Eurasian Economic Union of the EAEU
Countries participating
For 2019, the EAEU includes:
Controls
A Place in the Global Economy
Information Integration and IT Projects
Main article: EAEU digital agenda
The Eurasian Economic Union is actively developing projects in the field of integration of information systems and the development of the digital agenda. For more details, see the EAEU IT projects.
History
2023
Industrial production growth of 3.7%
At the end of 2023, the volume of industrial production of the Eurasian Economic Union (EAEU) increased by approximately 3.7% compared to the previous year. Growth was recorded Russia in - by 3.5%, Belarus - by 7.7%, - Kazakhstan by 4.3%, - Armenia by 4.1%, - by Kyrgyzstan 2.7%. Such data are given in the report of the Eurasian Economic Commission (EEC), submitted on February 16, 2024.
The study says that in 2023 the volume of production in the manufacturing industry in the EAEU increased by 7.4%. In the field of power supply, gas supply, steam and air conditioning, an increase of 0.3% was recorded compared to 2022. At the same time, in the mining industry and quarrying, a decline of 0.6% was noted, while in the direction of water supply, sewage, control over the collection and distribution of waste, the reduction was 2.2% compared to 2022.
According to the published indicators, in Russia the volume of production in the manufacturing industry rose by 7.5% on an annualized basis. In the segment of power supply, gas supply, steam and air conditioning, an increase of 0.2% was noted. Mining and quarrying saw a 1.3% drop, while water, sewerage, waste collection control and distribution saw a decline of approximately 2.5%.
The study also notes that Belarus recorded an increase in production in the manufacturing industry by 9.1% compared to 2022, in the mining industry and quarrying - by 4.5%, in the field of water supply, sewage and waste treatment - by 1.7%. A decline of 0.9% was recorded in the direction of power supply, gas supply, steam and air conditioning.[1]
Agricultural production in the EAEU decreased by 1.1%
Agricultural production in the Eurasian Economic Union of the EAEU) at the end of 2023 decreased by 1.1% compared to the volume of one year ago. This is evidenced by the data that the Eurasian Economic Commission (EEC) disclosed on February 13, 2024.
According to Interfax with reference to the materials of the EEC, in Belarus in 2023, a 1.1 percent increase in agricultural production was recorded. Output in Kyrgyzstan increased by 0.6%, and in Kazakhstan and Russia there was a decline of 7.7% and 0.3%, respectively.
In 2023, the EAEU increased the production of the main types of livestock products: livestock and poultry for slaughter (live weight) - by 2.2% compared to 2022, milk - by 3%, eggs - by 0.8%. The growth of livestock and poultry production for slaughter (live weight) and milk was noted in all EAEU member states, except Armenia. An increase in egg production was observed in Kyrgyzstan and Russia, a decrease in Armenia, Kazakhstan and Belarus.
In farms of all categories of the EAEU in 2023, gross grain harvest (in weight after revision) reached 169.4 million tons, a decrease of 11.1% compared to the previous year. Potato harvesting reached 30 million tons (+ 5.4% by 2022), vegetables - 22.9 million tons (-0.4%).
As the Deputy Minister of Agriculture of Russia Elena Fastova said at the Eurasian Economic Forum, the production of agricultural products in the EAEU countries by 2025 will increase by 17%, and by 2030 - more than 30%. According to her, the agrarians of the Union countries have learned to use modern agricultural technologies and produce high-quality products. Now we need to solve the problem - expanding storage capacities, creating an information platform for trading and logistics companies, building wholesale distribution centers, Fastova added.[2]
EAEU and Iran signed a free trade agreement
In December 2023, the EAEU and Iran signed a free trade agreement, instead of the previously existing temporary treaty.
EAEU countries mutually recognized documents on academic degrees
In June 2023, the countries of the Eurasian Economic Union (EAEU) signed an agreement on the mutual recognition of documents on academic degrees in the EAEU member states. This was stated by the Prime Minister Russia Mikhail Mishustin at a briefing following a meeting of the Eurasian Intergovernmental Council in August 2023.
 | Today we signed an agreement on the recognition of documents on academic degrees in the five states. Now their owners will be able to work freely in their specialties throughout the Union. This is a very important decision, - said the Chairman of the Government of the Russian Federation on June 8, 2023. |  |
According to him, earlier it was necessary to confirm these documents and undergo a number of bureaucratic procedures, which were very different depending on the specialty, university and country. The signed agreement resolves this problem.
| | The decision will give an excellent incentive to exchange qualified personnel between our countries, and in general, in this way we will eliminate another obstacle, another barrier to the free movement of goods, services, labor and capital, - said Mikhail Mishustin. | |
Within the framework of the agreement, documents on the academic degrees of Doctor of Philosophy (PhD), doctor in profile, candidate and doctor of sciences will now be mutually recognized in the EAEU countries. Kazakhstan noted that the agreement will allow, on the other hand, to stimulate the influx of qualified personnel into Kazakhstan, which will give an additional impetus to strengthen the faculty of universities of the republic.
The agreement will allow holders of academic degrees not to undergo procedures for recognizing documents under national legislation in the EAEU countries, which will significantly simplify the employment procedure, reduce temporary and financial costs, the press service of the Ministry of Trade and Integration of the Republic of Kazakhstan reports.[3]
Trade turnover in the EAEU increased by 15%
At the end of 2022, the trade turnover of the countries that are members of the Eurasian Economic Union (EAEU) increased by 15% compared to 2021 and reached $80 billion. Russian Prime Minister Mikhail Mishustin announced this during a meeting with State Duma deputies on April 6, 2023.
| | What is the EAEU today? That's 180 million people and GDP is more than two trillion dollars. And, of course, he proved his effectiveness in responding to challenges, - said the Chairman of the Government of the Russian Federation. | |
According to him, despite a large number of difficulties, including the COVID-19 coronavirus pandemic earlier and sanctions pressure on Russia and Belarus, trade among the EAEU member countries is growing.
Mishustin drew attention to the fact that only trade with Armenia in 2022 increased by 83%. The volume of trade with Kyrgyzstan increased by 37%.
| | This is the result, including economic and humanitarian ties and opportunities to interact... We will think about joint projects, first of all, these are industrial cooperation, economic cooperation, issues related to the construction of financial infrastructure for settlements, issues of economic sovereignty are all on our agenda, "said the head of the Russian Cabinet. | |
In February 2023, the Eurasian Economic Commission (EEC), citing data from the Eurasian Development Bank (EDB), reported that the volume of mutual trade of the Eurasian Economic Union in 2022 increased by 10.3% and amounted to $80.6 billion. The report says that Armenia, Belarus, Kazakhstan and Kyrgyzstan increased exports to the EAEU by $9.8 billion (1.4 times), of which to Russia - by $9.5 billion.
The EEC noted that the importance of the union market for Armenia and Kyrgyzstan has increased significantly - the share of the union countries in the total exports of Armenia increased from 29.3% to 46.8%, Kyrgyzstan - from 28.8% to 65.8%.[4]
Russia agreed to cancel roaming with Kazakhstan, Armenia and Kyrgyzstan and called the timing
Russia agreed to cancel international cellular roaming with Kazakhstan, Kyrgyzstan and Armenia, which are members of the Eurasian Economic Union (EAEU), by 2025. This is stated in the appendix to the request of the Eurasian Economic Commission (EEC), sent to all major mobile operators of the allied states and the Ministry of Economic Development of Russia on March 16, 2023.
As Vedomosti writes with reference to this document and the roadmap attached to it, telecom operators, after conducting analytical work, must begin measures to curb fraud (fraud) on their networks. Further, until the end of 2024, telecommunications companies will develop "rules for the use of fair tariffs for communication services on the territory of member states."
By the first quarter of 2025, operators must reduce the rates of the international interconnect (inter-operator relations that determine the conditions and size of mutual settlements between operators for the traffic they provide) and introduce appropriate tariffs for cellular services for subscribers of the EAEU states.
The roadmap provides for "logical stages of implementation" and the result will depend on the implementation of the necessary measures by all participants, the representative said. MTS
According to the publication, by the end of March 2023, the cost of 1 MB of Internet traffic in Armenia from the Tele2 operator is 25 rubles, incoming calls and outgoing to all Russian numbers, as well as in the republic cost 22 rubles per minute, in other countries - 39 rubles per minute.
Free trade zone with Iran created
In January 2023, Iran and the Eurasian Economic Union (EAEU) created a free economic zone. The parties signed a memorandum on free trade in Tehran.
2022
1.7 million people came to work in the Russian Federation from the remaining four EAEU countries in a year
Most of all, citizens of Kyrgyzstan arrived from the EAEU to Russia in 2022 (about 1 million people). Indicators for Armenia, Belarus and Kazakhstan amounted to about 200-300 thousand people.
According to the report, the unified labor market of the EAEU countries has been gradually formed since the formation of the union in 2014-2015. At first, norms were adopted that allow citizens of the union countries to work in Russia without a patent or work permit, and they are not subject to quotas of the Ministry of Labor for the share of foreign workers in various sectors of the economy. In 2019, the issues of pension, health and social insurance for visiting workers were resolved.
In addition, the outbreak of hostilities in Ukraine and subsequent mobilization significantly changed the migration flows to the EAEU. For example, according to the Armenian government, in 2022 about 100 thousand Russians moved to this country, while labor migration from Armenia to Russia, according to the authors of the report, amounted to 300 thousand people.
However, it is still difficult to estimate how many of those who left continue to work remotely for Russian companies, remaining part of the labor market of the Russian Federation, notes Kommersant"" on August 8, 2023.[5]
GDP of the EAEU countries decreased by 1.6%
The total gross domestic product (GDP) of the countries of the Eurasian Economic Union (EAEU) at the end of 2022 amounted to 173 trillion rubles, which is 1.6% less than a year earlier, but 5.4% more compared to 2020. This was reported on March 20, 2023 by the Eurasian Economic Commission.
Economic dynamics in the main sectors of the economy was multidirectional. The volume of industrial production increased in Kyrgyzstan (by 11.4%), Armenia (by 7.9%) and Kazakhstan (by 1.1%), but at the same time significantly decreased in Belarus (by 5.4%) and slightly - in Russia (by 0.6%). At the same time, the situation in industry turned out to be three times better than the expectations of the Russian government, which predicted a 1.8% decline in September. Such indicators were the result of the growth of industry in the first quarter, as well as the development of metallurgy, military-industrial complex and some export-oriented industries, which compensated for the decline in the automotive industry and related industries.
In Belarus, there was a drop in production in almost all sectors of the manufacturing industry, with the exception of mining, which showed a slight increase. The record growth of the Kyrgyz industry was mainly due to an increase in the production of precious metals and textile products, and Armenia - mineral products, machinery and equipment, textile and metal products, as well as jewelry.
In agriculture of all EAEU countries, there was an increase, which amounted to 9.4% in total by association. The leader in this indicator was Russia (10.2%), followed by Kazakhstan (9.1%) and Kyrgyzstan (7.3%). The agricultural sector of Belarus over the past year grew by 3.6%, and Armenia - by only 1.6%. In the Russian agro-industrial complex, the growth was mainly due to a record grain harvest, which in net weight amounted to 153.8 million tons, an increase of 26.6% compared to 2021. A record last year was the harvest of the main food crop - wheat (104.4 million), which exceeded the previous 2021 by more than a third. In general, the growth in crop production in 2022 reached 15.9%.[6]
The heads of government of the EAEU countries signed an agreement on the establishment of the company
In August 2022, the heads of government of the EAEU countries signed an agreement on the establishment of the Eurasian Reinsurance Company (EPC) - Chairman of the EEC Board Mikhail Myasnikovich. According to him, the EPC is designed to stimulate mutual and foreign trade, the implementation of joint cooperation projects by increasing the insurance capacity and professional risk management throughout the EAEU.
Agreed trading platforms for electricity trading in the common energy market of the union
In May 2022, the heads of the ministries power engineering specialists of the EAEU countries Russia(,,, Kazakhstan Belarus Armenia and Kyrgyzstan) agreed on trading platforms that will become responsible for centralized electricity trade in the common energy market (OER) of the union. The leading role of energy exporters will be with and. Russia Belarus
The procedure for issuing permits for the export of telecom equipment from Russia to the EAEU has been established
In March 2022, the Ministry of Digital Development of the Russian Federation approved the procedure for issuing permits by the department for the export of telecommunications equipment from Russia to the countries of the Eurasian Economic Union (EAEU). Read more here.
EAEU countries reset import duties on electronics and another 450 categories of goods
On March 18, 2022, it was announced that import duties on more than 450 categories of goods in the countries of the Eurasian Economic Union were zeroed. Electronics, among other things, fell under this norm.
The Council of the Eurasian Economic Commission decided to exempt food and goods used in their production from import customs duties for six months. The solution, in particular, concerns animal and dairy products, vegetables, sunflower seeds, juices, sugars, cocoa powder, amino acids, starches, enzymes and other food products.
Also, goods are exempted from import duties for six months:
- for the production and sale of food products,
- for the production of pharmaceutical, metallurgical and electronic products,
- for the production of light industry products,
- used for the development of digital technologies,
- used in construction and transport industries.
In total, at a meeting of the council, it was possible to agree on the zeroing of duties for more than 450 goods, the total cost of which is $19 billion (imports to the Russian Federation). Savings for importers as a result of the abolition of duties, therefore, consumers, will amount to more than $0.5 billion, the Ministry of Economic Development of the Russian Federation notes.
| | "That's the money that business will save and will potentially be able to use in order not to raise prices for goods for the population," said the head of the department, Maxim Reshetnikov. | |
According to him, it is fundamentally important to form new logistics chains - new export and import channels, transport corridors, create a favorable regime for the transportation of goods in priority areas.
In 2021, the volume of mutual trade in goods EEU amounted to more than $72 billion, which is almost a third more than a year earlier.[7]
2021
EAEU countries began to exchange credit histories of citizens
On November 19, 2021, the countries of the Eurasian Economic Union (EAEU) agreed to exchange data from the credit histories of citizens. Read more here.
Creation of a single job search service in the EAEU countries
2020
Reduction of the total GDP of the EAEU countries by 3.9% - EEC
The total GDP of the countries of the Eurasian Economic Union (EAEU) in 2020 decreased by 3.9%. This was announced in early February 2021 by the assistant to the head of the Eurasian Economic Commission (EEC ) Iya Malkina. According to her, with a worsening foreign economic situation, risks for the economies of the EAEU countries are growing.
| | The risks of economic growth in the medium term remain extremely uncertain. And they are more likely to be shifted to the negative side, since any deterioration in external conditions will lead to an increase in risks for the economies of the Eurasian Economic Union, primarily oil exporters, she said. | |
Earlier, the EEC predicted a fall in EAEU GDP in the range from 3.2% to 7.2% and considered two scenarios: "recession" and "depression." Both are characterized by a number of features, and the main distinguishing criteria here are the intensity of the pandemic and the duration of restrictive measures.
In the "recession" scenario, the stabilization of the situation in the global economy and commodity markets, as well as the expected implementation of internal structural transformations in a number of countries in the region, were considered as key factors in increasing the GDP growth rates of the EAEU member states in 2021-2022. With this development of events, the central banks of most countries of the Union can move to the cycle of monetary policy easing in 2020 in the context of weak domestic demand and its disinflationary impact in the medium term.
In the "depression" scenario, it is assumed that negative trends in the global economy will only worsen, which may cause a further drop in prices for key exports of the EAEU countries, primarily energy raw materials and metals. In connection with the revision of the budget policy parameters, an increase in the public sector budget deficit was expected, as well as the excess by the majority of member states (with the exception of Belarus) of the established EAEU convergence criterion for a budget deficit of 3% of GDP.[8]
Draft Credit History Exchange Agreement
In June 2020, the Board of the Eurasian Economic Commission (EEC) approved a draft agreement on the procedure for exchanging information in the Eurasian Economic Union (EAEU) that is part of credit histories.
The document establishes the mechanism, procedure and conditions for the exchange of information included in credit histories, as well as the minimum list of information subject to cross-border exchange.
In addition, it defines the basic principles of protecting the rights and legitimate interests of consumers and financial service providers when formalizing credit relations, and the powers of the bodies regulating the financial market of the EAEU states.
The agreement, according to the EEC, will contribute, on the one hand, to the creation of equal conditions for residents of all EAEU countries when applying for loans to banks in other states of the union, and on the other hand, the document will give banks the opportunity to adequately assess risks when making decisions on lending to residents of other EAEU countries. This will stimulate the development of cross-border lending in the union, summarize in the ECE.
2019
Russia reduced trade in rubles in the EAEU
In 2019, Russia reduced trade in rubles in the Eurasian Economic Union (EAEU). The Russian currency still remains dominant, but at the same time the share of currencies of other countries is increasing. This is evidenced by the data of the Eurasian Development Bank (EDB) " The main trends in the integration development of Russia in 2019."
According to the report, the share of the ruble in Russia's exports decreased from 73.6% in 2018 to 72.9% in 2019, and in imports - from 83.9% to 81%. The share of the dollar for Russia's exports to the EAEU decreased from 17.4% to 17.2%, and for imports it increased from 13.1% to 15.1%.
The share of the euro in export transactions has not changed, in import transactions it increased by 0.2 percentage points, to 2.9%. The Central Bank of the Russian Federation also recorded a reduction in the share of the ruble in settlements with the EAEU countries.
Russia's main trading partners remain China and the European Union, and the dollar is still the main currency in Russian foreign trade with the world. Russian exporters accept most of the payments in dollars - 65.2%, according to the EDB.
The value of the dollar when importing goods into Russia is significantly lower - 35%. This is due to the more diversified commodity structure of Russian imports.
Russia in the EAEU format trades in US dollars when exporting oil and gas. This, the report notes, "complicates the use of other currencies and puts a natural restriction on the use of monetary units of the countries of the union."
When compiling the report, the data of the Eurasian Economic Commission (EEC) were used, which uses statistics provided by customs authorities for calculations. The Bank of Russia forms settlements according to international standards of balance of payments, so these regulators differ. So, according to the Central Bank, the share of ruble settlements in Russia's trade with the EAEU countries is lower.[9]
Pensions for labor migrants
In June 2019, it became known that Russia will begin to pay pensions to labor migrants from the countries of the Eurasian Economic Union - Armenia, Belarus, Kazakhstan and Kyrgyzstan.
The decision is being prepared as part of a pension agreement within the union.
According to the document, which was prepared in March and must be ratified by the EAEU member countries by the end of 2019, the country in which the migrant worked and made contributions to the pension fund will pay him a pension even after returning to his homeland.
The new measures will help restore the influx of labor migrants, which last year collapsed to a minimum in the entire post-Soviet history and ceased to cover the natural population decline.
2018: China and EAEU sign agreement on trade and economic cooperation
The agreement on trade and economic cooperation between the Eurasian Economic Union (EAEU) and China was signed in May 2018 during the Astana Economic Forum, which is being held on Thursday in the capital of Kazakhstan, RIA Novosti reports .
According to the EEC press service, the EAEU and China have been negotiating an agreement on trade and economic cooperation over the past two years. Agreements have been reached on widescreen and industry cooperation. The agreement sets a high standard for regulation in various areas, including the protection and protection of intellectual property rights.
Earlier, the Minister of National Economy of Kazakhstan Timur Suleimenov said that "the agreement is non-referential and does not provide for the abolition of duties or the automatic reduction of non-tariff barriers."
2017: Road Interface Plan with the Shelkovy Road Belt
As Adamkul Zhunusov noted in 2017, cooperation between the EAEU countries with the People's Republic of China opens up huge opportunities for the development of economic ties, trade, the creation of new transport routes between Europe and Asia, which will significantly increase economic potential. A significant synergistic effect is expected from the implementation of a joint project with China to combine the EAEU and the Silk Road Economic Belt.
2015: Forming a Union
In January 2015, the Eurasian Economic Union included the Republic of Belarus, the Republic of Kazakhstan, the Russian Federation and the Republic of Armenia. In August of that year, the Kyrgyz Republic joined them.
The issue of digital economic transformation within the EAEU was raised in the first year of the existence of the interstate association. So, on June 18, 2015 in St. Petersburg at the Business Forum of the Shanghai Cooperation Organization, EEC Minister Karine Minasyan outlined a new direction for cooperation - the development of the digital space of the EAEU and SCO states, the so-called digital economy.
2014: Signing of documents on the creation of the EAEU
On May 29, 2014 in Astana, the presidents of Russia, Belarus and Kazakhstan signed documents on the creation of the Eurasian Economic Union (EAEU) since 2015. The agreement was concluded with the aim of ensuring economic progress through joint actions aimed at solving the common tasks facing member states on sustainable economic development, comprehensive modernization and strengthening the competitiveness of national economies within the global economy.[10]
The management system will be similar to the one that has been operating since 2012 after the transformation of the Customs Union into a Single Economic Space (EEA). Members of the board of the Eurasian Economic Commission (EEC) and its chairman Viktor Khristenko will retain their posts. The agreement completes the five-year stage of the formation of the union, which began in 2009 with the creation of the Customs Union, explains EEC Trade Minister Andrei Slepnev: the union will become an independent subject of international law.
Single Market for Goods and Services
The three countries agree on the creation of a single market for goods and services, although it will fully work no earlier than 2025 - unified gas and oil markets should be created. Trade policy EEU will not change: uniform customs regulation and tariff, free movement of goods. The standards for the distribution of income from import duties will not change either: 87.97% will receive, Russia 7.33% -, Kazakhstan 4.7% -. Belarus
The agreement spelled out mechanisms for protecting the market from imports. Seasonal duties for up to 6 months can be established, protective, anti-dumping and compensatory measures can be applied.
"Incritical circumstances," the EAEU commission may introduce retroactive anti-dumping duties for 200 days until the investigation is completed. While an anti-dumping investigation is underway, there is a risk that importers will import an annual stock of goods, and this damage must be prevented. This is an instrument allowed by the WTO[11].
About the possibility of introducing such duties, Severstal CEO Alexei Mordashov asked Prime Minister Dmitry Medvedev back in 2013. Without this, protective investigations are meaningless, he explained.
Single mode for investment
In the countries of the Union, it is planned to unify the regime for investment. Investors will have the right to compensate at the expense of the state for the damage to their investments as a result of riots, wars and revolutions. The nationalization of private assets, on the one hand, is prohibited, on the other hand, the application on investment protection describes a compensation mechanism: it must be market-based, paid quickly, interest can be charged for the delay.
Russia, Belarus Kazakhstan and they will agree to pursue a single macroeconomic, antimonopoly, currency and financial policy (a common financial mega-regulator is planned to be created by 2025). The document does not say about the transition to a single currency. States will be able to introduce currency restrictions for up to 1 year "in exceptional cases."
Each country will have the right to pursue its own industrial policy, including subsidizing enterprises. But they will be able to challenge in the EEA court the measures to support industry used in another country.
Common markets for services, manpower, technical regulation and licensing
The agreement provides for the formation of a single service market, Slepnev notes: "Services account for half of the economy, and the single service market will be formed according to the principle: business will be able to operate on the territory of the entire association according to the same rules that operate in its country."
The EEA will have a common labor market, the same technical regulation and licensing.
In fact, nothing will change with the creation of the union - most of the norms are already in effect after the creation of the EEA, states Alexander Knobel from the RANEPA: the creation of the union is a political step. The CIS countries have been trading duty-free with each other since 1992 and the creation of the Customs Union, and now the Eurasian one will not lead to a significant increase in mutual turnover, he believes, in order to achieve this, it is necessary to remove non-tariff restrictions.
Notes
- ↑ Industrial production in the EAEU increased by 3.7% in 2023
- ↑ Agricultural production in the EAEU decreased by 1.1% in 2023
- ↑ EAEU countries signed an agreement on the recognition of documents on academic degrees
- ↑ The volume of trade in the EAEU in 2022 increased by 15%
- ↑ Labor migration to the EAEU has acquired a counter character
- ↑ The total GDP of the EAEU countries decreased by 1.6 percent in 2022
- ↑ ECE Council zeroed import duties on more than 450 goods
- ↑ The EAEU predicts a decline in GDP this year by almost 4%
- ↑ The main trends in the integration development of Russia in 2019
- ↑ Advantages of a single digital space of the Eurasian Economic Union
- ↑ , "says Slepnev# ixzz335lKiXRn How the Eurasian Economic Union will work
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