On February 6, Prime Minister of Mongolia L.Oyun-Erdene met with Secretary-General of the United Nations Antonio Guterres in Beijing, China.

At the outset of the meeting, the PM underscored that the UN has made a valuable contribution to Mongolia’s development, while expressing his gratitude for its continued support to the Government of Mongolia in preventing and combating the COVID-19 pandemic, as well as for providing much-needed vaccine assistance under the COVAX program.

Expressing his pleasure to meet with the PM in Beijing, the Secretary-General emphasized that Mongolia is an important partner of the UN. Moreover, he commended Mongolia’s contribution to UN peacekeeping operations, as well as the efforts to protect the interests of landlocked countries. He also thanked Mongolia for launching the One Billion Trees national movement and highlighted the country's contribution to the international community's efforts to combat climate change, and expressed the UN's support and cooperation.

During the meeting, the PM introduced Mongolia's ‘New Revival Policy’ and the long-term development policy ‘Vision-2050’, noting that they are in line with the SDGs. He also expressed hope that the UN would support and cooperate in increasing renewable energy sources and successfully implementing the "One Billion Trees" national movement to combat climate change.

The 30-year agreement will boost gas supplies by 10 billion cubic meters and will be settled in euros.

Russia’s Gazprom and the China National Petroleum Corporation (CNPC) signed a second long-term contract on Friday for the supply of 10 billion cubic meters (bcm) of natural gas from the Russian Far East. The agreement comes as Russian President Vladimir Putin is in China on an official visit.

According to Gazprom, the agreement is “an important step in further strengthening mutually beneficial cooperation between Russia and China in the gas sector.” After the project reaches its full capacity, the volume of Russian pipeline gas supplies to China via the Far East route will reach 48 billion cubic meters per year (including deliveries via the Power of Siberia gas pipeline).

Gazprom’s largest natural gas deposit in the Far East is the Yuzhno-Kirinskoye field, where production is due to begin in 2023.

“The signing of the second contract for the supply of Russian gas to China testifies to the highest level of mutual trust and partnership between our countries and companies. Our Chinese partners from CNPC confirm that Gazprom is a reliable gas supplier,” the head of Gazprom, Alexey Miller, said.

Russian energy supplies to China have reached record highs, according to Kremlin aide Yury Ushakov.

Gazprom and the CNPC signed their first 30-year contract on gas supplies via the Power of Siberia pipeline in 2014. The 3,000km (1,864 mile) cross-border pipeline, the first natural gas pipeline between Russia and China, started deliveries three years ago.

In 2015, the sides agreed on gas supplies via the western route, or the Power of Siberia 2, which will deliver gas from Siberia’s Yamal Peninsula, where Russia’s biggest gas reserves are. The new pipeline will be able to transfer up to 50 bcm more gas through Mongolia to China annually.

In January, Gazprom completed an analysis of the project to build the Soyuz Vostok gas pipeline through Mongolia to China, which will make it possible to supply up to 50 billion cubic meters of gas per year to China.

Analysts say Moscow’s ‘gas pivot’ to China poses a challenge for Europe, which has been struggling with skyrocketing energy prices in recent months. Russia remains Europe’s main gas supplier, but the changes it is currently making to its energy transport infrastructure should be taken seriously, analysts note.

Europe’s 541 bcm of annual gas consumption is more than China’s 331 bcm, but the latter is expected to rise to 526 bcm by 2030 as Beijing reduces its dependence on coal. Consulting firm McKinsey estimates that China’s demand for gas will double by 2035. Its annual gas consumption is expected to reach 620 bcm by 2040 and overtake oil as the leading fuel source by 2050, according to data made public in September by Chinese energy giant Sinopec.

BEIJING — Premier Li Keqiang pledged to push forward the cooperation between China and Mongolia in areas including infrastructure and pandemic containment.

Premier Li made the remarks on Feb 5 while meeting with Mongolian Prime Minister Luvsannamsrai Oyun-Erdene, who came to attend the opening ceremony of the Beijing 2022 Olympic Winter Games.

Noting that China and Mongolia are good neighbors, friends and partners, Premier Li said China will give priority to ensuring the smooth operation of the ports on both sides to expand bilateral economic and trade cooperation.

Premier Li also pledged to promote the construction of railway, highway and energy projects, and carry out cooperation in the spirit of friendship and in accordance with market principles and business rules, adding that China will continue to provide support and assistance within its capacity to Mongolia in its fight against COVID-19.

Oyun-Erdene thanked China for its anti-pandemic support and expressed hope to work with China in fighting COVID-19 and keep border ports open.

Oyun-Erdene also suggested that the two countries should better align their development strategies, and deepen cooperation in energy and mining, transportation infrastructure and desertification prevention and control.

BEIJING, Feb. 6 (Xinhua) -- Chinese State Councilor and Foreign Minister Wang Yi on Saturday met with Mongolian Foreign Minister Batmunkh Battsetseg, who accompanied Mongolian Prime Minister Luvsannamsrai Oyun-Erdene to attend the opening ceremony of the Beijing 2022 Olympic Winter Games.

Wang thanked the Mongolian government and people for their firm support for China's hosting of the Winter Olympics. He expressed the confidence that China can deliver a "streamlined, safe and splendid" Games through working with all parties.

Wang said China and Mongolia are important neighbors whose friendly cooperation enjoys a solid foundation and broad prospects for development.

He expressed the hope that the two countries will continuously consolidate political mutual trust, respect each other's sovereignty, independence and territorial integrity, support each other in safeguarding core interests and major concerns, and develop the China-Mongolia comprehensive strategic partnership.

Battsetseg said Mongolia will work with China to fully implement the political consensus between the two sides, further synergize development strategies, advance the construction of the Mongolia-China-Russia economic corridor and expand practical cooperation in various fields.

On February 5, Prime Minister of Mongolia L.Oyun-Erdene held an official meeting with Premier of the State Council of the People's Republic of China Li Keqiang. During the meeting, the sides exchanged views on accelerating bilateral relations in detail and reached agreements on a wide range of matters.

At the start of the meeting, Prime Minister L.Oyun-Erdene congratulated the Government of China and its people for successfully organizing the Beijing 2022 Winter Olympics despite the difficult pandemic situation.

The two Premiers agreed that it is in both countries’ interest to accelerate the friendly relations and cooperation between the two countries, and urgently resolve current pressing issues.

In the framework of the ‘New Recovery Policy’ initiated by the Government of Mongolia, they came to an agreement on ensuring the active participation of private entities and investors in large-scale projects on border checkpoints and the sectors of energy and industry as well as those aimed at decentralizing Ulaanbaatar city and supporting green development.

A suggestion was also put forth for close cooperation to speed up the construction of infrastructure at border checkpoints.

During the meeting, the border crossing points for railroads at Gashuunsukhait - Gantsmod, Shiveekhuren - Sekhee, and Bichigt - Zuunkhatavch border checkpoints were finalized, resolving the issue concerning railroad infrastructure at Gashuunsukhait border checkpoint that had been under discussion for over 14 years.

The Government of Mongolia is focusing on the launch of railroad construction at the border checkpoints in the near future, informed the Mongolian Prime Minister.

Furthermore, the two PMs discussed extending the ‘Currency swap agreement between the Bank of Mongolia and the People’s Bank of China’ by three more years - until the socio-economic situation returns to pre-Covid levels in 2026.

As the Russia-China and EU-China trade turnover has hit an all-time high, the two sides exchanged views on accelerating the project on constructing a 987-km highway between Altanbulag and Zamiin-Uud that had been discussed for many years in the framework of accelerating the construction works to be carried out for the Mongolia-Russia-China Economic Corridor Program.

Within the efforts to reduce the traffic congestion of Ulaanbaatar city, they reached an agreement on cooperating in projects, such as introducing a new method of public transportation based on advanced technology, and constructing a highway network around the city.

Moreover, the two Premiers agreed to accelerate the works for the construction project on the natural gas pipeline connecting Russia and China through the territory of Mongolia as its feasibility study was recently finalized.

Highlighting the importance of deepening cooperation for the fight against climate change, they expressed willingness to actively cooperate in large-scale projects against desertification and dust storms, including the implementation of the ‘One Billion Trees’ national movement.

During the meeting, Premier of the State Council of the People's Republic of China Li Keqiang thanked Prime Minister of Mongolia L.Oyun-Erdene for his visit and in-person attendance of the Beijing 2022 Winter Olympics Opening Ceremony.

In order to have the issues put forth by the Mongolian PM urgently resolved, he then expressed that special attention will be paid to having the Zamiin-Uud - Erlian border checkpoint return to normal operations.

Furthermore, the Chinese Premier noted that the issue concerning the travel of the two countries’ peoples as well as Mongolian students attending in-person classes at Chinese universities will be resolved in phases, alongside increasing scholarship opportunities.

In the fight against the pandemic, he also expressed that it is possible for the Chinese side to continue to provide support by supplying COVID-19 vaccines.

The two countries’ Premiers agreed to have close cooperation in all possible fields in order to further develop the Comprehensive Strategic Partnership relations between the two countries and expand mutually-beneficial cooperation.

At the category U66kg world number one and Olympic silver medallist Baul An (KOR) went through the preliminaries of the Grand Slam in Paris without major difficulties to face Baskhuu Yondonperenlei (MGL), fifth in the world and on fire since the morning, with a significant win against Vazha Margvelashvili (GEO) in the semi-final.

The first attack came from the most successful Korean judoka on the circuit right now, with a low seoi-nage for no score but from there on, the match was too balanced for any attack to be successful and it was An Baul who started to commit false attacks. After a long golden score period, the third penalty fell on An Baul, who didn't play it well from a tactical point of view against the wall of bricks that is Baskhuu Yondonperenlei. The Mongolian won the gold medal.

There was one last French competitor, out of four engaged in the competition in this category, who was present in the final block. Daikii Bouda (FRA) was up against Vazha Margvelashvili (GEO). Bouda resisted for a long time and we had to wait for the last forty seconds to see the Olympic silver medallist from execute a powerful hip movement for a clear ippon.

With no record on the international scene, the presence of Luukas Saha of Finland was a surprise and a good one since the Finnish judoka showed some really good judo during the preliminary rounds. The last step was a big one and probably too big as he faced Ryoma Tanaka (JPN) for a spot on the podium. After only 23 seconds, Tanaka, winner last year here in Paris, scored ippon with a one arm shoulder movement. No chance for Saha.

Since Mongolia’s rapid democratization in the 1990s, the country has faced major hurdles in combating corruption. The country spent many years attempting to adopt a new, transparent legal system that prevents government officials taking bribes, but there was a blind side. Although the legislative framework aimed at ending corruption, implementation was not quite successful. When the Pandora Papers revealed undisclosed assets, including cash and property worth millions of dollars, held by Mongolian high-level officials, it sparked public outrage.

As Mongolia’s international reputation grew, both government and non-government organizations have been working on fighting corruption. For example, in 2020, Mongolia implemented e-governance in the midst of the COVID-19 pandemic; significantly, these electronic services help to eliminate lower-level corruption by cutting out interactions with bureaucrats to access government services. Despite these efforts, however, Mongolia continues to rank toward the bottom of international corruption barometers.

In order for us to get a fuller picture, The Diplomat interviewed the director-general of Mongolia’s Independent Authority Against Corruption (IAAC), Dashdavaa Zandraa, about past and future efforts to fight corruption.

In 2021, Mongolia scored 35/100 and ranked 110th out of 180 in Transparency International’s Corruption Perceptions Index. It has not scored above 39/100 since the index began using the current scoring system in 2012. What is the leading contributing factor in Mongolia’s corruption, and why has improvement been so hard to come by?

The Government of Mongolia attaches great importance to the fight against corruption. For instance, on July 16, 2021, at the initiative of the Prime Minister Oyun-Erdene Luvsannamsrai, a working group was established to improve the assessment of the Corruption Perceptions Index published by Transparency International.

The main goal of this working group is to correct the shortcomings of the previous anti-corruption measures and to eliminate the obstacles to the successful reduction of corruption.

Generally speaking, to improve [Mongolia’s ranking on] the Corruption Perceptions Index, it is necessary to change the underlying factors that contribute to corruption. First, it is important to reduce the bureaucracy of the civil service, and second, to improve the legal environment.

Mongolia is actively working to reduce the bureaucracy of the civil service through digitalizing civil services and has successfully integrated 512 civil services as of now. In addition, the Prime Minister has set a goal to reduce the number of government licenses, signatures, and contracts issued to businesses by 50 percent in 2024, which will drastically reduce the human factor in civil services. Mongolia’s long-term development policy also states that “e-governance technology will reach international standards and social relations will be developed without corruption and bureaucracy.”

Furthermore, to effectively combat corruption, it is necessary to eliminate the underlying conditions that create the risk of corruption rather than corrupt officials and minimize human involvement by limiting the ability of officials to make subjective decisions. For instance, in the framework of e-governance development, the process of allocating land to citizens has been fully digitalized and posted publicly on the “egazar.gov.mn” website, making it possible for citizens to receive land allocation only in a transparent manner through auctions, without any government officials’ interference. In other words, it eliminated the risk of officials abusing their power and illegally allocating land to themselves and others. Fighting corruption is more about eliminating the conditions that create corruption than about corrupt officials.

In the future, we aim to further develop e-governance and integrate all possible government information networks using blockchain technology. The use of advanced technology in anti-corruption activities is essential.

To improve the legal environment, the government has submitted a draft Law on Whistleblower Protection to the Parliament. We are confident that the results will be visible in 2022, as we are holding regular meetings with international donors and foreign research organizations and implementing good practices and recommendations to combat corruption.

According to the recently released TRACE International’s Bribery Risk Matrix, the risk of bribery in Mongolia’s business sector has decreased by 2 points and has improved by 7 placements. Since 2019, our country’s assessment has been consistently improving.

Over the years, the Mongolian public has expressed distrust or disappointment in IAAC efforts at tackling high-level corruption. For example, the notorious “60 billion tugriks” case right before the 2017 Mongolian presidential election captured public attention, but the involved parties still hold government positions. What new approaches is the agency utilizing to pursue high-level corruption cases?

We pay special attention to all cases of corruption, both high and petty corruption. In 2021, 160 corruption cases were prosecuted.

Recovery for corruption is a key strategy not only for the international anti-corruption community but also for national policy and is a vital goal for our country’s public policy. Recovery is an important factor in establishing social justice, even if it does not fully heal the damage done to the integrity of the state, democratic values, and the opportunities that citizens would have. The Independent Authority Against Corruption pays utmost attention to the recovery of damages caused by corruption crime and has recovered $4 million in 2019, $12.5 million in 2020, and $33.8 million in 2021 to the state treasury. In addition to government organizations, the fight against corruption requires the participation of non-governmental organizations, the media, citizens, and international organizations’ cooperation, and efforts.

According to the Anti-Corruption Law of Mongolia, the IAAC receives annual declarations of assets and income of public officials and, in the event of significant changes, we inspect and monitor the legitimacy of the official’s income. In particular, the declaration of assets and income of high-risk sectors, organizations, and high-ranking government officials is of great importance. This is crucial for proving and identifying corruption, conflict of interest, and illicit enrichment. In 2020, the IAAC registered a total of 41,686 declarations of interests, assets, and income, which inspected 542 declarations and held 79 officials responsible for violations of law. In addition, 704 complaints, and information of conflict of interest were inspected, and 25 officials were held accountable.

Can you walk us through the process for investigating a case that may involve high-level corruption (for example, involving conflicts of interests or bribery)?

Investigations into corruption are regulated by the Mongolian Criminal Procedure Code. According to the law, an investigator of the IAAC shall investigate a corruption case based on a complaint, decide on whether to open an inquiry case, and immediately notify the prosecutor.

During the investigation, an investigator shall take samples, fingerprints, and footprints for analysis, [hear] testimony from victims and witnesses, confiscate assets, and property relevant to the case, and appoint experts for further investigation.

Upon completion of the inquiry, the investigator shall submit to the prosecutor one of the proposals to close the inquiry case or initiate a criminal case and prosecute as an offender. In the case of an indictment, an investigation is conducted until the case is transferred to court.

After investigation, the prosecutor shall decide whether to transfer the criminal case to court and, if transferred, issue an indictment. Thus begins the process of resolving the case in court.

The IAAC has come under political pressure in the past, which organizations like Transparency International warned could interfere with the body’s functioning. Do you believe the IAAC is sufficiently empowered to perform its core functions as an independent body?

Yes, I do believe that the IAAC is sufficiently empowered to perform as an independent body. During my time as a director-general, I have not faced any kind of political pressure. The Parliament of Mongolia passed the Anti-Corruption Law on July 6, 2006, which established the IAAC as an independent, sovereign, and specialized government agency. The law provides political, economic, social, and legal guarantees to ensure the independence of the organization. For instance, the IAAC’s budget must be approved independently, and it is prohibited to transfer an employee to another position without its consent.

Furthermore, the director-general and deputy director-general of the IAAC are appointed and dismissed by the Parliament. In this case, the directors shall be dismissed upon their request, for medical reasons, the expiration of their term of office, and the entry into force of a court sentence. In addition, the law prohibits the removal, suspension, or dismissal of the directors on grounds other than those specified in the law. This guarantees the independence of the IAAC.

In 2019, the Mongolian branch of Transparency International evaluated the IAAC’s performance. The assessment rated the IAAC’s legal independence as “good,” its operational independence as “moderate,” and its organizational independence as 78 out of 100, with four recommendations. We believe that the assessment of independence has increased as a result of the implementation of the recommendations.

Mongolia implemented e-governance in 2020, amid COVID-19. This is a new approach for Mongolia to tackle low-level bribery and corruption in public service. Do you believe there has been an improvement in lower-level corruption in the past year?

Yes, I also believe that petty corruption has decreased over the year. The ability to communicate directly between a citizen and a civil servant poses a certain risk of corruption. Many countries around the world are using a variety of techniques to reduce this risk, and the development of e-governance has proven successful. Therefore, Mongolia pays utmost importance to the development of e-governance. As mentioned above, 512 public services have been digitalized so far, and the goal is to digitalize all available public services in the future. It also has the advantage of eliminating bureaucracy and increasing information transparency.

Bribery Risk Matrix and the Rule of Law Index improvement indicate that the level of corruption has declined to some extent in Mongolia. The IAAC also conducts regular internal surveys to identify corruption, one of which is the Public Integrity Assessment. The assessment indicated a decrease in the level of corruption in 2021.

How does the IAAC deal with offshore-related cases, particularly involving parties who may hold high-level government positions? How is the IAAC working with other governments to combat corruption in Mongolia?

Corruption has spread beyond the national level, with the involvement of foreign banks, financial institutions, and the public and private sectors. Mongolia has signed 36 agreements with about 20 countries on mutual legal assistance in civil and criminal matters, transfer of offenders, and transfer of sentenced persons. We are working to further expand and deepen this type of agreement. Although no mutual legal assistance agreement has been signed, we have worked effectively with several countries under the UN Convention Against Corruption, in particular in the areas of recovery of damages and information exchange.

One of the main principles of the U.N. Convention Against Corruption is to recover corruption crime damages. In this framework, the IAAC successfully recovered $7 million worth of illicit assets, such as apartments, houses, and cash, from the United States, the United Kingdom, and Switzerland. We look forward to further expanding our international cooperation with the member states of the Convention to the fullest extent possible.

Furthermore, the IAAC is cooperating extensively with the Asset Recovery Interagency Network- Asia Pacific, the Organization for Economic Cooperation and Development, the World Bank, the United Nations Office on Drugs and Crime (UNODC), the Stolen Asset Recovery Initiative, and the FATF.

BY: 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.

The Australian government has backed a rare earths mine as the country ramps up production to challenge Chinese dominance of the critical minerals used in magnets for electric vehicles, wind turbines and smartphones.

China has long dominated the supply of those minerals but its trade war with the US has forced the global manufacturing industry to search for alternative sources.

The Australian government has identified rare earths as a strategic industry and established funds to support companies breaking into the market.

On Wednesday, it agreed a A$140mn (US$100mn) project financing loan to the Yangibana rare earths mine in the Gascoyne region of Western Australia that is being established by Hastings Technology Metals.

The loan will act as an anchor for Hastings, which is aiming to raise up to A$400mn in debt for the project. The company is set to become Australia’s second-biggest exporter of rare earth minerals, behind A$8bn-valued miner Lynas Rare Earths, once exports start in an expected two and half years.

The development of Yangibana and a hydrometallurgical plant in Onslow on the Western Australian coast to refine the materials represent Australia’s growing presence in the booming rare earths market.

Matthew Allen, chief financial officer of Hastings, described the government’s financial support as a “pretty pivotal moment” for the expanding local industry, as demand continues to “soar out of sight.”

He said that Hastings could supply up to 8 per cent of global demand for neodymium and praseodymium, two of the most sought-after of the 17 rare earths minerals. “The rush is on to build a non-China supply chain,” he said.

Yangibana, combined with output from Lynas and other projects, would boost Australia’s share of the market.

“Hastings remains among the most advanced rare earth development projects globally,” said Reg Spencer, an analyst with Canaccord Genuity. He added that Australia’s share of global rare earths exports could be more than 30 per cent in the coming years. “It is pretty clear Australia will become a meaningful player,” he said.

Allen said demand for rare earth minerals has risen substantially in recent years but the need to diversify the supply chain became obvious in 2010 when Japan accused China of blocking shipments to the country over a diplomatic dispute.

“It has taken 10 or 11 years for the world to recognise China’s dominance and do something about it,” he said.

Allen predicted the minerals extracted from Yangibana will mostly be used in Europe’s automotive industry. The company already counts German industrial giant Thyssenkrupp and parts supplier Schaeffler Technologies as customers.

Hastings shares gained 8 per cent on the announcement of the government loan, valuing the company at almost A$480mn.

Masato Sagawa, the Japanese scientist who discovered and developed the strongest magnet that is driving rare earth demand, was this week awarded the Queen Elizabeth Prize for Engineering.

Within the framework of the ’50 billion trees’ program that will be co-implemented by the five entities specialized in tree planting and rehabilitation, the Mongolian University of Life Sciences and the Research Institute of Horticulture of Siberia, three million trees are planned to be planted next spring.

The program allows citizens to plant trees online through the ‘Mod’ smartphone application, which will be launched from February 4. This means that the professional team will plant the trees ordered by the citizens through the application.

Using the application, it is possible for citizens to order larch, pine, willow, elm and spruce for MNT 2,500 respectively. The application also will offer a package of four types of trees for MNT 10,000.

As reflected in the program, 50 million trees will be planted over a period of 10 years in an area of 16,000 hectares in Khuder soum of Selenge aimag and 38 hectares in Ar Gunt, the capital city. It is possible to plant 20,9 million seedlings in Ar Gunt.

At the area to plant trees preparations such as installation of irrigation system, camera control and power transmission line have been made, said PhD B.Munkhbat from the Mongolian University of Life Sciences.

A new TV channel will be opened in Mongolia jointly with Hong Kong Satellite TV International Media Group. Mongolia Association of Culture, Tourism, Securities and Industry, in partnership with Economy and Culture and Tourism Channels of the Hong Kong Satellite TV, has launched a project to open a new TV channel to be broadcast in English and Chinese languages. According to Zhao Hong Tao, director of Culture and Tourism Channel of the Hong Kong Satellite TV, and Lu Jin Hua, Director of Economy Channel of the Hong Kong Satellite TV, the new channel will broadcast news programs and contents that promote international cooperation within the Belt and Road Initiative, development of international cooperation in the difficult times of financial crisis and COVID-19 pandemic, investment in culture, tourism and small, medium and large manufacturing sectors.

In support of objectives to give all-round support to citizens, businesses and investors to enter the world market through their active participation, to introduce 4th Industrial Revolution, artificial intelligence, blockchain and innovative achievements and to implement policies in the line with digital economy, as outlined in the New Revival Policy proposed by the Government of Mongolia and Prime Minister L. Oyun-Erdene, the Channel aims to deliver reliable and beneficial information on economic trends of international IPOs, NFT currencies and the digital economy.

P.Altan-Erdene, a member of the Board of the Mongolia Association of Culture, Tourism, Securities and Industry, said that it will work in the spirit of supporting national policies and programs such as ensuring the international investment environment stable and improving public financial literacy.