with North Korea’s nuclear tests and long-range missile launches. We shouldn’t view the issue as one where an innocent North Korea is suffering because of sanctions. Rather than look at our government or international society as imposing unjust pressure or sanctions, we would be better served by urging North Korean authorities to quickly suspend nuclear development and set out on the path towards economic reforms and opening.

Finally, I took a walk through Mongolia’s desert. I had heard testimony from a defector who had spent weeks crossing the desert without so much as a drop of water and knew I had to try walking in their shoes. After only a few steps, I had sunk up to my ankles in a sand trap; it was so hard to breathe I felt like I would die! I had imagined something romantic, looking up at the Milky Way and casting my body away into the starlight, but this was no such place. In short, the desert made me feel like I was standing at the crossroads between life and death.

I felt utterly ashamed and contrite in the face of those defectors. I had come to understand just a fraction of what it must have been like to walk and walk for days across the desert chasing their hope for freedom. In the desert, where a single step can decide life or death, just how many defectors have disappeared into the darkness? Even now, the procession of defectors continues. The Kim Jong Un regime has doggedly pursued nuclear weapons with no end in sight to the barrage of tests. What we need right now is not unconditional dialogue. As for our deference towards Kim Jong Un and efforts to curry favor with the regime, the last five years have been sufficient. You can’t speak of peace with nuclear weapons balanced on your head. Standing in the middle of Mongolia’s desert, I was hit by this simple truth: we must make improving North Korean human rights our foremost priority and work to expand liberal democratic values in the country. With this renewed conviction, I returned home.

Translated by Rose Adams

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