Author Archives: mongolia-briefing

Strategic Foreign Investment Law Approved

By Elena Fehrbach

May 7 – One of the most important laws in Mongolia, a Strategic Foreign Investment Law (SFIL) has been approved by the Government. The amendment is effective from 19 April 2013.

Article 4.7 was amended and now stipulates that the Parliament will be an approval authority for transactions where non- Mongolian State- owned enterprises initiate acquisition of more than 49% of the issued shares of a Mongolian entity. The current amendment no longer includes deals initiated by private investors that since now do not require Parliamentary approval and 100 billion MNT (equivalent to approximately 70 million USD) threshold in its entity. Continue reading →

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Average Salary Rate Raised in Mongolia

By Elena Fehrbach

May 6 – Followed by the discussion in the Parliament, the decision has been made to increase the average salary rate from 140,400 MNT to 192,000 MNT (approximate equivalent to 130 USD). This increase marks 36.7 percent growth from the previous level. Continue reading →

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Terms for Low Interest Housing Loans Approved

By Elena Fehrbach

May 5 – The Government of Mongolia has approved 8 percent interest rate for long- term housing loans. The duration of the loan can be up to 20 years for the purchase of both old and new houses and apartments with the total area not more than 80 square meters. The compulsory condition is the provision of deposit in the amount of 10 to 30 percent of the purchase amount. Continue reading →

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Fuel Prices in Mongolia Expected to Stabilize

By Elena Fehrbach

May. 2 – The Government of Mongolia is expecting the fuel prices in Mongolia to stabilize due to diversification in the quantity of fuel suppliers. The current situation in Mongolia is almost 100 percent fuel dependence from Rosneft, one of the key fuel producers in Russia. Such direct dependence causes unexpected fluctuations in fuel price due to company’s corporate and regional conditions. The Deputy Minister of Mongolia is discussing the amendment to the fuel purchase agreement allowing Mongolia to buy fuel from Rosneft based on international market prices. Continue reading →

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The Law on Small and Medium Enterprises is Expected to be Amended

By Elena Fehrbach

Apr. 25 – The main reason for amendment of the current Law on Small and Medium Enterprises is a lack of legal support for herders in Mongolia. The aim of the amended Law is to recognize the herders as small and medium enterprises allowing and supporting the animal husbandry business to become economically viable for herders. A draft of the new Law has recently been submitted to Z. Enkhbold, the Speaker of the Parliament. Continue reading →

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The Status of Construction and Urban Development Projects

By Elena Fehrbach

Apr. 20 – Total 2013 year budget for urban infrastructure development including electricity, heating, potable water supply and sewage is 240 billion MNT (equivalent to 171 million USD). The funds will be sourced from both the State and Ulaanbaatar city budgets. In the interview to journalists, Ts. Bayarsaikhan, Minister of Construction and Urban Development informed that 17 new apartment complexes will be built this year, and the next year budget is expected to be approximately the same budget number as this year. The first apartments complex is planned to be open soon this year. The Ministry is also planning to build housing projects aimed for certain categories of people, such as senior aged people or young families. The housing project for senior aged people will be located in the southern part of Ulaanbaatar, the area with cleaner air compared to other parts of city. Continue reading →

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Potential of Oil Shale in Mongolia

By Elena Fehrbach

Apr. 18 – Oil shale in Mongolia has been on the radar of technical experts and investors for a number of years already, but the actual potential of oil shale development in Mongolia has never been widely discussed. Preliminary “greenfield” estimates assume 800 billion tonnes of oil shale are available in Mongolia. The preliminary estimate was completed in 1990 based on exploration of about 19 per cent outlined oil shale area. Though the final amount of oil shale is not defined yet, it is clearly a promising opportunity for Mongolia to establish a fuel independence. Continue reading →

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Proposal to Develop Tavan Tolgoi Supported by Government

By Elena Fehrbach

Apr. 15 – Ch. Saikhanbileg, Minister of the Cabinet of Mongolia met Francisco J. Sanchez, the Under Secretary for International Trade of the U.S. Department of Commerce to discuss economic and trade cooperation between 2 countries. During the meeting, the Minister noted that Mongolia is willing to widen the economic relationship between Mongolia and USA. One of the important steps taken by the Ministry recently is introduction of the amended Strategic Foreign Investment Law creating encouraging investment opportunities for private companies. Continue reading →

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