Written in Mongolia and read by professionals
in over 160 countries worldwide

Wednesday, July 6, 2011

Mongolia Briefing is a magazine and daily news service about doing business in Mongolia. We cover topics relating to the Mongolian economy, the market in Mongolia, foreign direct investment and Mongolian law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates

Foreign Trade

Mongolia to Cooperate with Russia on Major Infrastructure Projects

By Elena Fehrbach

On May 13, 2014, Mr. O. Chuluunbat, the Deputy Minister of Economic Development of Mongolia, met Mr. Alexey Likhachev, the Deputy Minister of Economic Development of Russia, to discuss bilateral cooperation and relations in various sectors of the economy. Continue reading

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Golomt Bank Introduces the American Express Card in Mongolia

By Elena Fehrbach

Jan. 24 – Golomt Bank, one of the leading banks in Mongolia, is introducing the American Express credit cards in Mongolia. The Bank has signed the cooperation agreement with American Express Company, an international financial services corporation headquartered in New York on issue of American Express credit cards in Mongolia. Initially, the cooperation has started back in 2006 when the American Express has chosen Golomt as an official partner in Mongolia, but now the cooperation is officially sealed by the agreement.

The agreement with Golomt is the part of American Express’s global business development program on establishment of the beneficial business relationships with the international and local banks globally. The choice of Golomt Bank by American Express is based on an extensive research of the banking sector and believes that Golomt Bank is the best partner in Mongolia based on the selection criteria. Golomt Bank has a leading position in the market for the customer service, online banking services and a variety or credit card and dual debit card services for Mongolian citizens living in Mongolia and abroad, as well as expatriates working in Mongolia. Continue reading

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Mongolian Stock Exchange- a new securities investment vehicle in Mongolia

By Elena Fehrbach

Jan. 20 – 2013 was a very busy year for the Mongolian Stock Exchange (MSE) and resulted in a legal and structural reform being introduced to the investment community on 1 January 2014. The new Securities Market Law came into force on that day, marking a beginning of the new securities investment era in Mongolia. The adoption of the new Securities Law came straight after adoption of the revised Investment Law on 1 November 2013 that has replaced the controversial Strategic Foreign Investment Law. New regulations are targeting the attraction of the foreign investment into Mongolia by providing internationally-accepted best practices and platforms for investments.

Securities Markets Law

As the newest regulation, Securities Markets Law (SML) immediately became the major point of discussion and attention since January 1 this year. It took about 5 months to draft the Law with all the relevant regulations. The final document is a sophisticated framework introducing financial instruments and concepts which have never been practiced in Mongolia before, such as custody, differentiation between nominee and beneficial ownership, options, futures, depository receipts and warrants. Twenty-two tailored regulations have been designed for each component of the Law, such as dual listing, clearing and other relevant components. Continue reading

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Oyu Tolgoi Budget and Issues Settlement Update

By Elena Fehrbach

Jan. 13 – According to the announcement by Mr. D. Ganbold, Director at Erdenes Oyu Tolgoi, a state-owned enterprise that holds state’s share in Oyu Tolgoi project, the financing of the second stage of Oyu Tolgoi development could be resolved by the end of January. The estimating financing of the second and the main stage is approximately 6.6 billion USD. The negotiations of the financing stopped in October 2013 when the Government of Mongolia and Rio Tinto entered into a dispute over a number of financial and operational issues. Continue reading

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Mongolia Revises its Investment Regulatory Framework

By Elena Fehrbach

The new Investment Law has been passed as a result of an extraordinary Parliamentary session in Ulaanbaatar. The new Investment Law will replace the Law of Mongolia on Foreign Investment and the Law on the Regulation of Foreign Investment in Business Entities Operating in Sectors of Strategic Importance.

Though the new Law has been announced as adopted, the text version of the document is not available for public yet. As reported by sources close to the matter, up to 75 amendments have been suggested for review compared to the first versions of Laws. In order to legally implement the new Law, 11 (eleven) other Laws, such as for instance, the Law on the State Registration of the Legal Entities as of 23 May 2003, should be amended. Continue reading

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Mongolia Plans Parliament Session On Oyu Tolgoi Project

By Elena Fehrbach

Aug. 26 – The Parliament of Mongolia has made a decision to organize an extraordinary session which will take place between September 2 and September 6, ahead of the scheduled October session due to ongoing issues deteriorating economic and investment situation in the country. Some of the issues to be resolved during this session are:

  • Amendment of investment laws: Strategic Foreign Investment Law and Foreign Investment Law;
  • Financing issues related to Rio Tinto’s development of the second stage of Oyu Tolgoi project, namely, underground operation that will allow commencement of extraction of the richest copper mineralization;
  • Overall weak commodities market and steps Mongolian Government can possibly take to help local companies operate in challenging conditions Mongolia is currently facing. Continue reading
Posted in Foreign Trade, Mining | Leave a comment

Russia Increases Petroleum Products Export Tax

By Elena Fehrbach

Aug. 1 – Starting from August Russia increases petroleum products export tax by 2.9 percent. Before August Mongolia has been paying from 323.4 to 332.2 USD per tonne of oil with increase to 341.8 USD per tonne since August. The tax has been raised in accordance with Russia’s “60-66-90” tax regulation on export of petroleum products. Continue reading

Posted in Energy, Foreign Trade | Leave a comment

Mongolia to Rent Port Area in Tianjin, China

By Elena Fehrbach

Jun. 18 – Mongolia and China held the intergovernmental meeting in Beijing where representatives has discussed trade and economic development plans. One of the key projects discussed is Mongolian government’s plan to rent 10 hectares of land at the Dunzian Port in Tianjin city. Government officials from Mongolia has visited Tianjin city and port area in Binhai district to get acquainted with infrastructure and business environment. Continue reading

Posted in Foreign Trade, Shipping & Logistics | Leave a comment

Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm, please contact one of our specialists at mongolia@dezshira.com, download our corporate brochure or visit at us www.dezshira.com

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