EAEU discussed ensuring sustainable development in new economic reality.

Issues of ensuring stability and economic security were discussed by attendees of the ninth annual international macroeconomic seminar "EAEU Countries' Economic Security and Stability: State and Business Opportunities" held on November 17 in Yerevan.
As Askar Japparkulov, Director of the Eurasian Economic Commission's Macroeconomic Policy Department and Moderator of the seminar, has stressed, the global economy that has not recovered from COVID-19 faced new challenges caused by geopolitical tension, sanctions, technological shifts and energy transition. Significant challenges arose with logistics, having caused an exponential increase in delivery costs. Sanctions against Russia have completely changed the global market situation.

"Prices, primarily, for food products and fuel soar. Many countries have registered 30-40 year high inflation. Central banks tighten monetary policy in response to this growing inflation: about 75% of central banks have raised their rates during the year", Askar Japparkulov stated.
In turn, Igor Chumakovsky, Vice-President of Interstate Bank, has emphasized the importance of addressing issues of the EAEU countries’ economic security in all fields: economic, financial, payment and others. He stressed the need for close interaction between public authorities, academia and the business community.

The seminar attendees discussed some ways to overcome potential global recession at the level of countries and integration associations. 

Igor Paunovic, Head of Globalization and Development Strategies Unit of the United Nations Conference on Trade and Development, shared his views on resolving the issue: "We need a new development pattern ensuring prosperity for all. Fundamental social and economic changes based on the decarbonization of the economy, and large-scale investments, both public and private, in public goods should be the core of this pattern".
Anastasia Nesvetailova, Head of the Macroeconomics and Development Policies Branch of the United Nations Conference on Trade and Development, has added that the rate hike, chosen as the main anti-inflationary tool, is counterproductive in the current scenario. 

"Today the inflation structure includes determinants of supply and demand, as well as a group of factors related to corporate control over markets and financial speculation. The rate hike is not only capable of coping with the gap between supplies and the conduct of corporations and banks, but will also exacerbate these problems. Therefore, an extensive set of regulatory measures, including a fiscal support strategy, consumer protection measures and selective price control, will be able to protect the global economy from recession in 2023", the expert expressed confidence.
Anton Malakhov, Area Manager at the Centre for Integration Studies of the Eurasian Development Bank, informed on the changed configuration of transport connectivity in the Eurasian region in the new environment, as well as measures to improve the efficiency of the international North-South transport corridor of which Armenia is one of the participants.

"A database of investment projects for developing this corridor has been collected as part of the EDB’s new research study, which includes more than 100 projects for a total amount over 38 bln US dollars", Anton Malakhov shared information with the seminar attendees.

The seminar addressed such issues as food security governance under sanctions, as well as methods to promote economic growth at high inflation and uncertainty. The speakers informed on developing regional cooperation and interaction between the State and the business community in the field of transportation, transforming the financial and payment sectors, developing on-exchange trading in goods within the EAEU and the commitment of companies to environmental principles in the present-day conditions. Some attention was also paid to IT and process safety.

Emil Petrosyan, Deputy Head of the Moscow City Department for Investment and Industrial Policy, focused on regional cooperation and declared determination to assist investors.

"In the current hard and unstable economic situation, Moscow is ready to provide investors, including from the EAEU countries, with unprecedented support measures to implement projects in the city: financial and property support (provision of a land plot), location in a special economic area, guaranteed sales of products, support of investors in a "single window" mode, and so on. It is worth noting that since 2019 Moscow has actively promoted sustainable development projects both in the city and in the EAEU countries’ regions as well", Emil Petrosyan said.

Anton Moskalenkov, Adviser to the Director General of the Agency for Strategic Initiatives of the Russian Federation, expressed an opinion on the need to create new opportunities for extending cooperation within the EAEU and ensuring technological and personnel sovereignty, and flexibility of the government regulation system.

"The Agency, jointly with the Eurasian Economic Commission, welcomes the idea of creating the Eurasian Consortium of Strategic Initiatives and Development Institutions. Besides the exchange of experience and best practices, the joint actions may also result in creating a new investment paradigm for the EAEU countries, which differs from current approaches of the OECD, the World Bank and the UNCTAD. For this purpose, sufficient demand created by national economies should be a key factor in attracting investment to the EAEU", Anton Moskalenkov reported.

Summing up, the seminar attendees agreed on the need to formulate a balanced position on ensuring sustainable development that serves business and public interests and promotes unleashing human potential, and improving the quality and standard of living of our countries’ citizens.

"Exploiting its supranational opportunities, the Commission will keep actively working in this direction in close cooperation with the sides, international organizations and integration associations, implementing the obtained results in the documents of long-term strategic planning at the EAEU level", Askar Japparkulov concluded.