Since it was first established, the Eurasian Economic Union proven itself to hold a great deal of potential. This was evidenced by the economic growth achieved following the COVID-19 pandemic. However, in order to achieve greater efficiency, EAEU member states need to pay particular attention to digitalization and the development of joint investment projects. Those were the conclusions reached by representatives of EAEU member states and experts at the second Eurasian Economic Forum. The participants were speaking at a session entitled Priorities for EAEU 2030+.
KEY CONCLUSIONS
The Eurasian Economic Union has proven its relevance
“Last year was the 10th anniversary of the Eurasian Commission, and next year will mark the 10th anniversary of the union. <...> We have gone through relatively calm periods, and there have been challenges, such as the pandemic and pressure from third countries, which has affected trade. Overall, our integration has proven to be an important and relevant undertaking. We can see how trade and investment in our countries are increasing. Last year we achieved yet another record, with almost USD 83.5 billion in mutual trade. That represents 14% growth compared to 2021. Agriculture grew by more than 30%. We have ensured our food and economic security, and our space is open for capital, for business,” Andrey Slepnev, Member of the Board, Minister in Charge of Trade, Eurasian Economic Commission.
“We have proven our viability. Unemployment is low, and we have a good degree of resource self-sufficiency. We have energy security, low inflation, and our own independent payment system. We also have a common language of communication, which is an enormous advantage. <...> And of course, all this contributes to the EAEU being able to unlock its full potential and become a secure macroregion within Eurasia. These aims are among the priorities of Russia’s chairmanship,” Alexey Overchuk, Deputy Prime Minister of the Russian Federation.
PROBLEMS
EAEU member states do not produce enough of their own goods
“Yes, mutual trade did increase last year. <...> However, a closer look reveals that this was largely due to the need to replace imports from third countries. We do not have enough of our own goods to trade and compete on internal and external markets. Let’s speak about this frankly,” Mikhail Myasnikovich, Chairman of the Board, Eurasian Economic Commission.
“Our morals and values need to be protected. <...> We need to come up with ways of defending [spiritual and moral values – ed.]. <...> Our values must form a part of our international legal treaties,” Konstantin Chuychenko, Minister of Justice of the Russian Federation.
A low level of digitalization pervades among supply chains within the EAEU
“Digitalization is an extremely pressing issue. That’s not only because it’s a question of convenience, but also because at some point, if we don’t do this to a sufficient (i.e., a wide‑ranging) extent, I think that our solutions will simply not be implemented at the speed and in the way they need to be. And this is also a major problem,” Mher Grigoryan, Deputy Prime Minister of the Republic of Armenia.
“I believe that the unconditional priority should be to develop the digital side of things. Technological development is connected to it in any case, one way or another. There is no getting away from that. This digital agenda of course encompasses a distributed digital platform for the union. We have once again delayed its development, albeit for reasons out of our control, given that each country is experiencing its own difficulties,” Serik Zhumangarin, Deputy Prime Minister – Minister of Trade and Integration of the Republic of Kazakhstan.
SOLUTIONS
Fostering joint investment projects between EAEU member states
“Today it is vital to pour a lot into industries that would simply not survive without government support. I am speaking about microelectronics, machine tool manufacturing, aviation and many other sectors that are in real need of the best possible tax breaks and other incentives in order for enterprises to develop. <...> The draft budget for 2024 outlines proposals to allocate RUB 1.7 billion to these ends, and to support joint projects. I think that the parties involved will support the Russian Ministry of Finance’s proposal. <...> However, we need to have projects. And for as long as business entities are unaware of the benefits offered by these joint projects, any progress will be very lumbering. In this context, decisions need to be made at the national level,” Mikhail Myasnikovich, Chairman of the Board, Eurasian Economic Commission.
Developing a capital preservation plan for the EAEU
“We have analysed the long-term priorities of all five member states. In the main, they dovetail, both in terms of critical technologies and priority areas. They also correspond to key areas of growth inherent to the new wave of tech innovation. However, a lack of funding for the very things discussed today is hindering our ability to join this wave of growth. I am speaking about funding for cooperation, joint projects, and ensuring technological sovereignty. We need to double investment in order to reach the level of leading countries, and triple spending on R&D [research and development – ed.],” Sergey Glazyev, Member of the Board, Minister in Charge of Integration and Macroeconomics, Eurasian Economic Commission.
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