26.08.2022 (Обновлено: 01.09.2022 15:21)

Work completed on Agreement on Incorporating Eurasian Reinsurance Company

The Heads of Governments of the EAEU Member States announced the completion of work on the Agreement on the Incorporation of the Eurasian Reinsurance Company (ERC), an international financial organization that has no analogues in the Eurasian space.

The ERC is designed to stimulate mutual and foreign trade, as well as the implementation of joint cooperation projects by increasing the insurance capacity and professional risk management throughout the EAEU. The company will complement the functionality of national insurance agencies at the supranational level, reinsuring export credits and investments against business and political risks in the EAEU Member States and third countries.

The ERC's authorized capital will be created at the expense of contributions from the Member States and will amount to RUB 15 billion. The potential insurance capacity (excluding possible expansion) created by the ERC is up to USD 2 billion.

According to expert estimates, the appearance of additional insurance capacity of the Eurasian Reinsurance Company could potentially lead to an increase in mutual trade within the EAEU in the amount exceeding USD 6 billion.

It is planned that the ERC will start operating in 2023 and will be open to the entry of other states that are not members of the EAEU and international financial organizations.