EAEU creates mechanisms for targeted assistance to economic development

The issues of creating flexible mechanisms for targeted assistance to economic development in the Eurasian Economic Union were discussed by the heads of the Union States’ economic agencies and representatives of the Eurasian Economic Commission. The meeting chaired by Daniyar Amangeldiev, Minister of Economy and Commerce of the Kyrgyz Republic, was held on the sidelines of the Eurasian Intergovernmental Council on February 25 in Nur-Sultan.

Elaborating flexible mechanisms for targeted assistance to economic development is envisaged by the Strategy-2025. This direction includes implementing joint targeted projects, laying the groundwork for the Member States’ grading in terms of economic development and personal income and other measures.

The meeting attendees considered possible organizational and legal forms, mechanisms and sources of financing for programs and projects being adopted at the EAEU level. The efficient implementation of the Strategy-2025 provides for attracting joint financing within the Union by using the functionality of existing development institutions or creating the Union’s separate institutional structure.

Sergei Glazyev, EEC Minister in charge of Integration and Macroeconomics, has stressed that the current year is crucial for efficient and on-time implementation of the Strategy-2025. Its implementation is aimed at creating conditions for advanced economic development through joint integration programs and projects. 

"Activating the potential available in the EAEU enables relying on achieving the objective of GDP growth in the EAEU at the level of 4.5% - 5.5% per year. In turn, the advanced economic development is key to converging the countries in terms of economic development", Sergei Glazyev noted.
According to the Commission's estimates, the volume of investments required for implementing the Strategy-2025 measures and maintaining high rates of economic growth should be at least 1.1% of the EAEU GDP in annual terms.

Sergey Mityansky, Deputy Minister of Economy of the Republic of Belarus, has noted that active increase in investments is key for the Union to achieve efficient growth rates outstripping the global average. 

"It seems essential to invest in high-performance economic sectors as well as to join efforts in introducing new technologies, import substitution and developing export-oriented spheres", Sergey Mityansky said.
Daniyar Amangeldiev, Minister of Economy and Commerce of the Kyrgyz Republic, has stated that now is the most favorable moment for establishing cooperation ties in the Union. There is a need to address the issue of creating a special development institute within the EAEU, whose activities will be aimed at leveling the Union’s economic development.

In turn, Alibek Kuantyrov, Minister of National Economy of the Republic of Kazakhstan, has noted the expediency of using the resources of existing development institutions and financing mechanisms by fulfilling their full potential for efficient implementation of the Strategy-2025.

Dmitry Volvach, Deputy Minister of Economic Development of the Russian Federation, stated that the possibilities of creating new cooperation chains had not been exhausted yet. The decisions adopted in this field will enable ensuring a long-term integration effect in the future.

The Heads of the EAEU countries’ Ministries of Economy arrived at a consensus on improving the efficiency of regional financial institutions within the EAEU whether as regards expanding the list of investment projects to be credited or cutting interest rates.

The next meeting of the Heads of the Ministries of Economy plans to discuss the development of the EAEU strategic planning system, including the main directions of economic development until 2035 as well as mechanisms and programs of conditional special-purpose financing to develop catching-up economies.

For reference

Consultations of the Heads of the EAEU Member States’ Ministries of Economy involving the EEC representatives have been held since 2019 to discuss relevant matters of the Union’s economic agenda.