​New Amendment to the Investment Law of Mongolia

New Amendment to the Investment Law of Mongolia[1]

Following the change in Cabinet in November 2014, the structure of the Government has been changed by the Amended and Restated Law on Government Structure dated 4 December 2014.

Accordingly, the matters related to investment policy, foreign investment policy, regulation and registration of the foreign investment now falls within the authority of the Prime Minister instead of Ministry of Economic Development (former).

In relation to the foregoing change in the supervising authority, the Investment Law of 2013 was amended on 14 May 2015 by the Law on Amendment to the Investment Law (“Amendment Law”) with immediate effect from. We set out below the key changes contemplated by the Amendment Law:

1. A new Article 22.5 was added to allow the Invest Mongolia Agency seek an opinion or conclusion from the relevant authorities when reviewing application by the foreign state owned company who intend to acquire 33% or more shares of the Mongolian entity which operates in the mining, banking or media sectors. The timeline for the relevant authorities to deliver its opinion or conclusion is up to 30 calendar days.

2. All the authorities that were provided to the former Ministry of Economic Development under Article 8 of the Investment Law are now vested to the Invest Mongolia Agency in addition to its existing authorities stated in Article 9 of the same legislation.

3. The power and authority to approve the template of the stabilization certificate is now transferred to the chairperson of the Invest Mongolia Agency which was originally granted to the former Minister of Economic Development under the Investment Law.

4. A Cabinet member authorized by the Prime Minister’s ordinance will enter into an investment agreement with the relevant investor on behalf of the Government of Mongolia.

[1] This information remains subject to review of the official version published on State Gazette.

For further information please contact:

Zoljargal Dashnyam, Managing Partner at Zoljargal@gtsadvocates.mn

Tsolmonchimeg Enkhbat, Partner at Tsolmonchimeg@gtsadvocates.mn

Munkhsoyombo Nyamsuren, Associate at Munkhsoyombo@gtsadvocates.mn