The issue of launching a new funding system for industrial cooperation projects in the Eurasian Economic Union was the focus of the 5th meeting of the Industrial Policy Council of the EAEU countries held in the framework of the INNOPROM international exhibition in Ekaterinburg.
"Once the amendments to the Treaty on the EAEU signed by Presidents of our countries at the Supreme Eurasian Economic Council's meeting in May this year were ratified, the Eurasian Economic Commission received new powers to fund multilateral industrial projects from the Union's budget," said Artak Kamalyan. "At the moment, the Commission together with relevant Ministries of the Eurasian Five countries is developing a financial support mechanism for industrial cooperation that will accelerate technological development of Member States and ensure that our small economies have access to creating new technologies."
According to Artak Kamalyan, to launch the mechanism, the Regulation on the procedure for selecting cooperation projects and providing financial support for their implementation is being developed and will be signed by Prime Ministers of the Union States in fall this year. The document defines criteria and requirements for projects, borrowers, financial organizations, as well as subsidizing mechanism operation, including liability of all the process participants and control over the targeted use of funds.
"Simultaneously with establishing the legal basis for practical introduction of the new mechanism we are searching for integration projects in the 3+ format that, once launched, could be the pillar for our pilot initiative," noted the EEC Minister. "Now, and as soon as possible, it is important to identify the top-priority sectors to include them into the subsidy program prior to all other ones. I kindly request the Ministries of Industry of the Eurasian Economic Union States to intensify their efforts in this respect."
As part of the meeting of the Industrial Policy Council Artak Kamalyan also told about the progress in shaping new strategic approaches to industrial development until 2030 (MDIC 3.0).
The main goal of industrial cooperation from 2025 to 2030 will be setting the strategic vector and establishing conditions for synchronized promotion of industrial interests of the EAEU States required for timely responses to global challenges.
"There will be six priority directions. They are personnel, export, technologies and green production, as well as resources, finance and sectoral development. On average, each direction has five industrial cooperation tools," explained Artak Kamalyan. "When implementing the projects, we will utilize the new funding mechanism. The joint work in all directions will be related to achieving clear targets such as industrial output, mutual trade, industrial cooperation index and other."
Members of the Industrial Policy Council endorsed such approach and the importance of developing the document, as well as voiced their proposals on the conceptual content of MDIC 2030.
According to Artak Kamalyan, by 2030 the industrial output should increase 1.4 times. Mutual trade volume and R&D expenses are to increase twofold.
The meeting participants discussed prospects for technological cooperation within the Union and measures to support it, as well as promotion of the EAEU industrial areas in third countries.
Closing the meeting, heads of relevant ministries of Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia endorsed the Commission's initiative to expand the INNOPROM industrial exhibition to the Union's countries. The new event that will be held in the Eurasian format in each of the states by rotation could be a focal, signature showcase of the EAEU industrial achievements. The meeting participants agreed that such exhibitions would give an impetus to increasing cooperative supplies, enhance the image of the Eurasian manufacturing industry and promote creation of joint ventures. Denis Manturov, Deputy Prime Minister – Minister of Industry and Trade of the Russian Federation, proposed to hold Innoprom in Armenia in fall 2024.
The meeting of the Industrial Policy Council of the EAEU countries was attended by Denis Manturov, Deputy Prime Minister – Minister of Industry and Trade of the Russian Federation, Vahan Kerobyan, Minister of Economy of the Republic of Armenia, Alexander Rogozhnik, Minister of Industry of the Republic of Belarus, Marat Karabaev, Minister of Industry and Infrastructure Development of the Republic of Kazakhstan, Daniyar Amangeldiev, Minister of Economy and Commerce of the Kyrgyz Republic, Viktor Nazarenko, EEC Minister in charge of Technical Regulation, as well as Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs, and Sergei Katyrin, President of the Russian Chamber of Commerce and Industry.
For reference
The annual Innoprom international industrial exhibition has been held in Ekaterinburg since 2010. Traditionally, the event showcases achievements of the EAEU States and foreign countries in real economy.
Since 2019, the Union's industrial output has grown by 7%. The volume of cooperative supplies between Member States has grown over 1.5 times. The best upward trend was demonstrated by transport engineering (2.5-fold increase), textile industry (2-fold increase), chemical industry (by 85%) and optoelectronic industry (by 80%).