The EAEU countries are developing mechanisms to stimulate industrial cooperation

ECE 06 July 2022 19:12 The issue of developing mechanisms to stimulate industrial cooperation was the main topic at the meeting of the Council for Industrial Policy of the Eurasian Economic Union, held on the sidelines of the international exhibition "Innoprom-2022" in Yekaterinburg.

According to the Minister of Industry and Agro-Industrial Complex of the Eurasian Economic Commission Artak Kamalyan, one of the main problems on the way of implementation of integration projects in the Union is the lack of preferential mechanisms for their financing. This problem was also identified by representatives of the business community of the Union, including the Chamber of Commerce and Industry of the Russian Federation.

In this regard, the EEC has proposed possible mechanisms to reduce the cost of financing for cooperative projects through more active involvement of the EDB in this process, as well as through a mixed attraction of funds from other banks and funds. Counterparties can be FRP, VEB, as well as other financial institutions.

It is also advisable to fine-tune the procedures for interaction between the Commission and the EDB. The transparency of the EDB's work and the project selection criteria require corrections. Currently, the criteria are generalized in nature, without a clear evaluation (including financial parameters) component, and therefore cannot guarantee the prospects of cooperative projects and the attractiveness of borrowing conditions.

In addition, the opportunities of the Eurasian Fund for Stabilization and Development (EFSD) are not actively used now, the practice of which has shown that the fund sometimes uses investment lending opportunities to finance industrial cooperation projects.

"Realizing the increased importance of the development of industrial cooperation in the current economic conditions, we call for more active use of subsidizing tools, to attract funds from various financial institutions. In addition, it is necessary to fine-tune the work of such specialized institutions as the EDB and the EFSR," Artak Kamalyan said. 
The Commission's initiatives on financing will be discussed on July 15 at a meeting of the EEC Council in Vitebsk. In August, they will be considered by the prime ministers of the Member States.

Speaking about the budget financing of the Union programs, the Minister noted that in accordance with the Regulation on the Development and Financing of Inter-state Programs adopted by the EMPS in February 2018, such a Union space program has already been approved. Programs on distributed energy and supercomputers are under preparation.

"We must admit that today none of the programs has full resources," Artak Kamalyan noted. "And we also have to solve this issue."
Along with this, Artak Kamalyan stressed the importance of forming a list of specific integration projects that meet the real needs of citizens of the EAEU countries.

"The idea of cross–cutting cooperation in mechanical engineering proposed by the Republic of Belarus can become the basis, and one of the first examples of such projects is the creation of the Union electric transport. Innovative modern transport, which our citizens will use every day, will be the best proof of the stability and successful development of the Union in the new conditions," the minister is convinced.

Artak Kamalyan also spoke about non-financial measures to stimulate the development of industrial cooperation. In particular, it is proposed to consider the possibility at the union level to consolidate the norm for stimulating the use of goods manufactured in the EAEU states and prioritizing Eurasian goods over imported ones.

"Such an approach will saturate the market with Eurasian goods, as well as stimulate the access of producers of goods from some member states to the production chains of others, which is relevant for all countries of the Union," Artak Kamalyan stressed.

This issue, after discussion at the EEC site, will be submitted for consideration by the Commission on Cooperation and Import Substitution in Priority and High-tech Industries in the EAEU.

Another topic of the Minister's speech was Eurasian interests in the field of state support for industry.

In particular, it is proposed to develop a supranational document that will identify common growth points of national industrial policies. The Eurasian interests primarily include stimulating the involvement of industrial enterprises in the formation of Eurasian value chains, assistance in promoting goods to foreign markets, stimulating innovative activities of enterprises, increasing the investment attractiveness of industry, the development of small and medium-sized businesses, the development of green technologies, as well as promoting digital transformation in industry.

The document will ensure a single strategic vector and synchronicity in the implementation of the common industrial interests of the Union countries, as well as additional information to the parties about the system of state support for industry in the member states. The initiative will also be discussed at the EEC site.

One of the significant results of the meeting of ministers was the signing of an agreement on the creation of the Eurasian Technology Platform "Civil Aviation". The document was signed by ANO "Industrial Development Competence Center" (Ulyanovsk Region, Russian Federation), Aircraft Repair Plant No. 558 (Baranovichi, Republic of Belarus) and Kazakhstan Aviation Industry LLP (Nur-Sultan, Republic of Kazakhstan).

"The Eurasian Tech Platform will unite the efforts of industry universities and research institutes, industrial enterprises, associations, competent government agencies and development institutions under the coordination of the Eurasian Economic Commission," Artak Kamalyan said. – In February of this year, the Prime Ministers of our countries approved a roadmap for expanding industrial cooperation in the field of civil aviation in the EAEU member states for 2022-2023. The signing of the agreement on the creation of the ETP was another step towards its implementation."

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