Results and expectations

R ecently the narrow and then expanded-format sessions of the Eurasian Intergovernmental Council took place in Yerevan and was attended by the leaders of the EAEU member states. Issues related to the implementation of strategic directions for the development of Eurasian economic integration within the framework of Strategy-2025 were on the agenda. In particular, reference was made to the mutual trade of the Union’s member states, the development of agro-industrial complex, the plan for the supply of raw materials to metallurgical enterprises of the EAEU states for 2021-2024, and the progress of work on rapprochement of the positions of the Union states within the climate agenda.


In this context, the agreement on the use of navigation seals in the EAEU for tracking shipments, a draft strategy for biological safety of the Union, issues of electronic commerce and other issues in the agenda were also discussed. Summing up the results of the session, we can single out a few main directions. 

Deepening of mutual cooperation 

R eferring to the deepening of mutual cooperation within the framework of the integration process, it’s worth referring to the indicators of mutual trade: the EAEU mutual trade volume amounted to about $52 bil. in the first months of 2021, increasing by 32.5% or by $12.7 bil. compared to the same period of last year, and by 16.5% or by $7.4 bil. compared to the pre-pandemic indicators of 2019. 

Foreign trade turnover between Armenia and the EAEU countries increased by 12.8% in January-September, 2021 compared to the same period of last year, and the export volumes from Armenia to EAEU countries increased by 27.8%. Moreover, an increase was recorded with all the EAEU partners: exports to Kazakhstan increased by 89.5%, to Kyrgyzstan by 48%, to Russia by 27.4% and to Belarus by 19.2%.

The above-mentioned statistics prove that it is possible to develop the preconditions of cooperation in the context of global structural changes of the world economy, the level of which is currently necessary but not sufficient.   

Elimination of obstacles in internal market

A s the Prime Minister of Kazakhstan, Askar Mamin noted in his speech, the EAEU member states eliminated 80% of Union’s obstacles within five years. To further promote work in this direction, the sides approved the list of exceptions and restrictions within the framework of the previous session of the Eurasian Intergovernmental Council in Kyrgyzstan, which are subject to elimination before January 1, 2023. The measures taken had a positive impact on EAEU mutual trade, however, it is also planned to expand the list of goods subject to mandatory labeling in order to increase it, as well as the list of goods in Kazakhstan, for which the system of certificates of the origin of serial goods can be used. According to the Russian Prime Minister Mikhail Mishustin, the experience of recent years has shown that one of the effective mechanisms in the fight against illegal goods is the labeling of goods. 

Covid-19 crisis’ “opportunities” in the field of pharmacy

I t’s almost two years, since the world, including the EAEU countries have been struggling with new social-economic challenges posed by the Covid-19 pandemic. During the session, the serious epidemiological situation and the heavy burden on the healthcare system raised the need for a speedy resolution of problems, including in the pharmaceutical sector, has emerged. In particular, the Prime Minister of Armenia Nikol Pashinyan noted, that in the long run, the consistent implementation of the action plan aimed at increasing the level of supply of medicines of strategic importance to the member states of the Union will allow to establish their entire production cycle, increase the level of self-sufficiency of the EAEU member states.

It is envisaged to implement an action plan for the provision of medicines and pharmaceutical materials of strategic importance for the medical use of the EAEU countries by 2024, which envisages their production in the Union’s member states, which will further contribute to the development of the pharmaceutical industry in the EAEU countries. It’s noteworthy, that the mutual trade volume of pharmaceutical products increased by 21․7% in January-September 2021, compared to the same period of last year. 

It should be reminded that Single Pharmaceutical Market in the Eurasian Economic Union has officially been launched since May 6, 2017, within the logic of the development of which the EAEU Pharmacopoeia was approved to assess the quality of medicinal products in 2020. Moreover, the Eurasian medical agency is being formed, which will help to solve the problems that arise when leading medicines enter the market, easing the administrative burden of business. These institutions will unite the expert resources of the countries, reducing examination costs, excluding duplicate examinations, as well as ensuring the proper factory quality of medicines. 

Strengthening of the agenda of digitalization of economy

C onsidering that the digital agenda is within the framework of the EAEU development priorities, roadmap for the development of electronic commerce was presented during the session, the implementation of which will introduce a qualitatively new mechanism to support small and medium-sized business, which will contribute to the increase of trade turnover between the countries of the Union. The Prime Minister of Armenia stated, that the growth of transborder e-commerce poses new challenges for our country and requires effective solutions to ensure the security of goods, the protection of consumer rights, as well as the integrity of tax and customs revenues.

During the session, the draft Agreement on the use of navigation seals for cargo transportation in the EEU was adopted, the application of which will enable the transition of digital control of cargo transportation, reduce the time and financial costs of the participants of the transport-logistics process, optimize the customs procedures, without reducing their efficiency. According to the results of the 9 months of 2021, there is a recovery in the field of transport: cargo turnover in the Union increased by 5.1%. 

During the sessions, the importance of the Agreement on the procedure for the exchange of data included in credit histories within the EEU was also emphasized, the signing of which will create conditions for the development of trans-border lending in the EEU common financial market, as well as will allow the citizens of the Union to receive loans in the territory of all the five countries. 

The next important issues on the sitting’s agenda referred to the development of agro-industrial complex, to the program of measures for the supply of raw materials to the metallurgical enterprises of the EEU countries for the period of 2021-2024, to the approximation of the positions of the Union states on the climate agenda, as well as to the Draft EEU Biosafety Strategy. 

To sum up, it should be noted, that the implementation of all the agreements will further strengthen economic ties between the Union member states, which, in turn, will contribute to the improvement of the society’s living standards in member states, as well as to the increase of competitiveness in domestic and international markets and to the effective overcoming the negative consequences of the Covid-19 pandemic. In particular, it is envisaged that as a result of the implementation of the above-mentioned agreements the volumes of the EAEU agricultural products will increase by 2% in 2022 compared to 2019. Moreover, the fastest growth will be recorded in the production of grain, oils, milk, pork and beef meet, vegetables and fruits. Furthermore, according to the EEC assessments, the mutual trade will grow by 16%, exports to the third countries by 9.5%, meanwhile imports will decrease by 3%, as a result of which the negative foreign trade balance will decrease from 5.8 to 2.5 billion dollars. 

It should be noted that a number of documents were signed as a result of the session, and the next sitting of the Eurasian Intergovernmental Council will be held in February, 2022, in Almaty, Kazakhstan.