Industrial, scientific and technological cooperation between Eurasian Economic Union (EAEU) member states will allow their economies to remain resilient in the face of geopolitical transformations. However, for the further development of the entirety of the Union, it is necessary to create conditions for the advancement and implementation of cooperative projects. Without such projects, it will be impossible for EAEU member states to achieve technological sovereignty. These were the conclusions reached by representatives of ministries of EAEU countries and the Eurasian Economic Commission at the session New Industrial Policy: Technological Sovereignty and International Cooperation, held as part of the Eurasian Economic Forum.
KEY CONCLUSIONS
Industrial cooperation within the EAEU will allow its member states to maintain a sustainable economy in the current geopolitical environment
"Eurasian integration, especially in the current environment, has proven to be more than just a slogan, theory and a kind of political end in itself, and not only for Russia. For example, for our colleagues in Belarus, this logistical, industrial and economic integration has become more of a matter of survival. It has become a matter of supporting the new organization of industrial production and new logistics routes. Member states choosing to rely on the EAEU is, in my opinion, fully justified," said Vasily Osmakov, First Deputy Minister of Industry and Trade of the Russian Federation.
"We are happy to cooperate with all member states of the EAEU. According to experts’ estimates, the drop in imports to our countries amounts to about USD 70 billion of goods. Together, we can substitute them. <...> First of all, we could produce Eurasian goods under the single brand 'Made in the Eurasian Economic Union,' and establish appropriate conditions to stimulate the development of these industries," said Alexander Efimov, Deputy Minister of Industry of the Republic of Belarus.
"The most sustainable international ties and conditions for cooperation are within the Eurasian Economic Union. <...> Russia should have its own combine harvesters to ensure food security, but this is a practically impossible task. It would be more appropriate, in my view, if combine harvesters, machinery, planes and computers were to be produced jointly by the countries of the Union in fair cooperation. In other words, the goal is not the sovereignty of each individual country, but the sovereignty of the EAEU," said Konstantin Babkin, President of the Rosspetsmash Association and President of Industrial Union "New Commonwealth"
PROBLEMS
Underdeveloped cooperation between EAEU countries in the fields of science and education
"Without the development of applied and fundamental science, it is impossible to achieve import substitution, applied solutions, and the introduction of modern technologies that yield the highest margins in any spheres of production and industry," said Alexander Efimov, Deputy Minister of Industry of the Republic of Belarus.
Lack of support mechanisms required for the co-production and promotion of products
"We just need to work out mechanisms to support the production and promotion of joint products in third countries. We need to continue to work on deepening cooperation and developing mechanisms that support the joint production and export of these goods,” said Vasily Shostak – Deputy General Director for Marketing and Export Policy – Director of the Marketing Center, BELAZ – Management Company of BELAZ-HOLDING.
"Industrial policy has a direct impact on the life of actual businesses. <...> We see that the key to resolving many of the problems facing Russia lies in developing the real sector and diversifying the economy beyond natural resources. <...> It is evident that tax reductions and the implementation of investment incentives are imperative. Funds invested specifically for the development of a company should be exempt from profit tax and other levies. Everything should be done to ensure that the money is invested in development," said Konstantin Babkin, President of the Rosspetsmash Association and President of Industrial Union “New Commonwealth”.
SOLUTIONS
Creating mechanisms to support cooperative projects and building scientific and technical cooperation among EAEU countries
"We have to very carefully monitor the implementation of this programme [of support for cooperation projects in the EAEU – Ed.]. Under no circumstances can we allow any bureaucratic restrictions. The programme should definitely turn into collaborative development projects," said Vasily Osmakov, First Deputy Minister of Industry and Trade of the Russian Federation.
"It is the mutual benefit of the countries of the Eurasian Economic Union to promote projects that are of interest to all members. This includes the adoption of advancements and methodologies in industrial development that have been worked on by the United Nations. <...> It also encompasses the digitalization of production and implementation of ecologically friendly practices in industry," said Sergey Korotkov, Director of the UNIDO Centre for International Industrial Cooperation in the Russian Federation.
"It is crucial to establish effective scientific and technical cooperation to secure the connection between scientific research and industrial production, in order to develop innovative production complexes. <...> It is also necessary to transition from a reliance on raw materials and resource-intensive industries to an innovative type of development. This shift should encompass the adoption of green technologies and the implementation of a green industrial policy," said Artak Kamalyan, Member of the Board and Minister in Charge of Industry and Agroindustrial Complex at the Eurasian Economic Commission.
"We need to find resources for the advancement of basic and applied sciences. If we want to talk about import independence, the term 'import substitution' should actually be replaced with the term 'proactive import substitution'. <...> The factor that would stimulate import independence is the creation of favourable conditions within the internal market of the EAEU. The role of the states in this endeavour should increase significantly," said Alexander Efimov, Deputy Minister of Industry of the Republic of Belarus.
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