EAEU to develop new financing incentives for cooperative projects
International Business News – The Eurasian Economic Commission is quoted by the Haatamaken Business Network. The governments of the member states of the Eurasian Economic Union approved the formulation of proposals for sustainable funding sources for industrial cooperation projects. According to the resolution, the Eurasian Economic Commission will, together with the governments of the Union, submit proposals in the fourth quarter of 2022 on specific sources and policies for concessional financing in order to implement an integrated ization project.
Artak Kamalyan, Minister of Industry and Agro-Industrial Complex of the Eurasian Economic Commission, emphasized in his speech. The heads of government of the Eurasian Economic Union supported the initiative on the need for a new financing mechanism for industrial cooperation. Priority is given to important strategic industries that are highly dependent on imports, such as aircraft manufacturing, pharmaceuticals, etc. Of course, other commercial projects with cooperation will also be considered. This will promote the development of the Eurasian Economic Union industrial complex, help to create innovative products with high added value, and promote the continued economic growth of the five Eurasian economies.
According to Artak Kamalyan, the committee has received repeated calls from the business community to improve conditions for industrial cooperation, establish joint ventures and implement new infrastructure projects, as well as develop transnational measures to support integration projects. Experts from the Eurasian Economic Commission, in cooperation with Union Chambers of Commerce and Industry and businesses, identified the main obstacles to the practical implementation of industrial cooperation projects, in particular the lack of concessional loans for the implementation of such projects.
Currently, the Eurasian Economic Union faces a decline in mutual and external investment in the real economy. Attracting investment in industrial production is therefore one of the priorities of the Member States and the Commission.
In the framework of the implementation of the directives of the Heads of State of the Union on the promotion of cooperation for development, the Commission, in cooperation with countries and transnational development agencies, has prepared an analysis of the status and methods of possible sources and mechanisms of financing for the cooperation chain.
Artak Kamalyan concluded by saying: “The Eurasian Economic Commission’s recommendations include the search for new sources of funding and the direction of work on financing mechanisms, consideration of subsidies from the budgets of Eurasian Economic Union countries, deductions from tariff revenues, the establishment of an industry fund , using the resources of the Eurasian Development Agency, using a blended financing mechanism.”