L.Gansukh(DP): Parliament Waits for Task Group Conclusions on Rosnefti
We got details from L.Gansukh, Head of DP Council in the Parliament on an issue discussed at the Council meeting.
What kind of issues did you discuss?
We discussed issues related to infected people in Bayan-Ulgii aimag and risks of infectious MHFD /mouth, hand and foot disease/ that could cover children of young age in great number. The number of infected children that was 98 reached 150. We got the Government information with reference to the Disease. Also we met Chairman and Secretary of General Election Committee and staff of Civil registration center. Names of over 230 people have been counted repeatedly. We shared views on eradicating such errors and providing favorable environment for running the election smoothly. In addition to it, issues included in the weekly business plan have been discussed.
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B.Erdenesuren(MPRP): We Agreed Because Percentile per the Public was High
MPRP group in the Parliament discussed the draft law on modifications to the Minerals Law of Mongolia during the Group Meeting. We got details on the meeting from Deputy Chairman of the group, B.Erdenesuren.
What issues did you discuss during the Group Meeting?
We discussed what the position of the Group would be at the first discussion of the draft law on modifications to the Minerals law of Mongolia which was initiated and submitted by MP Z.Enkhbold and E.Bat-Uul. Members expressed different positions and opinions on it. Some tend to criticize that only product-sharing is not the important thing and power was granted to the Government before the percentile became clear.
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New Project Agreement is Signed
In framework of consultative meeting between the Government of Mongolia and the Government of Federal Republic of Germany and negotiation on development policy cooperation in 2007, technical cooperation society of Germany launched a new project on “Confirming stable economic environment”. This project shall be implemented jointly by Ministry of justice and internal affairs, Supreme Court and State General Prosecutors Office, and the Government of FRG grants €2.5 million for project financing.
The goal of the project is to regulate market and political regularity through activities of court and legal organizations and legal policies.
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Peabody Energy is Interested in Mining
Last Friday, delegates, headed by Taib Taheer, CEO of Northeast Asia affairs of Peabody Energy Corporation of the United States, visited the President of Mongolia N.Enhbayar. Delegates of the world biggest U.S. private coal company introduced the world class proposal on developing Mongolia’s coal production. The proposal has been developed by US leading corporations; marketing part of the coal mining proposal has been developed by Peabody, legal compliance part by Fasken Martineau, tax and financial part by KPMG and investment, bank and finance part by Morgan Stanley.
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Rosnefti Says to Move the Price If Necessary
We got details from Kh.Narankhuu, Minister of Industry and Trade on gas price.
It’s been several days since a deadline for responding to a proposal of Russian Company “Rosnefti” expired. Aren’t they dramatically increasing the gas price?
Talks and negotiations are held with Russian side at all levels. I sent a letter to the Minister of Food and Agriculture of Russia. Confirming the interest of importing oil product from Russia, the letter told that specific study on Russian proposal was time-consuming. Also it mentioned about the advantage of entrance of foreign company into the domestic market that it would increase competition and liberalize the market.
Moreover we asked to keep gas price stable until the Parliament finishes discussing the matter. Russia did not send any official reply yet. We will carefully observe how Rosnefti Company would react to our proposal. They informed that a gas price would be changed if necessary.
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DP Forwards a Requisition to PM
They considered that accepting Russia’s proposal is like giving up independence
Yesterday DP council held a broad meeting. DP Leader Ts.Elbegdorj, who just arrived from Korea, attended the meeting. Several issues were discussed at the meeting and council members criticized the acceptance of Russia’s Rosnefti proposals by the Government was a case of ignoring national interests.
Council members agreed that if we accept the proposal of Russian Rosnefti Company to construct 100 gas stations in Ulaanbaatar and Darkhan, it will be same as giving our independence up. Therefore the council agreed on forwarding a requisition to the Prime Minister to withdraw the proposal submitted to the parliament for discussion and seek other alternatives.
The Council meeting also agreed upon holding the parliamentary election on June 29. It is considered that expenditures must be looked back and re-estimated as well. Moreover, it was discussed to submit a proposal on placing cameras in poll places to the draft resolution.
S.Oyun Visits France
Minister of Foreign Affairs of Mongolia S.Oyun pays an official visit to France at the invitation of the Minister of Foreign and European Affairs of France. During the visit, S.Oyun is to hold a meeting with Bernard Kouchner, Minister of Foreign and European Affairs of France and a tete-a-tete meeting with authorities of major French companies and sign on collaboration agreement between two ministries. This is the first official visit of the Foreign Affairs Minister to France in 43 years since extension of bilateral diplomatic relations between two nations.
D.Idevkhten: Parliament Has No Way Other Than Discussing the Matter
We got details from MP D.Idevkhten whether or not to discuss the Rosnefti proposal.
-There is no way than discussing the issue at the Parliament. Oil price went up, accompanying price growth in other products. It hits hard the public livelihood. One of the alternatives on how to maintain oil products cheaper has been submitted to the Parliament. In this case, the Parliament has to discuss it.
-There are people who admit that Rosnefti proposal is submitted without considering other alternatives. What would you say on it?
-It’s the discretion of the Parliament what kind of decision to make. There could be an alternative to support Government proposal or another one that is close to it. Generally it is the issue essential for discussion.
Who Says What?
The Government thinks that the only best alternative to stand against the oil product price increase is the proposal of Russian Company Rosnefti to establish 100 gas stations in Mongolia. In order to accept this proposal, the Government formulated and submitted the draft law on modifications to the law on oil products. According to the current effective legislations, Rosnefti has no rights to form 100 stations in Mongolia.
Ts.Nyamdorj(MPRP): Government proposal is to be discussed
- We have three alternatives for solving the current problems: 1) to accept the price increase and get adapted to the conditions arose without measures taken by the state, 2)to discuss Rosnefti proposals submitted to the Government of Mongolia and 3) there are other ways but we have no researches and data. Therefore, the second alternative is to be discussed during the Parliament session.
R.Gonchigdorj(Democratic Party): It is important not to loose domestic market
- Mongolia has abundant coal. Let us implement the policy on producing oil products at home within 2-3 years. A strategy of what to do in order not to loose give domestic market away is not clear. Thus, DP Council is to talk and negotiate with MPRP Board on 100 gas stations of Rosnefti. Firstly the formation of task group is being negotiated.
Statement by S.Bayar, Prime Minister of Mongolia at the Parliament Session
On current state, recent pitfalls, measures of solution on oil products
Dear Speaker and
Dear Parliamentarians,
Recently oil price went up dramatically at the world market.
As of January 2007, price of 1 barrel oil at NYSE was USD 52.84 whilst as of yesterday it reached USD 113.4, going up by USD 60.56. It results increase in domestic gas price and export tariff of Russia which supplies over 90 percent of our oil product consumption. The reason for increase in gas price in Mongolia is the increase of border price of oil products imported by Russia to Mongolia by USD 69-104 per ton on December 2007 and by USD 60-131 on April 2008.
With reference to continuous increase of price at the international market, Government of Mongolia has been requesting Russian side to sell oil products at discount rate to Mongolia.
On January 30, 2008 authorities of Rosnefti, a Russian company notified it was possible to accept Mongolia’s request, however with purposes of recovering the loss of Rosnefti company particularly, it was essential to run oil production in Mongolia, especially by building 100 gas stations in Ulaanbaatar and Darkhan as well as along the Millennium Road.
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