The Ministry of Road and Transport Development reported that the Russian airline, ‘Aeroflot’, has halted its flights en route Moscow - Ulaanbaatar for an indefinite period.

As Saber Corp. of the U.S. terminated its distribution agreement with Aeroflot, the Russian flag carrier is stopping all of its international flights for an indefinite period from March 9.

Aero Mongolia airline has also announced that its flights to Irkutsk, Russia will be suspended until further notice as the UK-based company is involved in the aircraft’s reinsurance.

Officials of the satellite city and special economic zone development department of the capital city held a meeting with representatives of Korea Trade-Investment Promotion Agency (KOTRA) and a South Korean construction company.

At the meeting, the sides exchanged views the objectives for satellite cities and special economic zones in the Ulaanbaatar Mayor’s action program for 2020-2024, ways to connect logistics centers, and extension of the city’s infrastructure. The Korean side undertook to provide support in developing satellite cities and special economic zones through technical assistance projects of the South Korean government.

KOTRA implements the Knowledge Sharing Program of the government of the Republic of Korea and is currently carrying out a feasibility study into building a logistics center in Altanbulag free zone at the request of the Ministry of Road and Transport Development of Mongolia.

During a wild week for markets following the imposition of wide-ranging sanctions on Russia, a number of industrial metals hit all-time highs.

Aluminium scaled $4,000 per tonne for the first time ever and copper exceeded $5 a pound in whipsaw trading on Monday after hitting a record closing high on Friday of $4.94 a pound ($11,885 per tonne).

Nickel prices rocketed more than 20% overnight to surpass $38,000 for the first time since June 2007 and zinc also set a 15 year high at $4,173 a tonne. While lead is clearly the laggard, tin continues to hit records with regularity on its way to $50,000 per tonne.

Australian export metallurgical coal reached $560 a tonne, also an all-time high, as did thermal coal from Newcastle when it topped $400 per tonne. Benchmark iron ore prices advanced 20% over the last week to hit $162 a tonne.

Mongolia reports 189 new cases of COVID-19, the country's Ministry of Health reports on Tuesday.

91of them were recorded in Ulaanbaatar, 98 in the regions of the country.

No new imported cases of COVID-19 have been reported.

The total number of cases has increased to 467,302.

No new deaths from COVID-19 were recorded in the country per day. The death toll remains 2,104.

The Russian government has approved a list of unfriendly countries and territories that commit unfriendly actions against Russia.

This list includes Australia, UK, EU countries, Iceland, Canada, Lichtenstein, Monaco, New Zealand, Norway, South Korea, San Marino, Singapore, United States, Taiwan, Ukraine, Switzerland, Japan.

The government noted that according to this decree, Russian citizens and companies, the state itself, its regions and municipalities that have foreign exchange obligations to foreign creditors from the list of unfriendly countries will be able to pay them in rubles. The new temporary procedure applies to payments exceeding 10 mln rubles per month (or a similar amount in foreign currency).

The Russian invasion of Ukraine war has caused thousands of casualties, displaced 1 million refugees, and sent foreign governments scrambling to get their citizens to safety using diplomatic and emergency evacuation measures. Mongolia, too, has been carefully coordinating with its Eastern European partners, including Ukraine, Poland, Hungary, and Czechia, to evacuate Mongolian citizens.

In late February, before the Russian troop movements into Ukraine, the Embassy of Mongolia in Warsaw began recommending that its citizens leave Ukraine as tensions escalated and diplomatic efforts were derailed. On February 28, the Foreign Ministry of Mongolia stated that the Mongolian embassies in Poland, Hungary, and Czechia were responsible for contacting Mongolian citizens residing in Ukraine and mobilizing an evacuation plan and executing those plans using government funds.

So far, 23 Mongolian citizens have been evacuated from Kharkiv, using the Kharkiv-Lviv train to reach the Poland-Ukraine border – a journey of approximately 1,100 km. Another 11 citizens, mostly students from Odessa, Kyiv, and Kirovohrad, travelled by car to meet Mongolian consulate workers at Poland-Ukraine border crossing points. According to a source from the foreign ministry, all those students were on scholarships, and may see their educations permanently disrupted by the war.

As of March 2, thanks to the Mongolian foreign ministry and collaboration of Eastern European partners, Mongolia had successfully evacuated 58 of its citizens from Ukraine.

While some Mongolia observers are conflicted about how Mongolia should respond to the current Russia-Ukraine war, others familiar with Mongolian foreign policy understand and predicted Mongolia’s response.

On March 2, the United Nations General Assembly convened an emergency session to condemn Russia’s invasion of Ukraine. Mongolia abstained along with 34 other nations, including China and India. No doubt, Mongolia’s abstention raised some eyebrows in diplomatic circles. However, from both a security and a foreign policy standpoint, given Mongolia’s geopolitical challenge, its relations with its neighbors – Russia and China – cannot be hindered by external instabilities. At the same time, Mongolia’s abstention does not mean it will miraculously avoid the economic damages that are already following the war and widespread sanctions on Russia.

Moreover, in response to the current events, Mongolian people have begun to speak out in support of peaceful dialogues between Russia and Ukraine.

On March 3, eight peace advocates gathered in Sukhbaatar Square in Ulaanbaatar. One of the advocates, B. Bilguun, wearing a white T-shirt that said #nowar, told a journalist “In our generation—in 2022—we should not be worried about tanks destroying cities and bullets going through windows. The current Russia-Ukrainian crisis is really about global oligarchs fighting for resources, where superpowers bully smaller players. I am here because I would like to show the world that Mongolia stands with peace.”

Peace activists gathered again in Sukhbaatar Square on March 5 to call for an end to the war. They were joined this time by former President Elbegdorj Tsakhia.

Just one month before Russian troops entered Ukraine, on January 21, Mongolia and Ukraine celebrated 30 years of diplomatic relations in the Ukraine parliament in Kyiv. The event celebrated the countries’ history, shared values, and political, economic, and business cooperation. The ceremony was attended by the Mongolian ambassador to Ukraine, Dorj Barkhas; the chairman of the Mongolia-Ukraine Friendship Committee, I. Krishoviv; and Ukrainian Deputy Foreign Minister Dmytro Senik, as well as geologists, businesspeople, and research representatives.

Earlier, in October 2021, 40 business entities from Mongolia and Ukraine organized an online summit to improve the two countries’ business environment. Given the war’s current escalation, these opportunities will inevitably be delayed.

Mongolians, for generations, have traveled to work and study in both Russia and Ukraine. Mongolian leaders have traveled to Kyiv and Crimea, inspired by its maritime capabilities, only to return to a landlocked economy. But Mongolian leaders also understand that in order for Mongolia to develop, its foreign policy must be flexible yet shrewd, capable of prioritizing national interest. Governments, parties, and superpower ambitions change over time, but the one constant in a bilateral relationship is the people-to-people ties. These values should be protected at all times.

The elephant in the room is how Mongolia will handle the newly emerging geopolitical changes and economic pressures, all while maintaining stable bilateral and multilateral relations with both Russia and China, and with the rest of the world.

GUEST AUTHOR

Bolor Lkhaajav

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.

Mongolian surgeons operated on two children from Kyrgyzstan for free. Press center of the Ministry of Health reported.

According to it, Dastan and Bilal’s heart surgeries were performed at a clinic in Ulaanbaatar. All expenses were covered by the Mongolian side. The boys returned home the day before.

«We arrived in Mongolia on February 20, and already on February 21 doctors operated Bilal, on February 22 — my son Dastan. A week later they were discharged from the hospital, but the children continued to be observed by doctors. The children are doing very well now. We were paid for the flight, food, accommodation and the operation itself, everything was absolutely free. I am very grateful to the Mongolian doctors,» mother of one of the boys, Gulzat Toktomusheva, told.

The children were selected for the operation in Mongolia by the specialists of the Research Institute of Heart Surgery and Organ Transplantation of Kyrgyzstan. Both patients had one of the most common congenital heart defects — an atrial septal defect.

«The operations were successful. Special long-term rehabilitation is not needed for children with such a heart disease. They will be completely healthy in 2-3 months. Mongolian doctors are planning to perform several more such operations. The Research Institute of Heart Surgery and Organ Transplantation is working on further cooperation,» the Minister of Health Alymkadyr Beishenaliev, who met the boys at the Bishkek airport, said.

The Ministry of Health added that Mongolian doctors from the National Center for Organ Transplantation and Cardiovascular Surgery were in Kyrgyzstan from February 2 to February 7. As part of their cooperation, they conducted examinations and consultations for children from low-income families. A joint operation of two children was also performed with the surgeons of the Research Institute of Heart Surgery and Organ Transplantation in Bishkek.

On March 4, a project on ‘Integrated production system for sustainable cashmere – II’ implemented by AVSF Mongolia NGO held its next round Steering Committee meeting to present the achievements of the action and to introduce plans to upgrade the initiative nationally.

As of 2022, the project is working with seven cooperatives in Bayankhongor aimag to support and engage herders to adopt sustainable practices and adopt the Sustainable cashmere certification. According to the project team, as a result of project interventions 4500 are composed into Pasture Users’ Groups and as of 2022, 440 households have obtained SC Certification. The certified households, with the support from the Sustainable Cashmere Union, supply over 50 tons of raw sustainable cashmere to around 10 international buyers at a value-added price within the last six years. Moreover, as a result of project support within the last six years the annual turnover of beneficiary cooperatives increased by five times from MNT42 million.

SC Certification is a proof document that certifies that herders and their organizations prepare and supply cashmere in an environmentally-friendly, socially responsible and economically viable way. This includes sustainable management of pastoral resources, improved herding practices, democratic and transparent governance of their organizations, or strengthened capacities to manage cashmere quality and support traceability claims.

The project is synergetic with other AVSF initiatives aiming at empowering women as actor of change for rural economic development, or at supporting the development of sustainable textile sector in Mongolia with all value chain stakeholders as well as relevant authorities and business intermediaries. It is a model that was initiated by AVSF Mongolia in 2013 to help promoting an integrated approach encompassing all steps of sustainable cashmere value chain development, from production to consumption, considered as necessary to induce systemic change.

In the coming years, the team is planning to expand its intervention to promote sustainable cashmere in several soums of Arkhangai and Khentii aimags and to strengthen the institutional capacity of the Sustainable Cashmere Union and its member cooperatives.

Source: AVSF Mongolia

A regular meeting of the capital city authorities was held on March 7. In accordance with the fire that broke out recently in the capital city, The Governor of the Capital City and Mayor of Ulaanbaatar D.Sumiyabazar reminded the relevant officials to pay attention to the quality and safety of the constructions in the city. Officials were also instructed to take concrete measures to prevent forest and steppe fires.

The tender evaluation rate in the capital city is 61.7 percent

The Capital City Governor instructed to ensure the implementation of his ordinance issued in intensifying investment activities and to oversee the implementation. As of March 4, 2022, there are 393 projects to be implemented in the capital city with the state and capital city budget, local development funds, and other sources.

Procurement of 386 projects and activities was announced by 81 orders issued by the Capital City Governor, 253 projects and activities were procured, and 109 projects and activities were not procured. The tender evaluation rate in the capital city is 61.7 percent.

Influenza and influenza-like illnesses are more common among children

Head of the Health Department of the Capital City B.Byambadorj introduced the current situation of the coronavirus. He said "An average of 300 to 500 people being infected with coronavirus every day. Influenza and influenza-like illnesses are on the rising among children. Therefore, we are cooperating with the Ministry of Health to regulate the balanced workload”.

26,447 children were additionally enrolled in kindergartens

Ulaanbaatar Mayor clarified children’s education backwardness and learning methods, and how they plan to improve the education sector due to the two-year quarantine. Head of Education Department of the Capital City J.Gantulga highlighted that the attendance of the capital city's secondary schools last week was 96.1 percent. The Minister of Education and Science has issued an order to eliminate the delays and is implementing it. Additional kindergarten enrollment was organized and 26,447 children enrolled, and the pre-school enrollment rate was 78 percent. During the 14 days of the change in the start time of 59 schools, traffic congestion was disrupted at 08:00 in the morning”

There are 340 trade areas in public space

The Governor of the Capital City instructed relevant officials to determine trade areas in public space and to develop a landscaping assignment. M.Shijirbayar, Deputy Director of the Urban Development Department of the Capital City said "340 trade areas and services have been determined in nine districts of the capital city.

Rules of the Capital of Ulaanbaatar is being developed

G.Batzorig, Head of the Land Management Department of the capital city said “We have included 74 development projects in our plan to resolve the issue of land allocation and issue land certificates and conclude contracts within the framework of the Capital City Governor's Order on Intensifying Investment Work. Of these, 31 are roads, 22 are school and kindergarten buildings, eight are engineering networks, and 13 are other works. Senior Adviser in charge of Administration and Legal Affairs of the Capital City Governor D.Munkh-Erdene said “There is a working group on the city rules. The first draft will be presented at a regular meeting in March”

Demolition of 4860 garages planned

Head of the Land Management Department of the Capital City G.Batzorig introduced the demolition process of fences and garages. 457 violations are planned to be eliminated at 63 locations in the Baga Toiruu area. Land acquisition will begin on March 15”

Following instructions were given to the city officials:

-To improve control and timely manner of investment projects and activities to be implemented in 2022 with the state and capital city budgets, local development funds, and other sources.

-To inform citizens about the new electricity, heating, and sewerage networks and landscaping and construction works being invested and constructed this year.

-To monitor the safety of school and kindergarten gymnasiums and playground equipment, and to organize activities to prevent injuries to children;

-To prohibit the use of sharp, sharp-edged, or unsafe tools and equipment that may cause injury to children, and, if necessary, install a barrier, guard, and appoint a supervisor.

-To take necessary measures to prevent children from being involved in road and traffic accidents in kindergartens, schools, and public streets and roads.

-To ensure unimpeded access to public transport on the first lane of the road, to impose a fine to drivers who block bus stops, and deduct points for violating the traffic rules.

-To paint road signs and markings in the territory of the capital city, to construct dams, storm water drainage networks, ravines, public land waste, and snow removal.

-Under the Capital City Governor's Order No. A / 1008 “On Establishment of a Working Group” for 2021, the relevant officials were instructed to develop the Capital City Charter following the law and introduce it to the regular meeting of the capital city officials.

CAPITAL CITY TRAINING, RESEARCH, AND PUBLIC RELATIONS AGENCY

Gold extended its biggest weekly advance since July 2020 amid reports of the US and its allies contemplating an embargo of Russian oil, raising concerns about higher inflation and slowing economic growth.

However, the metal eased back after a spokesperson for the German government said it was against entering into the next sanctions spiral, possibly signaling disunity when it comes to the oil ban. The US is considering whether to act without help from its allies in Europe, according to Bloomberg sources.

Spot gold was up 0.3% by noon ET, trading at $1,982.16 an ounce after surpassing the $2,000 level for the first time in 18 months. US gold futures gained 0.8% to $1,982.60 an ounce.

Meanwhile, benchmark real Treasury yields have fallen deeper into negative territory in recent weeks, as expectations for higher inflation and lower growth are priced in, making non-interest bearing gold more attractive.

The precious metal has rallied even as the dollar rose to the highest since July 2020, a sign of its investment appeal as a haven.

Any escalation of the war “could push the world economy toward a stagflation scenario, which we see as very bullish for gold,” Carsten Menke, head of next generation research at Julius Baer Group, wrote in a Bloomberg note.

“Investors who see the potential for worsening could seek some protection in gold, but need to be aware that prices will likely retreat if their assumption does not hold true,” Menke added.

Investors in both exchange-traded funds and futures are now upping their bullish bets. Inflows into ETFs last week took holdings to the most in almost a year, while the net-long position of hedge funds trading the Comex are now the highest since August 2020.

(With files from Bloomberg)