Mongolian Yak Genomes Reveal Cattle Mixing History

NEW YORK (GenomeWeb) – Mongolian yaks carry a small but significant proportion of bovine cattle DNA in their genomes, reflecting past efforts to breed yak and cattle at low altitudes in Asia.

An international team led by investigators in Germany and France used a combination of array-based genotyping and whole-genome sequencing to assess ancestry patterns across stretches of sequence inherited together in 76 Mongolian yaks. Their analyses, outlined today in Nature Genetics, indicated that around 1.3 percent of sequences in the yak genome came from bovine cattle, despite the sterility that's been documented in male yak-bovine hybrids.

"The introgressed regions are enriched in genes involved in nervous system development and function, and particularly in glutamate metabolism and neurotransmission," first author Ivica Medugorac, an animal genetics and husbandry researcher at Ludwig Maximilians University Munich, and his co-authors wrote. "We also identified a novel mutation associated with a polled (hornless) phenotype originating from Mongolian Turano cattle."

The Mongolian yak is known for adaptations that make it adept at surviving in high-altitude environments. And while it belongs to a lineage that diverged from the bovine lineage some 4.9 million years ago, the team explained, the yak is raised and sometimes bred with cattle at lower altitudes.

Moreover, the researchers reasoned that "analysis of bovine introgression in Mongolian yaks represents an appealing model to identify exchange of traits of interest between domesticated species."

They used Illumina HiSeq 1500 or 2000 instruments to sequence the genomes of two Mongolian yaks — one yak carrying two copies of polled locus mutations associated with the hornless phenotype and one horned yak — as well as a Turano cow with mutations affecting one copy of the Polled locus.

Using allele-frequency patterns in the genomes, along with available bovine sequence data, the team searched for yak-specific SNPs and began teasing out potential bovine sequences in the yak genomes. With Illumina BovineHD BeadChip genotyping arrays, the group went on to consider introgression patterns in another 40 yaks with horns and 36 without.

Bovine cattle ancestry turned up across 0.67 percent to 2.82 percent of the yak genomes, the researchers reported, spanning 1.3 percent of the sequences in the yak genome, on average. And roughly one-third of cattle genome sequences turned up in at least one of the yaks.

Their results hinted that the Turano cattle from Mongolia are related to bovines behind the yak-cattle mixing. Such admixture stretched back at least 1,500 years and appeared to peak in around the 10^th and 11^th centuries and again in the 18^thcentury.

When the team took a look at cattle sequence introgression patterns, it identified cattle genes involved in nervous system function and domestication. From these and other findings, the authors concluded that "introgressive hybridization contributed to the improvement of yak management and breeding."

Source: https://www.genomeweb.com/sequencing/mongolian-yak-genomes-reveal-cattle-mixing-history

Read More

Finally.... IMF Mission team is here..At least some of the them

Some members of the IMF Mission team is here, according to the Ministry of Finance. 

They arrived today or Jan 30 and more members are expected to arrive tomorrow and Sunday ( Feb 5). Then, Government of Mongolia will resume negotiation with the mission team whether to enroll  either in "Standby Credit Facility" or "Standby Arrangement" programs of the International financial body and finalize the deal.

Now, everybody who knows a thing or two about Mongolia economy knows that March 21, the country have to pay $ 580 dollars as loan repayment.

Some analysts predict that Mongolia can't pay the debt and therefore, will request to delay the repayment. Some say Mongolia may face default. 

Seems, IMF is savior of Mongolia in times of trouble. Hopefully, Government will finalize the deal with IMF before it runs out of time and face the default. 

Read More

Alarm as lethal plague detected among rare Mongolian antelope

27 January 2017, Rome/Paris-The international pledge to eradicate a devastating livestock disease affecting mostly sheep and goats has taken on new urgency in the wake of a mass die-off of a rare Mongolian antelope.

Some 900 Saiga antelopes (Saiga tatarica mongolica) – almost 10 percent of the sub-species’ population – have been found dead in Mongolia’s western Khovd province. Samples taken from carcasses indicated the animals were positive for Peste des Petits Ruminants (PPR), a highly fatal viral disease with plague-like impact on domestic sheep and goat herds, killing up to 90 percent of infected animals.

The Food and Agriculture Organization of the United Nations (FAO) and the World Organisation for Animal Health (OIE) are leading a multinational effort to eradicate PPR, which can have devastating food-security and economic impacts, by 2030.

Eighty percent of the world’s estimated 2.1 billion small ruminants live in affected regions and constitute an important asset for a third of poor rural households. PPR, first identified in Côte d’Ivoire in the 1940s, is now threatening over 75 countries.

While wildlife have long been considered potentially vulnerable, relatively few actual cases of PPR infection have been documented in free ranging wild goat-like species and never in free-ranging antelope.

The dead are highly suggestive of a spillover event from domestic animals with whom they share common grazing areas, especially in winter when foraging ranges are fewer. Efforts are ongoing to investigate the situation on the ground, geared in particular to investigating possible other causes, such as the bacterial infection (Pasteurella multocida) that is now suspected to have been the cause of death of hundreds of thousands of saiga in Kazakhstan in 2015.

Saiga in Mongolia are not truly migratory but are certainly nomadic with an extensive range of about 130 000 square kilometers with seasonal movements in autumn for breeding and early spring for calving. The species, was once widely spread across the Eurasian steppes, is classified as critically endangered by the International Union for Conservation of Nature.

PPR outbreak occurrence in Mongolia

Mongolia reported its first-ever outbreak of PPR in September 2016, when sheep and goat deaths were linked to an extension of PPR cases occurring in China.

The domestic small ruminant population in Mongolia is currently 45 million and plays an essential economic and social role in a country where more than one third of the population derives its livelihoods directly from livestock. Mongolia exports live animals, meat, milk and is the world’s top producer of high-quality cashmere wool.

At that time, FAO and OIE immediately mobilized their Crisis Management Center for Animal Health (CMC-AH) to Ulaanbaatar to help local veterinary services assess the epidemiological situation and propose immediate and medium-term actions aimed at controlling the spread of the disease. More than 11 million domestic small ruminants – crucial for food security and nutrition – were vaccinated in the effort.

The saiga deaths, which highlight the extreme vulnerability of animals that have not been exposed to PPR as well as the challenge of protecting wildlife, are an „unprecedented and worrisome development,” said OIE Director-General Monique Eloit.

„The OIE will continue to work closely with FAO to assist the Government of Mongolia in dealing with the PPR outbreaks and protect both livestock and wildlife, starting with a new CMC-AH mission in a few days,” she said. „To avoid a quick and catastrophic spread of the disease, a close cooperation between the veterinary services and those responsible for wildlife management will be particularly essential.”

Recommended actions

„More field investigations will have to be carried out to know the extent of the recent outbreak. If PPR is confirmed to be the main cause, the saiga death toll is likely to reach into the thousands in the next three months,” said Bouna Diop, Secretary of the joint FAO-OIE PPR Eradication Programme.

„For this reason, preparations to face even more extensive disease spread should be made and we must try to separate contact between domestic ruminants and these prized and endangered wildlife,” he added.

Heightened surveillance and vaccination of domestic animals should be considered as the main tool currently available to safeguard this endangered species.

„In parallel, critical communication efforts must be made to let Mongolian herders know the risks of the PPR virus spilling over from saiga to livestock,” added Richard Kock Professor of Emerging Diseases from the Royal Veterinary College, London.

„We have learned that these events require a particularly high level of international cooperation and the inclusion of the FAO and OIE world reference laboratories network to ensure full understanding of the epidemiology.”

PPR Global Eradication Programme

To eradicate the disease worldwide by 2030, FAO and OIE launched in 2016 the PPR Global and Eradication Programme (PPR-GEP), building on a broad international consensus.

A first phase covers the period 2017-2021, with a $996 million cost estimate.

„The recent Mongolian events show that in the framework of the PPR-GEP a regional strategy to contain and eradicate PPR needs to be implemented,” underlined Ren Wang, FAO’s Assistant Director General in charge of FAO’s Agriculture and Consumer Protection Department.

„Resources need to be made available to prevent further spread of the virus in Mongolia as well as in Kazakhstan, Russia or China, where outbreaks were first reported in recent years,” Wang added.

Source:FAO or Food and Agricultural Organization of UN

Read More

Kuwaiti Government to build Mosque and residential town for impoverished Kazakhs in Mongolia

This Thursday, Kuwaiti Ambassador to Mongolia  Khalid Yateem Al-Fadhli and Enkhbold Nyamaa, President of Mongolian Red Crescent Society and chairman of Parliamentary standing committee on state structure signed Cooperation agreement to build residential houses and mosque for Kazakh people in western Mongolia affected by flash flood of last summer. 

Under the Cooperation Agreement, Kuwaiti Government to build 35 houses, garden, mosque for about 100 people and 10 lamp-posts, pavement, two water wells in capital of Bayan-Ulgii province.

This project “ Kuwaiti town” have total budget of $ 277, 835 US dollars and expected to be completed by July, 2017.

Last summer, flash flood hit the capital of Bayan-Ulgii province and about 100 families left homeless and more than 10 people died. At that time, neighboring Kazakhstan sent relief aid to Bayan-Ulgii faster than Mongolian government due to close geographic location.

After the disaster, Mongolian Red Cross Society requested Kuwaiti Government to help those affected by disaster. 

Read More

Ex-PMs of Mongolia questioned by Anti-corruption agency

2 last PMs of Mongolia, Saikhanbileg Chimed and Altankhuyag Norov summoned by Independent Agency against Corruption (IAAC)  for questioning related to misuse of funds at Development bank of Mongolia (DBM).

Altankhuyag who is now running for the position of chairman of Democratic Party blamed incumbent president Elbegdorj for attempts to intimidate him and ruin his reputation before the upcoming June Presidential election campaign. 

It is widely alleged that Elbegdorj's people run law enforcement agencies in Mongolia including the IAAC.

Several of family members and relatives of Altankhuyag are currently under investigation by police for embezzlement of state funds and illegally obtaining government contract work etc and barred from leaving the country.

Previous executive director of the DBM is also under investigation by IAAC for misuse of funds and abuse of authority. 

 

Read More

South Korean citizen charged with stealing Golden Buddha statues from homes of Mongolia’s rich and famous

South Korean citizen Bak Jong Yeong, 46 years old, male and Mongolian citizen T.Khureljanchin are charged for stealing more than 1 billion 400 million  tugrug worth golden Buddha statues and other jewelries’ from home of Mongolia’s leading gold mine boss Chinbat, owner of Gatsuurt LLC.

 The duo stole ancient tobacco snuffing box, walking cane head shaped like wild goat head, Zanabazar style Janraisig deity statue, Golden Buddha, Silver bell, 15 million tugrug in cash and 28 types of golden implements.

The thieves admitted that they planned to enter and steal from homes of many more famous and rich of Mongolia. 

Read More

Mongolian Parliament sets June 26 as date for the Presidential election

On Thursday, Parliament set the June 26, 2017 Monday as polling day for Presidential election. Surprisingly, June 26 turns out to be a Monday, unlike from previous election dates which are usually Sundays.

Mongolian citizens abroad can cast their vote on June 10 and 11^th.  

Read More

Full text of conclusion of Mongolian Parliamentary group that investigated purchase of 49% stake of Erdenet, Mongolrostsvetmet companies

Recommendation and conclusion of the Parliamentary group

 Jan 16, 2017, Ulaanbaatar

Parliamentary standing committee on legal issues set up working group to investigate fully the purchase of 49% common stake shares in “Erdenet Enterprise” LLC and “Mongolrostsvetmet” LLC owned by “Rostech” state owned corporation of Russian Federation and Russian Government by “Mongolian Copper Corporation”  through its resolution no.06 dated Nov 8, 2016. The working group was chaired by Sh.Radnaased, lawmaker and its members included lawmakers J.Batzandan, D.Ganbold, B.Delgersaikhan, L.Munkhbaatar, Ts.Nyamdorj, L.Enkhbold and other relevant officials.

Working group held numerous meetings and reviewed relevant laws, regulations, agreements, results of sub-working group investigation and materials and determined following. These are:

One. About Agreement

1.      2004 Agreement between Mongolia and Russian Government concerning Erdenet Enterprise and 2007 Agreement of the two governments concerning “Mongolrostsvetmet” consortium are ratified by Mongolian Parliament and decisions of supreme state organs that ratified these agreement are still valid as of now.

2.      The above agreements shows that Mongolian and Russian governments are the “Parties” of this agreement and Mongolian State property Committee and Russian “Rostech” consortium are “shareholders” that represent the Parties. When, Russian government didn’t officially ask Mongolia as a “Party” of the agreement, Mongolian government convened on June 13, 2016 based on official letter of the Chmozev, general director of the Russian shareholder and refused its right to buy 49% shares and agreed its sale to “Mongolian Copper Corporation” LLC. In another word, this decision was made based on request of entity that have no right to represent Government of Russian federation and deal with Government of Mongolia.

3.      There are no documents or facts that tells some authorized officials conducted negotiation on behalf of Mongolian government regarding sale of 49% stake in the companies owned by other party or our government authorized some entity or officials to represent it regarding this issue.

4.      When agreements ratified by parliament are valid and Mongolian government didn’t refuse its right to buy this 49% shares and Parliament didn’t provide any guidance about this issue, individuals representing private banks conducted negotiations and illegally violated full authority of Parliament and Government.

Following articles of Mongolians laws have been violated as following due to these illegal activities.

1.Item 15 of Article 25 of Mongolian constitution “  State Great Khural shall be the sole competent body for ratifying and denouncing international agreements to which Mongolia is a party,”

2.Item 2 of the article 16 of law on Mongolian government “ Government shall submit request to cancel international agreement to State Great Khural”.

3.Article 16 of the bilateral agreement on “Erdenet Enterprise” LLC signed between Mongolian and Russian governments /hereby, will be named “Parties”/ “ either party can sell its shares in the mine to other state and legal person through mutual negotiation with the other party”.

In this case, the either party will have preferential right to buy the shares. In another word, the parties and the Russian and Mongolian government shave to negotiate with each other. Discussion of this issue by Mongolian government  after receiving the official letter sent by “Rostech” state enterprise is not complying with relevant article of the agreement.

4.Based on Article 8.1 of the law on state and local owned property “  State Great Khural shall be owner on behalf of all public,”, article 2.6 of the law on Company “ for state owned company, owner can be State Great Khural on behalf of state…... and shareholder can be government on behalf of these….” It is up to State Great Khural as owner of state property to decide issues “whether state to own the 49% stake of the above-mentioned enterprises or allow ownership of legal persons of private sector.

5.Item.6 of Article 29.2 of the law on Government of Mongolia “ draft agenda shall meet laws, regulations and decree of President and fully processed and evidenced by relevant estimation, relevant ministry recommendations etc. and article 9” draft agreed by responsible cabinet member and its rationale shall be  presented to Prime Minister by cabinet secretariat and given out to all cabinet members at least 3 workdays before discussion of the draft agenda.

Cabinet meeting minute no.33 of 2016 and materials sent by Government shows that government violated the above articles of the law on Mongolian government during its cabinet discussion.

6.Article  2 of resolution no.27 of the State Great Khural in 2007 concerning “ inclusion of certain deposits in strategically important mineral deposits” which says “ to keep current terms of use of Erdenet copper molybdenum deposit exploited under current bilateral agreement of Mongolian and Russian governments”, remains valid and government violated this.

Government violated laws, regulations and 2007 agreement concerning Mongolrostsvetmet consortium as following when it made above decision.

Two. About financial sources for purchase of 49% shares of the named enterprises

Mongolian Copper Corporation transferred 400,27 million dollars to Russian Alfa Bank through 3 transactions originating from its account at Trade and Development bank for the purchase of 49% common shares of “Erdenet Enterprise” LLC and “Mongolrostsvetmet” LLC and following is financing sources for this payment. These are:

1.

112.0 Billion tugrug allegedly transferred from personal savings account at UB City Bank owned by Ts.Purevsuren who was working as legal advisor of Trade and Development Bank (TDB)  to capital fund of Mongolian Copper Consortium;

Initially in 2012, this company was set up by G.Khurelbaatar who was working at TDB as a  company with sole member and with  name Jumiere and in 2014, this company set up a daughter company named MDP and  renamed itself as NDK. Then, in March, 2016, it became Mongolian Copper Consortium. There are no evidences or facts that the company operated between 2012-2016.

By early, 2016, the company increased its capital by 12.0 billion tugrug and then by 100.0 billion tugrug. These are transferred from savings account of Ts.Purevtuvshin at UB City bank. Ts.Purevtuvshin worked for 4 year period in the legal department of the TDB after graduation of law school in 2012 and he don’t have opportunity to earn 112.0 billion tugrug during this period. There is probability that this money is monetary assets of deposit holders of UB City bank.

2.

75.0 million dollars borrowed from TDB on June 20, 2016.For this borrowing, Mongolian Copper Corporation used so-called “future revenue source” and 49% shares of Erdenet on June 30, 2016 as loan collateral and then, transferred 8.6 million dollars from Erdenet enterprise as 2013 dividend on July 25, 2016 and 47.1 million dollars as 2012 dividend on Aug 12, 2016  or during period it began to exercise control illegally in the enterprise to itself. Total of these transfers was 55.7 million dollars ;

3.

62.9 Million dollars borrowed from QSC owned by D.Erdenebileg, shareholder of TDB in June, 2016.

This company was set up in 2008. It paid 2.8-18.0 million tugrug taxes between 2010-2012. In 2014, it signed 30-year concession agreement to use Darkhan Metallurgical Plan with Ministry of Economic Development  and it got 100.0 billion tugrug from Mongolbank in 2014 and 2016 respectively or total 200.0 billion tugrug as loan. It also got 136.0 billion tugrug from the Genghis bond money. In 2015, it gave 35.1 km long rail road allegedly built with own funding to state for 90.3 million dollars. It got 71.3 million dollars in 2015 from Development bank and 160.0 billion tugrug from Mongolbank on June 30, 2016 as loan. As of its 4^th quarter, 2016 financial statement, it has 336.5 billion tugrug short term loans and 339.4 billion tugrug long –term loans.

N.Zoljargal, who was working at TDB and then became President of Mongolbank provided 100.0 billion tugrug loan on Nov 28, 2014 and then 100.0 billion tugrug on April 6, 2016 and 160 billion tugrug on June 28, 2016 to QSC company as  illegal loan, as  the company  transferred to ownership of TDB.

Here is one fact that draws attention. For example, 260.0 billion tugrug loan provided by Mongolbank coincided with the period during purchase of Erdenet shares and its payment.

4.

70.0 Million dollars borrowed from Riverstone Properties Company on June 17, 2016 which is under sole ownership of Ts.Purevtuvshin and never paid taxes;

5.

68.0 Million dollars borrowed from United Energy System. This company was set up on Dec 12, 2012 and paid 10.2-33.5 million tugrug tax between 2012-2015 and in 2016, paid  1.2 million tugrug taxes. On May, 30, 2016, it transferred 99.8% of its shares to QSC Company which is owned by D.Erdenebileg;

This company used alleged “investment for power plant” to be built in Umnugobi province as collateral for its loan from TDB on June 14, 2016.

6.

68.0 million dollars borrowed from Singapore registered Kanetic company on June 17, 2016.

When Kanetic Company borrowed 68 million dollars from TDB on June 16, 2016, it used copper concentrates to be purchased from “Erdenet Enterprise” as loan collateral. For this, G.Khurelbaatar, who founded Jumeira company signed this loan agreement and then the loan was transferred to Mongolian copper corporation.

The above-mentioned  companies or QSC, Riverstone, United Energy System, Kanetic immediately re-lent the large US dollars loan they got from TDB to Mongolian Copper Corporation. These loan agreements are all same and have same format to the letter and the issuance of large USD dollar loans without any collateral shows, these are just disguise documents.

In sum, the above 400.0 million dollars transferred for the payment are loans disbursed by TDB and UB City bank owned by someone D.Erdenebileg to companies set up by major shareholder of these banks or in the name of people that work under direct supervision of the above-shareholder under pretense of disguised agreements and without collateral.

Three.Capacity of the banks that made the payment, future risks

1.According to information provided by Mongolbank,  99.1% of the UB City bank, 93.1% of the TDB are owned by one individual named Erdenebileg Doljin (or D.Erdenebileg).UB City bank is estimated to have 86.0 billion tugrug own asset and 44.0 billion tugrug  equity‚ TDB have 745.0 billion tugrug own asset and, 50.0 billion tugrug equity, according to Mongolbank. Now under the current law restriction, if assumes that 20% of own assets will be used as loan for one borrower, TDB is required to disburse 149.0 billion tugrug loan to one borrower and UB City bank is required to disburse 17.0 billion tugrug loan to one borrower.

In another word, TDB and UB City bank had no capacity to lend 400.0 million dollar loan under its own assets/capital/, especially  without collateral and no repayment sources. Based on these, there is probability that above-loans are provided from following sources. These are:

1.3.7 billion Yen /Japanese/, 160 billion tugrug deposited by Development bank of Mongolia in TDB.

2.Following Mongolbank loans:100.0 billion tugrug loaned to QSC company which is transferred to ownership of main shareholder of TDB  in 2014,  100.0 billion tugrug loaned in April, 2016, 16О.0  billion tugrug loaned in June 28, 2016 to TDB /Mongolbank has no legal right to disburse commercial loans to commercial entities and then, its president N.Zoljargal was working at TDB before his appointment/;

3.Following Genghis bond money: 84.0 billion tugrug lent to Khotol cement plant which is owned by main shareholder of TDB and  137.0 billion tugrug lent to Darkhan Metallurgical plant;

4.183.6 billion tugrug or 90.1З0‚577.78 dollars, repayment for 36 km long railway built under concession agreement with above QSC company.

5.Cash deposits of individuals and businesses at TDB and UB City bank.

In sum, Mongolian copper corporation, QSC, Riverstone Properties, United Energy System, Kanetic companies which took 400 million dollars loan have no property or financial capacity to pay back the large sum of US dollar loans taken from TDB.

Four. Violation of banking laws and regulations

Violation of currently effective banking laws, regulations, its main concepts and certain articles have become norm for TDB, UB City bank and its shareholders. For example:

1.Articles 3, 6, 7 of the current banking law sets restrictions for banking activities and prohibited activities other than these.

To be specifically, article 3.1.1 of the banking law says “bank is to engage in financial intermediary services such as providing loans and making payment settlements” and outlined 12 types of services in article 6.1 and in article 6.2, outlined 6 types of financial services that can be engaged under permit of Financial Regulatory Committee.

Main shareholder of TDB and executive managers that work under his direct supervision established number of businesses in their names and conducted illegal activities through these companies such as taking part in privatization of large state owned enterprises, sign concession agreement and purchase. For this, they used sources of their bank, illegal loans provided by Mongolbank, funds embezzled from state budget and bond loans and sources with Government guarantee.

2.Article 3 of the Banking law calls for accountability of bank shareholders up to extent of their share ownership.

TDB have 745.0 billion tugrug own asset. 50.0 billion tugrug equity‚ 93.1% of its shares are owned by D.Erdenebileg. Now, this bank has provided 400.27 million dollars or 900.2 billion tugrug loan for payment of 49% of stake share of Erdenet Enterprise and Mongolrostsvetmet consortium or loan that exceeded accountability limit of major shareholder.

For disbursal of this 400 million dollars loan, in order to make it look like it did  not violate article 17.3 of the banking law that says” the total value of loans provided to one person shall not exceed 20 percent of the capital of the bank”, signed disguised agreement with companies set up in the name of D.Erdenebileg and managers that work under his direct supervision and disbursed 68-70 million dollars loans and then, these companies transferred these to Mongolian Copper Corporation.

3.TDB used 49% shares of the Erdenet Enterprise when it disbursed loan to Mongolian Copper Corporation and then, O.Orkhon, executive director of TDB sat as a board member of Erdenet Enterprise on behalf of Mongolian Copper Consortium and this violated article 3.1.2 of the banking law.

If these above-mentioned companies and individuals who have no financial sources to make payment, are unable to make payment, TDB will face bankruptcy and state have to be responsible for this. If 360 billion tugrug provided by Mongolbank and 3.7 billion Yen deposited by Development bank of Mongolia can’t be repaid, state have to be responsible for these at the end, according to legal rationale.

4.D.Erdenebileg owns 93-99.1% stake of TDB and UB City banks. This violates article 36.12 of the banking law that says “ it shall be prohibited for an influential shareholder with voting rights of the bank to be an influential shareholder with voting rights of another bank” and Mongolbank put requirements about this and so far, this has been same.

Five. Recommendation and conclusion

Based on above situation, the working group decided to present following recommendation and conclusion to State Great Khural. These are:

1.Purchase of 49% shares of Erdenet Enterprise and Mongolrostsvetmet consortium violated Mongolian constitution and other laws, regulations and illegally attacked full authority of State Great Khural and Government and violated currently valid agreement. Therefore, revoke article 1 of government resolution no.330 dated June 13, 2016 and transfer 49% of these enterprises to state ownership and run under status of 100% state owned enterprise.

2.Signing of various disguised agreements, illegal loans disbursed by Mongolbank in the name of companies artificially set up in the name of the shareholder of TDB and UB City bank and few managers that work under his direct supervision, large sums of money obtained from government budget by illegally revising concession agreement signed with some business entities/90.0 mill dollars/ and cash assets of deposit holders have been used for purchase of 49% shares of these enterprises. Also used illegal, disguised or non-existing assets such as “ future revenue”, “ Copper purchase agreement” signed with Erdenet enterprise, “49% of Erdenet Enterprise” and “Power plant to be built in Umnugobi province “as collateral for the loan agreements and this shows financing sources for purchase of 49% shares of these enterprises are illegal and have no guarantee of repayment and final risk is to be carried by state.

Therefore, it is appropriate for government and Mongolbank to deal with the shareholder of TDB and UB City bank within the framework of sources mentioned in this report and make relevant settlements.

3.It is interesting to note that large chunk of revenue of Erdenet enterprise have been transferred to companies related to D.Erdenebileg and revenue to state coffer have been drastically reduced since latter imposed illegal control in the enterprise. For example, between June 27-Nov 21, 2016, 8.6 million dollars, allegedly 2013 dividend  and 47.1 million dollars, allegedly 2012 dividend, 2.6 million dollars as advance payment of contract to Mongolian Copper Corporation /total 58.3 million dollars/ and 17.0 billion tugrug to advance payment of supply contract to QSC company and 2.7 billion tugrug to Khotol cement as advance payment for supply contract.

Also tax office concluded that 2016 tax of Erdenet enterprise to state budget will likely be reduced by 230.0 billion tugrug.

4.Review TDB and UB City bank, Khotol cement plant privatization and illegal revision of concession agreement with Darkhan metallurgical plant under legal framework and if the privatization process and financing sources were similar to activities and sources of purchase of 49% shares of Erdenet and Mongolrostsvetmet consortium, immediately take measures to set justice and law.

Recommendation and conclusion made by

Sh.Radnaased, head of the working and chairman of Parliamentary standing committee on legal issues,

Lawmakers of the parliament,

J.Batzandan (DP)

D.Ganbold (MPP)

B.Delgersaikhan (MPP) (Disagreed with the conclusion and didn’t sign)

L.Munkhbaatar (MPP)

Ts.Nyamdorj (MPP)

L.Enkhbold (MPP)

B.Lkhagvasuren, Vice-Governor of Mongolbank (MPP)

B.Enkhbayar, Vice Justice Minister (MPP)

B.Nyamaa, State secretary of Ministry of Finance (MPP)

Read More

Plan on establishing the China-Mongolia-Russia economic corridor

 Elisa Gambino

Elisa Gambino is a Master’s candidate in Chinese Studies at the University of Edinburgh, UK. She has published the essay “The People’s Republic of China’s Pro Status Quo Approach in Cross-Strait Relations” on the peer-reviewed journal Global Politics Review. Her areas of academic interest include Chinese Economy, low-carbon economies, East-Asian international relations, Emerging Markets, ODI from China, Chinese SOEs and energy markets.

The People’s Republic of China, Mongolia and Russia (here referred to as the three party) commit to further developing the already friendly ties, while seeking to build mutually beneficial economic and trade relations in line with the strategic direction of the diplomatic policies between the three parties. In accordance with the memorandum related to the establishment of the China-Mongolia-Russia economic corridor, the construction of the New Silk Road, the common goals of mutual benefit and cooperation expressed in the memorandum of understanding signed in Wufa on the 9th of July 2015, the three parties herby sign the following plan outline for the establishment of the above mentioned economic corridor.

1.Purpose

The construction of the economic corridor is aimed at enhancing the already existing trade between the three parties, promote product competitive power, improving the transportation routes between these countries and infrastructure construction. The goal is to go a step further in the cooperation between the China, Mongolia and Russia.

The construction and expansion of the economic corridor has the goals of mutually benefit the economic development of these areas, develop the three parties’ potential and superiority, promote mutual prosperity and improve, as allies, the competitive power on the international markets.

The three parties firmly believe that moving forward with the construction of the economic corridor will accelerate the economic integration of this area and the linkup of each party’s development strategies. Furthermore, the interflow of infrastructures, the steady development of investments, the cooperation on economic policies and the cultural exchange create a solid base of cooperation.

The three parties have to positively use the platform of international economic cooperation to successfully implement the condition of the cooperation.

2. Territory of cooperation

Planning outline:

a) Promote the development of transport infrastructure and interconnection

This shell be done through railway, aviation, harbours and ports, as well as parallel strengthening of the cooperation in international transportation corridors, border infrastructures and cross-boundary transportation organizations, in order to form a long-term communication mechanism to promote interconnection and development of transit transportations between China Russia, Asia and Europe.

• Construction and development of international land transportation corridors, implementation of infrastructure construction projects to protect the passengers, goods and transport accessibility;
• Enhancement of the three-party railway and road transport potential, including the modernization of existing railways and the construction of new railways;
• In the field of cross-border transportation, it is important to develop rules to provide good technical and tariff conditions with the goal of promoting international customs clearance, and multimodal transportation as a whole. Promotion of international information exchange, including preliminary information concerning the pre-exchange conditions of rail freight data;
• Development of interflow among the three parties’ air navigation services, enhancement of safety levels, promotion of economic efficiency and good utilization of space;
• Development of China-Mongolia-Russia international container transport classes and the construction of a number of transport logistics hub.

b)Strengthen construction of ports and customhouses, as well as inspection and quarantine supervision

Strengthen the capacity of software and hardware at the port, promote the renovation and transformation of infrastructure, enhance the level of prevention and control of public health at ports. Moreover, strengthen information exchange and mutual assistance in law enforcement. Further improvement of the models and mechanisms for customhouses, medical inspection, quarantine and cargo supervision, and jointly promote the passage of goods to improve the capacity of ports.

• Improvement of port handling capacity to facilitate transhipment, as well as cargo handling at the border railway stations;
• Promote cooperation in the field of animal and plant inspection and quarantine;
• Establish cooperation in the food safety mechanism to strengthen the regulatory cooperation between the three countries and facilitate the transit of food;
• Strengthen the co-ordination and full exchange and sharing of experiences and practices between the three parties’ authenticated managers.
• Strengthen the cooperation in cross-border surveillance and control of infectious diseases, vector surveillance, disposal of public health emergencies and other aspects of this field.

c)Strengthen production capacity and investment cooperation

Strengthen the cooperation of the three parties in energy and mineral resources, high-tech, manufacturing and agriculture, forestry, animal husbandry and other areas, and build investment cooperation to achieve coordinated industrial development, as well as the formation of a closely linked regional production network.

• Expand the telecommunication network among the three parties, in order to increase Internet traffic, strengthen cooperation in e-commerce, and study measures to improve traffic;
• Study the economic and technical natures of the newly-constructed transmission lines and power generation equipment;
• Under specific circumstances, study the nature of the China-Russia crude oil and natural gas pipelines in transit through Mongolia;
• Continue the cooperation between the three parties in the fields of: nuclear energy, hydropower, wind power, photovoltaic energy, biomass energy;
•  Strengthen on Science Techology and Innovation  the cooperation between the three countries ;
• Rely on the civil aerospace infrastructures, develop a three-party satellite, expand information exchange and cooperation.

d)Deepen economic and trade cooperation

Develop border trade, optimize the structure of commodity trade, expand the volume of trade in services, expand economic and trade cooperation and enhance the level of economic and trade cooperation.

• Steadily improve the level of equipment manufacturing and the production of high-tech products while expanding the scale of trade of agricultural products, energy and minerals, building materials, paper products and textiles;
• Strengthen communication and cooperation in the field of service trade such as tourism, logistics, finance, consulting, advertising, cultural and creative industries, promote information technology, business processes and know-how outsourcing, as well as carry out software research and development as data maintenance;
• Establishment of cross-border economic cooperation zones;
• Guide the cross-border trade towards process, investment and trade integration.

e) Expand cultural exchange and cooperation

The focus will be on deepening cooperation in the fields of education, science and technology, culture, tourism, health and intellectual property rights, facilitate personnel exchanges and expand non-governmental exchanges.

• Development of tourism and cross-border/cross-regional tourism routes;
• Improve border cities tourism and leisure functions, improve the diversity of tourism products, build a positive tourism environment;
• Promote cross-border and cross-regional tourism comprehensive security, including measures to ensure the safety of tourists and personal properties, protect tourism environment of the three parties. Establish emergency relief mechanism for tourists;
• Research on the possibility of developing a common tourism brand and carrying out tourist information aggregation;
• Strengthen exchanges and cooperation in education and scientific research institutions;
• Strengthen exchanges and cooperation in intellectual property legal systems, intellectual property rights protection practices and personnel training in the field of intellectual property rights;
• Exchanges and cooperation in the fields of drama, music and acrobatics, film, folk creation, cultural heritage protection, library affairs and culture, with the aim of creating cultural exchange brands and expanding creative links.

f) Strengthen ecological cooperation

• Study the possibility of establishing an information sharing platform and cooperate in the areas of biodiversity, nature reserves, wetland protection, forest fire prevention and desertification.
• Expand cooperation in disaster prevention and mitigation, enhance information exchange in the event of natural calamities, man-made accidents, cross-boundary forest and grassland fires, risky infectious diseases;
• Actively carry out technical exchanges and cooperation in the field of ecological environmental protection;
• Co-sponsoring environmental seminars to explore possibilities for cooperation in research.

g) Promote local and border cooperation

Develop comparative advantages, promote local and border regional cooperation, the construction of several local open cooperation platforms, preparation for participation in the construction of the implementation of the China-Mongolia-Russia economic corridor project, as well as its promotion;

• Promote economic and trade cooperation between the three parties;
• Develop comparative advantages of the three countries, promote the construction of cooperation mechanisms, such as promoting the eastern part of Mongolia and the relevant regional cooperation mechanism in both Chinese and Russian areas.

3. Cooperative principles

Carry out research within specific geographical areas pre-decided by the three parties, according with the framework of the initiative.

4. Capital sourcing

The investments involving the project will be implemented on a case-by-case basis, they will include the use of national investment, private sector investment, the introduction of public-private partnerships and other possibilities such as the inclusion, not exclusive, of the Asian Infrastructure Investment Bank, the BRIC Development Bank, the Shanghai Cooperation Organisation Bank Consortium, the Silk Road Fund, and other financial institutions willing to support the financing.

5.Implementation mechanism

The authorized agencies responsible for the implementation of the project are as follows:

• China – China National Development and Reform Commission;
• Mongolia- Mongolian Ministry of Foreign Affairs;
• Russian Federation – Ministry of Economic Development of the Russian Federation.

The Tripartite Authorized Implementing Authority shall meet at least once a year to monitor the planning and implementation of the project and to negotiate the necessary measures for its further implementation. The three parties will also study the possibility of setting up an investment project centre and will build the centre if it is economically viable.

6. Others

This project is not an international treaty, it does not produce rights and obligations under the international law.

The rights and obligations of the three parties under international treaties are beyond the scope of this project.

This plan is effective from the date of signing and is valid for five years.

Before the end of the effective period of this plan, the three parties will carry out a joint assessment of the implementation and extend the validity period to the next five years according to the assessment results and mutual agreement.

This plan was signed in Tashkent on the 23 June 2016 by Chinese, Mongolian and Russian signatures, each of which is equally authentic.

Source:http://chinadevelopmentagenda.com/2017/01/25/china-mongolia-russia-eco-corridor/

Read More