Reference information: improvement of the provisions of the treaty on the EAEU

Improvement of the provisions of the Treaty on the Eurasian Economic Union dated May 29, 2014

(as of September 20, 2021)

On May 29, 2014, the Leaders of Belarus, Kazakhstan, and Russia signed the Treaty on the Eurasian Economic Union (hereinafter, the Treaty or the TEAEU) in Astana (Republic of Kazakhstan) during the meeting of the Supreme Eurasian Economic Council. This Treaty was based on the results of codifying the contractual and legal framework of the Customs Union (CU) and the Common Economic Space (CES) of the Republic of Belarus, the Republic of Kazakhstan, and the Russian Federation, as well as the regulatory framework of the Eurasian Economic Community (EurAsEC); in addition, the TEAEU included provisions aimed at deeper integration within the CU and the CES. It should be noted that, during the preparation of the TEAEU for signing, two states – the Republic of Armenia and the Kyrgyz Republic – stated their willingness to accede to the integration project of Belarus, Kazakhstan, and Russia; consequently, the Treaty on the Accession of the Republic of Armenia to the Treaty on the Eurasian Economic Union dated May 29, 2014, was signed on October 10, 2014 (with effect from January 2, 2015) and the Treaty on the Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union dated May 29, 2014, was signed on December 23, 2014 (with effect from August 12, 2015).

The TEAEU entered into force on January 1, 2015, and, accordingly, the Eurasian Economic Union – the international organization of regional economic integration with international legal personality – started functioning on the same date. The current Union Members are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and the Russian Federation.

In accordance with Article 102 of the United Nations Charter, the TEAEU was registered in the Secretariat of the United Nations on July 24, 2015. Modern rapidly changing conditions required continuous work on the development of integration processes. Moreover, since the commencement of the Treaty, law enforcement practice had shown that a number of its provisions required amendment. In this regard, on February 12, 2016, the Council of the Eurasian Economic Commission (hereinafter, the Commission, the EEC) instructed the Commission's Board by Disposition No. 3 to create a consolidated working group on improving the provisions of the Treaty on the Eurasian Economic Union dated May 29, 2014. By Disposition No. 112 dated August 2, 2016, the Commission's Board created a consolidated working group on improving the provisions of the Treaty on the Eurasian Economic Union dated May 29, 2014 (hereinafter, Consolidated Working Group, the CWG) and appointed T.D. Valovaya, Member of the Board - Minister in charge of Integration and Macroeconomics, to supervise it. The consolidated working group included representatives of the Union Member States and the EEC. The main task of the group was to generate proposals on improving the TEAEU (it should be noted that the group reviewed proposals on improving the Treaty developed by the Union Member States and the EEC) and to prepare draft international treaties on amending the TEAEU that provide for optimizing the functioning of the Union and deeper integration.

The first meeting of the CWG took place on August 25, 2016. This meeting prepared a list of priority amendments to be made to the regulatory legal basis of the TEAEU and made the decision to form three packages of amendments to the TEAEU:

Package No. 1 – amendments with a high degree of preparation. This Package included 4 draft protocols: one concerned amendments in connection with adopting the Union Customs Code, two concerned amendments to the Treaty on the Union in terms of energy (in connection with the accession of Armenia and Kyrgyzstan to the Treaty on the Union), and the fourth draft was the draft Protocol Amending the Treaty on the Union in terms of defining the application of the principle of exhaustion of exclusive rights to a trademark, or trademark of the Eurasian Economic Union. As of November 28, 2017, these drafts in the Member States were pending either internal coordination or internal legal procedures required for signing.

It should be noted that amendments included in Package No. 1 were not considered by the Consolidated Working Group: the relevant work was performed by previously created working groups;

Package No. 2 – technical amendments;

Package No. 3 – amendments requiring additional discussion (fundamental amendments, including those aimed at integration development).

In addition, the decision was made to have amendments discussed by industry meetings (or advisory committees under the Commission's Board) and the expert subgroup of the Consolidated Working Group before submitting them for consideration of the CWG. The second meeting of the Consolidated Working Group took place on October 26, 2016, in Minsk and resulted in approving the rules of procedure of the consolidated working group. The 3rd, 4th, and 5th meetings of the CWG held on March 16, June 19, and October 24, 2017, respectively, resulted in approving a number of amendments to the draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014.

It should be noted that from August 24, 2016, through March 1, 2018, eight meetings of the CWG's expert subgroup and more than hundred industry meetings on various directions of functioning of the Union took place and reviewed more than 300 amendments to the TEAEU, including 51 amendments from Package No. 2 and 283 amendments from Package No. 3.

Based on the results of the work performed in this period, the Consolidated Working Group prepared a draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, including 53 amendments to the TEAEU. Moreover, given that the Constitution of the Republic of Armenia contemplating the transition to the parliamentary system of state administration was to enter into full force and effect in 2018, a draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, was prepared (in connection with a change in the level of representation of the Republic of Armenia in the Supreme Eurasian Economic Council).

These draft Protocols were approved respectively by Dispositions No. 153 and No. 154 of the Commission's Board dated November 14, 2017, and submitted to the Union Member States for internal coordination. According to the available information on the results of internal coordination, the draft Protocol approved by Disposition No. 153 of the Commission's Board dated November 14, 2017, was being prepared to be submitted for consideration to the Council of the Commission. As for the draft Protocol amending the TEAEU in connection with a change in the level of representation of the Republic of Armenia in the Supreme Eurasian Economic Council, it was signed by the Heads of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, and the Kyrgyz Republic and submitted to the Russian Federation for signing.

The Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, in connection with a change in the level of representation of the Republic of Armenia in the Supreme Eurasian Economic Council was signed on March 15, 2018, and submitted to the Member States for internal legal procedures necessary for its entry into force.

It is important to note that the work to improve the TEAEU was actively supported by the EAEU Member States and constantly maintained for the comprehensive development and strengthening of the Union as a full-fledged integration association aimed to create conditions for the stable development of economies of the Member States in the interests of improved living standards of their population, a commitment to form the space of "four freedoms" (common market of goods, services, capital, and labor resources within the Union), comprehensive modernization, cooperation, and increased competitiveness of the Member States' national economies in the context of global economy.

Therefore, the work to improve the provisions of the Treaty on the Union was not yet completed after preparing two Protocols. Accordingly, the next package of amendments was being discussed by industry meetings (advisory committees), the expert subgroup, and the consolidated working group.

During the meeting of the Eurasian Intergovernmental Council (hereinafter, the EIC) on February 2, 2018, the EIC members instructed the Member States' governments jointly with the Commission to approve over 30 calendar days, within an industry meeting, the expert subgroup, and the CWG, the amendment to the Treaty on the Union in terms of extending the EEC's powers to prevent violations of general competition rules in transboundary markets until the next meeting of the Commission's Council. These amendments were discussed on February 14, 2018, at the 6th meeting of the CWG, considered at the meeting of the Commission's Board held on February 28, 2018, and submitted to the Member States for internal coordination. After the receipt of the Member States' information on the internal coordination of the draft Protocol approved by Disposition No. 153 of the Commission's Board dated November 14, 2017, the draft Disposition of the Commission's Council 'On the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014' was approved by Disposition No. 50 of the Commission's Board dated March 27, 2018. Pursuant to Instruction No. 3 of the EIC dated February 2, 2018, this draft Protocol was combined in one document with the draft Protocol approved by Disposition No. 153 of the Commission's Board dated November 14, 2017. This draft Protocol was reviewed at the meeting of the Commission's Council held on March 30, 2018. By the decision of the members of the Commission's Council, this draft Protocol will be reviewed at the next meeting of the EIC.

The 9th meeting of the CWG's expert subgroup was held on March 19, 2018, whereas on April 19, 2018, the 7th meeting of the Consolidated Working Group approved a number of amendments to be included in the new draft Protocol Amending the Treaty on the Union. On June 27, 2018, the 10th meeting of the CWG's expert subgroup approved a number of amendments to be submitted for consideration by the CWG.

The meeting of the Eurasian Intergovernmental Council held on July 27, 2018, resulted in the adoption of Disposition No. 14 of the Eurasian Intergovernme­ntal Council 'On the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014' dated July 27, 2018, contemplating the submission of the draft Protocol to the Member States for internal legal procedures required for signing the above draft Protocol with the request to inform the Commission about their completion until September 1, 2018.

The 11th meeting of the CWG's expert subgroup took place on August 28, 2018. A part of the discussed amendments on improving the provisions of the Treaty on the Union were approved to be submitted for consideration at the next meeting of the CWG.

The 8th meeting of the Consolidated Working Group took place on August 29, 2018. Based on its results and taking into account the results of the 11th meeting of the CWG's expert subgroup, a number of amendments were approved to be included in the new draft Protocol Amending the Treaty on the Union and the decision was made to hold additional industry meetings on

the coordination of amendments in terms of state procurement. The 9th meeting of the Consolidated Working Group on improving the provisions of the Treaty on the EAEU took place on November 12, 2018.

On January 15, 2019, the meeting of the Commission's Board approved the renewed composition

of the Consolidated Working Group (Disposition No. 6) and the draft Protocol Amending the Treaty on the Union (in terms of pension provision for the officials and employees of the Commission and the Court of the Union) and submitted it for internal coordination to the Member States (Disposition No. 7).

The 12th meeting of the CWG's Expert Subgroup took place on January 23, 2019. A part of the discussed amendments on improving the provisions of the Treaty on the Union were approved to be submitted for consideration at the next meeting of the CWG. The 13th meeting of the CWG's Expert Subgroup took place on March 11, 2019. On March 27, 2019, the 10th meeting of the Consolidated Working Group approved a number of amendments to be included in the new draft Protocol Amending the Treaty on the Union.

On July 30, 2019, the 14th meeting of the CWG's expert subgroup approved a number of amendments to be submitted for consideration by the Consolidated Working Group. The meeting of the Commission's Council held on August 8, 2019, resulted in the adoption of Disposition No. 34 of the EEC Council 'On the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014' dated August 8, 2019 (so-called "First Major Protocol"), contemplating the submission of the draft Protocol to the Member States for internal legal procedures required for signing with the request to inform the Commission about their completion until October 1, 2019.

On October 1, 2019, the session of the Supreme Council signed the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014 (First Major Protocol) in terms of eliminating legal regulation gaps identified during law enforcement practice and making technical adjustments to several provisions of the Treaty on the Union (ensuring the uniformity of the used terminology, introducing definitions and terms used in the Treaty on the Union, specifying the existing provisions of the Treaty on the Union, unifying the use of names of the Union Member States' authorities, removing duplication, etc.), including amendments concerning the extension of the powers of the Commission to prevent violations of general competition rules in transboundary markets. In addition, two more Protocols Amending the Treaty on the Union were signed during this session of the Supreme Council. The first Protocol provided for the possibility to set off advance payments against import customs duties, as well as special, anti-dumping, and countervailing duties. The second – Protocol Amending the Treaty on the EAEU, as well as Amending and Terminating Individual International Treaties – defined the ratios of distribution of import customs duties between budgets of the Eurasian Economic Union Member States (according to the Protocol, since January 1, 2020, the distribution ratios of import customs duties for each Member State have been determined as follows: Republic of Armenia – 1.220%; Republic of Belarus – 4.860%; Republic of Kazakhstan – 6.955%; Kyrgyz Republic – 1.900%; Russian Federation – 85.065%).

By Disposition No. 169 of the Commission's Board 'On Supervisor of the Consolidated Working Group on Improving the Provisions of the Treaty on the Eurasian Economic Union dated May 29, 2014' dated October 14, 2019, S.Yu. Glazyev, Member of the Board - Minister in charge of Integration and Macroeconomics, was appointed as Supervisor of the CWG.

On  January 16, 2020, the 15th meeting of the CWG's expert subgroup approved a number of amendments to be submitted for consideration by the Consolidated Working Group. On​ July 27, 2020, the 11th meeting of the Consolidated Working Group approved a number of amendments to be included in the new draft Protocol Amending the Treaty on the Union and discussed proposals of the Member States on the draft "Second Major" Protocol Amending the Treaty on the Union and the draft Protocol Amending the Treaty on the Union (in terms of pension provision for the officials and employees of the Commission and the Court of the Union who are citizens of the Russian Federation).​

On September 15, 2020, by Disposition No. 118, the meeting of the Commission's Board approved the draft disposition of the Commission's Council contemplating the approval of the draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, in Terms of Pension Provision for the Officials and Employees of the Eurasian Economic Commission and the Court of the Eurasian Economic Union Who Are Citizens of the Russian Federation and its submission to the Member States of the Eurasian Economic Union for internal legal procedures required for signing.

On October 1, 2020, the meeting of the Commission's Council adopted Disposition No. 25 'On the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, in Terms of Pension Provision for the Officials and Employees of the Eurasian Economic Commission and the Court of the Eurasian Economic Union Who Are Citizens of the Russian Federation' contemplating the approval of this draft Protocol and its submission to the Member States for internal legal procedures required for its signing with the request to inform the Commission about their results until December 1, 2020. On November 13, 2020, the meeting of the Commission's Board approved the renewed composition of the Consolidated Working Group (Disposition No. 161).

On November 27, 2020, the 16th meeting of the CWG's Expert Subgroup approved a number of amendments to be submitted for consideration by the Consolidated Working Group. On February 25, 2021, the 12th meeting of the Consolidated Working Group approved a number of amendments to be included in the draft "Second Major" Protocol Amending the Treaty on the Union and discussed the progress of internal legal procedures required for signing the Protocol Amending the Treaty on the Union in Terms of Pension Provision for the Officials and Employees of the Commission and the Court of the Union Who Are Citizens of the Russian Federation. On March 9, 2021, the 9th meeting of the Commission's Board discussed the draft Protocol Amending the Treaty on the Union (so-called "Second Major" Protocol), and following this discussion S.Yu. Glazyev, Member of the Board in charge of Integration and Macroeconomics, was instructed to provide the information on the progress of this draft at the next meeting of the Commission's Council.

On February 25, 2021, the 12th meeting of the Consolidated Working Group approved a number of amendments to be included in the draft "Second Major" Protocol Amending the Treaty on the Union and discussed the progress of internal legal procedures required for signing the Protocol Amending the Treaty on the Union in terms of pension provision for the officials and employees of the Commission and the Court of the Union who are citizens of the Russian Federation.

On March 9, 2021, the 9th meeting of the Commission's Board discussed the draft Protocol Amending the Treaty on the Union (so-called "Second Major" Protocol). Following the discussion, S. Yu. Glazyev, Member of the Board in charge of Integration and Macroeconomics, was instructed to provide the information on the progress of this draft at the next meeting of the Commission's Council. On April 5, 2021, the meeting of the Commission's Council discussed the issue of the draft Protocol Amending the Treaty on the Union (so-called "Second Major" Protocol). As a result of the meeting, the Commission's Board jointly with the Member States were instructed to submit the "Second Major" Protocol for consideration by the Commission's Board with the view of sending it, in accordance with the established procedure, for internal coordination to the Union Member States (Instruction No. 11). In pursuance of this instruction, the item concerning the "Second Major" Protocol was included in the agenda of the meeting of the Commission's Board scheduled for May 25, 2021.

On May 25, 2021, at a meeting of the Commission's Board, the draft Protocol Amending the Treaty on the Union (the so-called "Second Major" Protocol) was approved and sent to the Member States for internal coordination (Disposition No. 85 of the Commission's Board dated May 25, 2021).

On June 8, 2021, the 13th meeting of the Consolidated Working Group approved a number of amendments to be included in the new draft Protocol Amending the Treaty on the Union.

On July 15, 2021, the Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014 signed on October 1, 2019 (the so-called "First Major" Protocol) came into force.

On July 16, 2021, the meeting of the Commission's Council discussed the results of the report on implementing Instruction No. 11 of the Commission's Council dated April 5, 2021 (on the progress of the internal coordination of the draft "Second Major" Protocol) to the Member of the Board in charge of Economy and Financial Policy and Member of the Board in charge of Integration and Macroeconomics and instructed to report at the next meeting of the Commission's Council on the activities aimed to approve the amendment to Annex 5 to the Treaty on the Union proposed by the Republic of Kazakhstan.

On July 20, 2021, the meeting of the Commission's Board approved the draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014 (as regards adjusting Article 29 and determining the indicative rate) and submitted it for internal coordination.

On July 23, 2021, a meeting was held to scrutinize the draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014 in terms of pension provision for the officials and employees of the Commission and the Court of the Union who are citizens of the Russian Federation, which followed the completion in the Member States of the internal procedures required for its signing. During the meeting, the parties confirmed their agreement with the version of the draft approved by Disposition No. 25 of the Commission's Council dated October 1, 2020. The draft Protocol is expected to be signed at the next meeting of the Supreme Council.

On July 27, 2021, the 14th meeting of the CWG was held. It approved a number of amendments to be included in the Treaty on the Union and discussed some proposals received from the Member States following the results of the internal coordination of the draft "Second Major" Protocol.

On August 5, 2021, the Draft Protocol Amending the Treaty on the Eurasian Economic Union dated May 29, 2014, as regards clarifying the mechanism for shaping the Eurasian Economic Commission's personnel was signed

On September 9, 2021, a high-level meeting was held under the chairmanship of S.Yu. Glazyev, Head of the CWG and Member of the Board — Minister in charge of the Integration and Macroeconomics, to discuss the Member States' proposals following the results of the IC of the draft "Second Major" Protocol Amending the Treaty on the EAEU dated May 29, 2014. As a result of the meeting, the draft Protocol was submitted for consideration by the Commission's Board for its subsequent submission to the Commission's Council and further for internal legal procedures as required for its signing.