The Governor's Office of the Capital City of Mongolia plans to launch phased measures to build a sludge drying and incineration plant and a waste-to-energy plant between 2024 and 2028 as part of improving Ulaanbaatar's engineering infrastructure.

Although the New Central Wastewater Treatment Plant has been completed, it cannot be put into operation as the sewage pipeline and sludge drying plant have not been constructed, necessitating a new sludge drying and incineration plant.

“Currently, we are collecting sludge on a field, drying it naturally, and burying it. Many countries burn the sludge in closed incineration furnaces, extracting energy and gas, and using the remainder as construction materials. In the first phase, we are going to announce a tender for building a sludge drying and incineration plant under a public-private partnership,” stated the Governor of the Capital City and Mayor of Ulaanbaatar Nyambaatar Khishgee, in his report on the construction projects to be carried out in the coming years within the framework of the “20-Minute City.”

Second Deputy Governor of the Capital City Amartuvshin Amgalanbayar was tasked with announcing another tender for a waste-to-energy plant at the centralized landfills at Tsagaan Davaa and Moringiin Davaa by this December 2024. After the plants are built, the Governor's Office of the Capital City plans to take the next phase of actions including closing the centralized landfills and improving waste collection management.

Chinese Ambassador to Mongolia Shen Minjuan has visited a key highway project in the northern Mongolian province of Darkhan-Uul.

The Chinese Embassy in Mongolia will continue to create favorable conditions for Chinese companies in Mongolia, the ambassador said.

The Ulan Bator-Darkhan Highway Section 5 project was built by the China Gezhouba Group International Engineering. The highway is a significant infrastructure to improve connectivity between the Mongolian capital and northern regions.

The project was awaiting review and approval by the Mongolian side.

Following a pivotal virtual meeting aimed at exploring business opportunities in the pharmaceutical sector, the High Commission of India in Ulaanbaatar and the Pharmaceuticals Export Promotion Council of India (Pharmexcil) are planning a road map for stronger bilateral pharmaceutical ties through collaborations.

This meet was part of a broader effort to facilitate cross-border partnerships, encourage knowledge sharing, and promote Indian pharmaceutical products in Mongolia.

The virtual meet focused on highlighting the potential of the Mongolian pharmaceutical market and creating a platform for Indian companies to engage with local Mongolian businesses.

According to Raja Bhanu, director general (DG), Pharmexcil, “The partnership between the High Commission of India in Ulaanbaatar and Pharmexcil was central to the success of the event. This collaboration reflected a mutual commitment to fostering deeper bilateral relations, particularly in the pharmaceutical sector, which is becoming increasingly important in both economies. By joining forces, the High Commission and Pharmexcil sought to open new avenues for Indian pharmaceutical companies to expand their footprint in Mongolia, a market with growing demand for quality healthcare products.”

The event served as an ideal platform for Indian companies already operating in Mongolia as well as those seeking to enter the market. It provided invaluable insights into the regulatory landscape, market dynamics, and potential business opportunities within Mongolia's rapidly developing pharmaceutical industry.

The virtual meet also facilitated networking between Indian pharmaceutical companies and Mongolian business leaders, creating a direct channel for collaboration. The event’s success emphasized the importance of such partnerships in driving mutual growth and increasing trade between the two nations. This collaboration is expected to lead to stronger commercial ties, contributing to India’s expanding role in the global pharmaceutical market.

The goal is not only to enhance bilateral trade but also to position both countries as key players in the region's pharmaceutical landscape.

This partnership between India and Mongolia underscores the shared vision of economic growth, innovation, and collaboration. With more such initiatives planned, the pharmaceutical sector is expected to become a cornerstone of India-Mongolia trade relations, paving the way for future growth, investment, and business expansion in both countries.

In 2021, an assessment based on the MNS ISO/IEC 27001 standard was conducted for 605 local government organizations in Mongolia.

The findings revealed that only 35% of these organizations have an information security policy, while the remaining organizations were deemed inadequate in this area.

Regarding asset management, 53% of the organizations addressed the issue effectively, but 47% were identified as needing improvements. Additionally, 43% of the organizations were found to be managing human resource issues appropriately, though further progress is necessary in this area.

A cybersecurity study involving 67 government organizations in Mongolia was also conducted. The results showed that:

32.35% of these organizations have dedicated IT units.

29.41% have experienced some form of cyber attack.

50.33% do not follow any standards or frameworks for ensuring information security.

30% have never conducted a risk assessment.

One of the most concerning statistics is that 70.59% of these organizations are unaware of their risk of being targeted by cyber attacks, and 56.67% have not developed information security policies or documentation.

This research highlights the attitudes and preparedness of government organizations regarding information security.

The study included five institutions under the State Great Khural, 28 government agencies, 14 central and local government bodies, and five other organizations.

To further assess the current state of cybersecurity in Mongolia, the Ministry of Digital Development, Innovation, and Communications is collaborating with the University of Oxford. The results of this study are expected to be published by the end of 2024.

Translated by ChatGPT

A woman who became a victim of human trafficking has been brought back after 12 years. Mongolia’s Police Department successfully organized the operation to repatriate "N," a victim of human trafficking since 2012, through Interpol.

Victim’s Testimony: “In 2012, when I turned 16 and got my first passport, a woman came from the city and told my parents, ‘I will take your daughter to Ulaanbaatar, help her find work, and provide her a better life to earn money.’ After arriving in Ulaanbaatar, she had me obtain a foreign passport. Then she took me to Erenhot, claiming we’d be going there to bring back goods. On the train, everyone spoke a foreign language I didn’t understand. I asked her, ‘What are you doing?’ She replied, ‘You’ll understand eventually.’

"After staying there for three days, I asked her, ‘When are we going back?’ She kept saying we’d return in a few days but eventually left me there and returned to Mongolia. She later brought another girl under the same false pretenses. I didn’t understand the language. I later learned she had sold me for a sum of money, an amount with four zeros following the number 4.

"I had no idea I was being trafficked and exploited. The person never talked about it, and I couldn’t understand what others around me were saying. I didn’t even know how to escape. I didn’t know east from west."

-How did it feel to return home after 12 years?

-After 12 years, my mother has aged, and my father has passed away. Without documents, I couldn’t find a way to return.

-How did you reach out to the authorities for help?

-In May 2024, I contacted someone in Xilin Gol League, Inner Mongolia, and told them, ‘I was sold to this person. I don’t have any documents. What should I do? Please help.’ Since then, with the assistance of police forces from both countries, I was able to return to Mongolia in November. I’m deeply grateful for being brought back to my homeland.

The Mongolian and Chinese police departments, in cooperation with Interpol’s national center, worked together to bring the victim back to Mongolia. The perpetrator is currently in China, and a court hearing is expected soon.

Translated by ChatGPT

A recent Social Indicator Sample Survey-2023, jointly conducted by the National Statistics Office of Mongolia and UNICEF, revealed that children comprise 37.1 percent of Mongolia's total population. The survey shows notable disparities between urban and rural areas in terms of children's health, education, and development opportunities.

“One in three children in rural areas cannot access preschool education. Children’s immunization rates and healthcare services vary highly between urban and rural areas. While immunization rates are high in the central region and Ulaanbaatar city, the rates for children in Bayan-Ulgii aimag are low,” reported the Ministry of Family, Labor, and Social Protection of Mongolia.

Therefore, to solve inequalities, create child-friendly environments in both urban and rural areas, improve budgeting and planning related to children, and increase investment in the social sector, the Cabinet Secretariat of the Government of Mongolia and UNICEF have co-organized a discussion on "Strengthening the Participation and Partnership of Local Organizations in Ensuring Children's Rights." Participants discussed the implementation of the Convention on the Rights of the Child at the local level and how to work at the national level to reduce violations of children's rights.

LONDON, Nov 19 (Reuters) - Swiss trading house Trafigura is trying to track down $500 million in Mongolia following a year-long probe of staff and associates over a billion-dollar fraud scheme at its local fuel supply business, according to three trading sources familiar with the case.

The Mongolia case, the second large-scale fraud Trafigura has uncovered in the past two years, has rattled bank trade financiers who are now questioning the strength of oversight at one of the world's biggest energy and commodity traders, two banking sources who work with Trafigura and lend money to the company said.

Trafigura said last month it had made provisions of $1.1 billion after discovering what it described as "misconduct" at its Mongolian unit, including manipulation of data and concealment of overdue receivables.

The company said its principal counterparty in Mongolia recognized it owed Trafigura "a substantial proportion" of the $1.1 billion but gave no further detail and did not name the counterparty.

Lex Oil was Trafigura's main local counterparty, the three trading sources familiar with the case and Trafigura's Mongolia operations told Reuters. They spoke to Reuters on condition of anonymity because they were not authorised to speak publicly about the matter.

Lex has acknowledged to Trafigura it owed the company over half of the $1.1 billion while the remaining $500 million is still unaccounted for, the three sources said.

Over 2,600 wind turbines are located offshore here.

Trafigura has not accused any counterparty or individual of fraud as the investigation is still ongoing, the three sources said.

Lex did not respond to a request for comment.

Trafigura said the probe into the misconduct was still ongoing.

Asked about risk oversight at Trafigura, a company spokesman said that since the Mongolia case had been discovered, Trafigura performed a risk review of its global network. The company identified higher-risk locations and the review of those places resulted in no significant findings, the spokesman said. The spokesman did not give details on which countries were considered higher risk locations.

Trafigura has over $77 billion in open credit lines from around 150 banks that it uses for trade in oil, gas and metals, according to its annual report.

The company said last month it would likely need to restate comparisons with previous years in its 2024 financial statements due to what it had uncovered in Mongolia.

That came after Trafigura took a charge of nearly $600 million in early 2023 after discovering it had been the victim of a nickel supply fraud.

The potential size of the Mongolian loss is large relative to the country's consumption of about $1 billion worth of fuel every year, according to U.S. government data.

The government of Mongolia did not reply to a request for comment.

The Mongolian fuel business has generated high margins for Trafigura, which blended various imported fuels and also made money on loans to the cash-strapped local coal and fuel distribution industries, according to the three trading sources.

Trafigura began its internal probe in 2023, when it first discovered irregularities. The company later brought in an external auditor to complete the investigation, the three trading sources said. It did not disclose the name of the external auditor.

Reuters was unable to ascertain the name of the external auditor.

Trafigura said last month the misconduct occurred over five years and involved "manipulation of data and documents, resulting in inflated sums being paid by Trafigura, and deliberate concealment of overdue receivables".

PARTNERSHIP

Trafigura became Mongolia's key fuel supplier around 2014, according to the three trading sources. The government declined to comment. Trafigura says they were one of the top suppliers of Mongolia.

The firm specialised in blending Russian diesel with supplies of jet kerosene from Singapore to produce winter diesel for Mongolia, where temperatures drop well below freezing in winter months.

Mongolia's coal industry is the top consumer of the fuel, used in heavy machinery to produce coal for export to China.

Trafigura and Lex established a partnership in 2019, the three trading sources said. Trafigura provided credit to Lex to supply local customers.

Mongolian importers such as Lex were also involved in supplying Trafigura with Russian diesel, the three trading sources said.

The Swiss trader then blended the Russian fuel with Singaporean jet and sold the blend back to the Mongolian companies such as Lex. Trafigura loaned them the money to finance the fuel purchases, according to two of the three trading sources.

Trading houses like Trafigura provide trade finance in some countries where international banks would struggle to offer credit due to internal compliance rules around operations in higher risk countries.

The scheme crumbled in 2020 when the COVID pandemic halted Mongolian coal exports to China, reducing the country's mining activity and fuel consumption, the three trading sources said.

Lex Oil, however, continued to import and blend the fuel, building up debt to Trafigura while expanding its storage facilities and lending to local importers, according to the three trading sources.

Lex did not respond to a request from Reuters for comment about how it accumulated its debts to Trafigura.

As Mongolia's fuel consumption dropped, Lex Oil charged diesel consumers for storing unused fuel, which continued for over two years between 2020 and 2022.

A number of Mongolian businesses defaulted on their debts to Lex Oil due to lack of income during the pandemic, the three trading sources said. Reuters was unable to identify the names of the companies which defaulted.

Trafigura only discovered the debts and defaults in 2023 when it did additional reviews of its offices following the nickel fraud, one of the three trading sources said.

Trafigura declined to comment on what triggered additional checks of the Mongolian offices.

In 2023, Trafigura's executives travelled to Mongolia to meet local officials but were unable to get help to recover the debts, according to two of the three trading sources.

Trafigura declined to comment on its contacts with Mongolian authorities. The government of Mongolia declined to comment.

"What Trafigura thought they had in Mongolia somehow disappeared," one of the three trading sources said.

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Reporting by Dmitry Zhdannikov and Robert Harvey; Editing by Simon Webb and Sonali Paul

In 2023, the State Great Khural (Parliament) of Mongolia adopted Resolution No. 64, designating the celebration of the 100th anniversary of the proclamation of the Republic and the adoption of the First Constitution.

According to the resolution, the 100th anniversary will be commemorated nationwide on November 26, 2024. The celebration will include scientific research on the historical significance of the First Constitution, academic conferences, the creation and dissemination of historical and educational works, and initiatives to promote public understanding of the Constitution and its importance. Additionally, state ceremonies and other events will be organized.

As part of the celebrations, the State Great Khural will hold a ceremonial session dedicated to the 100th anniversary of the Republic's proclamation and the adoption of the First Constitution. A parliamentary conference on "The Oversight Role of Parliament" will also take place.

Furthermore, activities will be organized for university students and high school seniors, such as lectures on "The Essence, Content, and Significance of the First Constitution" and academic conferences on "Constitutionalism: Past, Present, and Future." The program will also feature exhibitions, traditional wrestling tournaments, and other state ceremonial events, according to the Parliament’s Press and Media Department.

Translated by ChatGPT

In December 2024, an interim trade agreement between the Eurasian Economic Union (EAEU) and Mongolia is expected to be signed, with the draft finalized in record time. This milestone reflects the growing business ties between Russia and Mongolia and the dialogue between their government agencies, as well as broader trends of Eurasian integration and Russia’s pivot to the East.

The need to revitalize trade and economic relations has long been at the forefront of official negotiations between Russia and Mongolia. Although Russia currently ranks as Mongolia’s second-largest foreign trade partner, it accounts for only 10.2% of Mongolia’s total foreign trade, with China’s share at 72.4%. While Russia’s role in Mongolia’s imports is large (25.8%), its share in exports is under 1%.

The main pressing issue is the significant imbalance in mutual trade. Russia’s trade turnover with Mongolia has fluctuated over time, but Russia consistently runs a large surplus—Russian exports currently make up 95% of the trade volume, while supplies from Mongolia account for just 5%. This trade gap is partly due to high customs duties, non-tariff barriers and stringent veterinary sanitary requirements for Mongolian livestock products, which have export potential.

The commodity structure of Russian exports to Mongolia is traditionally dominated by three main categories: petroleum products (accounting for over half of exports), engineering products and food products (each making up 10–20% of exports). At the same time, Russia supplies a quarter of Mongolia’s imports, with a strong presence in certain commodities: more than 90% of petroleum products, 27% of food products and 30% of electric power.

In general, the conditions for increasing Russian exports to Mongolia are quite favorable. On the one hand, businesses are provided with state support through the International Cooperation and Export national project, with regional offices of the Russian Export Center offering free consultations, transaction support, marketing research, and access to preferential loans and export insurance for interested companies. On the other hand, Mongolia pursues a fairly liberal trade policy, which avoids non-tariff barriers for Russian goods and services.

Russia and Mongolia began discussions on developing preferential trade cooperation within the EAEU several years ago. On September 24, 2024, the Council of the Eurasian Economic Commission (EEC) finally approved the draft interim trade agreement with Mongolia. Under the draft, the EAEU and Mongolia have each drawn up lists of tariff commitments covering 375 commodity items (based on the six-digit Harmonized System codes). For these products, “in no case a rate of a customs duty … shall be higher than the respective agreed bound rate,” set at 0%. This arrangement effectively means a full exemption from customs duties for a fairly wide range of goods.

The trade agreement is expected to help boost mutual trade, foster a more transparent and equitable trade environment and create new supply chains and cooperation projects in the Eurasian region. This aligns with the EAEU’s efforts to diversify its foreign ties and cultivate flexible, diverse formats of interaction that take into account the unique characteristics of Eurasian nations, the interests of Russia and its partners in the regional integration on the one hand, and third countries on the other.

The signing of the interim trade agreement within the Eurasian partnership framework comes amid a massive transformation of transport and logistics flows in the new geopolitical reality and rising interest in the Mongolian direction. Favorable conditions are now emerging for infrastructural connectivity in the region where Russian, Mongolian and Chinese borders meet.

Strengthening cross-border cooperation largely relies on Russian regions bordering Mongolia, and their role in forging stable ties and creating new logistics across Eurasia is growing. A major and long-awaited development came in October 2024 with the opening of the Kyakhta customs and logistics terminal on the Russia–Mongolia border in Buryatia. The facility offers customs services, as well as storage, transportation and sorting services for a broad range of products, with a daily capacity of over 300 vehicles. The implementation of transport and logistics solutions, coupled with the renovation of border checkpoints, will undoubtedly have a major impact not only on the local scale—bringing benefits to the regions involved—but also in enhancing trade and economic relations between Russia and Mongolia and promoting economic connectivity in Eurasia.

On November 14, 2024, Prime Minister of Mongolia Oyun-Erdene Luvsannamsrai reviewed the detailed report on budgetary and tax policies during his visit to the Ministry of Finance of Mongolia and the General Department of Taxation.

Minister of Finance of Mongolia Javkhlan Bold presented that in the 16-year period from 2005 to 2021, the budget revenue of Mongolia amounted to MNT 99.9 trillion, whereas in the last three years, it has reached MNT 110.4 trillion.

Exports amounted to USD 78.4 billion in 2005-2021, while in 2022-2025, it is estimated to reach USD 63.3 billion.

Moreover, GDP per capita is projected to double from USD 4,657 in 2021 to USD 8,000 in 2025. Finance Minister Javkhlan stated that due to optimal debt management, the burden of foreign debt has decreased. At the same time, the Ministry is currently formulating three options to reduce expenditures for the 2025 State Budget.

Prime Minister Oyun-Erdene Luvsannamsrai underscored, “The 2025 State Budget is the first budget approved by the new Parliament, consisting of 126 members elected through a mixed electoral system. Therefore, it mainly focuses on regional development, shifting away from the traditional approach of evenly dividing budget allocations into electoral districts. A number of Members of Parliament criticized the previous practice of raising budget allocations in the constituencies and called for reduced expenditures, which is a positive outcome of the new system. Moreover, the issues sparking public criticism concerning the 2025 State Budget should be addressed, and a draft budget adjustment is required. We must focus on adopting a deficit-free budget.”

Given that mining, particularly coal, is the main source of Mongolia’s economy, the Premier highlighted the global shift away from coal and towards a green economy, urging the Government to prepare in advance for a possible reduction in coal exports.