The EAEU countries will be engaged in the development of digital trade

The EAEU countries will be engaged in the development of digital trade

The issues of implementation of the digital agenda, development of the integration Association and improvement of its regulatory framework, cooperation in the fields of energy and industrial cooperation in the Eurasian economic Union (EAEU) became the main topics of the meeting of the Eurasian intergovernmental Council (EMC), which was held in St. Petersburg on July 27.

In the meeting of the intergovernmental Council was attended by the Prime Minister of the Republic of Armenia Nikol Pashinian, the Prime Minister of the Republic of Belarus Andrei Kobyakov, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Prime Minister of the Kyrgyz Republic Muhammedally Abylgaziev, Chairman of the government of the Russian Federation Dmitry Medvedev and the Chairman of the Board of the Eurasian economic Commission (EEC) Tigran Sargsyan.

Chairman of the Eurasian intergovernmental Council, Prime Minister Dmitry Medvedev said the need to remove barriers in the common markets of the EAEU. "We must ensure non – discriminatory and transparent conditions for business, in General, we will need to do additional work to remove obstacles that prevent the creation of common markets of the EAEU," the Chairman of the EEU said. He added that an expert group on the elimination of barriers was formed, which included representatives of the business communities of the Union countries.

Dmitry Medvedev also noted the progress in the implementation of the digital agenda of the EAEU. "At the beginning of the year, an agreement was signed on the labeling of goods by means of identification. We hope that soon the States of the Union will pass all the necessary procedures for the document to come into force this year," the Prime Minister of the Russian Federation said.

He noted that it is planned to create a system in Russia by the end of the year, which will cover the entire cycle from the release of goods by customs to their sale at retail, and proposed to extend this mechanism to the whole Union. "The benefits are obvious: establishing effective state control, protecting consumers and creating favorable conditions for doing business," Dmitry Medvedev said.

Chairman of the EEC Board Tigran Sargsyan stated the importance of a coordinated policy of digital transformation, as otherwise new barriers and obstacles will appear on the EAEU market. "All our countries understand this, and now our task is to create mechanisms for joint policy," Tigran Sargsyan said. – We agreed that it is necessary to ensure the interoperability of our projects, to create common standards in the digital sphere and to build a clear management system so that we can coordinate the positions of national governments."

The Chairman of the EEC Board reported on the launch of pilot projects in the field of traceability of goods. In particular, Russia and Kazakhstan will start realization of the pilot project on the monitoring of road transit transport with the use of navigation seals and project for the marking of tobacco and tobacco products. At the same time, according to Tigran Sargsyan, in order to continue pilot projects to be effective, it is necessary to develop an ecosystem of digital "sandboxes". "Sandbox" allows you to implement the pilots, and clearly see their positive and negative sides."

Members of the EMU discussed the implementation of the digital agenda of the EAEU.

To match the scale of digital transformation, countries and the Union as a whole need to strengthen project activities at the integration level, to conduct experiments, to give life to joint digital research.

The Eurasian economic Commission is working on more than 25 initiatives from businesses and authorities of the member States. Three of them, based on the results of the analysis and discussions with experts, have moved into the research phase. So in the near future it is planned to develop the concept of the ecosystem of digital transport corridors of the EAEU and the model of regulation of cross-border data turnover in the Union.

In addition, the parties agreed to work out approaches to the development of digital trade in the Union and to the formation of regulatory "sandboxes".

Another issue that was discussed at the meeting was the introduction of anti-dumping duties on herbicides from the European Union. "The Commission received a statement from manufacturers of herbicides from Belarus, Kazakhstan and Russia that large European companies are dumping in this market, and the investigation confirmed this fact," Tigran Sargsyan said. - The EEC Board has already decided to introduce an anti-dumping duty, but our Kazakh colleagues have applied the veto to it. But today we have agreed that the Commission will continue to work with the Union and European manufacturers at prices in order to create equal competitive conditions for all participants of the Union market of herbicides, and that some unscrupulous companies do not seek non-market advantages."

The intergovernmental Council instructed the EEC Board to conduct a pilot project to assess the actual impact of the Commission's decisions. The EEC Board will approve the action plan for its implementation by October 1 this year.

During the meeting, the members of EMU got acquainted with the report on the regulatory impact assessment (RIA) of the draft decisions of the EEC in 2017. Thus, for 86 projects, the participants of the public discussion gave 2,110 comments and suggestions, of which 1,409 (66.8%) were taken into account by the development departments.

A total of 23 meetings of the working group of the EEC to conduct regulatory impact assessment of draft decisions, the Commission became 75 opinions. Compared to 2016, the share of positive opinions increased by 34% (from 50% to 84%). More than 90% of the comments and suggestions in the conclusions are taken into account.

The intergovernmental Council ordered to continue work on improving the ODS procedure of the EEC draft decisions and to conduct a pilot project to assess the actual impact.

The Eurasian intergovernmental Council approved the order "on the formation of a high-level working group on integration cooperation and import substitution in priority industries".

The working group is created to develop common approaches in the EAEU for the implementation of cooperative and import-substituting projects. According to the order of EMU, the EEC Board will have to create a working group and approve its composition.

Consideration of issues of import substitution and industrial cooperation is associated with decisions in the field of customs tariff and non-tariff regulation, removal of obstacles in the supply of industrial products to the common market of the Union, attracting investment and increasing the availability of financial resources for the EAEU enterprises.

These issues affect the competence not only of the industrial, but also of the economic and financial bloc of the parties and involve the adoption of operational decisions at the highest level. In this regard, the working group will include representatives of the EAEU States at the level of Deputy heads of the authorized bodies of the countries of the Association.

In addition, the draft decision of the Supreme Eurasian economic Council "on the formation of a common gas market of the Eurasian economic Union", which this year should be submitted for consideration by the Supreme Eurasian economic Council, was considered. It is planned that the heads of state will approve The program of formation of the common gas market of the Eurasian economic Union and the action plan for the formation of this common market.

The Commission provided the intergovernmental Council with information on the preparation of amendments to the Treaty on the EAEU and the report on the transfer and distribution of import customs duties between the budgets of the EAEU member States in 2017.

Tigran Sargsyan: "the international financial center in Astana can become a prototype for the regulation of certain elements of the common financial market of the EAEU»

Tigran Sargsyan: "the international financial center in Astana can become a prototype for the regulation of certain elements of the common financial market of the EAEU»

The Eurasian economic Commission (EEC) has high hopes for the work of the Astana International financial center (AIFC). All countries of the Eurasian economic Union (EAEU) are interested in creating a common progressive financial jurisdiction. This was stated By the Chairman of the EEC Board Tigran Sargsyan at the opening of Astana Finance Days conference.

He congratulated the Prime Minister of Kazakhstan Bakytzhan Sagintayev on the start of the financial center in Astana. "The speed of launching the project is impressive. This is a very good sign and a message for all potential participants," Tigran Sargsyan said.

As the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev stressed, opening the session, the AIFC with its unique geographical position will give access to the markets of Central Asia, the Eurasian economic Union, Transcaucasia, the Middle East. In his opinion, it should also be taken into account that Astana is one of the key links of the new transcontinental routes of the global initiative "Belt and Road". "Therefore, the AIFC will become a natural financial and economic bridge between Western China, Mongolia and European countries. All this opens access to the giant market for more than one billion people," Bakytzhan Sagintayev said.

According to the Chairman of the EEC Board, the creation of the AIFC will improve approaches to the management of sovereign funds and facilitate the transfer of new knowledge and technologies, thereby ensuring the increase and development of human capital throughout the EAEU. The latter is the basis of success and development not only of Kazakhstan, but also of the Eurasian economic Union.

The international financial center in Astana is a financial gateway to the Eurasian economic Union, and a financial hub connecting the capital markets of Europe and Asia.

International experience shows that financial centers become centers of attraction of other competencies, ranging from educational to professional and technical. "This, in my opinion, is very important given the potential of turning Astana not only into a financial, but also into a scientific, educational, professional, industrial, regional and international center with a particularly developed sphere of services," Tigran Sargsyan said.

The Chairman of the EEC Board expressed confidence that the project will gain momentum in the next few years and "will become a powerful driver and in some ways even a prototype for the regulation of certain elements of the common financial market of the Union, which we should launch in 2025". He reminded that according to the Treaty on the EAEU, the financial regulator should be in Kazakhstan. "Therefore, objectively competitive advantages of the International financial center are connected with the functioning of the Union and Vice versa," Tigran Sargsyan concluded.

Financial technologies are a promising area of the center's work for the EAEU. According to the Chairman of the EEC Board, it would be logical and promising to consolidate immediately on the basis of the FINTECH developers center. "At the initiative of the President of the Republic of Kazakhstan, we are discussing with the countries of the Union the possibility of transferring the project digital office of the Eurasian economic Commission to Astana," Tigran Sargsyan said.

The Chairman of the EEC Board said that within the Astana Finance Days conference the Eurasian economic Commission will sign a Memorandum of cooperation with the international financial center "Astana".

In turn, the Manager of the international financial center "Astana" Kairat Kelimbetov thanked the EEC for active assistance and cooperation with the financial center.

Help The session was also attended by President of the Republic of Tatarstan Rustam Minnikhanov, President of the Islamic development Bank Group, Dr. Bandar Hajar, senior Vice President of the world Bank group Sandra Ngozi okoro Hopkins, President of Sberbank of Russia German Gref, Chairman of the Board of Directors of the AIFC Committee on regulation of financial services lady Barbara judge, Chairman Of the international arbitration center of the AIFC Barbara Domann, Deputy Chairman of the national Committee of the People's political Advisory Council of China, former head of the administration of the SAR Xiang Leung Chun-Ing, Chairman of the financial center of Luxembourg Nicholas Makel, General Director of the Baku international sea trade port Taleh Ziyadov.

Tigran Sargsyan Attended the Summit of Heads of the SCO Member States

Tigran Sargsyan Attended the Summit of Heads of the SCO Member States

On June 9-10, Tigran Sargsyan, Chairman of the Board of the Eurasian Economic Commission (EEC) attended the meeting of the Council of Heads of State of the Shanghai Cooperation Organization Member States, which was held in Qingdao (China).

The Qingdao Declaration, which documented the positions of the Heads of States regarding the current world situation and defined the organization’s approaches to addressing the pressing concerns, became the principal outcome document adopted by the SCO Member States. In addition, the document outlines the key areas of global and regional cooperation of the states for the short-term.

Summarizing the results of the meeting of the Council of the SCO Heads of State, the memorandum of Understanding on cooperation between the SCO Secretariat and the UNESCO was signed. In total, more than 20 documents were discussed during the summit, concerning, in particular, expanding of cooperation in economic sphere.

The Presidents of the Russian federation, the Republic of Kazakhstan and the Kyrgyz Republic emphasized the importance interaction of the EAEU states with the SCO states, and specifically, in the integration of Eurasian Economic Union with the “One Belt and One Road” (OBOR) initiative of the People’s Republic of China.

Xi Jinping, President of the PRC, thanked Tigran Sargsyan, Chairman of the EEC Board, for taking part in the work of the SCO summit.

Fact Sheet

The SCO comprises eight member states: the Republic of India, the Republic of Kazakhstan, the People's Republic of China, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Russian Federation, the Republic of Tajikistan, and the Republic of Uzbekistan.

Four countries possess the status of the SCO observer states: the Islamic Republic of Afghanistan, the Republic of Belarus, the Islamic Republic of Iran and the Republic of Mongolia.

Six countries are the SCO dialogue partners: the Republic of Azerbaijan, the Republic of Armenia, the Kingdom of Cambodia, the Federal Democratic Republic of Nepal, the Republic of Turkey, and the Democratic Socialist Republic of Sri Lanka.

Interim Agreement signed between the EAEU and Iran enabling formation of free trade area

Interim Agreement signed between the EAEU and Iran enabling formation of free trade area

The Interim Agreement enabling formation of a free trade area between the Eurasian Economic Union (EAEU) and the Islamic Republic of Iran was signed on May 17 within the framework of the Astana Economic Forum.

The Agreement was affixed with the signatures of the Chairman of the Board of the Eurasian Economic Commission (EEC) Tigran Sargsyan, the Vice Prime Minister of the Republic of Armenia Tigran Avinyan, the First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky, the First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin, the Vice Prime Minister of the Kyrgyz Republic Zamirbek Askarov, the Deputy Head of the Government of the Russian Federation Dmitry Kozak and the Minister of Industry, Mining and Trade of the Islamic Republic of Iran Mohammad Shariatmadari.

The signing ceremony coincided with the panel discussion “EAEU – Iran: New Prospects of Cooperation in Preferential Trade Context”, ​where its participants discussed effects from conclusion of the agreement, new opportunities opened for exporters from the Union and Iran as well as areas of deepening of cooperation between the parties.

Opening the discussion Tigran Sargsyan noted that this document had become significant for the EAEU, because it implied two stages of formation of the free trade area (FTA). At the current stage, the Interim Agreement will apply. It is planned to come to a fully-functional agreement on the FTA between the EAEU and Iran in three years. The Agreement on the FTA will cover almost the entire commodity nomenclature. Looking forward, commodity turnover may increase by one and a half times (150%).

The Chairman of the EEC Board Tigran Sargsyan thanked all the parties to the negotiation process – representatives of the five countries of the Union, business community and the Commission employees who, under the supervision of the EEC Minister in charge of Trade Veronika Nikishina, had done “tremendous substantive and organizational work and got a result satisfying all parties to the agreement”, as well as Iranian partners – “for demonstrating flexibility upon attainment of so grand-scale and meaningful arrangements”.

“Nowadays, the agreement includes a first-priority list of goods with the import duties thereupon in mutual trade to be reduced or cancelled after the document comes into force, - told the Chairman of the EEC Board. – The agreement covers 50% of the volume of mutual trade which is certainly indicative of significance and serious nature of the arrangements”.

Tigran Sargsyan named several key advantages to be obtained by entrepreneurs of the Union countries and Iran upon entry into force of the agreement. One of such advantages is savings in payment of import customs duties.

The second advantage is transparent and predictable mutual trade environment. “Apart from reduction of import duties the Interim Agreement stipulates for compliance by its parties with the fundamental principles of international trade. It prescribes a scheme similar to the WTO regulations which imposes obligations and requirements on Iran notwithstanding the fact that our partners are not members of the WTO”, - the Chairman of the EEC Board reported.

The parties also reached an understanding obliging them not to apply unreasonable non-tariff measures restricting trade with regard to the goods listed in the agreement.

Tigran Sargsyan invited economic operators to actively use their opportunities and the created regulatory environment. “It is necessary to develop trade in all the products, because in the mid-term it will also serve as a criterion suggesting which goods will become subject to liberalization at the second stage”, - the Chairman of the EEC Board addressed the business community.

The First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin emphasized the positive dynamics of commodity turnover between Kazakhstan and Iran in Q1, 2018. “Increase in trade volumes in the first quarter before entry into force of the agreement amounted to 72%”, - the First Deputy Prime Minister told.

Askar Mamin also mentioned that Kazakhstan is ready to provide for efficient logistics for goods supplies from Iran to the EAEU market and from the Union to Iran. For illustrative purposes he referred to current logistics projects in the sphere of railroad transportation and port infrastructure.

The Vice Prime Minister of the Republic of Armenia Tigran Avinyan mentioned historically established good-neighbour relations with Iran. “Armenia is the only country of the EAEU which has land border with Iran, and we will try to use it to the benefit of Armenian, the EAEU and Iranian market”, - he said.

Tigran Avinyan reported that cooperation with Iran would involve the free economic area (FEA) “Meghri”. It provides an opportunity to arrange for joint production at its platform. Manufacturers from Iran may export raw materials to the FEA and obtain finished products escaping bureaucratic procedures for supplies to the EAEU market.

The representative of Armenia mentioned existing experience as an example of cooperation with Iran – Armenia manufactures food products in compliance with Iranian “halal” standards.

“The first unique experience of establishing multilateral relations with the Islamic Republic of Iran has rather good prospects. We have reached very good mutual results”, - the First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky stated.

The representative of Belarus underlined significance of the agreement for the implementation of export strategy of the Republic. “Our mutual trade has been developing rather dynamically since 1993. In 2017, mutual commodity turnover between Belarus and Iran raised threefold. A very positive dynamics was also observed in Q1, 2018”, - Vasily Matyushevsky reported.

Investment cooperation is developing along with the traditional trade and economic cooperation. Belarus invests into machine engineering in Iran. Iran implements a number of large logistics projects in Belarus.

The Vice Prime Minister of the Kyrgyz Republic Zamirbek Askarov emphasized advantages to be obtained by the Republic upon entry into force of the Interim Agreement. “Trade volumes between Iran and Kyrgyzstan are yet insignificant but we witness a trend for mutual trade growth. Kyrgyzstan may supply to Iran pasta, dairy butter, electronic incandescent lamps and other products”, - Zarimbek Askarov reported. He mentioned the importance of including into the agreement the parties’ obligations to provide for the most-favoured nation treatment.

The Deputy Head of the Government of the Russian Federation Dmitry Kozak welcomed signing of the agreement. He called business to be its key beneficiary. “The document stipulates a specific article for establishing business dialogue. The exact format of this platform will be determined in the near future with the participation of businesses”, - Dmitry Kozak said.

The Minister of Industry, Mining and Trade of the Islamic Republic of Iran Mohammad Shariatmadari mentioned high potential of the EAEU countries and Iran as actors of the world economy.

“Iran sets an objective to ease export procedures, to remove obstacles, to develop logistics and to establish stable trade and economic relations between the EAEU and Iran, – stated the Republic’s representative. – We focus on the second stage which will serve as guarantor of the development of our relations in the future.”

For reference

The EAEU list will include meat and fat and oil products, certain types of confectionery and chocolate as well as metals, cosmetics, and certain types of electronic and mechanical equipment.

The Iranian party will be granted tariff preferences for an extended list of food products, in the first place, vegetables, fruit, dried fruit as well as construction materials, dishware, carpets, some articles made of non-ferrous metals.

The average level of import duty rates of Iran for industrial goods will decrease from 22.4% down to 15.4%, that is by 7 p.p., and that of the Union – from 8% down to 4.7%, that is by 3.3 p.p. Iran will reduce duties for agricultural goods on the average from 32.2% down to 13.2%, that is by 19 p.p., and the Union – from 9.6% down to 4.6%, that is by 5 p.p.

Agreement signed on trade and economic cooperation between EAEU and PRC

Agreement signed on trade and economic cooperation between EAEU and PRC

Agreement on trade and economic cooperation between the Eurasian Economic Union (EAEU) and the People’s Republic of China (PRC) was signed on May 17 within the framework of the Astana Economic Forum.

The Agreement on trade and economic cooperation between the EAEU and the PRC was affixed with the signatures of the Chairman of the EEC Board Tigran Sargsyan, the Vice Prime Minister of the Republic of Armenia Tigran Avinyan, the First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky, the First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin, the Vice Prime Minister of the Kyrgyz Republic Zamirbek Askarov, the Deputy Head of the Government of the Russian Federation Dmitry Kozak and the international trade representative of the PRC at ministerial level Fu Ziying.

During the panel discussion “How to create the Single Economic Space of Eurasia?” its participants discussed effects of signing of the agreement, alternatives of subsequent development of interaction, in particular, in the context of integration between the EAEU and Chinese “One Belt – One Road” initiative as well as new cooperation projects combining technologies, raw materials and capitals of all the Union countries and China.

Tigran Sargsyan emphasized in his address that all calculations and arguments which the EAEU was guided by have proved correct. “Negotiation process demonstrated the relevance of all subjects we touched upon and interest of our countries in deepening and expanding interaction with the PRC” – he stated.

Commodity turnover between the EAEU countries and China in 2017 amounted to more than 100 bln US dollars. Besides, exports from the EAEU to the PRC raised by 40% last year. The Union countries find exports diversification to be of fundamental importance. Currently, it includes not only primary goods, but also mechanical engineering products.

The Chairman of the EEC Board mentioned that the current driving force in the world economy is Asia, and all the EAEU countries are interested in entering this market. “Increase in consumption in the PRC within the new concept of economic growth with a focus on domestic consumption means that our economic entities must be ready to ramp up exports to the People’s Republic of China and to the Asia region on the whole, - he thinks. – We must learn to live amid strong competition”.

The agreement opens new opportunities for economic entities of the Union countries. “Having identified our comparative advantages in this competitive environment we set up clear-cut interaction framework for them, though this is a non-preferential agreement. It seems to us, that new framework enshrined in this agreement may boost economic growth of our countries and help us take our strategic advantages”, - Tigran Sargsyan underlined. In his opinion, this framework gives a powerful impetus for implementation of specific megaprojects with the understanding thereupon having been reached at the meeting of the Supreme Eurasian Economic Council in May this year.

The First Deputy Prime Minister of the Republic of Kazakhstan Askar Mamin placed a particular emphasis on cooperation with China in the sphere of transport infrastructure development. “Over the last years Kazakhstan has been actively investing and has conducted a broad-scale modernization of its transport infrastructure. It is also true for motorway construction. A part of Western Europe – Western China corridor was completed two years ago. Nowadays we are waiting for the Russian part to be completed, and so, this will form a single corridor which will connect Western China and Western Europe by transit through our countries”, - Askar Mamin told.

Another line of activity is development of railroad infrastructure. By 2020, Kazakhstan plans to receive 5 bln US dollars from transit through its territory. He noted that Kazakhstan is already working under this project within the EAEU with the Russian Federation and the Republic of Belarus and expressed his hope that Kyrgyzstan and Armenia will soon join the project.

“In the EAEU context it appears that the consistency of interaction of our countries and expansion of international and multi-format cooperation of the Union with third countries is the future we should strive for”, - the Vice Prime Minister of the Republic of Armenia Tigran Avinyan stated. At the same time, he voiced an opinion that integration in the region gets more and more global. Europe may also join the process.

He also drew attention that Armenia has over many centuries been an element of the Silk Road. “As of this moment we also take part in the Silk Road Economic Belt project, in particular, construct motorways under the North-South project, and implement an “open skies” policy and a number of other projects”, - Tigran Avinyan reported.

The First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky emphasized that Belarus has traditionally been a follower of multi-level and multi-speed integration, economic interaction as well as integration of integrations between the EU, the EAEU and the PRC which may become a response to global challenges. The basis for such integration is a global infrastructure project. “Our task is to create an efficient transport and logistics corridor”, - he explained. “From our viewpoint, we may get the maximum effect, if we speak of establishment of digital transport and logistics corridors and, in the first turn, the West – East corridor”, - Vasily Matyushevsky reported.

The First Deputy Prime Minister of the Republic of Belarus told that Belarus within “One Belt – One Road” initiative jointly with the PRC has already implemented the project for the creation of Belarusian-Chinese industrial park which will serve as a global hub featuring digitalization elements. The composition of this park’s participants has also included a European hub. Thus, the basis for integration of integrations is being created, Vasily Matyushevsky considers.

The Vice Prime Minister of the Kyrgyz Republic Zamirbek Askarov asserted that China was a significant investment partner of Kyrgyzstan having been successfully implementing projects in the country in the course of many years. More than 400 enterprises are already functioning in the Republic with Chinese participation, there is active cooperation in many industry branches including services sector, processing, mining industry, and agriculture. “I believe that the today’s conclusion of the agreement will contribute to the cooperation between our countries in all sectors”, - the Vice Prime Minister of the Kyrgyz Republic summarized.

The Deputy Head of the Government of the Russian Federation Dmitry Kozak called the agreement signed between the Union and the PRC to be a historic one, because it ensures such interaction mechanisms in various areas of state regulation which enable maximum consideration of interests of the Union in its entirety and those of each its country in particular, as well as business interests, transparency and predictability of regulation at both national and supranational levels, and issues of technical, sanitary and phytosanitary regulation, customs cooperation have all been reflected in it. “I am absolutely sure that this agreement will become a reliable foundation for subsequent construction of the Greater Eurasian Partnership which cannot be built up without the PRC's assistance”, - Dmitry Kozak resumed.

The Deputy Head of the Russian Government underlined that China is the leading trade and economic partner for Russia. “No nation of the globe is supposed to have such a diversified coordination mechanism like the one we have with China”, - Dmitry Kozak reported.

The international trade representative of China Fu Ziying noted that five years ago Xi Jinping came up with the “One Belt – One Road” initiative, and today against the background of deglobalization and protectionism a multilateral agreement was signed. “Cooperation within the framework of “One Belt - One Road” and the EAEU projects is the key area of our interaction. Not only is this very important for facilitating trade procedures between our countries. I think that such signing plays a great role for promoting growth of our countries’ economies and enhancing living standards of our peoples”, - Fu Ziying highlighted.

The Chinese representative placed an emphasis on the priority of parties’ cooperation in the sphere of e-commerce. In his opinion, the digital economy era will create favourable conditions for future trade between China and the EAEU Members.

“The signed agreement names a whole range of sectors being important for both the EAEU countries and the PRC in the future. Cooperation must give an answer to the question concerning the center line of interaction of the EAEU and China in the long run, because infrastructure is created for almost as long as perpetuity”, - the moderator, the President of the EAEU Business Council Viktor Khristenko, summed up the discussion.

Tigran Sargsyan: "it is in the digital transformation, human development and institutions that we see the huge potential of the Union and can make a breakthrough together»

Tigran Sargsyan: "it is in the digital transformation, human development and institutions that we see the huge potential of the Union and can make a breakthrough together»

Different models of economic development of the countries of the Eurasian economic Union (EAEU), the speed of integration processes, which are influenced by discipline and trust, as well as economic potential are three key challenges for deeper integration in the Eurasian region in the field of trade, investment, capital, labor mobility. This was stated By the Chairman of the Board of the Eurasian economic Commission (EEC) Tigran Sargsyan, speaking on may 16 in Astana (Republic of Kazakhstan) at the high-level session "what benefits the Caucasus and Central Asia region will get from strengthening integration, and what needs to be done to achieve this goal".

"To meet any challenge of integration, it is necessary to consolidate more, strengthen supranational institutions, transfer powers to the supranational level," Tigran Sargsyan said. – On a global scale, the first and easiest step towards integration is communication. Where communication develops, common values and goals emerge."

The discussion was held within the framework of the Regional meeting of the International monetary Fund and the National Bank of Kazakhstan "Fundamentals of economic policy to promote expanded regional and global integration in the Caucasus and Central Asia".

As the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev noted, Kazakhstan is committed to the policy of economic integration within the framework of active cooperation with all countries of Eurasia. "We believe that our participation in the Eurasian economic Union is a key tool for diversifying the national economy," the head of the government said.

Deputy managing Director of the IMF Tao Zhang stressed in his speech that the new growth model for the Caucasus and Central Asia will be based on greater openness, diversification of regional and global integration. At the same time, such external initiatives as "one belt – one road" could help in carrying out economic reforms in the region. "The countries of the region should take advantage of the global recovery to reduce tariff and non – tariff barriers, carry out reforms, as well as increase participation in multilateral initiatives of the WTO and expand regional trade," Tao Zhang recommended.

During the session the sides discussed issues of integration, joint initiatives in the financial and banking sector, structural reforms, contributing to the development of cross-border cooperation, the benefits of new trade and investment opportunities in the framework of the initiative "One belt and one road", as well as tasks that need to be addressed on the road to greater integration.

As Tigran Sargsyan noted, the level of macroeconomic convergence between the countries is growing in the Union, which is a very positive signal. At the same time, there are still many structural and institutional differences, which are the root cause of barriers in the common market. The countries of the Union have different levels of economic freedoms and state participation in the economy, solvency and debt sustainability, different systems of taxation and regulation of the financial market.

"As long as the economic policy, speed and depth of structural reforms will be different, we will deal with various kinds of obstacles. In place of the eliminated will come new", - said the Chairman of the EEC Board.

As the experience of the European Union shows, time is objectively required to overcome this challenge. "It is possible to solve this problem when supranational institutions are strong, have the necessary powers and funding for rapprochement and coordination," Tigran Sargsyan stated.

he Chairman of the EEC Board also noted the high level of trust existing between the countries of the Union. However, it needs to be strengthened with a focus on four priorities, among them – transparency of national systems and development plans, exchange of information, transfer to supranational institutions of authority to control the common market and authority to apply measures of responsibility to countries for violation of Union rules.

According to Tigran Sargsyan, the success and development of Eurasian integration depends on the ability to form new centers of economic growth in the region and in each country – centers of attraction. This can be done through the implementation of the digital agenda of the Union, and, accordingly, through the formation of an environment for the future Eurasian elite. "It is in the digital transformation, human development and institutions that we see the huge potential of the Union, and we can make a breakthrough together," said the Chairman of the EEC Board.

Help The regional meeting of the International monetary Fund and the National Bank of Kazakhstan "Fundamentals of economic policy to promote expanded regional and global integration in the Caucasus and Central Asia" is an effective platform for the exchange of views on economic development of representatives of the government structures of the Caucasus and Central Asia responsible for the economic block, as well as representatives of international financial organizations, bilateral and multilateral cooperation agencies, academic and diplomatic circles, the business community.

In the high-level session attended by Prime Minister of Kazakhstan Bakytzhan Sagintayev, Chairman of the National Bank of Kazakhstan Daniyar Akishev, Deputy Director of the IMF Tao Zhang, head of cooperation, delegation of the European Union to Kazakhstan, Johannes Stenbeck Madsen, Director General of the Asian development Bank's Central and West Asia Werner Lipak, Director of the country Economics and politics of the Eurasian Bank of reconstruction and development Artur Radziwill, chief economist for Europe and Central Asia Hans Timmer.

Chairman of the EEC Board Tigran Sargsyan met With Prime Minister of the Republic of Armenia Nikol Pashinyan

Chairman of the EEC Board Tigran Sargsyan met With Prime Minister of the Republic of Armenia Nikol Pashinyan

Chairman of the Board of the Eurasian economic Commission (EEC) Tigran Sargsyan met With Prime Minister of the Republic of Armenia Nikolai Pashinyan on may 14 in Sochi, within the framework of the Supreme Eurasian economic Council (EEC).

During the meeting, the parties discussed the agenda of the upcoming meeting of the EEU, as well as other issues related to the development of cooperation within the framework of the Eurasian economic Union (EAEU) and the deepening of relations between the member States.

SEEC outcomes: Moldova granted Observer State status at the EAEU, Union countries reinforcing foundation for sustainable economic development and interaction with third countries, implementing Digital Agenda, and expanding single services market

SEEC outcomes: Moldova granted Observer State status at the EAEU, Union countries reinforcing foundation for sustainable economic development and interaction with third countries, implementing Digital Agenda, and expanding single services market

In the course of the Supreme Eurasian Economic Council (SEEC) meeting having taken place on May 14 in Sochi (Russia), a number of significant decisions were adopted in the spheres of integration, macroeconomics, trade, digitalization, services market, transport, agricultural sector, and technical regulation.

The Eurasian Economic Commission (EEC) jointly with the governments of the five countries will prepare a declaration on deepening of integration association and at the next scheduled meeting of the Supreme Economic Council will submit this document for discussion of the SEEC Members. This was stated by the Chairman of the EEC Board Tigran Sargsyan following the meeting's results.

The event was attended by the Prime Minister of the Republic of Armenia Nikol Pashinyan, the President of the Republic of Belarus Alexander Lukashenko, the President of the Republic of Kazakhstan Nursultan Nazarbayev, the President of the Kyrgyz Republic Sooronbay Jeenbekov, the President of the Russian Federation Vladimir Putin and the Chairman of the EEC Board Tigran Sargsyan. The meeting was also attended by the President of the Republic of Moldova Igor Dodon.

Opening the meeting the Chairman of the SEEC Vladimir Putin pointed out that Russian presidency is wholly focused on the Union consolidation, on additional encouragement for bringing closer the five countries’ economies and ultimately – on facilitation of comprehensive development of the States. According to Russian President, prominence shall be given to the following priority tasks: enhancement of efforts for the creation of single goods and services markets, further development of trade and investment relations, consolidation of production and technological cooperation. The Head of the Russian Federation thinks it “necessary to further pursue the line aimed at bringing closer currency and financial and monetary policies of our countries, to build up new and more efficient transport and logistics chains”.

Serious achievements have been already made in many of these directions. “In general, the Eurasian Economic Union is developing very dynamically, - noted Vladimir Putin. – Thus, for instance, in 2017 gross domestic product of the participating countries increased by 1.8%, industrial production increased by 1.7%, while agricultural production – by 2.5%”.

Besides, the inflation rate in all States fell on the average within the Union down to 3.1%. Foreign and domestic trade condition has improved. Supplies of goods and services to the markets of third countries increased by 24.4%, while commodity turnover between the EAEU Member States gained more than 26%.

In the opinion of Vladimir Putin, it is important to procure further development of integration processes. “Good opportunities for enhancing cooperation are opening in nuclear power industry, in the field of renewable energy sources, in ecology, medicine, and space industry”, - mentioned the Head of the State. In these advanced industries, it is essential to expand production cooperation, to work in concert over new technologies and know-how, to introduce innovations that meet requirements of the world economy and global technological development.

Priority will still be placed on elimination of remaining restrictions and exemptions that impede free movement of goods, capital, and labour; on implementation of the EAEU Digital Agenda. “We focus on creating the most favourable conditions for the development of entrepreneurial activity, in particular, through working systematically with business circles and paying attention to their preferences”, - stated the President of the Russian Federation.

As noted by the Chairman of the EEC Board Tigran Sargsyan, there are about 60 obstacles and barriers nowadays, for which the countries fail to achieve consensus. However, political willpower is of crucial importance for dealing with these problems. “The Presidents keep on stressing the necessity to deepen our integration association by eliminating all these barriers, exemptions and restrictions in order to make national governments leave behind national selfhood related to protection of their manufacturers and provide for equal terms of competition for all market players. And these issues will be in the spotlight of our Commission”, - Tigran Sargsyan said.

There is an understanding within the EAEU in respect of the necessity to overcome 66 obstacles. Over the last year, the EEC managed to remove about 13 barriers. This year the Commission will work on the elimination of about ten barriers.

The Supreme Eurasian Economic Council adopted a number of key decisions for the development of Eurasian integration.

The SEEC approved the Regulations on the Observer State status at the EAEU and adopted a decision on granting such status to the Republic of Moldova. The Observer State status at the Union is stipulated by Article 109 of the Treaty on the EAEU. Pursuant to the regulations, representatives of the State having such status may, upon an invitation, attend the meetings of the EAEU governing bodies though having no right to participate in the decision-making process, and may also obtain the documents adopted by the Union’s governing bodies, except for confidential ones. A State having the observer status shall refrain from any actions which may damage the interests of the Union and its participating countries.

The baselines of macroeconomic policy of the EAEU States for 2018 – 2019 were approved.

The top-priority objectives of economic policy for the medium term will include activation of the process of economic growth recovery and creation of a foundation for sustainable economic development of the Union countries. Achieving these objectives suggests the implementation of joint measures within the EAEU as well as national measures taken by the countries for the establishment of favourable macroeconomic environment, stimulation of investment activity, improvement of business climate, creation of conditions facilitating increased performance in the real economy.

Governments of the EAEU countries are advised to take into account the baselines upon implementation of their macroeconomic policy. The Commission will analyse measures taken by the Union States in the field of macroeconomic policy in terms of their compliance with the approved baselines.

The SEEC Members discussed the implementation progress of the Union’s Digital Agenda until 2025. In particular, they mentioned that a sufficient regulatory framework has been established for launching the Digital Agenda, an environment is being formed to elaborate digital transformations in the top-priority areas, expert platforms are being created, initiatives and projects are being considered.

The digital initiative management office established at the Commission works out more than 10 proposals obtained from businesses and public authorities of the Member States. They are specifically related to operation and development of digital traceability system (including identification); introduction of electronic supporting documents and their mutual recognition in the EAEU countries; creation of the Eurasian e-recruiter market, a dedicated venture fund of branch-wise digital platforms, digital Eurasian transport corridor, industrial cooperation and subcontracting network, etc

A research under the first obtained initiative, the one focusing on introduction and reciprocal recognition of electronic supporting documents in the EAEU, is now being launched. The work over pilot projects for the establishment and development of digital goods traceability system has been commenced. Expert platforms for the issues of data economy, regulatory “sandboxes” and other priority issues of the Digital Agenda are being developed.

The SEEC approved the Agreement on the procedure of conclusion, termination and suspension of international treaties of the Union with third States, international organizations or international integration associations.

A proposal to conclude an international treaty may be submitted by a EAEU country, a member of the Commission Council – first deputy prime minister of any of the Union countries or a third party. Besides, the EEC Board may address to the Commission Council a request to initiate this issue.

If all the Member States are eager to consider the proposal on concluding such treaty, then the preliminary analysis of its economic expediency shall be conducted by the relevant advisory bodies under the auspices of the EEC Board. Prior to potential conclusion of a preferential trade agreement the project shall be analysed by a joint research team.

A decision on signing, termination or suspension of international treaties shall be made by the Supreme Eurasian Economic Council (SEEC).

The key conclusions of the report on implementation of the Main Directions of International Activities of the Eurasian Economic Union for 2017 include the following: the EAEU pursues consistent line aimed at consolidation of international cooperation, while the established system of international interaction allows comprehensively accomplishing tasks on geographic and quantitative growth of exports as well as attracting foreign investments and technologies.

The SEEC Members were also presented a report on implementation of liberalization plans for certain services sectors within the EAEU.

The document was prepared based on the results of monitoring and control over the execution of liberalization plans in 2016-2017 by the competent authorities of the Union States and the EEC’s governing bodies. It contains the findings of comparative analysis of regulation in the Union countries, work outcomes of subject-matter working groups as well as the reasoning of adopted decisions with an algorithm and recommendations for the implementation of activities under each liberalization plan.

The governments of the Member States and the Commission were charged with activation of work for the implementation of the above plans that were approved by the SEEC decision in December, 2016 as well as carrying out of the relevant activities within the set deadlines.

Amendments have been introduced to the list of services sectors (subsectors) covered by the functioning of the Union’s single services market.

Prior to the SEEC decision, there were 43 such sectors. At the same time, the Union countries had previously set a strategic goal in the sphere of trade in services – to make another 18 sectors approved by the SEEC decision in December, 2016 a part of the single services market through implementation of liberalization plans by 2022.

The new SEEC decision helped to add up nine out of 18 sectors to the market: services related to production and distribution of motion pictures and video films, video films screening, services related to owned or leased real estate, services related to rent and lease of pleasure crafts without operator. This list also includes services in the field of advertising, scientific advisory services in geology, tourist services, and services related to research and development.

Upon adoption of this decision as many as 52 services sectors will be functioning in the single market format. They are rendered in the EAEU countries without restrictions, exemptions and additional requirements and conditions; without a requirement of incorporation as a legal entity on the territory of any Member State; based on the authorization for services rendering obtained by the service provider in his participating country; with tacit and unconditional recognition of professional qualification of personnel of the service provider.

Thus, by 2021 more than 60% of the scope of services rendered in the Member States are planned to be provided in compliance with the single market rules.

Councils of the Heads of authorized authorities of the EAEU Member States were created in the spheres of accreditation, standardization, agricultural sector and transport.

The new auxiliary bodies of the Union will be composed of the Heads of the relevant national ministries and agencies as well as EEC Board Members – Ministers in charge of these areas of activity. The Councils of the Heads will serve as additional platforms for coordination of work in the above spheres of the EAEU countries’ economies.

The SEEC Members were presented reports on the first results achieved by the Republic of Armenia and the Kyrgyz Republic over the two years in the EAEU.

The most significant effects have been achieved by Kyrgyzstan from the free movement of labour, goods and services which, in particular, entailed an increase in the number of monetary wire transfers to Kyrgyzstan from the Kyrgyz workers employed on the EAEU territory (in 2016 – 1.9 bln US dollars – almost 30% of GDP and 102.3% of the country’s national income), and increase in volumes of export-import transactions. Share of services in the country’s GDP structure has also increased.

The report on Armenia’s participation in the EAEU mentions that the country having seamlessly contributed its efforts to the Union’s activity gains economic benefits. Thus, thanks to “returns to scale” the volumes of trade in industrial products of Armenia and the Union States in 2016 raised by 40.3%, and in follow-up of 2017 – by another 57.4%. The EAEU States and the EEC were commissioned to consider the provisions of the reports in their work upon determination of further directions of integration development within the EAEU.

Chairman of the EEC Board Tigran Sargsyan had a working meeting with President of the Kyrgyz Republic Sooronbay Jeenbekov

Chairman of the EEC Board Tigran Sargsyan had a working meeting with President of the Kyrgyz Republic Sooronbay Jeenbekov

In Bishkek, the Chairman of the Board of the Eurasian Economic Commission (EEC) Tigran Sargsyan and the President of the Kyrgyz Republic Sooronbay Jeenbekov discussed the agenda of the upcoming meeting of the Supreme Eurasian Economic Council, as well as topical issues of further development of the integration association.

The President of the Kyrgyz Republic Sooronbay Jeenbekov noted that the country’s integration into the Eurasian Economic Union (EAEU) was and remains a priority in the foreign economic policy of Kyrgyzstan. “We attach much significance to this association and are aimed at further development of productive and fruitful cooperation with the Union countries,” the Head of State emphasized.

The Chairman of the EEC Board Tigran Sargsyan said that the active position of the President of Kyrgyzstan on the issues of the Eurasian integration contributes to the promotion and deepening of the integration project.

Chairman of the EEC Board Tigran Sargsyan met President of the Republic of Kazakhstan Nursultan Nazarbayev

Chairman of the EEC Board Tigran Sargsyan met President of the Republic of Kazakhstan Nursultan Nazarbayev

On May 2 in Astana, the Chairman of the Board of the Eurasian Economic Commission (EEC) Tigran Sargsyan informed the President of the Republic of Kazakhstan Nursultan Nazarbayev on the preparations for the upcoming meeting of the Supreme Eurasian Economic Council.

“On the instruction of the Council, I would like to discuss with you a few details: to determine how we can hold a meeting of the Supreme Council more efficiently, what issues require special attention, and to consider problems related to the deepening of integration”, - said the Chairman of the EEC Board.

The parties discussed issues related to further deepening of the Eurasian integration.

Nursultan Nazarbayev noted high performance of the Eurasian Economic Union (EAEU), as well as the increased attention of other countries towards the Union. “Last year 2017 was a successful one. The trade turnover between our countries has increased by 27%. We see a great interest towards our association, today over 40 countries cooperate with us. We are holding this meeting on the eve of the Summit of the SEEC; all items of its agenda have been agreed. We are to discuss serious questions, including the ones regarding sanctions”, - the President of Kazakhstan emphasized.

Tigran Sargsyan congratulated Nursultan Nazarbayev on the Day of Unity of the People of Kazakhstan and wished prosperity to Kazakhstan. The Chairman of the EEC Board also provided the Head of State with the information about current activities of the Eurasian Economic Commission.

Outcome of the Eurasian Intergovernmental Council on February 2

The introduction of labelling systems within the Eurasian Economic Union and formation of mechanisms to implement coordinated digital policy of the Union became the main topics of the first meeting of the Eurasian Intergovernmental Council in 2018, which took place in Almaty (Republic of Kazakhstan) on February 2. The Heads of Governments of the EAEU Member States were introduced to the macroeconomic situation in the countries of the Union and the status of mutual trade, as well as forecasts for the development of the agroindustrial complex in the Member States.

The meeting of the Intergovernmental Council was attended by Prime Minister of the Republic of Armenia Karen Karapetyan, Prime Minister of the Republic of Belarus Andrey Kobyakov, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, Prime Minister of the Kyrgyz Republic Sapar Isakov, Chairman of the Government of the Russian Federation Dmitry Medvedev and Chairman of the EEC Board Tigran Sargsyan.

Opening the meeting, Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev noted that the growing economies of the EAEU demonstrate the potential of the Union and its importance for the EAEU countries. "We have adopted a number of important documents associated with the current and further development of the Union”,emphasized Bakytzhan Sagintayev, “One proof of this is that the new Customs Code of the EAEU entered into force on January 1 this year. Therefore, we created conditions for the acceleration of customs procedures. I believe this will be an anchoring year for the implementation of topical issues and new initiatives related to the functioning of our integration association”.

Assessing the results of the year, the Head of the Government of Kazakhstan stated that despite global economic instability, the Republic managed to keep the momentum of increasing trade within the EAEU, which grew by 31% compared to the previous year.

Karen Karapetyan, Prime Minister of the Republic of Armenia, focused on the need to concentrate on the activities, joint promotion of which will be in line with ensuring sustainable economic development. "It is important to keep the focus on the removal of existing barriers in the common market, to provide the necessary conditions for doing business in the context of single rules of healthy competition and efficient use of logistics, transport and communication facilities", expressed his confidence the Head of the Armenian Government.

Prime Minister of the Republic of Belarus Andrey Kobyakov emphasized that "there is a need for internal “fine tuning” of the EAEU, ensuring comprehensive and unconditional implementation of the Union rules and commitments by all Member States”. In addition, Andrey Kobyakov noted the importance of taking into account national interests, as well as the due balance between the interests of economic entities and the Member States when deciding to introduce labelling for specific goods.

Prime Minister of the Kyrgyz Republic Sapar Isakov emphasized the enormous potential of the Union and economic growth potential of the countries comprising the Eurasian "five states". In his opinion, it is important to stimulate cooperative processes in industry, to promote the creation of joint ventures, to develop a healthy competitive environment and to improve business climate.

In turn, the Chairman of the Eurasian Intergovernmental Council of the EAEU, Chairman of the Government of the Russian Federation Dmitry Medvedev focused on the perspective areas, which the Russian side will pay particular attention to in the year 2018 in the context of its Chairmanship in the governing bodies of the Union.

"It is important to work on the strategic challenges facing the Union. To achieve this, we shall eliminate barriers and constraints remaining in our market", said the Head of the Russian Government, “We must develop inner integration contour intentionally and consistently, forming single goods and services markets, pursuing a systematic policy in industry and agriculture, building a policy of import substitution, eventually achieving mutually beneficial joint projects and creating high-tech products”.

Dmitry Medvedev suggested that new initiatives be added to the work: "We need our own digital platforms and infrastructure, and at the same time we must work together, using common standards. It’s all about traceability, e-commerce development, transition to single standards, introduction of information technologies in transport, industry and customs. We need to consolidate our national proposals”.

During the discussion on the mechanisms of joint implementation of the EAEU Digital Agenda, the Heads of Governments continued the conversation which started at the plenary session of the "Digital Agenda in the Age of Globalization" forum and agreed that one of the most important conditions for success is the consistent policy of the Union countries. It is necessary to shape a uniform law in the digital sphere, to develop integration platforms and enhance their role in the EAEU economy, to create incentives for digital transformations, including through the improvement of technical regulations and standardization systems. A major step forward will be creating a single platform for accumulating knowledge on digital transformation processes taking place and analyzing them.

The Prime Ministers instructed the EEC, together with the governments of the Union countries, to work out the mechanisms submitted by the Commission and aimed at implementing systematic policy in digital transformation of the economies of the Member States.

Members of the Intergovernmental Council signed an agreement on labelling goods with means of identification in the EAEU.

This document focuses on the creation of a single system of labelling goods with means of identification, the data on which will be entered into a single registry. The register is created and maintained by the Commission.

Implementation of the agreement will allow for applying the principle of traceability to ensure equal competitive conditions, to improve product quality and to ensure the safety of consumers, to effectively combat the gray market and counterfeit goods. Its implementation will contribute to the transparency of commodity flows in the territory of the EAEU, as well as tax collectability. An important result of introducing the system and applying modern means of identification will be the digitization of trade flows and modernization of transport and logistics infrastructure in the countries of the Union.

A decree was adopted concerning the development of a draft procedure for interaction between the authorities of national government responsible for the assignment and payment of pensions to workers and the Commission. It is expected that such interaction will be implemented through the integrated information system of the Eurasian Economic Union. The Heads of Governments of the Union countries emphasized the importance of the Agreement on Pension Security for Workers of the EAEU Member States in the context of further developing integration processes and enhancing labor mobility. It is expected that draft agreement will be developed by the end of 2018.

The Heads of Governments considered the findings of the reports on the macroeconomic situation in the Union countries and the state of mutual trade between the EAEU Member States.

It was pointed out that positive dynamics is observed in virtually all key economic indicators. Thus, it can be stated that the economies of the Union countries entered a recovery phase. However, the rate of this process varies because of the different scopes of support for domestic demand and capacities for implementing incentive fiscal policy measures.

As a result of the Union’s activities, the volume of mutual trade among the participating countries of the integration association in January-September 2017 increased compared to the same period in 2016 by 26.9% and reached $38.9 billion. A significant growth was registered in all countries of the Union. Further qualitative development of single markets for goods, services, capital and labor within the Eurasian integration association will contribute to an increase in volumes and a diversification of the commodity structure of mutual trade in the EAEU.

Members of the Intergovernmental Council approved the forecasts for the development of agroindustrial complex of the Union countries, as well as supply and demand balances for agricultural products, food, flax fiber, leather, raw cotton fiber and wool for the years 2017-2018.

It is expected that in 2018 the cropped land in the EAEU will increase up to 110.6 million hectares, which is 2.5% more than in 2015. At the same time, the acreage for grain and pulse crops will increase by 778.7 thousand hectares, and for vegetables – by 71.6 thousand hectares. Besides, livestock growth in cattle and poultry breeding is expected.

Quantitative and qualitative growth in the agroindustrial complex will make exports of agricultural products to third countries increase up to $24.2 billion. At the same time, import reduction is expected by 10%, to $26.0 billion.

Regulation on the Elaboration, Financing and Implementation of Intergovernmental Programs and Projects in the Industrial Sphere was approved.

This document defines the basic financing principles of Eurasian technological platforms and regulates the procedure for the implementation of international programs and projects. As of today, about 140 projects have been developed within the 12 existing Eurasian technological platforms. Some of them can be implemented in the nearest future.

A flexible financing mechanism is provided, that will allow for using various sources of borrowing and stimulate the involvement of extra-budgetary funds, including from private and institutional investors.

The following meeting of the Eurasian Intergovernmental Council will take place in April this year in the Russian Federation.

Prime Ministers of the EAEU Countries Discussed Formats and Mechanisms for Interaction in Digital Sphere

Prime Ministers of the EAEU Countries Discussed Formats and Mechanisms for Interaction in Digital Sphere

Within the framework of the "Digital Agenda in the Age of Globalization" forum held on February, 2 in Almaty (Republic of Kazakhstan), the Heads of Governments of the Eurasian Economic Union (EAEU) discussed the EAEU Digital Agenda, creation of a joint program for digital transformation and electronic confidence space, and interaction on the issues related to the use of cryptocurrency. The event was organized on the initiative of Nursultan Nazarbayev, President of the Republic of Kazakhstan. Its sessions were attended by Members of the Board – Ministers of the Eurasian Economic Commission (EEC), official delegations from Azerbaijan and Tajikistan, as well as representatives of a number of large international IT companies.

Combining efforts in digitalization issues will bring synergism for the development of the EAEU, said Nursultan Nazarbayev in his welcome address. It was pointed out that the existence of a common market of the Union requires the development of joint approaches and measures in digitalization matters.

Introducing a national digital agenda, Karen Karapetyan, Prime Minister of the Republic of Armenia, dwelled on the active development of information technologies in his country. Over the last few years, the annual growth in this area amounts to approximately 25%. According to the results of the year 2017, it is expected to reach 28-30%. Six key areas of digital development in Armenia have been defined: digital government, cybersecurity, private sector, institutional framework, digital skills and infrastructure. By the year 2030, Armenia is planning to achieve 100% digitalization in the State – business relationship, and 80% concerning the provision of services to citizens.

"Digital transformation is not merely a step towards technological progress, it’s the only chance to become a state with an effective economy management system in the shortest possible time”, expressed his confidence Karen Karapetyan. – ”There is no alternative here”.

According to Andrey Kobyakov, Prime Minister of the Republic of Belarus, no country in the world is able to face contemporary challenges in the sphere of high technologies on its own. "Only coordinated joint actions as part of the implementation of our common digital agenda will allow us to reach leading positions both on the scale of the Eurasian continent and globally", believes Andrey Kobyakov.

In this connection, Belarus proposes two initiatives for consideration. The first one is integration of the digital infrastructure of the EAEU countries, which involves not only introduction of uniform standards, but also common management of the physical infrastructure, formation of full-scale digital transport corridors in the East-West direction.

The second initiative implies transition from a coordinated policy in the digital sphere to a single strategy for participating countries of the Union. "We suggest that a common program for digital transformation of the EAEU be developed, and not at the level of general principles and approaches – they go without saying, but with specific measures and deadlines for their implementation", noted the Head of the Belarusian Government, "Only in this case we’ll be able to talk about genuine, and not just declarative, integration in the digital sphere".

Belarus has already defined digital transformation as a key priority for national development. The country’s strategy is based on three main standings: creation of the most attractive conditions for the activities of leading IT companies, total elimination of barriers preventing the introduction of new technologies, formation of an ecosystem for innovation. In particular, Andrey Kobyakov reported about the creation of the Information Technology Park with preferential conditions for business, and about the legalization of businesses based on blockchain and cryptocurrencies.

The importance of implementing a joint digital agenda was also mentioned by Sapar Isakov, Prime Minister of the Kyrgyz Republic. According to him, it will allow for integrating and effectively coordinating efforts to achieve common objectives in the digital sphere, promoting regional development, improving the competitiveness of participating countries, facilitating growth in prosperity of citizens.

Sapar Isakov reminded that Kyrgyzstan has developed "Taza Koom”, a national digital transformation program. "It will allow us to optimize government expenditures, increase the state budget revenues, eradicate certain corrupt elements", noted the Head of the Kyrgyz Government. He also reported that the opportunity to use cryptocurrency in government procurement is being studied.

Bakytzhan Sagintayev, Prime Minister of the Republic of Kazakhstan, emphasized in his speech that, although each country of the Union follows its own path in developing high technologies, it is important to be able to integrate ourselves into the digital sphere. "In our country it often turns out that even programs adopted in several different ministries cannot integrate between them”, said the Head of the Kazakh Government, “If we are talking about integrating within a single digital platform of the EAEU, we ought to consider very seriously how we intend to combine it all. The important thing here is probably creating the best conditions for technological business activity".

Dmitry Medvedev, Chairman of the Government of the Russian Federation, stated the necessity of reliable, easy and transparent regulatory mode for digital processes, moreover, at the cross-border level. An important challenge here will be resisting hacker attacks, cyber fraud and terrorist activities.

According to Dmitry Medvedev, digital integration within the Union can include three elements. The first one, conventionally named EAEU Data X, is a single subsystem for electronic data transfer and exchange. It is a platform that can be used to exchange information, and ultimately to exchange legally relevant protocols between private companies.

The second element is EAEU ID – a single electronic confidence space. It includes services for identification, authentication, authorization, digital archive. This will allow, for instance, issuing references to the citizens of one country within the territory of another country in a digital format.

The third element – EAEU Geo – is a geographic information system and cartographic base services, which facilitate monitoring transportation and traceability of products.

"Those are the tools that will create the framework of our cooperation", said the Head of the Russian Government, “Of course, we need to agree on common standards, on correlation of our national solutions. We are ready to provide our competence to all our friends and partners, practically free of charge."

Speaking of cryptocurrency, Dmitry Medvedev noted that its regulation cannot be implemented within the framework of a single country and must be supranational. "We need to bring together our approaches at the level of the Union. I'm not even mentioning that, ideally, international conventions must be drawn up with regard to cryptocurrency", believes the Head of the Russian Government.

Abdulla Aripov, Prime Minister of the Republic of Uzbekistan, who also took part in the Forum, called for joint efforts of CIS countries to improve the system of human capital development, as well as to establish a joint platform for integration partnership between traditional financial institutions and innovative companies in the sphere of financial technologies. Such cooperation contributes to joint implementation of innovative digital products on the financial markets of the CIS countries.

For reference

The "Digital Agenda in the Age of Globalization" forum is held on the initiative of Nursultan Nazarbayev, President of the Republic of Kazakhstan. In October 2017, at the meeting of the Supreme Eurasian Economic Council, Heads of the EAEU Member States approved the Main Directions of the Digital Agenda until 2025, and also supported the initiative of the President of Kazakhstan to hold a special meeting on digitalization of the EAEU economy.

Today the world-leading countries invest substantial resources in the development of digital industries using the technologies of the Fourth Industrial Revolution. The main objective of the Forum is to elaborate joint measures that would accelerate the development of domestic digital economies, increasing their competitiveness, and also to facilitate in finding ways for receiving further dividends based on country benefits and regional integration transformation.

Digital transformation of the economy, introduction of innovations and removal of barriers have become key topics of the session of the Eurasian Intergovernmental Council

The session of the Eurasian Intergovernmental Council was held on May 26 in Kazan (the Russian Federation). The Prime Ministers of the five countries of the Eurasian Economic Union (EAEU) discussed certain issues that are important for deepening the integration processes, including removal of barriers and restrictions to free movement of goods, services and labour, the Union's digital agenda and the opportunities for introducing innovation through supporting scientific research and development work in key industries. 

The Eurasian Economic Commission (EEC) received new powers to develop regulations and rules for fair competition, while providing support for the most important enterprises and industries.

The meeting was attended by the Prime Minister of the Republic of Armenia Karen Karapetyan, the Prime Minister of the Republic of Belarus Andrey Kobyakov, the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Prime Minister of the Kyrgyz Republic Sooronbay Jeenbekov, the Prime Minister of the Russian Federation Dmitry Medvedev, and the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan. 

The Chairman of the Eurasian Intergovernmental Council, the Prime Minister of the Kyrgyz Republic Sooronbay Jeenbekov noted that "elimination of internal obstacles is a catalyst for the growth of the economies of the EAEU countries and deepening of joint integration."

In the opinion of the Chairman of the EEC Board Tigran Sargsyan, it is possible to state the beginning of a new stage in the EAEU development. This is connected, among other things, with the launch of systematic work on two new important areas - removal of obstacles, barriers and restrictions within the economic space and the digitalization of the economy.

"Business requires us to resolve these issues as soon as possible," the Chairman of the EEC Board said. In addition, Tigran Sargsyan stressed that "while forming common markets we should strive to deepen cooperation, including so that the Union could be positioned in the global economy as an integration association with a strong export potential."

The road map for removing barriers for 2017-2018 will be developed by the next session of the Eurasian Intergovernmental Council. Its implementation stimulates entrepreneurial activity and ensures the implementation of the principle of four "freedoms".

Special emphasis will be put on working to prevent discrimination while admitting to public procurement and combating discriminatory forms of taxation in the EAEU countries. The Member of the Board – Minister in charge of Internal Markets, Information Support, Information&Communication Technologies of the EEC, Karine Minasyan, said that it was necessary to move away from the practice, when local enterprises can be exempted from paying some fees, while entrepreneurs from other Union Member States were unreasonably liable to duties when importing food products or manufactured goods.

The EAEU will develop a digital transformation program. This will accelerate the formation of the post-industrial economy of the Union.

By the end of the year, the Main Directions for the implementation of the digital agenda up to 2025 will be prepared. Four key development vectors have been identified, which make it possible to accelerate the processes of digitizing the economy. For more information, see https://goo.gl/WwJxu8. In order to implement this program, it is proposed to use the mechanism of public-private partnership.

One of the first pilot projects in this area can be a system of marking a number of goods and products that provides transparency and traceability throughout the Union.

The Prime Ministers endorsed the EEC report on monitoring the implementation of the Regulatory Impact Assessment (RIA) of the draft decisions of the Commission, which can influence the business environment.

The members of the Intergovernmental Council were provided with the information on the effectiveness of interaction between the EEC and the business and expert community in 2016. It was noted that last year, in respect of 34 draft decisions of the Commission that passed a public discussion, business representatives and experts expressed 268 comments and suggestions.

210 of them (78.4% of the total number) were taken into account in further work. 

In addition, within the monitoring the draft decisions of the Commission were assessed to identify items or provisions that impose excessive restrictions or prohibitions on entrepreneurs that lead to unreasonable costs and increased administrative costs of business, and create barriers to free movement of goods, services, capital and labour on the territory of the Union.

The Commission informed the Prime Ministers about the work to create an effective Single Window mechanism in the countries of the Union,which would reduce the administrative costs of business and simplify foreign trade activities.

In all the EAEU Member States, individual elements of the Single Window system have been implemented, such as e-declaring or e-licensing, interdepartmental information systems are in operation. They facilitate the interaction of entrepreneurs with the authorities. However, this is only a part of the work. 

Following the discussion of this issue, the members of the Intergovernmental Council recommended to more actively engage business to the work for formation of the Single Window system, to speed up the transition to the use of e-documents, to ensure harmonization and mutual recognition of the documents required for foreign economic activity.

An agreement has been signed to voluntarily agree on specific subsidies for industrial goods. To implement the document, the EEC receives new powers.

In accordance with the agreement, the EAEU member state, which wants to grant subsidies to certain enterprises or sectors of its economy, may request the EEC to approve such a decision.

If the Commission considers that granting of such a subsidy meets the specified acceptable criteria, the other countries of the Union will not be able to demand the introduction of compensatory measures.

In addition, the EAEU countries are provided with the opportunity to apply to the Commission for an investigation if subsidies are provided in one of the states of the Union that cause economic damage to them. The EEC decisions will be binding.

The introduction of such procedures into the practice of the Commission increases the transparency and validity of decision-making on the support of certain enterprises and industries, promotes the formation of regulations and rules for fair competition.

The procedure for arranging joint research and development work in agroindustrial complex was approved by the members of the Intergovernmental Council. Joint development means participation in research and development of at least two Member States of the Union.

The document will expand cooperation ties between scientific institutions and enterprises of the Union countries, increase the efficiency and competitiveness of the agroindustrial complex, ensure the transfer of technology and innovation, contribute to the formation of a strategy of scientific and technological development within the entire Eurasian Economic Union.

The list of joint projects will be formed on the basis of proposals of the EAEU countries.  Currently, the Commission discusses the first proposals that correspond to the priority directions of the development of the agroindustrial complex. A list of R&Ds for the period up to 2020 has been defined for 14 priority topics, including various areas of crop production and livestock, aquaculture, veterinary, etc.

A disposition has been adopted to ensure the preparation and conduct of national population censuses in the EAEU countries. This will make it possible to bring together the census methodologies used, to ensure correct comparison of data, and to reveal trends in the development of the society and the state of the economies of the countries of the Union.

The next session of the Eurasian Intergovernmental Council will be held on August 14 in Astana (the Republic of Kazakhstan).

The Supreme Eurasian Economic Council (SEEC) conferred new powers in customs regulation to the Eurasian Economic Commission (EEC)

On April 14, in Bishkek (Kyrgyzstan) SEEC held a session with participation of the leadership of the EAEU member-countries. The session was attended by Igor Dodon, the President of the Republic of Moldova.

Among the topics for discussion there were: improving efficiency of customs regulation within the EAEU single customs territory, expanding cooperation with the most significant partners, macroeconomic milestones for the EAEU member-countries for 2017 - 2018, as well as some staff-related resolutions.

In the introductory part of the session, the SEEC Chairman, the President of Kyrgyzstan Almazbek Atambayev said that creating business-friendly environment is one of the core SEEC priorities in 2017.

The leaders of member-countries welcomed the intention expressed by Republic of Moldova to have the status of EAEU observer. 

At the same time the task of EEC was to develop the Directive covering the status of observer-country and to have it presented during the next SEEC session. This will allow the countries willing to have economic relations with EAEU to obtain detailed information on technical regulations, veterinary and phytosanitary standards. They will also be able to adapt to EAEU requirement already at a document preparation stage.

One of the core issues discussed during the SEEC session were trade and economic relations with the non-member countries. Tigran Sargsyan presented to the leaders of the EAEU member states a report on the EEC results in development of trade and economic relations with different countries, regional and international associations in 2015 - 2016. The EEC Board Chairman noted that for the implementation of international part of the agenda the Commission is having negotiations with the key partners and is taking care of the business interest of the EAEU member countries.

In 2017 EEC plans to focus on achieving agreements with 7 or 8 countries, such as China, Singapore, India, Israel, Egypt and Iran. 

Based on the results of negotiations some agreements will be concluded. Those agreements will cover various forms of preferential trade policies, such as free trade areas. 

The leaders of member states acknowledged the importance of soonest commencement of EAEU Customs Code and the necessity of removing barriers in the inter-state trade.

The Presidents assigned to the Council and EEC Board more new powers in customs regulation within the single EAEU customs territory. EEC is going to work on decision covering 279 issues, the norms for those issues are stipulated in the Customs Code being adopted.

Two members of the EEC Board - Timur Suleimenov and Nurlan Aldarbergenov (Kazakhstan) - were removed due to their assignments to new positions.

The new members of the EEC Board from the Republic of Kazakhstan are: 

- Timur Zhaksylykov (in charge of economics and financial policy); 

- Marat Kusainov (in charge of market competition and anti-monopoly regulation);

The EAEU member states are beginning the process of ratification of the Customs Code Treaty

On April 11, the phase of signing the Treaty on the EAEU Customs Code was completed. The member states start some in-house procedures which are necessary prior to ratification of the document. The new Customs Code will come into force after the Eurasian Economic Commission receives notification about ratification of the Treaty from all of the 5 member states.

The EAEU Customs Code is one of the major documents of the Union’s regulatory framework. As stipulated by the Treaty on the EAEU, the customs regulation is provided in compliance with the EAEU Customs Code. This document will replace the applicable Customs Code of the Customs Union and some international agreements covering the customs regulation. These agreements were part of legislative framework established at an early stage of economic integration - Customs Union and Single Economic Space.

The EAEU Customs Code will contribute to harmonization and alignment of the customs regulation within the EAEU territory. As Tigran Sargsyan, the EEC Board Chairman, believes “now many processes will be automated. Direct contacts between representatives of business and customs officers will be minimized. The market players in our business have been looking forward to adopting such a document. After the EAEU Customs Code will come into force, we expect the business climate in the EAEU to improve significantly.” 

This document brings a legitimate ground for the transition of customs administration system from 'paperwork' to E-based technologies. This approach will help to save business resources significantly, speed up passing customs formalities and will actually minimize so-called 'human factor' while taking decision at all levels - from customs declaration to the goods release. 

It took 3 years to work out the new Customs Code. The EAEU Customs Code is the first document in the EAEU regulatory framework which is a result of cooperative effort of the Commission, state agencies and business communities of all of the 5 member states, at all levels of preparation. Representatives of private business used to be involved in preparation of documents like this only at the stage of inter-state approval.

The digital agenda and support of industries with maximum integration capacities: the results of the Eurasian Intergovernmental Council

On March 7, the Eurasian Intergovernmental Council held a session in Bishkek on key activities directions, attended by the heads of Government of the countries of the Eurasian Economic Union (EAEU). The greatest attention was paid to the digital agenda, support for machine building, mutual trade status, assessment of the real sector industries and services with high integration potential.

The meeting was attended by the Prime Minister of the Republic of Armenia Karen Karapetyan, the Prime Minister of the Republic of Belarus Andrey Kobyakov, the Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Prime Minister of the Kyrgyz Republic, Sooronbay Jeenbekov, Prime Minister of the Russian Federation Dmitry Medvedev, and Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan.

Opening the session, the President of the Intergovernmental Council, Prime Minister of the Kyrgyz Republic, Sooronbay Zheenbekov encouraged national governments of all the Union countries to focus on creating the conditions for business development in Eurasia. “The main aspects of the Union's activity should be issues such as signing of the Pension Agreement for workers and members of their families in the EAEU, adoption of the Strategy for the formation of the digital space, realization of industrial cooperation projects and initiatives, liberalization of the EAEU services market, and others. Today, the heads of governments tasked the EEC together with the national governments, in the shortest possible time, to prepare an action plan to implement the initiatives of the Chairman of the High Council - the President of Kyrgyzstan Almazbek Atambayev,” said Sooronbay Zheenbekov.

The Chairman of the EEC Board Tigran Sargsyan noted that the joint work of the EEC and the governments of the EAEU states on creation of common markets, development of mutual trade and finding opportunities for cooperation in all spheres allowed overcoming global challenges and threats. “In 2017, the key priorities of the Commission will be further digitization of the common economic space, development of industries with high integration potential, reducing barriers to business and creation of the conditions for the export of products originating in the countries of the Union to the markets of third countries. All of these activities will improve the competitiveness of our business, its technological competences and improve the investment climate in our countries,” said Tigran Sargsyan to the heads of government.

Digital Agenda

A working group under the EEC will be established to elaborate the main directions of the digital agenda of the EAEU until 2025, headed by the EEC Board Chairman Tigran Sargsyan. It will include Ministers responsible for implementation of this direction in each of the Union countries.

In the nearest future, the Member States will provide their suggestions to the EEC on priority directions and projects that will be implemented within the framework of the Common digital agenda of the EAEU.

Integration potential of the EAEU

Members of the Intergovernmental Council reviewed the results of the joint work of the Commission and the Union countries on definition of the economy sectors with high integration potential. The work was carried out on the instructions of the heads of state for the purpose of implementation of the main directions of the economic development of the Union.

About 300 commodities and services that can become drivers of integration were identified on the basis of several criteria, including the capacity for import substitution, increase in mutual trade and exports to third countries, formation of value chains, multiplier effect for the economy.

Industries with high multiplier effect can be mechanical engineering, metallurgy, chemistry and oil chemistry, transport and communications. “Technologies of the future” were singled out into a separate category with more than 100 positions, development of which is of particular importance for the Union countries. Those are information technologies, development of new materials, nano-and biotechnologies, innovation in the field of medicine and public health, energy-saving technologies, including development of “smart” grids, and some others.

Mutual trade among the EAEU countries: positive forecast

The Intergovernmental Council has considered the report prepared by the Commission on the status of the mutual trade between the Member States. It notes the restoration of the economic activity. In particular, the year of 2016 is characterized by the growth of the physical volume of mutual trade, improved dynamics of values and the structure of mutual trade, its increased share in foreign trade, as well as reduction in the volume of imports of goods from third countries. Last year, exports of goods from Armenia to the EAEU countries grew by 1.5 times, from Belarus - by 2.2%, from Kyrgyzstan - by.4%.

Support for mechanical engineering in the EAEU

The Intergovernmental Council took decision on realization of joint measures by the Member States on stimulating exports of tractors, combine harvesters, hinged mechanisms and other agricultural machinery originating in the EAEU to third countries markets. It was suggested that the countries develop mechanisms of export risks insurance and re-insurance, export financing programs, and encourage development of common service maintenance networks.

The Program of import substitution and organization of production in the Union countries of components for agricultural machinery (electronic components, engines, transmissions, hydraulic elements, bridges and others) will allow developing new technologies and enhance business competitiveness of the EAEU countries. The suggested measures include various forms of support for enterprises to upgrade the existing manufacturing facilities, in particular, equipment lease on favorable terms.

“Such decisions as organization of production of components for the agriculture will become a good example of practical measures of enhancing the effectiveness of the Eurasian integration. The Prime Ministers took decision on coordinated actions to enhance export capacities in mutual trade and in trade with third countries,” said Sooronbay Zheenbekov.

The next meeting of the Intergovernmental Council will be held in Kazan in May this year.

The President of the Kyrgyz Republic Almazbek Atambayev met with the Chairman of the EEC Board Tigran Sargsyan

On December 15, Bishkek hosted a meeting of the President of the Kyrgyz Republic Almazbek Atambayev and the Chairman of the Board of the Eurasian Economic Commission (EEC) Tigran Sargsyan.

The parties discussed the activities of the Eurasian Economic Union (EAEU), the measures taken to address issues and challenges for further development of economic integration processes between the EAEU Member States, as well as priority areas for future collaboration.

Tigran Sargsyan noted that according to the results of the year 2016, the Kyrgyz Republic demonstrated better economic dynamics in the Eurasian Union on such important indicators as GDP growth, capital investment, volume of construction works.

The parties raised a number of issues of the meeting agenda of the Supreme Eurasian Economic Council to be held on December 26 in St. Petersburg.

During the meeting, the President of Kyrgyzstan Almazbek Atambayev and the President of the EEC Board Tigran Sargsyan spoke for intensification of complex of measures for deepening integration, primarily relating to eliminating barriers to mutual trade between the Member States of the Eurasian Economic Union.

The Chairman of the Board of the EEC, Tigran Sargsyan, met the President of Russia, Vladimir Putin

On December 8, in Kremlin, the Chairman of the Board of the EEC, Tigran Sargsyan, met the President of Russia, Vladimir Putin.

The parties exchanged views on current issues in the development of the Eurasian integration.

The Russian President described the proposals by the Chairman of the EEC Board as interesting and promising. According to Vladimir Putin, agreements under the Eurasian Economic Union (EAEU) are the basis for free movement of goods, capital and people, as well as for the increase of competitiveness of the Union countries.

Tigran Sargsyan thanked the Russian President for the attention he pays to the Eurasian integration association: “Today I would like to introduce to you a few fundamental issues. In my opinion, solving them may encourage the deepening of the integration. I think all the countries will benefit from it.”

The participants of the meeting discussed the agenda of the session of the Supreme Eurasian Economic Council, which will be held in St. Petersburg on December 26. The Chairman of the EEC Board underlined here: “For the session of the Supreme Eurasian Economic Council about 25 issues have been prepared. They all have great potential, including for stimulating the economic growth of our countries.”

Vladimir Putin drew attention to the signing of the new Customs Code: "We have to adopt the new Customs Code of the Eurasian Economic Union, which, in my opinion, is an important milestone towards our common economic space.”

The heads of government of the EAEU countries approved the Common Customs Code

On November 16, the Eurasian Intergovernmental Council held a session in Gorki (Moscow region, Russia), attended by the heads of Government of the countries of the Eurasian Economic Union (EAEU): the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and the Russian Federation, where the EAEU Common Customs Code was approved.

The Eurasian Intergovernmental Council session was chaired by the Prime Minister of Kazakhstan Bakytzhan Sagintayev. He thanked the representatives of the countries participating in the work on the EAEU customs code. He stressed that the experts and Eurasian Economic Commission had completed a great deal of work. "The draft Agreement on the Customs Code of the Eurasian Union has been agreed at the level of Prime Ministers," said Bakytzhan Sagintayev. ”At the forthcoming meeting of Heads of State in December we will be able to present the Customs Code for signing. We hope that, the relevant decision will be taken by the heads of State in December. And that next year our Eurasian Union starts off with the new Customs Code.”

Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan stressed that the EAEU Customs Code contains important norms relating to the work of customs services. "Conditions have been created to automate many of the processes," said Tigran Sargsyan. ”Dealings between business and the customs administrators has been reduced to a minimum. And all of this is aimed at improving the business climate. Therefore the document is anxiously awaited by our business.”

The EAEU Customs Code will be one of the key documents in the regulatory legal framework of the Union, which will increase the level of unification and agreement between the five Eurasian Union countries in sphere of customs regulation. The draft EAEU CC is based on the transition to electronic technology, and the improvement of foreign economic activities, in particular promoting exports.

A package of documents on the launch of the EAEU’s common pharmaceutical market was signed

On November 16, the Eurasian Intergovernmental Council held a session in Gorki (Moscow region, Russia) where Members of the Council of the Eurasian Economic Commission signed a package of common documents required to launch and complete the work of the common market of medicines on the territory of the Eurasian Economic Union (EAEU).

The Prime Minister of Kazakhstan Bakytzhan Sagintayev chaired the session of the Intergovernmental Council and highlighted the importance of launching the common market of medicines in the Union. "Today, the final decision was taken on the common market of medicines. The package of documents was signed by representatives at the level Vice Prime Ministers in the presence of the Prime Ministers of the members of the EEC Council. Thus, the work has been completed on a high note," said Bakytzhan Sagintayev.

The formation of a common pharmaceuticals market is one of the EAEU’s priorities. Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan emphasised: "The launch of the common market of medicines will help to ensure that we will rapidly eliminate barriers and restrictions in other areas of the economy. I would like to congratulate all participants on the successful conclusion of the negotiations."

The launch of the common market of medicines will benefit the citizens of Union countries and the business community. Pharmaceutical manufacturers of the Union countries will gain clear rules of the "game" - common and transparent norms, based on the best global practices. They will help domestic products become more successful and competitive on the world market. Within the Union unnecessary trade barriers will be eliminated, manufacturers’ expenses will decline, competition will increase, which will create the prerequisites for the containment of prices for medicines.

Countries of the Eurasian Economic Union agreed on the draft Customs Code

The Heads of Governments of the countries of the Eurasian Economic Union, at the session of the Eurasian Intergovernmental Council of (EIGC) held on August 12, in principle agreed on a new version of the Customs Code. Thanks to the document customs clearance at the external border of the Union will be standardized, and conditions for goods movement will be significantly simplified.

The session also approved a set of documents required to launch the common market of medicines in the states of the Union. This will ensure access of medicines to the common market using common procedures of their registration.

The meeting of the Intergovernmental Council held in Sochi was attended by the Heads of Governments of the Member States of the Union (the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation) and the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan.

Addressing the participants of the meeting, the Chairman of the Government of the Russian Federation Dmitry Medvedev said that "the common market is a major competitive advantage of the countries of the Eurasian Economic Union". He noted that this year, in spite of the unfavourable external environment, the share of mutual trade within the Union grew to 14.2%. At the same time, "the structure of trade with third countries becomes more balanced. For the further growth of trade turnover it is essential that we eliminate the remaining exemptions and barriers." Recently, the Eurasian Economic Commission has notably intensified the work in this direction.

As noted by Dmitry Medvedev, it is important not to slow down the preparation of regulations of the Union. "I would like to state that we are almost on the verge of agreeing on a new Customs Code," the Head of the Russian Government said. With the adoption of the document the process of customs clearance at the external border of the Union would be standardized, and conditions for goods movement would be significantly simplified, Medvedev emphasized.

The Prime Minister of the Republic of Kazakhstan Karim Massimov noted that, in the framework of the announced year of deepening economic cooperation with third countries and integration associations, negotiations to establish free trade zones were in progress with a number of states: Israel, India and Iran. In addition, the issues of development of economic cooperation are being elaborated with Korea, Singapore, Mongolia and Indonesia. The work on an agreement on trade and economic cooperation between the EAEU countries and China was launched. Speaking about the new version of the Customs Code, Massimov stated that it "should become a guarantee for reliable cooperation of entrepreneurs and our trading partners".

In his turn, the EEC Board Chairman Tigran Sargsyan at a press briefing after the session of the Intergovernmental Council noted that the Customs Code is the document awaited by business today. It has been elaborated with the business community of the EAEU countries, and incorporates all the comments. As a result, the Code is the most progressive, it improves business enviroment and greatly facilitates customs clearance processes. "It is clear that this document will give a major impetus to integration processes within the Eurasian economic space," the EEC Board Chairman emphasized.

At the same time, as Tigran Sargsyan informed, business is expecting a solution to the question of establishing a common market of medicines. "There are fundamental arrangements on how we are going to come to this market. Today it is agreed that we create freedom of movement for all medicines in our territory. After that the issues related to public procurement will be addressed. We have also developed an understanding on how the countries would settle the issue of interchangeability of medicines. This will increase competition and may contribute to lowering prices of medicines.”

At the session of the Intergovernmental Council, the participants also addressed a number of topical issues aimed at further deepening of integration processes in the Union, as well as the perspectives of its development. The Heads of the Governments of the Eurasian Union signed the following documents:

- Disposition "On the draft Treaty on the Customs Code of the Eurasian Economic Union".

- Decision “On implementation of the mechanism of marking certain categories of goods with control (identification) signs”.

- Disposition "On the basic approaches to establishment of the mechanism to ensure the traceability of goods in the Member States of the Eurasian Economic Union".

- Decision “On some issues of import and circulation of goods within the customs territory of the Eurasian Economic Union due to accession of the Republic of Kazakhstan to the World Trade Organization”.

- Protocol on the accession of the Kyrgyz Republic to the Agreement on Movement of Ozone-Depleting Substances and their Products and Recording Ozone-Depleting Substances in Mutual Trade between the Member States of the Eurasian Economic Union of May 29, 2015.

The EEC has summed up the results of the first year of the Kyrgyz Republic membership in the EAEU

August 12 marks the first anniversary of the Kyrgyz Republic's accession to the EAEU Treaty. Over this period the country has increased its industrial output and agricultural production, access of Kyrgyz products to the markets of other Member States became easier. It has become easier and more comfortable for migrants from Kyrgyzstan to temporarily reside and work in the Member States.

“In total, the first year of the Republic in the EAEU has been positive, all further measures will contribute to the recovery of the State’s economy and welfare of citizens,” said the Chairman of the EEC Board Tigran Sarkisyan. “The Union increases the investment attractiveness of Kyrgyzstan as a part of the Eurasian market. Companies from the EAEU and third countries now have an additional incentive to invest in the country.”

Over the past year, a lot of work was done, which now is bringing real results. The opening of customs borders allowed Kyrgyzstan companies to significantly reduce the time needed for delivery of its goods to markets of the other Union countries. Therefore, many manufacturers have become able to considerably increase export of their products. Additional benefit is the fact that the EAEU has legally enshrined and successfully implemented a simplified procedure for customs declaration for international transportation with vehicles registered in the EAEU Member States.

The EAEU creates favourable conditions for the development of trade industries and agro-industrial complex of Kyrgyzstan. According to the EEC, the agricultural production in the Kyrgyz Republic increased by 2.9% in January through June 2016 as compared to the same period of 2015.

The Republic also obtained simplifications for customs clearance - there is no need for it in the EAEU; the goods are freely imported and exported. Payment of indirect taxes can be postponed for up to 50 days. An importer receives a right for postponed payment when importing goods into the territory of Kyrgyzstan. Previously it would have to pay taxes immediately at the border.

The tax burden for business has been reduced: before joining the Union the VAT was calculated on the basis of the value of the goods plus the cost of expenses related to the transportation of these goods; today, according to the EAEU rules the tax is charged only for the contract value of the goods. Individuals are also exempt from double VAT taxation upon importation of goods of personal consumption from the EAEU countries.

Another positive side is the fact that Kyrgyzstan became part of the single market of services, which operates in 43 sectors. Such sectors include the following services: construction and engineering; agriculture and forestry; wholesale and retail trade; franchising, renting of machinery and equipment without operators, and many others. As a result, the Kyrgyz entrepreneurs can operate in these areas in the EAEU markets without additional establishment of a legal entity. Permissions on these activities and professional qualification of service providers received in the Kyrgyz Republic are recognized automatically.

By joining the EAEU, Kyrgyzstan has accessed the common labour market. New conditions have essentially changed the legal status of Kyrgyz migrants in the territory of the Union. Now, the citizens of the Republic have equal rights with residents of the other Member States for employment; there is no quota agreement with employers. There is no need to obtain additional permits. For example, in Russia, citizens of the Republic do not have to pass exams in Russian language, history and legal basics of the Russian Federation.

It is also important that the Kyrgyz citizens coming to the Union states to work, are released from the obligation of registration with state bodies within 30 days from the date of entry, they register later for the duration of their labour or civil law contract.

Citizens of Kyrgyzstan, like other citizens of the Member States, shall not fill in migration cards when crossing the border of other Union states, provided that the period of their stay will not exceed 30 days from the date of entry.

Citizens of Kyrgyzstan are now able to carry out activities not only under a labour but also civil law contract, which significantly expands spheres of their possible employment. Before, they could only work in Russia for two years provided that they have a patent. Now, the duration of their stay is defined by their labour and civil law contract. Thus, there is no need any more to periodically leave the employment country and then re-enter again to prolong the stay.

Today, workers from Kyrgyzstan in Russia pay income tax from the first day of work at the same rate as residents: 13% instead of 30%. They have got the right for social insurance and health care in any country of the Union. Workers' children have the right to attend pre-school institutions and obtain education in accordance with the laws of the employment state.

The EAEU Treaty provides for mutual recognition of diplomas for the purpose of employment by the absolute majority of specialties. This significantly simplifies the search of work and improves the mobility of labour resources.

The Pension Agreement is now being worked on. After its adoption, the citizens of Kyrgyzstan, as well as citizens of other EAEU countries will be able to receive pensions for their employment in the EAEU Member States.

The Union membership gives impetus to the development of the national economy. It is worth noting that the Russian-Kyrgyz Development Fund, established for the purpose of successful integration of Kyrgyzstan in the EAEU, has financed 113 enterprises for an amount over 16 million dollars just in seven months of the membership in the Union.

Within the Union, Kyrgyzstan became a party to agreements on free trade area (FTA), the first of which was concluded with Viet Nam. The FTA agreements allow countries to engage in global production and supply chain, enhance the competitiveness of domestic producers, increase exports and foreign exchange earnings.

Another format of the international activities of the Eurasian Economic Union also has some benefits for the Kyrgyz Republic - the conclusion of memoranda of understanding between the Eurasian Economic Commission and Governments of third countries. They provide an expansion of international contacts of the Member States.

The Kyrgyz Republic has also received new positive economic effects from integration projects, which will be launched soon. In particular, this year it is planned to adopt the EAEU Customs Code. Entrepreneurs will have the common set of rules. This document envisages a number of innovations which will considerably save resources of businesses - customs formalities will be simplified, customs procedures will become less time-consuming, which equals the minimized communication with officials and, therefore, an improved business climate in the EAEU Member States.

The session of the EEC Council was held via videoconference

On July 11, the session of the Council of the Eurasian Economic Commission (EEC) was held in Moscow via videoconference. A number of issues in the areas of trade, technical regulation, customs cooperation, the economy and fiscal policy were reviewed.

The Council of the EEC approved amendments to the Technical Regulations of the Union On the safety of wheeled vehicles.

The Council of the EEC also approved the detailed plan of measures for 2016 for the implementation of Main directions for the development of the "single window"  mechanism in the system regulating foreign trade activities of the Member States of the Eurasian Economic Union (EAEU).

The Council of the EEC also approved the draft Agreements on conducting joint control activities on compliance with the Procedure for transfer and distribution of import customs duties (other duties, taxes and fees having equivalent effect) and their transfer to the budgets of the EAEU Member States.

The event was attended by members of the Council of the EEC: Vice-Prime Minister, the Minister of International Economic Integration and Reforms of the Republic of Armenia, Vache Gabrielyan, the First Deputy Prime Minister of the Republic of Belarus, Vasiliy Matyushevsky, the First Deputy Prime Minister of the Republic of Kazakhstan, Bakytzhan Sagintayev, the Vice-Prime Minister of the Kyrgyz Republic, Oleg Pankratov, the First Deputy Chairman of the Russian Government, Igor Shuvalov, as well as the Chairman of the EEC Board, Tigran Sargsyan and Members of the Board – Ministers of the Eurasian Economic Commission.

Heads of the EAEU States at the SEEC session summarised and outlined the prospective development of the Eurasian Economic Union

On May 31 Astana hosted the session of the Supreme Eurasian Economic Council (SEEC), which was attended by the President of the Republic of Armenia Serzh Sargsyan, the President of the Republic of Belarus Alexander Lukashenko, the President of Kazakhstan Nursultan Nazarbayev, the President of the Republic of Kyrgyzstan Almazbek Atambayev, the President of the Russian Federation Vladimir Putin and Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan.

During the event, the Heads of the Eurasian Economic Union (EAEU) countries discussed the most topical issues and prospects of the Union.

Opening the session, the President of Kazakhstan Nursultan Nazarbayev congratulated all present on the second anniversary of the conclusion of the Treaty on the EAEU. The President emphasised, that "in spite of its short period of existence, and the economic difficulties that we are experiencing in the early stages, it is now safe to say that the EAEU has come to be a fully-fledged integration association. Now, the convergence of our economies is taking place in accordance with the plans and deadlines that we have outlined in the Treaty on the EAEU." Nursultan Nazarbayev expressed his confidence that the implementation of the Union’s objectives and principles will serve as a powerful impetus for the economies of the Member States.

In his speech, the President noted the growing interest in the economic unification worldwide. The possibilities of establishing trade and economic relations with the EAEU are being considered by integration organisations such as the EU, SCO, ASEAN and others. He therefore recalled that, at his suggestion as the SEEC Chairman, 2016 had been declared "the year of the deepening economic relations between the EAEU and third countries and key integration associations." "In the EAEU, we see an open community, organically integrated into the global economic system that serves as a reliable bridge between Europe and Asia,” - said Nursultan Nazarbayev. The head of state stressed that the unified market of the Union must become a bridge between East and West, North and South.

According to the President of Kazakhstan, the free movement of goods and services within the Union is in line with "Silk Road Economic Belt" initiative put forward by China.

The head of state highlighted the fact that the negative events currently taking place in the global economy are a test for everyone and require further coordinated work on the EAEU platform. "We should look for opportunities even in these difficult conditions where we are experiencing a sharp decline in mutual trade to find other ways of cooperation," said the President of Kazakhstan.

The President of Kazakhstan pledged that, under Kazakhstan’s chairmanship of the EAEU, all efforts will be made this year to promote the further successful and dynamic development of the integration association.

The President of Armenia Serzh Sargsyan stressed that economic integration requires increased coordination in approaches at the macroeconomic level. "Therefore, we attach great importance to the consistent implementation of the main guidelines of the macroeconomic policy of the EAEU member states in 2016 and 2017 and the development of existing mechanisms on the convergence of our economic potential. This will facilitate an improvement in the sustainability of the economies of our countries, and aid us in overcoming the consequences of the current adverse economic situation. We must make every effort to make our integration an attractive model of economic partnership that is open to broad cooperation with all interested parties in the wider context of the increasing share of regional structures worldwide," Serzh Sargsyan said.

The President of Belarus Alexander Lukashenko highlighted the difficulties in implementing the objectives set for the purposes of EAEU development. "Two years ago we signed the Treaty on the Eurasian Economic Union. Over this period, serious conceptual decisions have been made: the foundation for the liberalisation of transport services, the formation of a single electrical power market, and export policy has been laid. Unfortunately, not everything is developing as we had planned. There are still problems the most pressing of which we have discussed today. First of all, there is a need to transform theoretical know-how into practical results," said the President of Belarus.

In particular, Alexander Lukashenko pointed out the need to eliminate internal exemption and restrictions to mutual trade, to implement initiatives for the development of the functioning of the mechanism of the EAEU when one of the member states applies unilateral market protection measures in relation to third countries. In addition, there was particular note of the importance of implementation of the objectives related to industrial cooperation, the energy sector, and the creation of a common market of medicines and medical products.

The president of Kyrgyzstan Almazbek Atambayev urged the Heads of the Member States to make every effort to eliminate barriers to the achievement of the main goals and objectives of the integration process. He noted the enormous potential of the Union. "There have clearly already been some results and progress. There have been some mistakes too, as well as some artificially created problems. We must clearly realize for ourselves that our peoples have no other alternatives. We are responsible for the future of the Eurasian Economic Union, for the future of our countries. It will require work and patience, wisdom and cooperation between our peoples and the heads of the states, as well as all ministries and departments. I believe in the future of the EAEU," said Almazbek Atambayev.

The President of the Russian Federation Vladimir Putin praised the work undertaken within the framework of the EAEU. "Over one and a half years of the Eurasian Economic Union’s operation, a great deal has been done to promote the large-scale integration project. Most importantly, it can be stated with good reason that the Union has succeeded as a modern international organisation aimed at solving the specific problems concerning the economic development of our countries," said the Head of State.

According to the Russian President, "several areas require further work at the same active pace. This applies, in particular, to the preparation of a new Customs Code and the Agreement on the Procedure for the conclusion of international treaties by the Union, i.e., the further promotion of integration depends on the timely adoption of the regulations necessary for our development."

Vladimir Putin noted that the effective functioning of the integration association requires a systematic relationship building with external partners. "We support the proposal made by Kazakhstan's chairmanship that the focus should be on the further deepening of economic relations between the Union and other countries and integration associations." In particular, the President of the Russian Federation welcomed Kazakhstan’s initiative to hold an international conference on the establishment of cooperation between the Eurasian Union and the EU. "It is vital that the Eurasian Economic Commission be actively involved in its elaboration," concluded the President.

EAEU to intensify efforts to develop economic cooperation with third countries

At the session of the Supreme Eurasian Economic Council (SEEC), which took place on May 31 in Astana, the heads of the member states discussed the most pressing issues and prospects of the Union.

At the conclusion of the session of the SEEC, Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan made a number of statements to the media.

The representative of the Commission congratulated EAEU citizens on the second anniversary of the signing of the Treaty on the Eurasian Economic Union (the Treaty on the EAEU was signed on May 29, 2014). Tigran Sargsyan stated: "Over the last two years we have taken significant steps forward in building a single economic space. I am certain that a long road lies ahead of us. We will move forward together on this road towards the deepening of the Eurasian integration".

The Chairman of the Board of the EEC noted that, in accordance with the initiative of the President of Kazakhstan Nursultan Nazarbayev (Chairman of the Supreme Eurasian Economic Council in 2016), the deepening of economic relations with third countries and integration associations is a priority of the EEC’s work. "Therefore, it is of particular note that today, our agenda included a number of issues related to building relations with third countries and integration associations," said Tigran Sargsyan.

In particular, the Presidents reviewed the approaches to the development of economic and trade cooperation with the People’s Republic of China. "This partnership is incredibly significant to our countries. The EEC will start the negotiation process. We will build these relations with due account for the interests of the economic entities of the member states. Consultations will be held periodically, and we will take the necessary steps to ensure that the Chinese market opens up for our enterprises,” said Tigran Sargsyan.

The presidents of the Union countries have adopted the decisions required for the entry into force and implementation of the Free Trade Agreement between the Eurasian Economic Union, its member states and the Socialist Republic of Vietnam dated 29 May 2015. "All the necessary steps for the contract to enter into force have been made,” Tigran Sargsyan summarised. “A number of ASEAN countries expressed their interest in establishing direct contacts with the EEC and establishing trade relations with us."

According to the Chairman of the Board of EEC, issues related to the cooperation between the Eurasian Economic Union and the Kingdom of Cambodia were discussed. He pointed out the recent signing of Cooperation Memoranda between the EEC and Cambodia and Singapore. Working groups will be established in order to study the potential economic cooperation with these countries and subsequently suggest ways of building economic and trade relations with them.

The Chairman of the Board of the EEC reported that SEEC members had discussed cooperation with the European Union; and a number of suggestions on how to move forward had been proposed.

The heads of state also adopted the decision to commence negotiations with the Republic of Serbia on the harmonisation of the trade regime with this country by the Eurasian Economic Union and its member states.

The heads of the EAEU states approved the Concept of forming common markets of oil and petroleum products of the Union. In accordance with the Concept, energy companies of the Union countries will obtain non-discriminatory access to the oil infrastructure of their partners, and will be able to buy oil and petroleum products without quantitative restrictions on the market price without export duties, which will be also formed on the stock exchange.

The Concept of creating a common gas market of the Eurasian Economic Union was also approved. According to the Concept, the Parties will attain the full functioning of the common market with unhampered gas supplies between the participants at market prices.

The Chairman of the Board of the EEC highlighted that next year the implementation program of the Concept of forming common markets of oil and petroleum products of the Union will be developed and submitted for approval by the Presidents. "Later, a corresponding treaty will be drawn up, which, after its adoption in 2025 will lead to the establishment of a common energy market. The Concept of forming a common gas market in the EAEU was developed following the same logic. The market will be formed by 2025 on the same principles," said the Chairman of the Board of the EEC.

Presidents of the EAEU countries adopted the Main Guidelines of macroeconomic policy of the member states of the Eurasian Economic Union for 2016-2017.

The document outlines the most important short- and medium-term challenges that the economies of the member states currently face and provides recommendations for addressing them. Implementation of the Main Guidelines will allow the EAEU states to overcome the adverse current economic situation, increase macroeconomic stability and restore economic growth.

When informing attendees of the approval by the Presidents of the Main Guidelines of macroeconomic policy of the member states of the Eurasian Economic Union for 2016-2017, Tigran Sargsyan noted that the document is of anti-crisis nature. "According to agreements reached, the monitoring of measures implemented by the Union member states will be adopted as part of the guidelines, and this monitoring will be conducted systematically. It allows us to identify the joint activities that we must see through to completion so that the fundamental principles laid down in the treaty on the union will be implemented," said Tigran Sargsyan.

The attendees of the SEEC session made the decision to establish a subsidiary body of the Eurasian Economic Union – the Council of Heads of the Authorised Authorities in the field of sanitary and epidemiological welfare of the population of the EAEU member states. The Council has been charged with the provision of comprehensive assistance to countries of the Union in the implementation of agreed or coordinated policy in this field, and coordinate the interaction of authorised authorities.

The heads of states decided to hold the next session of the Supreme Eurasian Economic Council in Moscow in December this year.

Congratulations on the second anniversary of signing of the Treaty on the Eurasian Economic Union

Dear citizens of the Eurasian Economic Union countries,

On May 29, two years have passed since signing the Treaty on the Eurasian Economic Union (the EAEU) between Belarus, Kazakhstan and Russia. In 2015, Armenia and Kyrgyzstan joined the Treaty.

During this period, the Eurasian Economic Commission in cooperation with the countries of the EAEU has done everything possible to achieve the main objectives of the Union - ensuring conditions for sustainable development of the economies of the Member States in order to improve the standard of living for citizens, comprehensive modernization, cooperation and increase of competitiveness of national economies in the world.

It should be noted that in a relatively short period of time, a great job has been done that gives real results.

More than 40 countries and associations expressed a desire to develop trade and economic cooperation with the EAEU. The Agreement on establishing a free trade area between the EAEU and Vietnam was signed; relevant negotiations on feasibility of entering into agreements with India, Egypt, Israel, Iran are conducted.

The Asian track of the Union cooperation is increasing, including in the framework of possible conjugation of the EAEU and the Silk Road Economic Belt (SREB). At the session of the Intergovernmental Council on May 20 in Yerevan, the Eurasian Economic Commission received a mandate to negotiate with China on an agreement on trade and economic cooperation between the Eurasian Economic Union, its Member States and the People's Republic of China. Economic relations with the countries of the Association of Southeast Asian Nations (ASEAN) are successfully developing. The Commission has recently signed Memoranda of Understanding with the Republic of Singapore and the Kingdom of Cambodia.

Cooperation with the countries of the Latin American Region is going on. The EEC signed Memoranda of Understanding with the Republic of Peru and Chile, negotiations are conducting to conclude a Memorandum of Trade and Economic Cooperation with the Region's largest integration association - MERCOSUR.

The EAEU and the Commission are still open to constructive and mutually beneficial dialogue with the European Union. Despite a slight decrease in the intensity of interaction with western countries, the idea of creating a common economic space from Lisbon to Vladivostok remains valid.

Improving the regulatory framework and making steps to deepen integration, the Eurasian Economic Commission jointly with the EAEU countries has achieved significant results in implementation of four "freedoms" within the Union territory. Even today, the business community and citizens of our countries feel effects of establishment of the EAEU.

In 2015, immediately after establishment of the Eurasian Economic Union, the common market of services and the common market of labour were launched. Because of this, people of the Union Member States have equal rights in employment and pay income tax at the same rate as residents. They got the right to social and medical care in any country of the Union. The common law provides for mutual recognition of diplomas in absolute majority of specialties, which significantly increases the mobility of highly qualified specialists. This year, the countries have come close to adoption of the common pension legislation. After signing the Treaty on pension security, citizens of the EAEU countries will be able to receive pensions for the period of their employment from the Union country, where they worked.

Both last year and this year, dozens of modern regulations meeting the highest international requirements have been developed that are necessary to run the common markets of medicines and medical devices. They will start full-scale operation in 2016. The work for ensuring conditions for launching the common electric power market, the common oil, oil products and gas markets is expanding.

The EEC consistently interacts with the business community of the EAEU countries to achieve greater transparency in the Commission activities, to ensure mutual benefit and equality. Interaction is carried out in such formats as Advisory Committees and Working Groups. Creating favourable environment for effective business development in the Union countries, improving regulatory systems and reducing barriers are the main objectives of the Commission.

The Eurasian economic integration has provided a number of positive effects for business. Thus, opening of customs borders within the EAEU allowed companies to significantly reduce the time of delivery of goods to the markets of the Union countries. For some firms, delivery times were reduced three times, and paperwork - by 24 or more hours. Because of this, many manufacturers managed to substantially increase their exports to the EAEU countries.

Since January 1, 2016, the first stage of the four-staged Program for Liberalization of Goods Cabotage Transportation by Road has been launched. It allows carriers registered in the territory of a Member State of the EAEU to transport cargoes by road between destinations located in the territory of another Member State.

The work is under way to ensure access of companies of the EAEU countries to national public procurement markets. Today, such reciprocal access is already provided to companies from Belarus, Kazakhstan and Russia.

Thus, today we can already say that the Eurasian Economic Union has become a kind of "window of opportunities" for dynamic development of our countries. Thanks to the integration, the Union Member States has every chance to take a worthy place in the international community, to resolve the most important challenges of sustainable development, to become one of the most advanced innovative economies.

We would like to congratulate all on this milestone in the history of the Eurasian integration!

The session of the Eurasian Intergovernmental Council approved the Draft Concept of establishment of the common oil and oil product markets in the EAEU

On May 20, Yerevan hosted the session of the Eurasian Intergovernmental Council. It was attended by the Prime Minister of the Republic of Armenia Hovik Abrahamyan, the Prime Minister of the Republic of Belarus Andrey Kobyakov, the Prime Minister of the Republic of Kazakhstan Karim Masimov, the Prime Minister of the Kyrgyz Republic Sooronbay Jeenbekov, the Chairman of the Government of the Russian Federation Dmitry Medvedev, as well as the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan.

The session of the Intergovernmental Council considered a number of issues aimed at further deepening of integration processes in the Eurasian Economic Union (the EAEU), as well as the prospects of development of the EAEU. In particular, participants discussed issues of trade, customs cooperation, economy and financial policy, energy and infrastructure. Particular attention was paid to the issues of expansion of trade and economic relations within the Union Member States.

Addressing the participants of the session with words of welcome, the Prime Minister of the Republic of Armenia Hovik Abrahamyan noted positive dynamics of the establishment of the common goods and services market in the EAEU. According to him, "to achieve strategic economic goals of our countries, it is important to have a joint focus on at least three effects: trade, economy of scale and technological effect.”

As the Head of the Government of Armenia underlined, it was important to increase international and multiple interactions between the EAEU and third countries, that would bring the Union to a higher level of development. In this regard, among the key items of the session agenda Hovik Abrahamyan noted the importance of the work on conjugating the Eurasian project with China's initiative on the establishment of the Silk Road Economic Belt (the SREB). "Legal confirmation of cooperation of the EAEU and China would not only increase trade scope but also attract investments for large infrastructure projects, expand our logistics capabilities. From this point of view, the work on conjugating the Eurasian project of the Chinese initiative to establish the SREB is important, it will connect Europe and Asia through different routes, both through the EAEU countries, including Armenia, and through Iran and India. Having historical experience and as the only country of the EAEU, which has land frontier with Iran, we are ready to implement this project," the Prime Minister said.

As Hovik Abrahamyan noted, particular attention should also be paid to the establishment of the EAEU common markets “the functioning of which will allow us to remove existing barriers to movement of goods, increase the pace and scope of economic cooperation between our countries.” In this context, the Prime Minister of Armenia stressed the importance of the adoption of the Concept of establishment of the common oil and oil product markets.

Speaking at the extended session, in turn, the Chairman of the Intergovernmental Council, the Prime Minister of the Republic of Kazakhstan Karim Masimov reminded that as a priority of the chairmanship, Kazakhstan had proposed to declare 2016 “the year for deepening economic relations of the Union with third countries and key integration associations.” In this regard, the Parties are exploring the feasibility of establishing free trade areas with countries such as India, Israel, Egypt, Iran and others.

As the Head of the Government of Kazakhstan believes, "the focus on cooperation with economically developed and investment attractive countries and associations” should be done. In his view, establishment of interaction between the EAEU and the European Union may be an important factor in the economic development of the continent as a whole. "The long-term goal of cooperation between the EAEU and the European Union should be establishment of a common economic space from the Atlantic to the Pacific. Our President, Nursultan Abishevich Nazarbayev, and the Russian President, Vladimir Vladimirovich Putin told about it not once," Karim Masimov said.

The Prime Minister of Kazakhstan concluded that "Kazakhstan considers integration processes as an opportunity for our countries to become a bridge between East and West, a competitive component of the world economy."

The Heads of the Governments of the EAEU Member States endorsed the Concept of establishment of the common oil and oil product markets within the Union. The document defines the main goals, tasks, principles of establishment of the common oil and oil product markets of the EAEU, their functional structure aimed at cooperation between participants of the common oil and oil product markets of the Union, as well as the stages of their establishment. In accordance with the Concept, energy companies of the Union countries will get non-discriminatory access to oil infrastructure of the partners, will be able to buy crude oil and oil products without quantitative restrictions at a non-discriminatory price without export duties. The document is scheduled to be approved by the decision of the Presidents of the EAEU Member States at the Supreme Eurasian Economic Council on May 31 this year.

The Prime Ministers of the EAEU countries signed the order "On the directives for the negotiation with the People's Republic of China on conclusion of an agreement on trade and economic cooperation between the Eurasian Economic Union and its Member States, on the one hand, and the People's Republic of China, on the other hand”, the disposition “On measures for establishment in the Member States of the Eurasian Economic Union of the commercialised goods traceability system.” The Agreement on movement of service and civilian weapons among the Member States of the Eurasian Economic Union was adopted.

The Heads of the Governments of the EAEU countries decided on timeline for preparation of the Treaty on the Customs Code of the Eurasian Economic Union.

The Prime Ministers of the Union countries endorsed the annual report of the Eurasian Economic Commission on monitoring of regulatory impact evaluation (RIE) of draft decisions of the Commission in 2015. This procedure helps identify unnecessary administrative barriers to doing business in the context of public discussion of draft decisions of the EEC with the participation of representatives of business and expert communities. The report contains information on the outcomes of the EEC draft decisions on RIE in 2015. Monitoring results show that during this period as part of the public discussion of the EEC draft decisions, more than two-thirds of comments and proposals received from representatives of the business community and experts were accepted.

The Intergovernmental Council requested that the EEC continue its work on improving the procedure for the RIE of the Commission's draft decisions. In particular, it was requested to elaborate proposals aimed at ensuring the eventual transition to holding of the RIE in terms of quantitative parameters, as well as at implementation of a pilot project for evaluation of the actual impact of the decisions adopted by the EEC.

In addition, the Heads of the Governments endorsed the report on the acceptance and distribution of amounts of import customs duties between the budgets of the EAEU countries in 2015. It was noted that the mechanism for acceptance and distribution of import customs duties is functioning effectively. Violations related to the distribution and transfer to the budgets of the Union countries of import customs duties in 2015 were not fixed.

The session of the Eurasian Intergovernmental Council decided to hold the next session in Sochi on August 12.

During a press briefing following the session of the Intergovernmental Council, the Prime Minister of the Republic of Kazakhstan Karim Masimov noted that "the session was held as a very constructive dialogue." According to him, "this will help to further develop our Union." The Head of the Government of the Republic of Kazakhstan said, the Intergovernmental Council adopted very important issues in the run-up to the Summit of the Heads of the States to be held in Astana on May 31; some key parameters were identified.

Among them, he mentioned approval of the “milestone document” - the Concept of establishment of the common oil and oil product markets of the Union, as well as approval of timing for adoption of the Customs Code of the EAEU. According to him, approval of the Customs Code of the EAEU, as well as a number of other documents, which are essential for further development of the Union, will be completed at the session of the Intergovernmental Council on August 12 in Sochi and on October 28 in Minsk.

In turn, the EEC Board Chairman Tigran Sargsyan at the press briefing following the session of the Intergovernmental Council said that 2016 was announced the year of deepening and expanding trade and economic relations of the Eurasian Economic Union with third countries and international economic associations. In this regard, he said, the launch of negotiations with the People's Republic of China on the agreement on trade and economic relations between the Eurasian Economic Union and China "is crucial for movement in the direction specified by our Presidents." Tigran Sargsyan noted that the main aim of this agreement is "creation of more favorable conditions for economic entities and citizens of our countries". The EEC Board Chairman expressed confidence that with the right lining up of these international relations there was a very serious potential for stimulating economic growth in the countries of the Union.

Tigran Sargsyan called the Concept of establishment of the common oil and oil product markets of the Union the second "conceptual" document, which was finalised at the session of the Intergovernmental Council.

The EEC Board Chairman also said that at the session they managed to reach a conceptual agreement on the basic principle positions of the other key document - the Customs Code of the EAEU. Tigran Sargsyan stated, that the Customs Code of the EAEU might be approved at the next session of the Intergovernmental Council in Minsk. "We hope that at the next session in Minsk, we will have a final agreement, and we will be also able to approve this document," the EEC Board Chairman said.

A meeting of the President of the Republic of Armenia Serzh Sargsyan with the members of the Eurasian Intergovernmental Council was held

On May 20, in Yerevan in the run-up to the session of the Eurasian Intergovernmental Council, the meeting was held between the President of the Republic of Armenia Serzh Sargsyan and the Heads of the Governments of the Member States of the Eurasian Economic Union (the EAEU) and the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan.

The President welcomed the members of the Eurasian Intergovernmental Council. Serzh Sargsyan stressed that Armenia for the first time hold the session of the Intergovernmental Council and expressed confidence that the session would be productive. "We all joined the Eurasian Economic Union based on our economic interests, based on the interests of our citizens. It is very important that the decisions taken be tangible for business environment, for every buyer of products and services. To achieve this aim, I believe that the most important issue is the removal of barriers, technical barriers, which impede the free movement of goods and services, and thereby reduce the economic impact of the integration process," the President of the Republic of Armenia said.

Noting the large number of issues included in the agenda of the session, Serzh Sargsyan asked the Prime Minister of the presiding country in the EAEU - Kazakhstan, Karim Masimov, to inform, if there is a common understanding on the issues that are on the agenda, and what are the results expected following this session.

The Prime Minister of Kazakhstan, on his and his colleges’ behalf, expressed gratitude for the hospitality and comfortable conditions created for preparation and work of the members of the Intergovernmental Council session. "We have today a working day, where they plan to discuss the issues related to the further development of the Eurasian Economic Union. In the run-up to the meeting of the Presidents we will try today to withdraw most of the issues as to bring only the big strategic issues for further development to the level of the Presidents," the Prime Minister Karim Masimov said.

He said that during the session at the level of the Prime Ministers, with both restricted and extended attendance, a number of issues were planned to be discussed, and during today's discussion, the members of the Eurasian Intergovernmental Council would try to make decisions in this respect.

During the meeting, the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan told about possibilities for cooperation of the EAEU with other integration associations, as well as the prospects of developing relations with individual countries.

At the EEC Council session, macroeconomic targets of the EAEU countries in 2016-2017 have been approved

On May 16, Moscow hosted a regular session of the EEC Council. The event was attended by the following members of the EEC Council: Vice Prime Minister, Minister of international economic integration and reforms of the Republic of Armenia Vache Gabrielyan, First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky, Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, Deputy Prime Minister of the Kyrgyz Republic Oleg Pankratov, First Deputy Chairman of the Government of the Russian Federation Igor Shuvalov, Chairman of the EEC Board Tigran Sargsyan, as well as members of the EEC Board (Ministers).

The EEC Council considered a number of issues in the areas of integration and macroeconomics, trade, economic and financial policy, industry, technical regulation, energy and infrastructure, and customs cooperation.

The EEC Council members approved a draft decision of the Supreme Eurasian Economic Council "On basic guidelines for macroeconomic policies of the EAEU Member States for 2016-2017." It will be presented for consideration of the Supreme Eurasian Economic Council - the Presidents of the EAEU Member States on May 31 this year.

The document defines the most important short-and medium-term tasks for the economies of the Member States and provides recommendations for addressing them. The Main Benchmarks are based on the analysis of the social and economic development of the Union Member States for 2015, results of monitoring of compliance by the Member States with the EAEU macroeconomic indicators, determining the sustainability of economic development, and the results of the implementation of a similar document adopted last year.

The implementation of the Main Benchmarks will help the EAEU States overcome the negative economic situation, improve macroeconomic stability, and restore economic growth.

For the full-scale launch of the common market of medical products in the Union, the EEC Council adopted the rules on carrying out of research (tests) to assess the biological impact of medical products. The document defines mandatory rules for manufacturers of medical products and/or their authorized representatives when applying for the testing of medical products; authorized organizations for the testing of medical products; competent authorities of the EAEU countries when including in the unified register of the authorized organization. The purpose of the decision is to establish a single procedure for conducting tests of medical products and assessment of their compliance with safety requirements and effectiveness to ensure safety for patients and medical staff.

Moreover, the EEC Council amended the EEC technical regulations “On safety of machinery and equipment.” The amendments are aimed at removing uncertainties about the forms of conformity validation of the technological equipment for cafeteria, catering and trade enterprises with the requirements of this document. Business community has got a clearer algorithm for compliance confirmation of the products with the requirements of the document.

Also, the document drafted by the Commission in conjunction with the competent authorities of the Union Member States was approved in accordance with the Protocol on common principles and rules on regulating the activities of the natural monopoly entities. The document provides information on existing regulations (including those on energy efficiency), the activities of regulators, including the judicial practice for complaints and applications on establishing regulated tariffs (prices) and access to services of the natural monopoly entities in the areas of oil and oil products transportation, electric power, and rail transportation. Later this year in May, the Supreme Eurasian Economic Council will consider the information approved by the EEC Council.

Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan met President of the Russian Federation Vladimir Putin

On April 18, Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan met President of the Russian Federation Vladimir Putin in Moscow.

In the course of the meeting, the Parties discussed issues related to the priorities of further development of the Eurasian Economic Union (EAEU), and talked about expansion of economic relations with third countries and integration associations.

President of the Russian Federation Vladimir Putin congratulated Tigran Sargsyan on his appointment to the post of Chairman of the Board of the EEC. He stressed the responsibility that has been bestowed on Tigran Sargsyan's mission in this position, "We know each other very well; we worked together when heading the governments of our countries. Now you have been entrusted with a very important mission. You have become an international official and one of a high rank. I have every expectation that the Eurasian Economic Commission will successfully operate under your stewardship. Viktor Khristenko did a great job laying the foundation, I believe. But there are still many issues and problems we have to resolve by working together."

The Head of State pointed out the importance of fully utilising the advantages of the EAEU, saying that it would assist in resolving challenges faced by the member countries. "This is, actually, what we have created this association for—to foster economic growth and development of the social sphere," noted Vladimir Putin.

The President of the RF wished Tigran Sargsyan every success in his work. "We have a meeting of the Heads of Governments in Yerevan and then a meeting of the Heads of States in Astana in the near future. Which means, we shall be preparing together for these significant events," said Vladimir Putin.

In his turn, the Chairman of the EEC Board thanked the President of the RF for the opportunity to discuss the prospects of the development of the Eurasian Economic Union.

He assured that the accumulated integration capacities would serve the interests of the peoples of the Union member states. Tigran Sargsyan emphasized the necessity of ensuring the consistent operation of the Board of the Commission and its readiness to adequately address newly arising challenges. "We are witnessing a change in the trade and economic space and the global landscape, and the Eurasian Economic Commission, our Union, must be prepared for integration into these global transformations," said the Chairman of the EEC Board.

Tigran Sargsyan assured the President of the RF that the Commission would do "whatever it takes for the directions and priorities identified by the Heads of Governments to be fully implemented."

The session of the Eurasian Intergovernmental Council addressed a number of important issues aimed at further deepening of the integration

On April 13, there was a session of the Eurasian Intergovernmental Council in Gorki, Moscow Region. The summit was attended by the Prime Minister of the Republic of Armenia, Hovik Abrahamyan, the Prime Minister of the Republic of Belarus, Andrey Kobyakov, the Prime Minister of the Republic of Kazakhstan, Karim Massimov, the Prime Minister of the Government of the Russian Federation, Dmitry Medvedev, the Vice Prime Minister of the Kyrgyz Republic, Oleg Pankratov, and the Chairman of the Board of the Eurasian Economic Commission, Tigran Sargsyan.

The session of the Eurasian Intergovernmental Council addressed a number of important issues aimed at further deepening of the integration. In particular, the session attendees discussed issues related to macroeconomics, integration, trade, industry and the agroindustrial complex, the economy and financial policy, competition and anti-trust regulation, the power industry and infrastructure.

Addressing the session attendees with an opening speech, Prime Minister of the Government of the Russian Federation Dmitry Medvedev highlighted the following: “February this year saw the updated composition of the Board of the Eurasian Economic Commission under the leadership of Tigran Sargsyan. The Board of the Eurasian Commission embarked on practical work without delay. We hope that it will act professionally and coherently, ensuring the realisation of our collective interests. Naturally, we wish Tigran Sargsyan and the Board every success in the implementation of their objectives on the agenda of the department they work in.

The Prime Minister of the Republic of Belarus, Andrey Kobyakov thanked the Prime Ministers of the Union countries for their comprehensive, active support of the Belarusian Chairmanship of the EAEU in 2015. “Due to the realisation of our initiatives, the Union has a good foundation for further development of the Eurasian integration”, he emphasised.

Andrey Kobyakov noted that the Eurasian Economic Union (EAEU) is currently working actively on the external boundary, both in the East and West. "Merely a year has passed and the Union has already taken shape and become more that simply an integration association," he said. “And this is the right direction. The world is no longer in the process of division, it has already divided into coalitions. We are surrounded by countries and associations with strong economies. The objective of the EAEU is to take up a worthy place among them."

In addition, Andrey Kobyakov stated that Belarus expected serious progress in eliminating exemptions and restrictions in mutual trade within the EAEU. "In this regard, I propose, that we return to our idea of gathering proposals from the Parties about the priority list of 10-20 exemptions and take measures for their prompt elimination. The Belarusian Side expects serious progress in this work regarding the structural changes in the Commission - the appointment of a Member of the Board of the EEC in charge of the functioning of internal markets and the creation of a relevant Department", said the head of the Belarusian Government.

Taking into account the EEC’s report on the progress of implementation of the working Plan for the development of acts and international treaties in accordance with the Treaty on the Eurasian Economic Union and the Action Plan of the Commission for the implementation of the priorities of the Belarusian chairmanship as set out in the address of the President of the Republic of Belarus, A. G. Lukashenko, to the heads of the Eurasian Economic Union Member States dated January 1, 2015, the Intergovernmental Council charged the EEC and the Union countries to continue their work thereon.

The Plan for the development of acts containing 125 items is a list of acts, regulatory legal and other documents on the Commissions directions and objectives of the specialised EEC departments, structured according to the sections of the Treaty on the EAEU. The Action Plan of the Eurasian Economic Commission, in accordance with the address of the President of Belarus Alexander Lukashenko, includes clear measures and deadlines for their completion with indication of the EEC Ministers responsible for each issue.

The Intergovernmental Council recommended that governments, the central (national) banks of the Union Member States take note of the EEC’s proposals regarding economic measures to improve the sustainability of EAEU Member States' economies.

During the press briefing after the session, the Prime Minister of Kazakhstan Karim Massimov reminded attendees that this year Kazakhstan is chairing the EAEU bodies. "On the proposal of the Chairman of the Supreme Eurasian Economic Council, the President of the Republic of Kazakhstan Nursultan Nazarbayev, 2016 was declared the year of deepening economic relations between the Union and third countries and key integration associations," said Karim Massimov.

In this regard, the Chairman of the EEC Board, Tigran Sargsyan, stressed that during the session, a clear framework was identified for the EAEU cooperation with the European Union and the People's Republic of China.

The fundamentally important result of the Summit, as noted by Tigran Sargsyan, was the agreement of the heads of governments of the Union countries to meet more frequently and discuss the current directions of cooperation. This will allow us to move forward actively and better develop the Union documents. "In particular, we have agreed that at the next session of the Intergovernmental Council in Yerevan we will return to the discussion on the Concept of creating a single market for oil and petroleum products,” the Chairman of the EEC Board said. “In Yerevan, we will also continue our discussion of rail transportation.”

At the session of the Eurasian Intergovernmental Council the decision was made to hold the next session on May 20 in Yerevan.

The Intergovernmental Council approved the Provision on the formation and functioning of Eurasian technology platforms and the concept of creating a Eurasian Machine Tool Engineering Centre

On April 13, there was a session of the Eurasian Intergovernmental Council in Gorki, Moscow Region. The heads of Government of the countries of the Eurasian Economic Union approved the Concept of creating a Eurasian Machine Tool Engineering Centre. The concept was developed by the industrial section of the Commission, in conjunction with the EAEU Member States in accordance with the Main Directions of Industrial Cooperation within the Union. This strategic document defines the Machine Tool Centre as one of the tools of industrial cooperation between the Parties.

The approved Concept identifies the aims and objectives of creating the Centre, as well as the mechanisms for their realisation. The main objective of this integration structure will be the development of innovative technological solutions and the furtherance of their implementation into the production processes of the machine tool complexes of the EAEU countries. It is expected that the Centre’s primary aim will be the development of proposals for optimising efficiency and the localisation of existing enterprises alongside the creation of new high-technology enterprises. It is also set out to build up a logical cooperative chain for the manufacture of innovative export-oriented equipment.

The Concept provides for the possibility of the participation of all the EAEU countries in the establishment and operation of the Eurasian Machine Tool Engineering Centre. The machine tool industry of the Union is currently undergoing a complicated situation due to its critical lag in technological development behind the world leaders in this field. Currently, the Member States’ need for industrial enterprises is met through imports at 90%. The practical implementation of the Concept will provide the foundation for the integration of the Parties’ capacities in the innovative modernisation of the machine tool-building industry, solve the issues of import substitution and deepen industrial cooperation.

The Intergovernmental Council also approved the Provision on the Formation and Operation of Eurasian Technology Platforms. The Provision was developed in order to establish competence centres within the EAEU, stimulating the development of priority sectors of the economy and generate conditions for their continuous technological renovation.

The practical results of the operation of the Eurasian Technology Platforms will be the development and implementation of joint innovative products and technologies into industrial production, and the creation of new high-technology science-based industries.

In the annex to the decision, the heads of Government also identified that technology platforms will be established in some key sectors of the economy. These include: aerospace, information and communications, machine tools, medical, pharmaceutical, chemical, agricultural, nuclear and radiation technologies, and technologies of new materials, food processing, photonics, electronics, and energy and biotechnology.

The Eurasian Intergovernmental Council took the decision to develop the Procedures for organising joint scientific research and development work (SRD) in the spere of the EAEU agroindustrial complex. The Procedure will establish and govern: the interaction between the authorised authorities of the Parties, between the client and coordinator and the client and partner countries; the roles and responsibilities of the client-coordinator and clients from the partner countries; the stages of research; the allocation of intellectual property created within the framework of scientific work.

The joint scientific activities of the EAEU countries will promote the effective use of scientific capabilities, further form a single vector of innovation development in the agro-industrial complex in the Union, and stimulate the production of innovations and technologies and their subsequent integration into the production cycle.

At a session of the Eurasian Intergovernmental Council, Member of the Board - Minister in charge of Economics and Financial Policy of the Eurasian Economic Commission, Timur Suleimenov, presented proposals, developed by the EEC jointly with the Member States of the Eurasian Economic Union (EAEU), for further application of the principle of exhaustion of exclusive rights to trademarks in the EAEU.

The Treaty on the EAEU currently enshrines regional exhaustion of exclusive rights to trademarks on the territory of the Union. It defines the ability to import goods bearing the registered trademark into the territory of the Union Member States by the right holders themselves or by others with their consent.

The Eurasian Intergovernmental Council supported the proposal of the Commission on the application of the differentiated principle of exhaustion of rights, in accordance with which the Eurasian Intergovernmental Council has been granted the authority to establish exceptions to the application of the principle of regional exhaustion of rights in respect of certain types of goods.

The Disposition, approved at the session, charges the Commission, together with Member States, to develop the necessary draft amendments to the Protocol on the protection and enforcement of intellectual property rights (Annex No. 26 to the Treaty on the Union).

For reference

Decision No. 45 by the Council of the Eurasian Economic Commission dated 23 June 2014 and No. 108 dated 18 September 2014 established the Working Group on the development of proposals for further implementation of the principle of exhaustion of exclusive rights to intellectual property headed by Minister in charge of Economics and Financial Policy, Timur Suleimenov. The WG includes officials of the EAEU government bodies, experts representing the major direction in business, as well as members of the Commission.

The Working Group explored the legal, economic and social aspects related to the choice of the principle of exhaustion of rights, discussed the results of numerous studies, organised the survey of members of the WG, and held meetings with the participation of representatives of government bodies and business at the national level.

Following their consideration, the Working Group proposed a differentiated principle of exhaustion of rights in the EAEU, which foresees the retention of the existing regional principle of exhaustion of rights and inclusion in the rights of the Union of the possibility of making exceptions for certain types of goods.

Chairman of the EEC Board, Tigran Sargsyan, met the President of the Republic of Armenia Serzh Sargsyan

On 8 April in Yerevan, Chairman of Board of the Eurasian Economic Commission, Tigran Sargsyan, met the President of the Republic of Armenia Serzh Sargsyan.

The President of the Republic of Armenia expressed concern over the destructive approaches of some of the Eurasian Economic Union partners (EAEU). Serzh Sargsyan stressed that Armenia’s approaches have not changed and it is ready to continue constructive steps aimed at the development of the Union, which are derived from overall economic benefits.

During the meeting, the Parties discussed issues related to the priorities of the further development of the EAEU, and exchanged views on deepening economic relations with third countries and integration associations.

In his turn, the Chairman of the EEC Board, Tigran Sargsyan, thanked the President of the Republic of Armenia for the opportunity to discuss the topical issues of Eurasian Economic integration.

The meeting saw the discussion of the full launch of the common markets of medicines and medical products, the improvement of the EAEU customs legislation, eliminating barriers and exemptions in mutual trade, and the creation of the EAEU digital space. Tigran Sargsyan noted that the Commission, together with the EAEU countries, is carrying out serious work in each of these directions.

Chairman of the Board of the EEC, Tigran Sargsyan, met the Prime Minister of the Republic of Armenia, Hovik Abrahamyan

On 8 April in Yerevan, the Chairman of Board of the Eurasian Economic Commission, Tigran Sargsyan, met the Prime Minister of the Republic of Armenia, Hovik Abrahamyan.

The Prime Minister congratulated Tigran Sargsyan on his appointment to the high office of Chairman of the EEC and expressed his belief that Mr Sargsyan would apply his experience and knowledge in order to develop the economies of the countries of the Eurasian Economic Union (EAEU).

The head of the Government of the Republic of Armenia expressed concern over the postponement of the session of the Eurasian Intergovernmental Council in Yerevan, which had been scheduled for 8 April, stressing the importance of mutual constructive approaches to the development of the EAEU.

The Chairman of the Board of the EEC thanked Hovik Abrahamyan for his reception and the opportunity to discuss the priorities of the development of the Eurasian Economic Union.

Tigran Sargsyan also stated that Armenia's position and assessment are important for the further advancement of Eurasian integration which takes into account the overall benefits and features of the union States. This will facilitate their economic development and create conditions for a better business climate. According to Tigran Sargsyan, the Commission continues its work in this direction and is counting on the cooperation of the Government of Armenia.

The Chairman of the Board of the EEC drew attention to the prompt decision made by the Armenian Government to lift value-added tax when importing vehicles from EAEU countries by individuals for personal use.

The meeting also addressed the theme of eliminating barriers and exemptions in mutual trade between EAEU countries, in particular with regard to Armenian products.

The Prime Minister of the Republic of Armenia Hovik Abrahamyan raised the question of a value added tax refund when exporting goods from Armenia to EAEU countries, given the existence of borders. He noted that this issue is constantly voiced by representatives of the business community in Armenia. In turn, the Chairman of the EEC Board stressed that the Commission was considering this question. It will be paid more attention, taking into account the wishes of the Armenian side.

The EEC lifted import customs duties on goods for the construction of the third Iran-Armenia power transmission line

On 6 April in Moscow, the regular session of the Eurasian Economic Commission was held via videoconference. A number of issues were reviewed in the field of integration and macroeconomics, trade, customs cooperation, and economic and financial policies.

The event was attended by members of the EEC Council: Deputy Prime Minister, Minister of International Economic integration and Reforms of the Republic of Armenia, Vache Gabrielyan, First Deputy Prime Minister of the Republic of Belarus, Vasily Matyushevsky, First Deputy Prime Minister of the Republic of Kazakhstan, Bakytzhan Sagintayev, Deputy Prime Minister of the Kyrgyz Republic, Oleg Pankratov, First Deputy Prime Minister of the Russian Federation, Igor Shuvalov, as well as Chairman of the Board of the Eurasian Economic Commission, Tigran Sargsyan and Members of the Board - Ministers of the EEC.

In particular, the EEC Council approved the draft disposition of the Eurasian Intergovernmental Council “On progress in implementing the work plan of the development of acts and international treaties in accordance with the Treaty on the Eurasian Economic Union (EAEU) dated May 29, 2014 and Action Plan of the Eurasian Economic Commission for the implementation of the priorities of the Belarusian Chairmanship set out in the address by the President of the Republic of Belarus, A. G. Lukashenko, to heads of the Member States of the Eurasian Economic Union of January 1, 2015.” These documents will be submitted to the Eurasian Intergovernmental Council for consideration.

In addition, EEC Council members decided on the lifting of import duties on equipment and spare parts imported into the Republic of Armenia for the construction of the third Iran-Armenia power transmission line. "This measure is aimed at ensuring the implementation of Armenia’s international commitments for the construction of the third Iran-Armenia power transmission line,” explained Member of the Board - Minister in charge of trade of the EEC, Veronika Nikishina. “The list of goods includes various spare parts and equipment necessary for the construction and operation of transmission lines, including structural steel, ropes, cables, plaited bands, electrical apparatus for wiring or protecting electrical circuits, electrical transformers, static converters, etc. To receive preferential tariffs, importers should submit confirmation of the destination of imported goods to the Customs Authorities of the Republic of Armenia.”

In the sphere of economics and financial policy, the further application of the principle of exhaustion of exclusive trademark rights in the EAEU countries was reviewed.

Currently, the Treaty on the EAEU on the territory of the Union enshrines the regional principle of exhaustion of the exclusive right to a trademark. It provides for the direct introduction of goods into civil circulation on the territory of the Union countries by the copyright holder or other entities upon obtaining consent. Thus, the import of particular goods is only possible in case where official dealers have obtained permission to do so.

The EEC proposes considering the possibility of introducing a differential principle of exhaustion of rights, providing for the preservation of regional exhaustion of rights enshrined in the Treaty on the Union, with the possibility of making exceptions for certain types of goods on a temporary or permanent basis. This means the possible introduction of "parallel" imports on a range of products.

At present, the Parties are discussing the possible introduction of "parallel" imports, primarily on consumer goods. Russia proposes, first of all, considering the possibility of establishing an international principle of exhaustion of the right to medicines, medical devices and car spare parts. The decision should be adopted with all due consideration of the positions of all Parties.

The EEC has a functioning Working Group on the Elaboration of Proposals for the Further Application of the Principle of Exhaustion of Exclusive Intellectual Property Rights in the Union. Following the consideration of possible options, it proposed introducing a differentiated principle of exhaustion of rights.

The Working Group explored the legal, economic and social aspects related to the choice of the principle of exhaustion of rights, discussed the results of numerous studies, organised a poll of the members of the Working Group, and held a series of meetings with representatives of public authorities and business at the national level.

Should the EEC Council and subsequently the Eurasian Intergovernmental Council (EIC) approve the principle of exhaustion of rights, it will be necessary to supplement the Protocol on the Security and Protection of Intellectual Property Rights (Annex No. 26 to the Treaty on the Union) with a regulatory law that grants authority to the Eurasian Intergovernmental Council to establish exceptions from the application of the principle of regional exhaustion of rights in respect of certain categories of goods, as well as determine the procedure for establishing such exceptions.

The issue will be addressed at the session of the Eurasian Intergovernmental Council.

For reference:

The Working Group on the Elaboration of Proposals for the Further Application of the Principle of Exhaustion of Exclusive Intellectual Property Rights was founded by Decision No. 45 of the Council of the Eurasian Economic Commission dated June 23, 2014. The Working Group is chaired by Member of the Board - Minister in charge of Economics and Financial Policy, Timur Suleimenov. The composition of the Working Group approved by Decision No. 108 of the Council of the Eurasian Economic Commission dated September 18, 2014, comprises officials of the authorised authorities of the EAEU countries, experts from the business community, as well as the employees of the Commission.

Chairman of the EEC Board Tigran Sargsyan met with the President of the Republic of Belarus Alexander Lukashenko

On March 24 in Minsk, the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan met with the President of the Republic of Belarus Alexander Lukashenko.

During the meeting, they discussed relevant issues related to the development of the Eurasian Economic Union (the EAEU), deepening economic relations between the association and third countries, as well as priorities for further development of the integration association and the overall strategy of the Union countries’ actions in the context of global markets.

The President of Belarus Alexander Lukashenko stressed that the Eurasian Economic Union should be no worse than the European Union. "We have no way back. We need to improve the Eurasian Economic Union, and create a Union that is no worse than the EU. Otherwise, our words will appear empty before our people,” the Head of State said.

Alexander Lukashenko noted that the EAEU, established in a relatively short period of time, had already seen sufficient success. "But there is still a great number of drawbacks and outstanding issues requiring solution due to both objective and subjective reasons. Therefore, all involved will have to bear the strain, from the Commission to the Presidents and Prime Ministers, in order to bring about a high level of functioning of the Eurasian Economic Union," the President said.

In 2015, Belarus chaired in the EAEU and proposed an action plan for development of the Union. “For various reasons many issues could not be resolved until the end,” Alexander Lukashenko stated. “We left some areas seriously under-developed, there were many uncertainties. Kazakhstan's accession to the WTO also left its mark, we had to adapt," the Head of State reminded.

Despite the problems, Alexander Lukashenko is optimistic about the future of the EAEU. "Life will force us to move very quickly in terms of the formation of our Union, aligning the formula we have repeatedly talked about. So that we have within our national borders real freedom: markets, capital, and labour. So that our national problems do not hinder development of our common interests and prevent us finding the solution to the issues that we face," the President stated with confidence.

In turn, the Chairman of the EEC Board Tigran Sargsyan thanked the President for the opportunity to discuss the relevant issues related to the integration processes within the Eurasian Economic Union. "I'd like to see that, given the enormous experience gained and work undertaken on the establishment of the common economic space, we managed to imbue the interaction between the EAEU countries with a new impetus. To let our citizens and our businesses feel the real return of the Eurasian integration exactly today, when we can see that the world is undergoing significant transformation, and new challenges and threats to our cooperation are emerging," the EEC Board Chairman stressed.

According to Tigran Sargsyan, “it will be easier for us together to overcome the challenges that modern life brings." The Chairman of the EEC Board expressed his confidence that the priorities identified by the President of Belarus during its Chairmanship of the EAEU bodies in 2015 have not lost their relevance. "We have a lot to finalise within the working plan, which was approved by the EEC Board. There is still much to be done, in order to become a common economic space in reality," Tigran Sargsyan said.

During the press briefing after the meeting, the Chairman of the EEC Board identified the key focus areas of the development of integration processes in the Eurasian Economic Union. According to Tigran Sargsyan, they are directly linked to the effectiveness of the Eurasian Economic Commission’s work. "We have created a unique institution,” the Chairman of the EEC Board said in this regard, “that has necessary authority, good professional staff, and that has acquired certain skills over the last four years. It is vital that the Commission give decent results. It is of fundamental importance.”

Among the main focus areas of the Commission's work and cooperation between the Union countries, Tigran Sargsyan emphasised modern technologies, the creation of a single information space that will enhance efficiency, productivity and competitiveness in all sectors of the economies of the EAEU.

"The Commission will continue implementing projects that our citizens and business of our country await, because the results of our work are evaluated by how we create favorable conditions for our citizens and businesses. We must focus on this in particular," the Head of the EEC Board said.

Furthermore, Tigran Sargsyan highlighted:

"It is vital that we clearly define and submit for approval by our Presidents our strategic, medium-term and tactical objectives. From this point of view, it is necessary to present to the Heads of States our holistic vision, a comprehensive document outlining how the Union will position itself within global trends, and how we will move forward. I discussed in detail the preparation of the strategy, which will be the focus of the Heads of the EAEU States, with the President of Belarus.

In terms of advanced technologies we have great potential, particularly, in light of Belarus’ experience, since it is well known that this segment of the Republic's economy is developing relatively rapidly, special conditions for new technologies have been created, there is intellectual potential, and the infrastructure has been built. We can see that Belarusian specialists are creating new products at the highest level that enhance productivity in all sectors. And this is a modern trend.”

Chairman of the EEC Board Tigran Sargsyan met with Prime Minister of Belarus Andrei Kobyakov

On March 24, the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan met with Prime Minister of the Republic of Belarus Andrei Kobyakov in Minsk.

During the meeting, the Parties discussed current issues and priorities for the development of Eurasian integration.

The Head of the Government of the Republic of Belarus Andrei Kobyakov congratulated Tigran Sargsyan on his appointment as Chairman of the EEC Board and wished him success in his work. He noted that it was a position of responsibility in a difficult period of time. Andrei Kobyakov stressed: “You are currently at the helm of the main executive body of the Eurasian Economic Union.” According to the Prime Minister, the Republic of Belarus is ready to support the Chairman of the EEC Board with its capabilities.

In turn, Tigran Sargsyan thanked Andrei Kobyakov for the congratulations and noted that these words impose great responsibility on him: he would “work to achieve results in order to justify the trust put in him.”

Tigran Sargsyan spoke about the main activities of the EEC Board. One of these is promoting industrial cooperation between the Member States of the Eurasian Economic Union (EAEU) based on high technologies and attracting investment in joint projects. In this regard, the Member States of the Union are facing the challenge of combining industrial capabilities, consolidating efforts in doing business on a cooperative basis in the form of joint ventures, production and exports of joint products and joint positioning on the market of third countries.

As noted by Tigran Sargsyan, the international activities of the EAEU, which include the conclusion of agreements on free trade areas (FTA) with third countries, would contribute to exports from the Member States of the Union, attracting investments and overall growth of the economies of the EAEU Member States, including Belarus, through the creation of effective conditions for the diversification of trade and economic relations.

The EEC Council approved the Plan to implement the Main directions of industrial cooperation in the EAEU and decided to establish a Working Group on formation of the digital agenda of the Union

On March 17, a regular session of the Council of the Eurasian Economic Commission was held in Moscow. The event was attended by Members of the EEC Council: the Vice Prime Minister, the Minister of international Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, the First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky, the First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Deputy Prime Minister of the Kyrgyz Republic Oleg Pankratov, the First Deputy Prime Minister of the Government of the Russian Federation Igor Shuvalov as well as the Chairman of the Board of the Eurasian Economic Commission Tigran Sargsyan and Members of the EEC Board - Ministers.

The EEC Council considered a number of important issues in the areas of integration and macroeconomics, trade, economy and financial policy, industry and agroindustrial complex, technical regulations, domestic markets, information support, and information and communication technologies.

Members of the EEC Council approved the Plan to develop the EEC instruments and measures on implementation of the Main directions of industrial cooperation in the framework of the Eurasian Economic Union ( the EAEU MDIC). The document provides for specific activities and practical actions of the Union Member States and the Commission to enhance industrial cooperation within the EAEU. Regulatory development activities on preparation of legal acts of the Union, necessary for implementation of practical cooperation among the Member States in accordance with the MDIC are also planned.

The Member of the Board - Minister in charge of Industry and Agroindustrial Complex Sergey Sidorskiy explained that the action plan in the area of industrial policy is designed for medium and long term. "The document relates, first and foremost, to the existing production facilities defining the individual economies of the Union Member States. The parties will jointly address issues of import substitution, cooperation with access to high-tech innovative production ", Sergey Sidorskiy said.

The EEC Council also endorsed the Draft Regulation on Formation and Operation of Eurasian Technological Platforms, which will be submitted to the Heads of Government of the Union Member States at the next session of the Eurasian Intergovernmental Council. "We are going to come to creation in the EAEU of technological platforms that will consolidate the best scientific and engineering developments and ensure the transfer of technologies. The technological platforms are planned to develop in innovative fields in the first place, such as nano- and biotechnologies, creation of modern medical equipment and others", the EEC Minister stressed.

Formation and operation of the Eurasian technological platforms will promote mutually beneficial innovative development of national industrial complexes, establishment of competence centres in the EAEU Member States, systematic technological upgrading and improving the global competitiveness of the industry.

In addition, the EEC Council decided to establish a Working Group, which will discuss the digital agenda of the Eurasian Economic Union. The Working Group will include representatives of public authorities, business and expert communities from the EAEU Member States. Until December 1, it is scheduled to elaborate proposal on formation of the digital space of the Union in the following areas: digital upgrade of integration processes, digital markets, digital infrastructures, institutions for development of digital economy. Collaboration of the Parties will give an understanding of the relevant digital agenda, showing exactly where the most effective solutions can be found in the digital space.

The EEC Council adopted the Procedure of forming and maintaining a Unified List of Products of the EAEU Member States, in respect of which mandatory safety requirements are established

On March 17, the session of the EEC Council approved the Procedure of forming and maintaining the Unified List of Products, in respect of which mandatory safety requirements are established within the Eurasian Economic Union (the EAEU).

The Procedure established by the Commission provides for reasons, based on which products may be included in the Unified List. The document defines the format for preparation and submission of proposals to the Commission on inclusion of products in the Unified List, on their excluding from the List, on amending the name of the type or group of products included in the Unified List. The Treaty on the Eurasian Economic Union implies that the Union technical regulations or mandatory national requirements apply only to products included in the Unified List.

The EEC Council adopted the Procedure of metrological certification of measurement method (methods). The document establishes the EAEU uniform rules for metrological certification of measurement method (methods), provides for carrying out certification by authorized organizations and issuing certificates of attestation in a unified form. The document is aimed at ensuring recognition of the results of works on metrological certification of measurement techniques (methods) by the Union Member States without additional procedures. The EEC Council also established transitional provisions that will help market participants to adapt to the new conditions. The Procedure will begin to apply from the date of entry into force of the regulations for the mutual recognition of the results of works on unification of measurements. Before the date of entry into force of the Procedure, certification shall be carried out in accordance with the national legislation of the EAEU Member States. The documents issued on the basis of its results shall be valid until termination of the respective certified measurement procedures (methods) defined in accordance with the legislation of each Union Member State.

The EEC Council approved a List of issues, on which the EEC Board has to conduct consultations within the Advisory Committee on technical regulations, sanitary, veterinary and phytosanitary measures before adoption of the decision of the EEC Board or Council. The List comprises 50 issues, including the approval of the Procedure for development and adoption of technical regulations of the EAEU, the Procedure for their amending and cancellation; the Procedure for importing products subject to mandatory conformity assessment on the customs territory of the Union; the Unified List of products (goods) subject to state sanitary and epidemiological control, etc.

Chairman of the Board of the EЕС, Tigran Sargsyan, met the President of the Kyrgyz Republic, Almazbek Atambayev

On February 26, in Bishkek Chairman of the Board of the Eurasian Economic Commission, Tigran Sargsyan, met the President of the Kyrgyz Republic, Almazbek Atambayev.

During the meeting they discussed issues related to key areas of the ongoing activities of the Eurasian Economic Union (EAEU), solutions for the urgent tasks and priorities for the further development of integration association.

Almazbek Atambayev noted that Kyrgyzstan's membership in the EAEU coincided with difficult processes in the world economy, which poses new challenges to all participants of the Union. "It is vital that the hopes of the Kyrgyz people come true after the integration," stressed the President of the Kyrgyz Republic.

The meeting participants discussed the implementation of activities within the framework of the accession of Kyrgyzstan to the Eurasian Economic Union and the measures taken to improve the efficiency of the country's participation in Eurasian integration.

Chairman of the Board of the EEC, Tigran Sargsyan, noted the need to increase the competencies of the Board of the Commission for operational decision-making on relevant economic issues, and the prospects of cooperation of businesses of the Union countries for the purpose of stable development of the economies of Member States.

Chairman of the Board of the EЕС, Tigran Sargsyan, met the President of Kazakhstan, Nursultan Nazarbayev

On February 25, in Astana Chairman of the Board of the Eurasian Economic Commission, Tigran Sargsyan, met the President of the Republic of Kazakhstan, Nursultan Nazarbayev.

During the meeting, they discussed the issues of the current development of the Eurasian Economic Union (EAEU), the association’s deepening economic relations with third countries, as well as the overall strategy of the actions to be taken by the EAEU Member States in the prevailing conditions in global markets.

The President of the Republic of Kazakhstan, Nursultan Nazarbayev, emphasised that Tigran Sargsyan’s Presidency of the EEC Board fell on hard times in the world economy, and in these circumstances it is not easy to find new points of growth.

“However, all these hardships are in no way related to the work of the Eurasian Economic Union. I have no doubt as to the ultimate benefit of our integration association. Especially since today many countries are expressing their wish to join the EAEU or create a common free trade zone with the Union. The crisis is a temporary phenomenon while the overall potential of our economies and market volumes remain,” Nursultan Nazarbayev said.

As noted by the President of Kazakhstan, membership in the integration association implies not only taking advantage of opportunities but also the need to contribute to its development.

Tigran Sargsyan noted that the position of President Nursultan Nazarbayev regarding the EAEU’s overall development strategy was crucial, because the Kazakh President's initiatives and ideas formed the basis of the established common Eurasian space. The Chairman of the Board of the EEC expressed confidence that in the year of the Presidency of Kazakhstan, integration processes will be given a new impetus towards development.

Tigran Sargsyan reported that the Board of the EEC had been tasked with examining the appeal of the President of Kazakhstan to the heads of the Member States. A relevant plan was drawn up to implement the main provisions of the appeal. Furthermore, Tigran Sargsyan spoke about the main directions of the current activities of the EEC Board.

The Chairman of the EEC Board, Tigran Sargsyan, met with the Chairman of the Government of the Russian Federation, Dmitry Medvedev

In Moscow on February 16, the Chairman of the Board of the Eurasian Economic Commission, Tigran Sargsyan, met with the Chairman of the Government of the Russian Federation, Dmitry Medvedev.

The Chairman of the Government of the Russian Federation wished success to Tigran Sargsyan in his new office as the Chairman of the EEC Board and in this regard noticed: "It's a tough job, but I believe, it’s interesting as it aims at integration, at achieving great results that are of benefit to all countries forming the Eurasian Economic Union".

Dmitry Medvedev emphasised the importance of interaction between the Government of the Russian Federation, as well as the Governments of other Member States of the Union with the Eurasian Economic Commission - a supranational regulator. This, according to the Chairman of the Russian Government, is required to address the pressing challenges of Eurasian integration: first and foremost, to improve the Union regulatory framework and to seek solutions in the most varied and occasionally very difficult situations that arise in the work of the Eurasian Economic Union (the EAEU).

In addition, during the conversation Dmitry Medvedev highlighted that the deliveries of Russian goods in transit through the territory of the Ukraine is a current international problem, which, according to him, should be tackled in close cooperation with partner countries of the Union. The Russian Federation is currently engaged in consultations on this matter with colleagues on the Eurasian Economic Union. “All this falls under the issues that must be negotiated in the format of the Eurasian Economic Union, too", Dmitry Medvedev noted.

Tigran Sargsyan thanked Dmitry Medvedev for his kind words and said that citizens and businesses of the EAEU countries have big expectations of real results from integration.

“I realise the responsibility that currently rests with me and my colleagues in the Commission," Tigran Sargsyan said. – “We have to show that integration works. It will be an additional incentive for integration processes. And your support will help us move forward more effectively. Our meetings in the context of the work of the Eurasian Economic Commission will be regular. This will certainly help to address a great deal of issues as quickly as possible".

Message from Nursultan Nazarbayev, the President of the Republic of Kazakhstan, to heads of the Member States of the Eurasian Economic Union

The Eurasian Economic Union is an important integration association, contributing to the creation of stable conditions for the development of the economy and new opportunities for the well-being of citizens.

We consider the Eurasian Economic Union an open economic community, naturally integrated into the global economic system as a reliable bridge between Europe and the growing Asia.

Amid the slowdown of the world economy, the efforts of our States to develop economic integration, create a common market for goods, services, capital and labour can become key sources of diversification and growth of economies. Expansion of trade and economic relations with key partners and new growing markets should become the impetus for enhancing the role of the Eurasian Economic Union across the continent.

What appears important in this regard is allying the Eurasian Economic Union with the initiative for the construction of the Economic belt along the Silk Road, and deepening cooperation with the Shanghai Cooperation Organization and the European Union. In this regard, 2016 should become the start of practical work on the long-term creation of free trade zones of the Member States and the SCO.

I suggest that we declare 2016 “The year of deepening economic relations of the Union with third countries and key integration associations.”

Our Governments, in close collaboration with the Commission should study these issues with our key partners and resolve them to the benefit of all.

I am convinced of the need to work on strengthening the competitiveness of the economies of our Member States in the global economy, improving the business climate and increasing their investment attractiveness.

In this respect, it is important to improve our customs regulations in the Union's Customs code that is currently under consideration, simplify customs administration procedures for participants of foreign economic activity, create and implement "single window" mechanisms for export and -import transactions.

It is important to use the tools for technical, customs and tariff regulation in order to facilitate the diversification of the economies of the Union Member States, in full conformity with the World Trade Organization rules.

We consider the coordination of cooperation on sanitary, veterinary and phytosanitary control to be relevant.

In order to ensure the free movement of energy resources and realize the export potential of our countries, I propose that we enforce the adoption and implementation of programs to develop common markets of electric power, oil and oil products, and gas.

Kazakhstan pays great importance to the creation of the common financial market within the Union. In this regard, I believe it is necessary to prepare the legal framework for the harmonization of the laws of the Union Member States in the financial sphere in 2016.

It is significant to ensure one of the basic principles of the Union: the functioning of the single market without exclusions and restrictions upon completion of the transitional periods. Any measures that the Member States undertake with regards to third countries should not have a negative impact on the other members of the integration process, including in terms of freedom of transit of goods through the territory of the Eurasian Economic Union.

I reaffirm the intentions of Kazakhstan under the Presidency in the Union bodies to contribute to the strengthening of economic cooperation and equitable cooperation between our countries and hope that Kazakhstan's initiatives will be supported by partner countries of the Eurasian Economic Union.

I am convinced that the implementation of the said principles of the Union will serve as a powerful impetus for the further dynamic development of our Union.

The Chairman
of the Supreme Eurasian
Economic Council 

N.A. Nazarbayev

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The updated EEC Board began its work

On February 1, 2016, the updated EEC Board under the leadership of the new Chairman of the Eurasian Economic Commission, Tigran Sargsyan, started work.

It was approved in the last December at the session of the Supreme Eurasian Economic Council by the Presidents of Eurasian Economic Union (EAEU).

By the decision of the Supreme Eurasian Economic Council, each country of the Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia) is now represented in the Council by two, instead of three, members of the Board (Ministers).

Therefore, from February 1, the Board consists of 10 members.

However, the Presidents of the EAEU countries have maintained continuity: eight of ten newly appointed EEC Ministers previously held similar positions.

The only new face in the Board, other than the Chairman, is Veronika Nikishina (representative of the Russian Federation) who replaced her predecessor Andrey Slepnev as Minister for Trade.

In accordance with the Decision of the Supreme Council of the Eurasian Economic Union, a new position was introduced to the Commission - Member of the Board – Minister in charge of Domestic Markets, Informatisation, and Information and Communication Technologies.

This post has been taken by Karine Minasyan (Republic of Armenia).

According to the Treaty on the EAEU, the EEC Board’s term of office is four years.

The updated EEC Board

Tigran Sargsyan

- Chairman of the EEC Board

Tatyana Valovaya

- Member of the Board – Minister in charge of Development of Integration and Macroeconomics

Timur Suleimenov

- Member of the Board – Minister in charge of Economy and Financial Policy

Sergey Sidorskiy

- Member of the Board – Minister in charge of Industry and Agroindustrial Complex

Veronika Nikishina

- Member of the Board – Minister in charge of Trade

Valery Koreshkov

- Member of the Board – Minister in charge of Technical Regulation

Mukay Kadyrkulov

- Member of the Board – Minister in charge of Customs Cooperation

Danil Ibrayev

-Member of the Board – Minister in charge of Energy and Infrastructure

Nurlan Aldabergenov

- Member of the Board – Minister in charge of Competition and Antitrust Regulation

Karine Minasyan

- Member of the Board – Minister in charge of Domestic Markets, Informatisation, Information and Communication Technologies.

VIKTOR KHRISTENKO, CHAIRMAN OF THE BOARD OF THE EURASIAN ECONOMIC COMMISSION: SEASON’S GREETINGS

Dear colleagues,

The first year of full operation of the Eurasian Economic Union (EAEU) is now over. However, the first four-year managerial cycle of the functioning of the first post-Soviet Eurasian supranational body - the Eurasian Economic Commission – is coming to an end. In 2016, the second Board of the Commission will start working.

The integration process is an unbreakable chain of consecutive actions. We have been moving step by step, while keeping in mind an important condition - the first hurricane must not sweep away the structure of integration, for which a deep and solid foundation is required.

Without being excessively pathetic, we can consider the current processes as historical. For quite a short period of time we have managed to create and “place into orbit” the executive body of the Union - the Eurasian Economic Commission. To accelerate the integration processes at the stage of the Customs Union (CU), a lot has been done in a number of sectors of the economy - in trade, technical regulation, customs administration, and competition policy.

This allowed launching the Common Economic Space (CES), and then, having developed the necessary regulatory framework to deepen the integration, to step up to the level of the Eurasian Economic Union since January 1, 2015. In addition to what has been implemented at the stages of the Customs Union and the Common Economic Space, it means the transition to the single market implementing the freedom of movement of goods, services, capital, and labour; the introduction and implementation of agreed policies in key sectors: transport, industry, power, and agriculture; the coordination of macroeconomic policies, and ensuring equal rights in the field of labour migration for citizens of the Union Member States.

In 2015, a single services market became operational within the Eurasian Economic Union. In 2016, a single market for medicines and medical products will get started. Around the corner there is a launch of a common energy market, and then a common market for oil, petroleum products and gas.

New partners - Armenia and Kyrgyzstan - joined the Union. The Eurasian Economic Union has become a full-fledged subject in the international arena, introducing its own pool of trade and economic relations with the leading and perspective economic centers: China, India, Vietnam, Iran, Egypt, Israel, countries of Latin America, and maintaining relations with its traditional partners. I am convinced that the essential element of our long-term strategy of economic cooperation should be the direct dialogue between the Eurasian Economic Commission and the European Commission.

All the time, we have been in close dialogue with the business communities of our countries, tried to make the supranational regulations more effective than the national ones, using the best international practices, norms, and WTO standards as the basis.

Of course, the more we do, the more questions arise that need answering. We cannot say that we have done everything we had planned for these four years. Moreover, we have already enjoyed the benefits of the first steps of simplifying and harmonizing procedures and removing boundaries. It definitely had its positive effects. And I am sure that the current examples of problems and conflicts are the effects of under-integration.

Therefore, in the future we have to be all the more engaged in the development of uniform standards, elimination of exceptions and limitations, barriers and obstacles for the effective operation of single markets. This will give an additional impetus to the internal development of the economies of the Member States of the Union and the growth of their influence at the international level.

EAEU is an open association, a window of opportunities. This is an economic project. It is deprived of political component, and stays focused on business interests, improvement of regulatory frameworks, and easing barriers.

Behind the “front-end” of the complex and conflicting global agenda, there is a very important process going on: the world has come to the real-life multi-polarity.

New centers have emerged, that are dissatisfied with their position in the world system, their influential capabilities on decisions taken by the existing global institutions.

At the same time, everyone understands that they can either survive or be heard alone. Everybody is trying to find a platform, a group that ensures the implementation of their own projects at their best.

Therefore, every group of players with close understanding of the purposes is searching for formats of joint formulation of their interests, including for the purposes of changing the old rules within the framework of global institutions.

The onset of the regionalization trend is an attempt to find an answer to these challenges, a chance to find new forms of interaction. The Eurasian Economic Union is in the trend in this sense.

The future will depend on the effectiveness of the internal structure of integration unions and effectiveness of communication between them. The future outlines of the world order will be born in this dialogue.

The Eurasian Economic Union has all the prerequisites to take its rightful place in this future.

The past year was difficult for all of us. But this should not keep us from the pleasure of spending the holidays with our families, recalling good moments, thinking about the future, restoring ourselves to start a new year with new ideas and interesting projects.

I wish success, health and wellbeing to you and your families!

Happy New Year!

Chairman of the EEC Board  
Viktor Khristenko

Heads of EAEU Member States approved new list of EEC Board Members

On December 21, at the session of the Supreme Eurasian Economic Council (SEEC), Heads of the Member States of the Eurasian Economic Union (EAEU) – the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, and the Russian Federation – adopted the decision on the chairmanship within the EAEU bodies, personal composition and sharing of responsibilities between the Members of the EEC Board. The Presidents of the EAEU Member States also determined the milestones for further development of integration association.

In 2016, the Member State chairing the Supreme Eurasian Economic Council, the Eurasian Intergovernmental Council and the Council of the Eurasian Economic Commission will be the Republic of Kazakhstan. Chairmanship will pass from Belarus to Kazakhstan.

Due to the end of office term of the EEC Ministers, which are elected every four years, the Presidents of the EAEU Member States have approved a new list of members of the Commission Board. Now, each EAEU Member State will have two representatives in the EEC Board. The new list of members of the EEC Board will assume duties on February 1, 2016.

The Chairman of the Board Viktor Khristenko commented on the Decision of the SEEC: "Five persons have been working in the EEC Board from its beginning, 3 persons were included in it after the accession of Armenia and Kyrgyzstan, and 2 persons are new. Thus, continuity of the EEC Board is ensured."

According to the Decision of the Presidents of the EAEU Member States, a new position will appear in the Board of the Commission: Member of the Board – Minister in charge of Internal Markets, Informatization, Information and Communication Technologies. This position will be occupied by Karine Minasyan, who was the Minister of the EEC from Armenia beginning from January 2015.

Next year, the Minister of the EEC from the Kyrgyz Republic Danil Ibrayev will become the Minister in charge of Energy and Infrastructure of the EEC. Currently, this position is occupied by Tair Mansurov (Kazakhstan). Another representative of Kyrgyzstan Mukay Kadyrkulov will become the Minister in charge of Customs Cooperation of the EEC, thus replacing Vladimir Goshin (Belarus) on this position.

A new person in the Board of the Commission will be Veronika Nikishina (the Russian Federation), who will be the Minister in charge of Trade of the EEC replacing Andrey Slepnev (the Russian Federation) on this position.

The following Ministers will remain on their positions: Tatyana Valovaya (the Russian Federation) will remain the Minister in charge of Integration and Macroeconomics of the EEC, Valery Koreshkov (Belarus) – the Minister in charge of Technical Regulation of the EEC, Sergey Sidorskiy (Belarus) – the Minister in charge of Industry and Agroindustrial Complex, Timur Suleimenov (Kazakhstan) – the Minister in charge of Economy and Financial Policy, Nurlan Aldabergenov (Kazakhstan) – the Minister in charge of Competition and Antitrust Regulation of the EEC​.

Decision on the nomination of the Chairperson of the EEC Board has been made by the Presidents of the EAEU Member States in October this year. New Chairperson will be a representative of Armenia Tigran Sarkisyan, who is currently the Ambassador of the Republic of Armenia in the USA. Earlier, from 2008 to 2014, he held the position of the Prime Minister of Armenia.

The SEEC Members also approved the budget of the Eurasian Economic Commission for the next year and agreed on the population census in the EAEU Member States in 2020.

In addition, the Decision on amending the Programme of staged liberalisation of cabotage transportation of cargo by road for 2016-2025 has been adopted. Amendments are made in connection with the accession of Kyrgyzstan to the said Programme. Implementation of the Programme will start on January 1, 2016. The document allows for road transportation companies of the Eurasian Economic Union to gain access to the internal market of cargo transportation, to minimise empty cargo runs, as well as to reduce transportation costs for consumers of the services related to transportation of cargo by road.

Issue on harmonization of the EAEU and the project of the Silk Road Economic Belt was also considered at the SEEC session. Work on creation of the road map for cooperation with China has been started. Viktor Khristenko said: "We hope that, over the first six months, we will start the final agreement of this road map not only by the Governments of the EAEU Member States and the EEC, but also by our Chinese counterparts. It may be adopted in the 3rd quarter of 2016."

The Chairman of the EEC Board also reported on the actions expected to be taken by the EAEU Member States after coming into force on January 1, 2016 of the Agreement on Free Trade Zone concluded between the Ukraine and the EU. During the first six months of the future year, the EAEU Member States will elaborate the response mechanisms for the possible risks under the current legal framework. Viktor Khristenko explained: "During this 6-month period, we shall elaborate legal mechanisms allowing the National Governments to implement their right envisaged in the Union, namely the right for actions of unilateral national level under the supranational system, when there is a right to adopt responses, which the efficient mechanism of their administration must comply with." The monitoring will be implemented during this term in order to identify the consequences of the Agreement on Free Trade Zone concluded between the Ukraine and the EU for the economies of the EAEU Member States. Instruments related to information exchange of both legal and technological nature will also be elaborated. Over 6 months, it is expected that a unified information system of record-keeping and mutual exchange of information on all goods imported to the EAEU will be developed.

EEC Council to Set Deadline for Circulation of Fuel in EAEU Member States

On December 2, Astana hosted the regular session of the Council of the Eurasian Economic Commission. The event was attended by the Members of the EEC Council: The Vice-Prime Minister, the Minister of International Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, the First Deputy Prime Minister of the Republic of Belarus Vasiliy Matyushevskiy, the First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Vice-Prime Minister of the Kyrgyz Republic Oleg Pankratov, the First Deputy Chairman of the Russian Government Igor Shuvalov, as well as the Chairman of the EEC Board Victor Khristenko and Members of the Board – Ministers of the Eurasian Economic Commission.

The EEC Council discussed a number of important issues in the spheres of integration and macroeconomics, trade, customs cooperation, economics and financial policy, technical regulation, competition and antimonopoly regulation.

As far as the technical regulation is concerned, the EEC Council signed Protocols on the accession of the Republic of Armenia to the Agreements on Common Principles and Rules of Circulation of Medicines and Medical Products in the Eurasian Economic Union (EAEU). It is required for launching common markets of medicines and medical products in accordance with the Treaty on the EAEU since January 1, 2016.

According to the Member of the Board – Minister in charge of Technical Regulation of the EEC Valery Koreshkov, the formation of common markets in these socially important spheres will contribute to the development of pharmaceutical industry of the EAEU Member States, the growth of mutual trade in medicines and medical products, as well as provision of the population of five Member States of the Union with safe, effective and quality medicines. To ensure the operation of common markets, agreements provide for adoption of about 35 normative acts of the Eurasian Economic Commission by the end of this year, regulating certain issues of the circulation of pharmaceutical and medical products. Drafts of all these acts are in high degree of readiness.

The EEC Council amended the Technical Regulations of the Union "On the requirements for automobile and aviation gasoline, diesel and marine fuel, jet fuel and fuel oil." The circulation period on the territory of Kazakhstan of gasoline and diesel fuel of the "Euro-2" and "Euro-3" emission standards, as well as diesel fuel for the agricultural and off-road vehicles has been changed. The circulation period is scheduled to be extended until January 1, 2018. In addition, the circulation period on the territoty of Russia of automobile gasoline of the "Euro-4" emission standard has been extended until July 1, 2016. Moreover, the circulation period of fuel in the Republic of Armenia (automobile gasoline of the "Euro-3" and "Euro-4" emission standard) has been set until December 31, 2016. In the Kyrgyz Republic, the circulation period of fuel (automobile gasoline of the "Euro-2" and "Euro-3" emission standards) has been set until December 31, 2017.

In addition, the EEC Council amended the development plan of the Technical Regulations of the Union: amendments concern the establishment of obligatory requirements for markings, which should improve the readability of information on goods sold in the EAEU single market.

Amendments have been made to the Technical Regulations of the Union "On the safety of perfume and cosmetic products." In particular, the term "peeling" and the measuring units of fluorine in oral hygiene products (in terms of the molar mass of fluorine) have been clarified. Moreover, declaring plans of perfumery and cosmetic products have been introduced.

The amendments made by the EEC Council to the Single List of Goods subject to the EAEU sanitary and epidemiologic supervision (control) and to the Regulation on the procedure for carrying out state sanitary and epidemiological supervision (control) eliminate the duplication of the requirements for objects of the technical regulation "On the requirements for lubricants, oils and special liquids."

The EEC Council adopted a number of important administrative decisions related to the work of the Eurasian Economic Union. In particular, it approved the Draft Decision of the Supreme Eurasian Economic Council on the chairmanship of the EAEU bodies. The Draft Decision will be submitted for consideration by the Presidents of the EAEU Member States in the second half of December this year. The Republic of Kazakhstan has been proposed as the presiding state of the Supreme Eurasian Economic Council, the Eurasian Intergovernmental Council and the Council of the Eurasian Economic Commission in 2016.

Armenia to Accede to Agreements on Common Principles and Rules of Circulation of Medicines and Medical Products in Eurasian Economic Union, and Kyrgyzstan to Accede to Programme for Liberalization of Cabotage Carriage of Goods by Road

On November 23, a regular session of the Council of the Eurasian Economic Commission was held in the format of a video bridge. The event was attended by the Members of the EEC Council: Vice-Prime Minister, Minister of International Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, First Deputy Prime Minister of the Republic of Belarus Vasiliy Matyushevskiy, First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, Deputy Prime Minister of the Kyrgyz Republic Oleg Pankratov, Deputy Chairman of the Government of the Russian Federation Arkadiy Dvorkovich, as well as the Members of the Board – Ministers of the Eurasian Economic Commission.

The EEC Council discussed a number of important issues in the spheres of integration and macroeconomics, trade, customs cooperation, economics and financial policy, industry, technical regulation, energy and infrastructure, competition and antitrust regulation.

In particular, the session participants approved the issue of signing a Protocol on Accession of Armenia to the Union Agreements on Common Principles and Rules of Circulation of Medicines and Medical Products. Protocols will be signed during the session of the EEC Council on December 2. It is required for launching common markets of medicines and medical products in accordance with the Treaty on the Eurasian Economic Union (EAEU) since January 1, 2016.

According to the Member of the Board – Minister in charge of Technical Regulation of the EEC Valeriy Koreshkov, the formation of common markets in these socially important spheres will contribute to the development of pharmaceutical industry of the EAEU Member States, the growth of mutual trade in medicines and medical products, as well as provision of the population of five Member States of the Union with safe, effective and quality medicines. It is noted that for ensuring the operation of common markets, agreements provide for adoption of about 40 normative acts of the EEC until the end of this year, regulating certain issues of the circulation of pharmaceutical and medical products. Drafts of all these acts are in high degree of readiness.

The members of the EEC Council approved amendments to the Programme for Liberalization of Cabotage Carriage of Goods by Road. Amendments are made in connection with the accession of Kyrgyzstan to the said Programme. Until the end of December, the document will be submitted to the Supreme Eurasian Economic Council.

According to the amendments, from January 1, 2016, carriers from Armenia, Belarus or Russia, upon completion of delivery of goods from states, which are not the Member States of the Eurasian Economic Union (EAEU), will be eligible for one cabotage carriage of goods by road on the territory of Kyrgyzstan on their way back to the state of registration: in the Talas, the Chui or the Issyk-Kul Regions. The respective conditions will be granted to carriers registered on the territory of Kyrgyzstan for performing cabotage in the regions of Armenia, Belarus and Russia previously agreed upon by the Parties.

The Programme provides that from January 1, 2020, cabotage carriage in the same direction can be performed on the territory of all regions of the EAEU Member States, and from January 1, 2025 the number of such cabotage carriages will be increased to three.

The EEC Council approved the Draft Disposition of the Eurasian Intergovernmental Council (EIC) on the procedure for conducting joint research and development work in the sphere of agricultural sector of the EAEU Member States. By the EIC Draft Disposition, the EAEU Member States under the coordination of the Commission are entrusted to develop the procedure for conducting the relevant works and to submit it for consideration at the EIC meeting. It is expected that the implementation of joint scientific research and development works in accordance with the established procedure will contribute to the development of interstate interaction within the framework of scientific and innovative activities in the AIC, effective use of scientific potential, as well as allow for avoiding duplication of scientific research.

For reference:

The term "cabotage carriage of goods by road" refers to the carriage of goods by road by the carrier registered on the territory of one Member State between two points located on the territory of another Member State.

Supreme Eurasian Economic Council adopting new structure of Eurasian Economic Commission

On October 16, a session of the Supreme Eurasian Economic Council took place, which was attended by President of Armenia Serzh Sargsyan, President of Belarus Alexander Lukashenko, President of Kazakhstan Nursultan Nazarbayev, President of Kyrgyzstan Almazbek Atambayev and Russian President Vladimir Putin.

During the talks, the countries of the Eurasian Economic Union (EAEU) discussed the most topical problems and prospects of the Union's development.

The heads of states discussed a number of issues related to the functioning of the Eurasian Economic Commission in the next cycle. In particular, it was decided that the new composition of the Commission Board will include 2 representatives from each country. Thus, there will be 10 Board Members - Ministers, including the Chair. According to the decision of the Supreme Council, Tigran Sarkisian will be the next Chairman of the EEC Board. Currently, he is the Ambassador Extraordinary and Plenipotentiary of the Republic of Armenia to the United States. Earlier, Tigran Sargsyan occupied the post of Prime Minister of Armenia. According to the Chairman of the EEC Board, Viktor Khristenko, Sargsyan is "the man who devoted much time to Eurasian integration, he was the key engine of Armenia's joining the EAEU." Tigran Sarkisian will head the work of the Commission since February 1 next year.

The Heads of States discussed cooperation of the Union countries in pairing the Eurasian Economic Union with the Silk Road Economic Belt (SREB). China has been and remains one of the key economic partners of the EAEU countries. At the end of 2014 trade turnover between the Union and China amounted to about 110 billion US dollars.

In 2013, China initiated the establishment of the New Silk Road Economic Belt, a global project to harmonize trade and economic cooperation among the countries participating in the project, to encourage infrastructure investments.

In view of China's initiatives and objectives of expanding economic and trade cooperation with China in May this year Supreme Eurasian Economic Council decided to start negotiations on agreement on trade and economic cooperation between China and the EAEU. Preparatory work is already under way. Formal negotiations are to commence in early 2016. This is not a preferential agreement yet, but an important stage in the development of economic cooperation, which orders the entire structure of relations and provides the basis for further progress.

The agreement is intended to become the main instrument of economic cooperation between the Union and China in the medium term, to form the economic dimensions of pairing EAEU and SREB in practice.

To coordinate cooperation between the countries of the Union on issues of pairing the EAEU and the Silk Road Economic Belt, the heads of the EAEU states adopted the relevant decision.

As a result of the meeting the sides signed a number of documents defining the interaction procedure of the Eurasian Economic Union and the Eurasian Economic Commission with third countries. In particular, the Supreme Eurasian Economic Council approved the Main Directions of the EAEU international activity for the years 2015-2016 and Approaches to the development of trade and economic cooperation with key EAEU partners in the medium term.

During the session it was decided to start negotiations with the State of Israel to establish a free trade zone. The proposal was adopted on the basis of the report by the joint study group.

The Chairman of the EEC Board noted that in connection with the accession of Kazakhstan to the WTO Heads of State adopted a package of documents to ensure implementation of these decisions in the rules of the Union. As Viktor Khristenko stressed: "On the one hand, they allow extending the commitments made by Kazakhstan at the accession to the WTO, to the market of Kazakhstan. On the other hand, they allow building a system of administration in such a manner that the difference in rates does not cause any harm to other countries of the Union." Decisions of the Council will enter into force once ratification procedures in parliaments of EAEU countries are completed. This process in national parliaments should be entirely over by December 15, 2015.

The Main directions of Union's economic development up until 2030 were approved in order to coordinate national policies and the development of integration measures to improve the competitiveness of the Member States' economies.
"With all the turbulence and uncertainty that exists today in the world economy, the document fixing the basic directions of economic policy coordination seems very important and timely. In fact, this document captures a possibility of building national economic policies at the joint site, in the first place, to provide interaction, reconciliation of positions on monetary policy, macroeconomic policy, policy on the financial markets in order to better ensure predictability and stability in our countries' development," said Viktor Khristenko.

The Union's Heads of States approved the list of services sectors, in which a formation of a single market for services within the EAEU will be carried out in accordance with the plans of liberalization. According to the Decision by the Supreme Eurasian Economic Council, the governments of the Union, together with EEC are entrusted to prepare until April 1, 2016 plans for the liberalization with specific time frames (transition period) to create single market of services in sectors (sub-sectors) specified in the list. EEC is instructed to submit these plans by July 1, 2016 for consideration by the Supreme Eurasian Economic Council. EEC Council was instructed to establish working groups in sectors (sub-sectors) of services specified in the list in pursuance to implement this decision.

The Heads of States also made a decision to amend the Decision by the Supreme Eurasian Economic Council (SEEC) No. 112 dated December 23, 2014 "On approving the individual national lists of restrictions, exemptions, additional requirements, and conditions within the Eurasian Economic Union for the Republic of Armenia, Republic of Belarus, Republic of Kazakhstan, and the Russian Federation." Amendments are required in connection with the formation of the individual national list of restrictions, exemptions, additional requirements, and conditions for Kyrgyzstan within the Eurasian Economic Union (EAEU). They were developed with the aim of implementing the Treaty on the accession of the Kyrgyz Republic to the integration project.

At a session of the Supreme Eurasian Economic Council a decision was adopted, according to which the Kyrgyz Republic is to affiliate itself to 43 sectors of the single services market of the Eurasian Economic Union (EAEU).

Parties also adopted the Regulation on External Audit (Control) in Bodies of the Eurasian Economic Union;

In addition, the SEEC session adopted an Order of admission of new members and termination of membership in the Union.

EEC Council Approves Measures to Implement Key Points of Macroeconomic Policy in EAEU Member States till 2017

On October 14, Astana hosted the next session of the Council of the Eurasian Economic Commission. The following members of the EEC Council participated in the event: the Vice Prime Minister, the Minister of International Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, the First Deputy Prime Minister of the Republic of Belarus Vasiliy Matyushevskiy, the First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Minister of Economy of the Kyrgyz Republic Oleg Pankratov, the First Deputy Chairman of the Government of the Russian Federation Igor Shuvalov, as well as Members of the Board (Ministers) of the Eurasian Economic Commission.

The EEC Council considered a number of important issues on macroeconomics, trade, economy and financial policy, as well as industry, technical regulation, power industry and infrastructure, competition and antitrust regulation.

In particular, the meeting participants reviewed an issue on Kazakhstan's accession to the World Trade Organization. In this regard, the First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev said: "Entering into the WTO, we undertook certain commitments. Nonetheless, we have obligations to our EAEU counterparts associated with the relatively low import customs duties in respect of 3,500 commodity items. Thus, the heads of the Member States should entrust decision making on implementation of these commitments under the legal framework of the EAEU Treaty". According to Bakytzhan Sagintayev, Members of the EEC Council have been discussing this issue for a long time. As a result, the counterparts for the integration association formed the general idea that commodities to be imported to Kazakhstan at reduced import duties should not enter the EAEU single market without the required surcharge.

The EEC Council approved the list of measures to implement the key points of macroeconomic policy in the Eurasian Economic Union (EAEU) Member States for 2015-2016. According to the Member of the Board – Minister in charge of the Development of Integration and Macroeconomics Tatyana Valovaya, an increased attention to this field is related to complex macroeconomic situation in the countries of the Eurasian Economic Union caused by the cyclical crisis and global processes in the world's markets. The EEC Minister emphasized: "Since the beginning of this year, we've been doing a great job in this direction at the instruction of the government heads and the Presidents of our countries. Approval of the key points of macroeconomic policy at the level of the Presidents was one of the major decisions. We hope that at the meeting to be held on October 16 in Burabay, the Presidents will ratify the document on the major directions of economic development of our Union till 2030".

Members of the EEC Council noted that these documents form the basis, upon which the EAEU economy will be developing in the next years. They contribute, inter alia, to the mutual trade growth in the EAEU Member States and financing of major national and integration investment projects.

The EEC Council considered the issues on finalization of the Draft EAEU Customs Code expected to be adopted in 2016.

The EEC Council discussed the development process of about 40 documents required for the launch of functioning of the common markets of pharmaceuticals and medical products in the Eurasian Economic Union since January 1, 2016. The Governments of the EAEU Member States and the Eurasian Economic Commission were recommended to accelerate their activities in this field.

The EEC Council considered the issue on adoption of the EAEU chemical technical regulations. The Government of Kazakhstan is responsible for the development of the EAEU technical regulations "On safety of paints and varnishes" and "On safety of synthetic detergents and household chemicals". The Government of the Russian Federation is also developing the EAEU technical regulations "On safety of chemical products". The EEC Council Disposition provides for active consultations on the drafts of the above-mentioned documents between the Governments of other EAEU Member States and the Commission. Following the results of consultations, the Parties should ensure preparation of agreed version of the mentioned draft documents and submit them to the EEC in two months.

In addition, the EEC Council approved the List of issues, on which the EEC Board is required to conduct consultations under the Consultative Committee for technical regulation, application of sanitary, veterinary and phytosanitary measures before decision-making at the level of the EEC Board or Council. The List contains 50 items, including those on approval of the Consolidated List of Products subject to compulsory requirements under the EAEU; procedure for its formation and adoption; development and adoption procedure of the EAEU technical regulations; procedure for amendments and cancellation of amendment; the Development Plan of the EAEU technical regulations and introduction of amendments thereto; the Unified Sanitary and Epidemiological and Hygienic Requirements for Products subject to the state sanitary and epidemiological supervision, etc.

The EEC Council made a decision, according to which Kyrgyzstan will join 43 sectors of the EAEU single services market. Kyrgyzstan's accession to the common rules of the EAEU services market functioning means that there will be a potential reduction in costs for the Kyrgyz citizens in connection with the increased competition of business structures in the EAEU Member States in the single Eurasian services market.

Conditions to ensure free services flow were created under functioning of the single services market on the territory of the EAEU Member States, including Kyrgyzstan. Business diversification in the services sector and creation of new businesses on the territory of the EAEU counterpart countries promote attraction of additional investments in the economies of the EAEU Member States through channelling of internal cash flows.

In addition, the session participants of the EEC Council made a decision on amending the Decision of the Supreme Eurasian Economic Union "On approving individual national lists of restrictions, withdrawals, additional requirements, and terms under the Eurasian Economic Union for the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, and the Russian Federation". The amendments are required for Kyrgyzstan due to formation of individual national list of restrictions, withdrawals, additional requirements, and terms under the EAEU. They were developed in order to implement the Treaty on accession of the Kyrgyz Republic to the integration project.

The EEC Council approved the Agreement on the methodology of formation of indicative (forecast) balance sheets of gas, oil and petroleum products under the EAEU developed to optimize the interstate energy supplies. The document allows using the cumulative energy potential more efficiently. The methodology defines common terminology, balance sheet structure of energy resources, basic approaches and mechanisms of their formation, peculiarities of formation of certain balance sheet items, as well as their development and adjustment procedure. According to the Minister in charge of Energy and Infrastructure Tair Mansurov, the document will be submitted to the EAEU Member States for internal legal procedures required for its signing.

Chairman of the EEC Board, Viktor Khristenko: "China has been and remains one of the key economic partners of the EAEU countries"

On 6 October in Astana at the Eurasian Economic Perspective forum, the Chairman of the Board of the Eurasian Economic Commission, Viktor Khristenko, said that China has been and remains one of the key economic partners of the Eurasian Economic Union (EAEU). As such, he recalled that at the end of 2014 the trade turnover of the EAEU with China amounted to approximately 110 billion US dollars.

The forum was dedicated to the cooperation between the Eurasian Economic Union and the Chinese project entitled the Silk Road Economic Belt (SREB). The Chairman of the Mazhilis of the Parliament of the Republic of Kazakhstan, Kabibulla Zhakypov addressed the forum participants with a keynote speech. Speeches were also made at the forum by Chairman of the State Duma of the Federal Assembly of the Russian Federation Sergey Naryshkin, First Deputy Prime Minister of Kazakhstan Bakytzhan Sagintayev, Chairman of the Majilisi Oli of Tajikistan Shukurjon Zukhurov, Head of the delegation of China National People's Congress Lu Hao, Rector of Lomonosov Moscow State University Viktor Sadovnichy, Akim of the East Kazakhstan region of the Republic of Kazakhstan Danial Akhmetov, Governor of the Chelyabinsk region of the Russian Federation Boris Dubrovsky, and SCO Secretary General Dmitry Mezentsev.

During his speech at the forum Viktor Khristenko said that the work between the Commission and China is developing on several tracks. First and foremost, the representative of the EEC pointed out that this involves regular working contact. In particular, it involves the consistent cooperation between the Commission and the Ministry of Commerce of China in the form of Dialogue on trade issues.

In the same vein is the preparation of an agreement on the exchange of information on goods and vehicles of international transportation which are moved over the customs border of the EAEU and China. "From our point of view, a regular exchange of information will increase the level of trust among EAEU member states and China, will help prevent violations of the customs legislation of the Union, and will speed up customs procedures," Viktor Khristenko said.

The EEC speaker also told about the negotiations on the conclusion of an Agreement on trade and economic cooperation between the EAEU and China and pointed out that the decision to commence negotiations was made by the President of the Eurasian Economic Union on May 8, 2015. The Chairman of the EEC Board clarified that "this is not yet a preferential agreement, but an important stage in the development of economic cooperation, which orders the entire structure of relations and provides the basis for further progress."

As for the long-term prospects of cooperation between the Union and China the key track is working on merging Eurasian economic projects and initiatives in China to establish the Silk Road Economic Belt.

Viktor Khristenko also talked about other areas of the Commission's work. The Chairman of the Board noted that a market with a population of more than 182 million people, "who practically live by a single transparent rule" is being established within the Eurasian Economic Union.
According to him, de jure and de facto the market operates on the basis of WTO rules and regulations, and is becoming more open and comprehensible to investors. In turn, the current system of management bodies facilitates the functioning of a single market of goods, and the effective implementation of a competence for regulating the foreign trade, sphere of technical regulation, and customs administration etc.

"Given the worsening external boundary, there is a need to be more actively engaged in the preparation of single rules, and the elimination of exemptions and restrictions, barriers and obstacles to the effective operation of the single market. This will give additional impetus to economical development in the Union countries", the Chairman of the EEC Board concluded.

Talking about the global economy development trends, Viktor Khristenko mentioned the particular significance of regional integration. According to him, there are now new centres, which are not satisfied with their position in the global system, or with their inability to influence decisions made by way of existing global institutions. "However, it is clear to everyone that it is impossible to survive or be heard in today's world being alone. Everybody are striving to find a platform or a group that allows them to implement their own projects to the fullest extent. The Eurasian Economic Union in this sense is trying to follow the trend," said Viktor Khristenko.

Thus, according to the Chairman of the EEC Board, regional integration facilitates "the feeling out of new forms of interaction and ultimately attain an updated architecture of the world order."

Meeting of the Eurasian Intergovernmental Council endorsed the Basic Directions of Industrial Cooperation between the EAEU Member States

On September 8, the session of the Eurasian Intergovernmental Council was held in Grodno (Belarus). The summit was attended by the Prime Minister of the Republic of Armenia Hovik Abrahamyan, the Prime Minister of the Republic of Belarus Andrey Kobyakov, the First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, the Prime Minister of the Kyrgyz Republic Temir Sariev, the Chairman of the Government of the Russian Federation Dmitry Medvedev and the Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko.

The session of the Eurasian Intergovernmental Council addressed a number of important issues aimed at further deepening of integration. In particular, they discussed issues related to the development of industrial potential of the EAEU, the external positioning and interaction with key partners, as well as a number of issues on improving the regulatory instruments in the consumer market.

The Heads of Governments approved the draft Main Directions of Industrial Cooperation (MDIC) within the framework of the Eurasian Economic Union. The main directions is a medium-term document for 5 years, which is formed based on the expediency of deepening industrial cooperation, taking into account current trends in the development of the economies of the EAEU Member States and the world economy.

The document defines implementation of the potential for effective and mutually beneficial cooperation among the Member States as the aim of industrial cooperation within the Union. It is necessary to accelerate their industrial development, to improve competitiveness and innovative activity in the industry.

The following segments of the common market have nowadays the greatest potential in the industrial cooperation within the Union: vehicles, electrical equipment, optics and electronics, chemicals, metallurgy and metal products.

In accordance with the MDIC, the Member States shall jointly determine priority economic activities, development of industrial cooperation, where they would create conditions for increasing industrial production and mutual supplies, would allow more efficient use of the potential of the common market and achieve synergies in the development of industrial production of the Parties.

In addition, the Eurasian Intergovernmental Council approved the Main Directions of International Activity of the EAEU, which define priorities in terms of cooperation of the Union with its key partners, as well as the formats of such cooperation. Here, the Eurasian Economic Union has the widest range of interests, since it is an open association with the intention to develop relations with all the world's economic centres from Latin America to South East Asia.

In this context it is also important to note that the Heads of Governments approved the draft memorandum "Eurasian Economic Union - European Union: contours of cooperation" devoted to the basic vision of the prospects for cooperation between the EAEU and the EU. The document will be sent to the European Commission and, according to the session members, will serve as an impetus for an organized dialogue between the two integration associations. This initiative is in line with the gradual convergence of the integration processes in the Euro-Atlantic and Eurasia and the formation in the long term of a common economic and human space from the Atlantic to the Pacific.

In order to improve administration mechanisms of the commodity market in the Union two documents were signed at the session of the Intergovernmental Council.

The first is the Agreement on coordination of activities on protection of intellectual property rights in the EAEU. It creates a legal basis for information exchange and joint activities to combat infringements of intellectual property in the territory of the Union.

The second document is the Agreement on implementation of the pilot project on labelling of certain groups of light industry goods. The Heads of Governments decided in the current year and the next year to implement the pilot project on labelling for products introduced into circulation in the market of the Union. As the Chairman of the EEC Board, Viktor Khristenko stressed speaking to the media following the session, "this document is extremely important to start an effective, systematic work with shadow imports. As the Prime Ministers stated today, the Agreement opens the topic, but in the future is the usage of this kind of labelling for a much wider range of products. This will create a more legal environment for businesses; generate rules of a fair competition."

The session of the Eurasian Intergovernmental Council, according to Viktor Khristenko, was very intense and effective. The next session at the level of the Heads of Governments of the EAEU will be held in November in Yerevan, the capital of Armenia.

Representatives of the EEC and the government authorities of Armenia discussed the potential development of the republic's economy

On 27 August, a session of the Working Group on issues of an agreed macroeconomic policy under the leadership of the Member of the Board - Minister in charge of the Development of Integration and Macroeconomics, Tatyana Valovaya, in conjunction with the heads and experts of the Ministry of Finance, the Ministry of International Economic Integration and Reforms and The Central Bank of the Republic of Armenia took place in Dilijan (Armenia).

The meeting participants discussed key foreign economic trends, external and internal risks and medium-term development prospects of the economies of the Republic of Armenia. Issues related to the deepening of the partnership between the Eurasian Economic Union (EAEU) countries in the field of macroeconomic policy were also discussed.

As a result of the session, the decision was made to continue regular talks about the approaches to deepening the partnership between the Union Member States in the field of macroeconomic and monetary and financial policies, including the direction of development of inter-relations between financial institutions of the EAEU. Furthermore, the intensification of mutual settlements in national currencies in the Union has been planned. The meeting participants also agreed to set in motion the technical cooperation for the exchange of experience between the ministries and departments of the economic bloc in the EAEU on the implementation of an agreed macroeconomic policy.

EEC Council Decisions aim to improve the resilience of the economies of the EAEU countries and strengthen the positions of the Union in the external market

On August 21, a regular session of the Council of the Eurasian Economic Commission was held in Moscow. The event was attended by the Members of the EEC Council: Vice Prime Minister, Minister of International Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, First Deputy Prime Minister of the Republic of Belarus Vasily Matyushevsky, First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, Vice Prime Minister of the Kyrgyz Republic Valery Dil, First Deputy Chairman of the Government of the Russian Federation Igor Shuvalov, and Members of the Board - Ministers of the Eurasian Economic Commission.

The EEC Council addressed a number of important issues in the fields of macroeconomics, trade, economic and financial policy, technical regulation, energy and infrastructure.

In particular, the EEC Council put more focus on trade cooperation with third countries. The session discussed the issue of further development of the cooperation with the State of Israel, including possible negotiations on the free trade zone (FTZ) with the Eurasian Economic Council (the EAEU). The EEC Council adopted a decision on the development of trade and economic relations with the Republic of Korea and on the development of trade and economic cooperation with the Islamic Republic of Iran, including setting up a group for the feasibility study of future entrance into a FTZ. The EEC also approved the Action Plan for the implementation of the Free Trade Agreement between the EAEU and Vietnam.

The meeting handled the issue of the Procedure for Accession of New Members to the Eurasian Economic Union and Termination of Membership in the EAEU. The document aims to improve the Union's contractual legal framework. The issue will be put to a session of the Supreme Eurasian Economic Council.

Participants of the session discussed in detail the approaches to ensure financial stability and economic growth in the EAEU, the deepening of cooperation of the Member States of the Union in the spheres of macroeconomic and monetary policies. A session on this issue is scheduled to be held soon with the participation of heads of the Ministries of Economy and Finance, Central (National) Banks of the EAEU Member States, as well as the Eurasian Economic Commission.

The EEC Council adopted a decision on cancellation of sanitary-quarantine and phytosanitary quarantine control (supervision) in the Kyrgyz-Kazakh section of the State Border.

​The EEC Council approved the Recommendations on the content and standard structure of the technical regulations of the Eurasian Economic Union. The document contains a list of sections of the technical regulations of the Union and recommendations on their content and proposes various wordings that may be used by the drafters taking into account the specifics of certain types of products.

At the EEC Council's meeting it was decided to instruct the Commission's Working Group for the preparation of proposals for the further application of the principle of exhaustion of intellectual property exclusive rights by December 31 this year, to develop a decision-making mechanism for possible "parallel" imports for certain categories of products, i.e. criteria for selection of certain types of goods that are planned to be subject to the international principle of exclusive right exhaustion, to draft amendments to the Treaty on the Eurasian Economic Union (EAEU) dated May 29, 2014, and to determine the level of decision-making on introduction of "parallel" imports.

These amendments provide for possible exemptions from the regional principle of exhaustion of the exclusive right to trademarks and trademarks of the Eurasian Economic Union in respect of certain types of goods. This means a possibility of "parallel" imports of certain categories of goods (i.e. importation of a given product without obtaining a permit for it from the right holders).

The amendments will be incorporated into the Protocol on the Security and Protection of Intellectual Property Rights annexed to the Treaty on the EAEU. The procedure for drafting and amending international treaties is formalised and provides for reviewing drafts by the Board of the Commissions, the Council of the Commission, as well as standard internal procedures within the Union's Member States.

The Working Group is expected to prepare, by December 31 this year, proposals on the procedure and selection criteria for certain types of goods that are planned to be subject to the international principle of exclusive right exhaustion. Proposals will be made in respect of the priority group of goods and the period of their circulation in the market in accordance with the international principle of exclusive right exhaustion. The Working Group will present the results of its work to a meeting of the Council of the Eurasian Economic Commission.

Currently, the Treaty on the EAEU provides for the territory of the Eurasian Economic Union a regional principle of exhaustion of the exclusive right to a trademark whereby the use of a trademark in respect of goods is lawful only in the event of putting such goods into circulation on the territory of the Member States of the Union directly by the right owner or by other persons upon the right holder's consent.

Given the priority of international treaties over national legislation, the Member States of the Union have no legal opportunity to introduce and apply on their territories any other principle of right exhaustion other than that which is provided for by the Treaty on the Union even in the form of a "pilot" project in certain sectors.

Reference:

The Working Group for the development of proposals on further application of the principle of exhaustion of the exclusive right to intellectual property was established by Decision No. 45 of the Council of the Eurasian Economic Commission dated June 23, 2014.

The Working Group which is set up based on the proposals of the governments of the Member States of the Union is comprised of officials of the authorised authorities of the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation, experts from the most important business areas, as well as employees of the Commission.

As at the current date, the Working Group has held 3 meetings which discussed legal, economic and social aspects related to the selection of the principle of right exhaustion.

The Working Group has explored the following options for further application of the rule of right exhaustion:

- to preserve the regional rule of right exhaustion and introduce into the law of the Union the possibility to apply exemptions for certain categories of goods;

- to preserve the regional rule of right exhaustion without amendments;

- to replace the regional rule of right exhaustion with the international-exhaustion rule;

- to replace the regional rule of right exhaustion with the international-exhaustion rule with a possibility to apply certain exemptions.

Kyrgyzstan acceded to the Eurasian Economic Union

On August 12, the Treaty on the Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union (the EAEU) came into force. Kyrgystan has become a full-fledged member of the Union along with Armenia, Belarus, Kazakhstan and Russia.

Accession of Kyrgyzstan to the EAEU was preceded by major joint efforts to ensure integration and convergence. In 2014, the road maps for accession of Kyrgyzstan to the Eurasian integration project, which would facilitate the adaptation of its national economy to the EAEU legislation and practices, have been implemented.

In particular, a whole set of issues on renovation of customs infrastructure facilities has been resolved.

On December 23, 2014, the Treaty on accession of the Kyrgyz Republic to the EAEU was signed at the session of the Supreme Eurasian Economic Council (the SEEC). On May 8, 2015, at the session of the SEEC, the heads of the EAEU Member States endorsed two protocols where the terms and conditions, as well as specific features of the accession of Kyrgyzstan to the EAEU were defined.

The Union Member States complied with all the internal legal procedures to ensure that the Treaty becomes effective.

The accession to the EAEU opened up new opportunities for Kyrgyzstan. No more barriers to the free movements of goods, services, capital and workforce. The new investment opportunities and prospects to develop major infrastructure projects, primarily in the energy industry, transportation and agriculture, are opened up. The citizens of Kyrgyzstan now gain the right to be employed in any state of the Union on equal terms with citizens of their employment state.

The accession of Kyrgyzstan gives a new impetus to develop the Union's potential. The integration association consolidates its position in the global economic architecture.

Parliaments of the Member States of the Eurasian Economic Union completed the ratification of the Treaty on Accession of the Kyrgyz Republic to the EAEU

On July 8 and 9, the Treaty on Accession of the Kyrgyz Republic to the Eurasian Economic Union was reviewed and approved by the Council of the Federation of the Russian Federation and the Senate of the Parliament of Kazakhstan.

Earlier, on June 30, the document was also adopted by the National Assembly of the Republic of Belarus. On June 16 it was adopted by the National Assembly of the Republic of Armenia.

"The most important step was the ratification of the Treaty on Accession of the Kyrgyz Republic to the EAEU by the parliaments of the all the five countries. The biggest threat that the accession of Kyrgyzstan to the EAEU could be shifted to the autumn is left behind. All the parliaments have expressed their will. And there are no justified obstacles to the accession of Kyrgyzstan to the EAEU,"- the Minister of Economy of the Kyrgyz Republic Oleg Pankratov said.

The actual accession of Kyrgyzstan to the integration association will happen only after signing by the Presidents of the Member States of the EAEU the laws on the ratification of the Treaty on Accession of the Kyrgyz Republic to the Eurasian Union. According to the procedure, the ratified documents will be submitted for signature to the Presidents of the EAEU Member States. After signing the documents through diplomatic channels will be sent to the depositary of the Eurasian Economic Commission.

We would like to remind that, on May 8, at the session of the Supreme Eurasian Economic Council, two Protocols determining peculiarities of a transit period for Kyrgyzstan during accession to the EAEU were signed. Earlier, on December 23, 2014, in Moscow, the Presidents of the Republic of Belarus, Republic of Kazakhstan and Russian Federation, on the one part, and the President of the Kyrgyz Republic, on the other part, signed the Treaty on accession of the Kyrgyz Republic to the EAEU.

Agreement on Free Trade Zone between the EAEU and Socialist Republic of Vietnam signed according to the results of the second session of the Eurasian Intergovernmental Council

On May 29, in Burabay village (Kazakhstan), the second session of the Eurasian Intergovernmental Council took place. The summit was attended by the Prime Minister of the Republic of Armenia Ovik Abraamyan, Prime Minister of the Republic of Belarus Andrey Kobyakov, Prime Minister of the Republic of Kazakhstan Karim Masimov, Chairman of the Government of the Russian Federation Dmitry Medvedev, Prime Minister of the Republic of Kyrgyzstan Temir Sariyev, and Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko.

According to the results of the session, the Agreement on the Free Trade Zone (FTZ) between the Eurasian Economic Union (EAEU), its Member States and the Socialist Republic of Vietnam was signed. The Agreement is the first international document on FTZ between the EAEU and a third party. As the Chairman of the EEC Board Viktor Khristenko noted in his statement to the press following the session, signing of the Agreement on the Free Trade Zone between the EAEU, its Member States and Vietnam is a "historic act".

Viktor Khristenko reported that the Agreement would ensure free trade regime in respect of over 90 % of commodity items regulated by the EEC. "Moreover, zeroing of the duty, exemption regime of admission to the markets in respect of a half of these commodity items shall take place since the entry into force of the Agreement, and after a short transition period in respect of the other half of commodity items," reported the Chairman of the EEC Board Viktor Khristenko. As the EEC representative emphasized, "implementation of the Agreement in general is aimed at increasing the current volume of trade turnover between the EAEU states and Vietnam that amounts to 4 billion dollars up to at least 10 billion dollars by 2020."

According to him, the Agreement covers not only preferential trade treatment, but also issues of the management of intellectual property rights, and a whole range of other areas.

Viktor Khristenko noted that this Agreement opened an area of work not only with the entire Republic, but "with Vietnam as a regional centre, a greater region of ASEAN that has more than 600 million citizens. Therefore, the entry into force of this Agreement will allow participants of the economic life of the EAEU to enter new markets and obtain mutual benefits," he concluded.

A wide range of integration issues concerning functioning of the Eurasian Economic Union, development of the regulatory framework, and implementation of a number of specific cooperation projects were discussed at the session of the Eurasian Intergovernmental Council.

In particular, the draft decision of the Supreme Eurasian Economic Council "On the main areas of the economic development of the Eurasian Economic Union" was approved. The draft document identifies nine areas, which determine the competitiveness of the Member States of the Union and integration cooperation in which is appropriate. Since the areas are formed on the horizontal principle, their implementation will be carried out through the development and implementation of system-wide as well as industry-specific and sectoral integration measures and actions that will be reflected in the medium and short-term documents provided for by the Treaty on the EAEU. In addition, the draft document introduces scenarios of the Union's economic development, potential effects of integration till 2030, the criteria on the basis of which the Commission and the Member States will prepare proposals on the definition of areas of the economy that have potential for integration, as well as measures to use this potential on a regular basis.

Analysis of the reasons for changing dynamics of mutual trade of the Customs Union (CU) and the Common Economic Space (CES) Member States conducted by the Commission, as well as proposals on increasing the volume of mutual trade turnover were also introduced at the session. Establishment of the dialogue on strengthening cooperation in the areas of coordinated policy stipulated by the Treaty on the EAEU is crucial. Business community requests creation of an attractive business and investment climate in the Union, which is possible by removing barriers and minimizing exemptions and restrictions.

In addition, the Disposition on deepening cooperation between the EAEU Member States in the fields of macroeconomic, monetary and financial policy was adopted, under which the Commission jointly with governments, national (central) banks of the EAEU Member States must prepare a report on integration measures to increase sustainability of the States' economy in the Union.

In the course of the session, the Disposition on development of the Regulation on establishment and functioning of the Eurasian Technology Platforms (ETP) was approved. The Regulation on ETP will ensure a clear step by step algorithm of building mutually beneficial cooperation of the EAEU States in the field of innovations.

The Action Plan to ensure stimulation of production and application of motor vehicles with electric engines in the EAEU Member States for 2015-2017 was supported at the session. Implementation of the Action Plan will contribute to the increase of demand for electric vehicles by citizens of the Union States.

Decisions taken by the Eurasian Intergovernmental Council in production of vehicles and equipment for the agricultural industry will allow moving to practical establishment of cooperative chains and development of import substitution of components for agricultural machinery produced on the territory of the Union, increasing the added value, and providing national access to government (municipal) procurement of the agricultural machinery. In addition, it is expected that the practical mechanism for the support of agricultural machinery export to the third countries markets, as well as the legal framework for enhancing cooperation in agricultural machinery engineering in the framework of the Union, will be created.

The EEC approved the Action Plan on development of the light industry of the EAEU Member States for 2015 - 2016 at the session. The document contains a range of measures aimed at creating conditions for increasing investment attractiveness and competitiveness of the industry. Their implementation will allow transferring to practical establishment of cooperative chains and development of import substitution for several segments of the light industry, and mastering new technologies.

Documents signed following the results of the session of the Eurasian Intergovernmental Council

- On the reasons for changing dynamics of mutual trade of the Customs Union and the Common Economic Space Member States in 2010-2014, and proposals on increasing the volume of mutual trade turnover in the Eurasian Economic Union Member States.

- On activities to discover and eliminate the barriers for mutual access, which prevent the operation of the Eurasian Economic Union domestic market, and exemptions and restrictions with respect to the circulation of goods, services, capital and workforce.

- On the Draft Decision of the Supreme Eurasian Economic Council "On the main areas of the economic development of the Eurasian Economic Union".

- On deepening cooperation between the Union Member States in macroeconomic, monetary and financial policy.

- On the Free Trade Agreement between the Eurasian Economic Union, its Member States of the one part, and the Socialist Republic of Vietnam of the other part.

- On the Agreement on the movement of ozone-depleting substances and products containing them, and recording of ozone-depleting substances while implementing mutual trade of the Eurasian Economic Union Member States.

- On the Action Plan on development of the light industry of the EAEU Member States for 2015 - 2016.

- On creating conditions for the development of machinery and equipment production for the agricultural industry in the Eurasian Economic Union Member States.

Session of the Council of the Eurasian Economic Commission has taken place

On May 28, a range of issues of key importance for deepening Eurasian Economic integration was discussed on a session of the Council of the Eurasian Economic Commission in Astana.

The event was attended by the Members of the EEC Council - First Deputy Prime Minister of the Republic of Belarus Vasiliy Matyushevskiy, First Deputy Prime Minister of the Republic of Kazakhstan Bakytzhan Sagintayev, First Deputy Chairman of the Government of the Russian Federation Igor Shuvalov, Vice Prime Minister, Minister of International Economic Integration and Reforms of the Republic of Armenia Vache Gabrielyan, Chairman of the EEC Board Victor Khristenko, and the EEC Board Members.

The Members of the EEC Council considered a range of issues concerning economy and financial policy, trade, development of integration and macroeconomy as well as industry.

In particular, the Decision of the EEC Council on creation of Working Party for ensuring operation of the Common Market of Services under the Eurasian Economic Union (EAEU) was adopted. The Regulation on the Working Party and its structure was approved. The WP is formed from the representatives of the line state authorities of the Member States and officials of the Commission, according to proposals of the Republic of Armenia, Republic of Belarus, Republic of Kazakhstan and Russian Federation.

The Working Party headed by the Member of the Board – Minister in charge of Economy and Financial Policy Timur Suleymenov will prepare proposals for the Commission Member States, aimed at ensuring operation of the Common Market of Services within the Union. Its decisions will have the status of a recommendation.

President of the Kyrgyz Republic has ratified the Treaty on Accession of Kyrgyzstan to EAEU

On May 21, the President of the Kyrgyz Republic Almazbek Atambayev signed the law "On Ratification of International Treaties on Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union."

Earlier, on May 20, the Zhogorku Kenesh of the Kyrgyz Republic (Parliament) approved the ratification of the Treaty on accession of Kyrgyzstan to the EAEU.

In his speech, Almazbek Atambayev declared that the country had entered a new stage of its development. Kyrgyzstan had good prospects, but this direction would not be easy, noted the President. He also added, that the Republic should make every effort to rebuild the economy in the shortest possible time and to give it a strong push for dynamic development.

We would like to remind that, on May 8, at the session of the Supreme Eurasian Economic Council, two Protocols determining peculiarities of a transit period for Kyrgyzstan during accession to the EAEU were signed. Earlier, on December 23, 2014, in Moscow, the Presidents of the Republic of Belarus, Republic of Kazakhstan and Russian Federation, on the one part, and the President of the Kyrgyz Republic, on the other part, signed the Treaty on accession of the Kyrgyz Republic to the EAEU.

The Treaty on the EAEU is a basic document specifying agreements of the Russian Federation, Republic of Belarus and Republic of Kazakhstan on creation of the Eurasian Economic Union in order to eliminate barriers for free movement of goods, services, capital and workforce, to perform coordinated, agreed or uniform policy in the key sectors of economy.

The Treaty on the EAEU was signed by the President of the Republic of Belarus Alexander Lukashenko, President of the Republic of Kazakhstan Nursultan Nazarbayev and President of the Russian Federation Vladimir Putin on May 29, 2014 in Astana. On January 2, 2015 the Republic of Armenia joined the Treaty.

Documents on Kyrgyzstan accession to EAEU are signed

On May 08, the session of the Supreme Eurasian Economic Council (SEEC) was held in Moscow. The summit was attended by the leaders of the Member States of the Eurasian Economic Union (EAEU) – President of the Republic of Armenia Serj Sargsyan, President of the Republic of Belarus Alexander Lukashenko, President of the Republic of Kazakhstan Nursultan Nazarbaev, and President of the Russian Federation Vladimir Putin, as well as President of the Kyrgyz Republic Almazbek Atambaev. The Eurasian Economic Commission (EEC) was represented by the Chairman of the EEC Board Victor Khristenko.

One of the major outcomes was signing of a range of documents under the Kyrgyzstan accession to the EAEU. In particular, two Protocols determining the features of a transitional period for Kyrgyzstan during accession to the EAEU were signed. Earlier on December 23, 2014, the Presidents of the Republic of Belarus, Republic of Kazakhstan and Russian Federation, on the one part, and the President of the Kyrgyz Republic, on the other part, signed the Treaty on the accession of the Kyrgyz Republic to the EAEU.

As the Chairman of the EEC Board Victor Khristenko said, "all package of documents signed today will be sent for ratification to the EAEU Member States and, in the nearest future, Kyrgyzstan will become a full-fledged member of the Union." Victor Khristenko stated that during the summit, the Presidents of the EAEU Member States expressed a common wish "not to delay the ratification procedures." "It is possible to implement this before the height of summer," - he said.

During the session, the Heads of the States considered issues of customs cooperation, functioning of the EAEU Court, as well as the process of forming the common electric power market that will start operating by 2019.

As the Chairman of the EEC Board said, the electric energy sphere acts as "a pioneer"within the Eurasian integration. "The stages of the creation, goals etc. were elaborated in the concept of forming the common electric power market,"said Victor Khristenko.

The Presidents of the EAEU States also made a decision on the start of negotiations to conclude an agreement with China on trade and economic cooperation.

PROTOCOLS

1. Protocol on introducing amending the Treaty on the Eurasian Economic Union dated May 29, 2014, and separate international treaties included in the law of the Eurasian Economic Union in connection with the accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union dated May 29, 2014.

2. Protocol on terms and transitional provisions on the application of the Treaty on the Eurasian Economic Union dated May 29, 2014, by the Kyrgyz Republic, and separate international treaties included in the law of the Eurasian Economic Union and acts of the Eurasian Economic Union authorities in connection with the accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union dated May 29, 2014.

3. Protocol on Accession of the Republic of Armenia to the Treaty on the Eurasian Economic Union dated May 29, 2014.

DECISIONS:

1. Decision "On abolishment of customs control in respect of goods and vehicles moved across the Kyrgyz - Kazakh section of the state border."

2. Decision "On abolishment of sanitary-quarantine, veterinary-sanitary and quarantine phytosanitary control (supervision) on the Kyrgyz - Kazakh section of the state border."

3. Decision "On amending the total staff numbers and structure of the Court of the Eurasian Economic Union."

4. Decision "On the candidates to members of the Board of the Eurasian Economic Commission from the Kyrgyz Republic."

5. Decision "On introducing amendments to Article 1 of Decision No. 79 of the Supreme Eurasian Economic Council dated October 10, 2014."

6. Decision "On the annual report on the implementation of the budget of the Eurasian Economic Commission for 2014."

7. Decision "On the key points of the macroeconomic policy of the Member States of the Eurasian Economic Union for 2015 - 2016."

8. Decision "On the Concept of forming the common electric power market of the Eurasian Economic Union."

9. Decision "On the Program of stage-by-stage liberalization of road transportation of cargo between the points located on the territory of one of the Member State of the Eurasian Economic Union by the carriers registered on the territory of other Member States of the Eurasian Economic Union for the period from 2016 to 2025."

10. Decision "On the Free Trade Agreement between the Eurasian Economic Union and its Member States, on the one part, and the Socialist Republic of Vietnam, on the other part."

11. Decision "On the start of negotiations to conclude an agreement with the People’s Republic of China on trade and economic cooperation."

12. Decision "On the list of sensitive goods the decision to change import customs duties for which is made by the Council of the Eurasian Economic Commission."

13. Decision "On introducing amendments to the list of sectors (sub-sectors) of services under which the common services market within the Eurasian Economic Union functions."

14. Decision "On introducing amendments to Decision No. 112 of the Supreme Eurasian Economic Council dated December 23, 2014."

15. Decision "On the plan of measures to implement the Major Directions of development of the "single window" mechanism in the system of foreign economic activities regulation."

16. Decision "On awarding a medal "For contribution in building the Eurasian Economic Union."

DISPOSITIONS

1. Disposition "On the Results of Implementation of the Agreement on the Common Principles and Rules of Activities Regulation of Natural Monopoly Entities dated December 9, 2010."

2. Disposition "On time and place of the next session of the Supreme Council."

Congratulations on the Victory Day!

Dear colleagues, friends!

May 09, 1945 is a great date in the history of the States of the Eurasian Economic Union. Their citizens will never forget an outstanding feat of arms and labour of their grandparents and great-grandparents who secured a historic Victory over a violent aggressor – German fascism – 70 years ago.

For many decades, this Victory has become a bright symbol of resilience and courage of our people, ability to withstand together hardships and tribulations, to rebuff enemies. This is our Victory! It embodies sweat and blood of Armenians, Belarusians, Kazakhs, Kyrgyz and Russians, representatives of many other nations. This is a tragedy of loss and happiness of a great survival of millions of families living on the Eurasian territory. This immortal Victory is like the Eternal Flame that symbolizes non-fading power and living faith in further joint successes under our new integration union.

We sincerely wish health and peaceful skies to our dearest veterans who forged Victory on the front lines and in the rear, their descendants who remember and praise heroic deed of their ancestors, to all citizens of the Member States of the Eurasian Economic Union. Happy Victory Day!

In Astana the Presidents of Belarus, Kazakhstan and Russia discussed the development of the Eurasian integration processes

On the 20^th of March a trilateral meeting of the President of Belarus, Aleksander Lukashenko, the President of Kazakhstan, Nursultan Nazarbayev, and the President of Russia, Vladimir Putin, was held in Astana. The Heads of the State inter alia discussed the development of the Eurasian integration processes in view of the impact of the current trends in the global economy.

While opening the meeting Nursultan Nazarbayev noted the importance of that meeting for the discussion of the current situation in the world in the context of the crisis consequences. "The crisis of 2007-2009 was of a global nature, while the current one has a regional direction and has been caused by reduction of prices for energy carriers and our goods. We anticipated that such risks would occur, and now our task is to develop joint measures and to come through this period successfully," said the President of Kazakhstan.

Aleksander Lukashenko turned attention to the fact that new challenges occur every year. In his opinion, the time proves that the EAEU has been created at a good hour. "Moreover, this is not merely a declaration - we have adopted a lot of documents and formalized it by signing a number of treaties. And within our Union we must respond to these challenges," said the President of Belarus.

Vladimir Putin in his turn noted that the development of the real sector of economy - industry and agriculture, as well as employment stimulation are of paramount importance for the EAEU States. He underlined that the parties agreed to continue the coordination of the monetary policy. "We think that the time has come for us to discuss a possibility of creation of a monetary union in perspective. While working shoulder to shoulder it is easier to react to external financial and economic threats and to protect our common market", underlined Vladimir Putin.

In the end of the meeting the President of Kazakhstan emphasized the importance of active and regular meetings for "synchronization of watches" and discussion of promising courses of cooperation between the member states of the Eurasian Economic Union.

The President of Russian Federation Vladimir Putin had talks with Almazbek Atambayev, the President of Kyrgyzstan, to discuss issues of the republic's Eurasian integration

On March 16, a meeting between the President of the Russian Federation Vladimir Putin and Almazbek Atambayev, the President of the Kyrgyz Republic, was held in Saint-Petersburg. The heads of the states, among other issues, discussed matters of bilateral cooperation as well as the prospects of Kyrgyzstan's joining the Eurasian Economic Union (EAEU).

Opening the session, the Russian President stressed that he is glad to welcome the Kyrgyz leader in Saint-Petersburg. 'Naturally, we cannot leave out the developments in the integration processes and where we stand from viewpoint of the agreements on gradual accession of Kyrgyzstan to the Union', said Vladimir Putin in his statement.

The Russian leader also stressed that the ultimate goal of the integration processes is that the Kyrgyz economy should be adjusted to the economies of Armenia, Belarus, Kazakhstan and Russia. In Vladimir Putin's opinion, 'these are, unconditionally, the tasks that can be solved'.

In his turn, the head of Kyrgyzstan, speaking of the republic's accession to the EAEU, mentioned that Bishkek's intention is to become a full-fledged EAEU member prior to May 9. 'Of course we would like to fulfil it by May 9. As you can recall, we set the date before. We have people, the veterans of war, who remember as there were no customs borders and therefore this meeting is a good occasion to discuss the matters that have built up', said Almazbek Atambayev.

Here is to remind that an Agreement on the accession of Kyrgyzstan to the EAEU Treaty was signed on December 23.

The first meeting of the Eurasian Intergovernmental Council discussed long-term approaches to the development of economic and trade cooperation with EAEU main partners

On February 6, the first session of the Eurasian Intergovernmental Council was held in Moscow. The summit was attended by Prime Minister of the Republic of Armenia Ovik Abraamyan, Prime Minister of the Republic of Belarus Andrei Kobyakov, Prime Minister of the Republic of Kazakstan Karim Masimov, Chairman of the Government of the Russian Federation Dmitry Medvedev, Prime Minister of the Republic of Kyrgyzstan Djoomart Otorbaev and Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko.

The Session of the Eurasian Intergovernmental Council discussed a wide range of integration issues related to the functioning of the Eurasian Economic Union, development of regulatory legal base and implementation of a series of specific cooperation projects. In particular, it considered plans to increase mutual turnover among EAEU Member-States, deepen cooperation in macroeconomy and financial policies, introduce labels for specific goods and establish the Eurasian Engineering Machine Tool Engineering Center.

The Eurasian Intergovernmental Council instructed the Governments of EAEU Member-States together with the EEC and in cooperation with central (national) banks to review the expediency of deepening the cooperation between Member States in the field of macroeconomic and currency and financial policies and report their proposals at the next meeting of the Eurasian Intergovernmental Council. Furthermore, the EEC is ordered to analyze the causes of changes in the dynamics of mutual trade among Member States of the Customs Union (the CU) and the Single Economic Space (the SES) in 2010 - 2014 and to submit proposals to build up mutual turnover among EAEU Member-States in the first half of 2015.

The respective protocols to the Agreement on the Accession of the Republic of Kyrgyzstan to the EAEU are prepared. The Protocols are planned to be signed by the President of the Republic of Kyrgyzstan at the beginning of this March. As the EEC Board Chairman Viktor Khristenko stressed, "in this sense, it is enormous work related not only to the legal preparation but also to the goals to be achieved by Kyrgyzstan on its own territory with the help of the Agreement Member States." Thus, Kyrgyzstan may become a full member of the Union in the near future.

Key topics in the agenda also included long-term approaches to the development of economic and trade cooperation with EAEU main partners.

Address by the Belarus President Aleksandr Lukashenko to the member states of the Eurasian Economic Union

On January 1, 2015 assumed the chairmanship in the Supreme Eurasian Economic Council, Eurasian Intergovernmental Council and Council of the Eurasian Economic Commission.

Our state considers the Eurasian Economic Union as the major integration association that promotes economic and social stability in the region. We welcome the consistent increase in number of participants of the Eurasian integration, we support the open and equitable dialogue of the EAEU with other countries, international organizations and international integration associations.

The chairmanship of the Republic of Belarus in the Eurasian Economic Union will be committed to further strengthening of neighbourliness, development of economic cooperation, promotion of four fundamental economic freedoms of the Union: the free movements of goods, services, capital and labour.

At all stages of preparing the Treaty on the Eurasian Economic Union, the Belarus party consistently declared the need of maximum liberalisation of the conditions for economic activity under the EAEU. We still believe that the Eurasian Economic Union shall be founded on complete elimination of exemptions and restrictions in the movements of goods.

We propose the following:

- to take measures for the soonest possible transition to the concerted, and in future to the common industrial and agricultural policy, for the development of industrial cooperation, for the implementation of joint investment projects both within the Union and beyond;

- to accelerate development and approval of the main areas of industrial cooperation within the Union;

- to ensure that the common markets of pharmaceutical and medical products unconditionally start operating from January 1, 2016;

- to start practical implementation of the Treaty provisions that provide for joint development of export.

We pay utmost attention to the development of concepts to shape the common markets of electric energy, gas, oil and oil products.

The specific measures to develop the integration processes in the service area will be taken during the chairmanship of Belarus. Our common objective is consistent elimination of restrictions and exemption with further development of single markets in as many areas as possible, including in construction and transportation. We believe that the development of a common market of transport services, including the development of programme for phased liberalization of cabotage transportation, is one of the major components of competitiveness of our products both on internal and foreign markets.

The customs tariff and non-tariff protection of the common customs space is of vital importance. In view of above we expect our partners to be open in their dialogue with the WTO.

We propose to develop efficient mechanisms that would enable the Eurasian Economic Union to operate in the context of unilateral measures taken by one of the member states to protect the market from the third parties. The special attention shall be paid to coordinating the cooperation in taking the sanitary, veterinary and phytosanitary measures, in protecting the consumers' rights.

The preparation of an international treaty on the principles and approaches to alignment of the legislation systems of member states regulating the state control over compliance with the technical regulations requirements, is also of key importance.

The problems of capital movements are important. During one year we shall end up signing an international treaty on concerted approaches to regulating the currency legal relations and taking liberalization measures.

We plan to actively contribute to increasing the effectiveness of the Eurasian Economic Commission operations including rapid responding to external and internal challenges, supervising execution of the decisions taken by the Union.

We will ensure the required cooperation in organizing full-scale functioning of the EAEU Court, strengthening the importance of law in the Eurasian Economic Union space.

I truly hope that the member states of the Eurasian Economic Union will support us in practical implementation of the Belarussian initiatives.

I believe that our close cooperation will be a guarantee of the most effective implementation of the set plans and successful establishment of the Eurasian Economic Union as an independent centre of sustained economic development.

The Chairman of the Supreme Eurasian Economic Council

A.G. Lukashenko

Armenia is now in the Eurasian Economic Union

January 2, the Treaty on Armenia's accession to the Eurasian Economic Union (EAEU) came into force. Armenia became the fourth full-fledged Member-State of the Eurasian Economic Union together with Belarus, Kazakhstan and Russia.

By this Treaty Armenia has made a part of the Treaty on the Eurasian Economic Union, signed by the Presidents of the EAEU Member-States - Alexander Lukashenko, Nursultan Nazarbayev and Vladimir Putin on May 29, 2014 in Astana, as well as other international treaties forming the EAEU legal framework. From now on, Armenia undertakes corresponding obligations, and therewith gets access to the EAEU single market with 170 million citizens.

By joining the Eurasian Economic Union, the state gets fully involved into implementation of the Eurasian project aimed, on the one hand, at forming of four freedoms: free movement of goods, services, capital and labour force. On the other hand, - at creation of one of the key economic centers of evolving architecture of the multipolar world.

The fourth partner expects a number of positive effects form integration. Among the key ones there are an increase of goods turnover due to elimination of barriers and minimization of administrative expenses, increase of mobility of labour force due to introduction to the single labour market, increase of stability of economic development due to reduction of economic isolation effect, development of infrastructure projects, participation in drawing up of the agenda using the mechanisms of the Eurasian Economic Union.

The Treaty on accession provides for full involvement of Armenia’s representatives into the activities of the EAEU governance. Upon entry of the Treaty into force the President of Armenia becomes a full-fledged Member of the Supreme Eurasian Economic Council, and the Prime Minister becomes a Member of Intergovernmental Council; the full-fledged representative joins the Eurasian Economic Commission. Armenia will be represented by three Board Members in the Board of the Eurasian Economic Commission, as wells as other EAEU Member-States.

For reference:

April 10, 2013 the Chairman of the EEC Board Viktor Khristenko and the Prime Minister of the Republic of Armenia Tigran Sarkisyan signed the Memorandum on cooperation between the Eurasian Economic Commission and the Government of the Republic of Armenia. The document laid the basis for cooperation between the Parties by providing consultations, conducting conferences and seminars, preparing of analytical reviews on issues of mutual interest, conducting meetings of the Eurasian Economic Commission management with the Armenian Party. At the same time, over a period of several years, the Republic of Armenia has been engaged in an active dialogue with the European Union within the frameworks of the “Eastern Partnership” program, aimed at conclusion of the European Union Association Agreement.

September 3, 2013 the Republic of Armenia issued a declaration of intent to join the Customs Union (CU) and Single Economic Space (SES). October 24, 2013, during the panel session of the Supreme Eurasian Economic Council in Minsk the Presidents of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation considered the application of the Republic of Armenia and instructed the Eurasian Economic Commission to initiate the procedure on accession.

The Working Group created based on Decision of the Supreme Eurasian Economic Council “On accession of the Republic of Armenia to the Customs Union and Single Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation” dated October 24, 2013 No. 49 with participation of the representatives of Belarus, Kazakhstan, Russia, Armenia and the Eurasian Economic Commission, chaired by the Member of the Board – Minister in charge of the Development of Integration and Macroeconomics of the Eurasian Economic Commission Tatiana Valovaya developed the relevant “road map”.

November 6, 2013, in Erevan the Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko and the Prime Minister of the Republic of Armenia Tigran Sarkisyan signed a Memorandum on strengthened cooperation between the Eurasian Economic Commission and the Republic of Armenia, the project thereof was preliminary approved by Decision of the Supreme Eurasian Economic Council at the highest level on October 24, 2013 No. 49. In accordance with the Memorandum the Republic of Armenia shall have the right to participate in the sessions of the Supreme Eurasian Economic Council, the Council and the Board of the Eurasian Economic Commission, as well as the right to appoint a representative of the Republic of Armenia to the Eurasian Economic Commission. The Memorandum also provides for the possibility to establish information exchange between the Parties. This Memorandum was prepared and adopted in furtherance of the Memorandum on cooperation between the Eurasian Economic Commission and the Government of the Republic of Armenia dated April 10, 2013.

December 24, 2013 in Minsk the Presidents of the Member-States of the Customs Union and Single Economic Space approved the “road map” for accession of the Republic of Armenia to the Eurasian integration association. The Heads of the Member-States of the Customs Union and Armenia accepted the Application “On participation of the Republic of Armenia in the Eurasian integration process”, that welcomed the intention of the Republic of Armenia to join the Customs Union and Single Economic Space.

All the measures that had to be taken prior to the accession have been taken. In the course of cooperation Armenia demonstrated a laudable interest and activity. In accordance with the “road map”, the Republic of Armenia had to take 126 measures out of 267 “prior to accession”. All of them have been taken. Certain provisions relating to the implementation of these items are included in the Treaty on Accession. Within the frameworks of the accession procedure the experts of the Eurasian Economic Commission made more than 40 visits to the Republic of Armenia.

In general, the implementation of the "road map" for the Republic of Armenia is the harmonization of national legislation with the contractual and legal framework of the Eurasian Economic

The treaty on the Eurasian Economic Enion is coming into force

January 1, the Treaty on the Eurasian Economic Union (EAEU) is coming into force. The Treaty confirms the creation of an economic union that provides for free movement of goods, services, capital and labor and pursues coordinated, harmonized and single policy in the sectors determined by the document and international agreements within the Union.

The Treaty on the EAEU was signed by the Presidents of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation on May 29, 2014, in Astana. Apart from the three states, the Union members will also include the Republic of Armenia that signed Treaty on Accession to the Union on October 10, 2014 and the Kyrgyz Republic that signed similar Treaty on December 23, 2014.

The Eurasian Economic Union is an international organization for regional economic integration. It has international legal personality.

The Union is to create an environment for a stable development of the Member-States' economies in order to raise the living standards of their population, as well as to comprehensively upgrade and raise the competitiveness of and cooperation between the national economies in the conditions of the global economy.

The EAEU operates within the competence granted by the Member-States subject to the Treaty on the Union, based on the respect to the established principles of international law, including the principles of Member-States' sovereign equality and territorial integrity; based on the respect to the specifics of the Member-States' political order; based on the promotion of mutually beneficial cooperation, equal rights and the Parties' national interests; based on application of the principles of market economy and fair competition.

Governance of the Union is entrusted to the Supreme Eurasian Economic Council (SEEC) comprised of the Heads of the Member-States. The SEEC sessions are held at least once a year. The SEEC structure is formed by the Intergovernmental Council at the level of the Heads of the Governments, the Eurasian Economic Commission and the Court of the Union.

For reference:

Union bodies: 
The Supreme Council is the EAEU's supreme authority composed by the Presidents of the Union's Member-States.

The Intergovernmental Council is a Union body in charge of strategically important issues of the development of the Eurasian economic integration remained with no consensus when discussed in the Commission Council.

The Court of the EAEU is the Union's court of justice that ensures that the Member-States and the Union's bodies uniformly implement the Treaty on the EAEU and other international agreements within the Union.

The Eurasian Economic Commission is the Union's permanent supranational regulatory body formed by the Commission Council and Commission Board. The Commission's key tasks are to create environment for the Union's operation and development, as well as develop proposals for economic integration within the EAEU.

The Commission Council includes the Prime-Ministers of the Union's Member-States.

The EEC Board is comprised of its Chairman and Ministers.

Key functional novelties of the Treaty on the EAEU as compared to the stages of the CU and SES:

The Treaty on the EAEU secured the Member-States' agreement to pursue a coordinated energy policy and form common energy markets (electric energy, gas, oil and oil products) based on common principles. The document contemplates that such task will be implemented in several stages and completed by 2025: formation of single market of electric power is planned to be completed by 2019, and single market of hydrocarbons—by 2025.

The Treaty on the EAEU determines regulatory treatment of the turnover of pharmaceuticals and medical devices. By January 1, 2016, single market of pharmaceuticals and single market of medical devices (devices for medical purposes and medical equipment) will be created within the Union.

The Treaty establishes new long-term priorities of transport policy in the territory of the Eurasian Economic Union. The parties agreed on a step-by-step liberalization of transport carriages in the territory of the will-be Union, which pertains primarily to motor and railroad transport.

An agreement has been reached on the formation and implementation of a coordinated agricultural policy. It is not insignificant that policies in other areas of integration interaction, including application of sanitary, phytosanitary and veterinary measures to agricultural products, will be pursued in view of the goals, tasks and areas of the coordinated agricultural policy.

The Eurasian Economic Union operation would be unimaginable unless a coordinated macroeconomic policy were pursued, which provides for development and implementation of the Union Member-States' joint activities to achieve a balanced economic development. Subject to the Treaty, key areas of the coordinated macroeconomic policy include formation of single principles of the Union Member-States operation, their efficient interaction and development of common principles and benchmarks to predict the Parties' social and economic development.

To ensure coordinated regulation of financial markets, based on a step-by-step harmonization of the legislations, the EAEU Member-States agreed to establish by 2025 a single supranational body for financial market regulation.

The Treaty on the EAEU presupposes that, as of January 1, 2015, single services market will start operating in a number of sectors determined by the Union Member-States. National treatment will be the basis, i.e. the state will have to adopt full-fledged national treatment of service providers and partner-countries—there can be no restrictions. Later on, the Parties will seek to expand the sectors as much as possible. In particular, by way of a step-by-step reduction of deletions and restrictions, which will undoubtedly strengthen the Eurasian integration project.

Subject to the Treaty on the EAEU, the single services market within the Union shall operate in the sectors approved by the Supreme Council based on the coordinated proposals from the Member-States and the Commission. Based on the Treaty, Decision of the Supreme Eurasian Economic Council dated December 23, 2014 confirmed the lists of services sectors wherein the single market will start operating as of January 1, 2015. At the moment, following the proposals of Belarus, Kazakhstan and Russia, the list of services may include over 40 services sectors (construction services, wholesale/retail trade services, agricultural services, including sowing, processing and crop harvesting, etc.). The list of sectors wherein the rules of the single services market should be followed is subject to a step-by-step and coordinated expansion. In the services sectors where the single services market does not operate, providers and receivers of services are subject to national treatment and most favored nation treatment, and no quantitative or investment restrictions shall be applied thereto.

As of January 1, 2015, single labor market will start operating in the territories of Armenia, Belarus, Kazakhstan and Russia; the freedom of movement of labor will be exercised. The citizens of these states will work in equal conditions: workers from the EAEU Member-States will need no work permits to work within the Union. Once the common labor market is created, the EAEU citizens will be able to experience directly the benefits of the Eurasian Economic Union. Education degrees will be mutually recognized automatically, starting off January 1, 2015. Taxes on incomes of individuals, the EAEU citizens, will be paid according to the domestic resident rate as of the first days of employment. The EAEU Member-States' citizens will no longer have to fill in migration cards when crossing internal borders between the EAEU countries, unless they exceed a 30 day period of stay from the day of entry. Besides, workers and their family members will be relieved of the obligation to get registered with law enforcement authorities for a period not exceeding 30 days.

Another most important novelty of the Treaty on the EAEU is a possibility to apply national treatment to the citizens of all the four countries in what regards social security, including health care. In each EAEU country all health-care services provided by the state will be equally accessible for all the citizens of the Union countries. (Primarily, free ambulance services are meant).

Regarding pensions, the Treaty on the EAEU contains a commitment to solve the issue of pensions export and crediting of total seniority accumulated in another Union country. At the moment, the EEC, jointly with the Parties, elaborates an Agreement on pension coverage that will become effective after 2015.

The session of the supreme eurasian economic council discussed the operation of the Eurasian Economic Union and its agencies from january 1, 2015

December 23, Supreme Eurasian Economic Council (SEEC) held its session in Moscow. The summit was attended by the Heads of the Member-States of the Customs Union (CU) and Single Economic Space (SES) – the President of the Republic of Belarus Alexander Lukashenko, the President of the Republic of Kazakhstan Nursultan Nazarbayev and the President of the Russian Federation Vladimir Putin, as well as the President of the Republic of Armenia Serzh Sargsyan and the President of the Kyrgyz Republic Almazbek Atambaev. The Eurasian Economic Commission (EEC) was represented by the EEC Board Chairman Viktor Khristenko.

Operation of the Eurasian Economic Union (EAEU) and its Agencies from January 1, 2015 was one of the main issues discussed at the session.

The summit participants signed a number of decisions aimed at regulation of the activities of the EAEU Agencies, formation of the Eurasian Economic Commission and the Court of the Eurasian Economic Union, and their operation.

The Heads of the States signed the Treaty on Accession of the Kyrgyz Republic to the Treaty on the Eurasian Economic Union.

The President of the Republic of Kazakhstan Nursultan Nazarbayev signed a law "on ratification of the treaty on the Eurasian Economic Enion."

October 14, the President of Kazakhstan Nursultan Nazarbayev signed the law of the Republic of Kazakhstan "On Ratification of the Treaty on the Eurasian Economic Union."

This ratification had been previously approved by the Mazhilis of the Parliament (October 1), as well as by the Senate of the Parliament (October 9) of the Republic of Kazakhstan.

The Treaty is a fundamental document that determines the agreements of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan on creation of the Eurasian Economic Union in order to remove the barriers to the free movement of goods, services, capital and labor, pursue coordinated, harmonized and single policy in the key sectors of economy.

The Treaty on the EAEU was signed by the President of the Republic of Belarus Alexander Lukashenko, the President of the Republic of Kazakhstan Nursultan Nazarbayev and the President of the Russian Federation Vladimir Putin on May 29, 2014, in Astana.

The President of Belarus Alexander Lukashenko signed a law on the eeu treaty ratification

October 10, Supreme Eurasian Economic Council (SEEC) held its session in Minsk. The Summit was attended by the leaders of the Member-States of the Customs Union (CU) and Single Economic Space (SES) the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, as well as by the Presidents of the Republic of Armenia and the Kyrgyz Republic. The Eurasian Economic Commission (EEC) was represented by the EEC Board Chairman Viktor Khristenko.

Signing of the Treaty on Armenia's accession to the EAEU was one of the main outcomes of the Summit.

The Summit participants discussed financial, organizational and technical aspects related to the beginning of the Eurasian Economic Union's (EAEU) operation as of January 1, 2015.

The general staff size and structure of the Eurasian Economic Union Court was approved, as well as the procedure for selection of candidates for offices in the Secretariat of the Eurasian Economic Union Court.

Moreover, a Statute on the Symbols of the Eurasian Economic Union was passed that approves the Union's emblem and flag.

The documents signed at the session of the Supreme Eurasian Economic Council on October 10, 2014

Treaty:

1. Treaty on Accession of the Republic of Armenia to the Treaty on the Eurasian Economic Union

Statements:

1. Statement on Implementation of Intrastate Procedures Necessary for the Treaty on the Eurasian Economic Union dated May 29, 2014, to Become Effective
2. Statement of the plan of activities ('roadmap') for the accession of the Kyrgyz Republic to the Single Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, in view of the formation of the Eurasian Economic Union and the intention of the Kyrgyz Republic to become a full Member-State of the Eurasian Economic Union.

Решения:

1. On approval of the plan of activities ('roadmap') for the accession of the Kyrgyz Republic to the Single Economic Space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation, in view of establishment of the Eurasian Economic Union
2. On approval of the Statute on the Symbols of the Eurasian Economic Union
3. On the annual report on the implementation of 2013 Eurasian Economic Commission budget
4. On Statute for the Eurasian Economic Union Budget
5. On the amount (scale) of the contributions of the EAEU Member-States to the Eurasian Economic Union budget
6. On approval of the parameters of the EAEU Member-States officials representation in the Eurasian Economic Commission Departments
7. On approval of the general staff size and structure of the Eurasian Economic Union Court
8. On the remunerations for judges, officials and employees of the Eurasian Economic Union Court
9. On selection of candidates for vacant positions in the Secretariat of the Eurasian Economic Union Court
10. On the Procedure for verifying authenticity and fullness of the information regarding income, property and property-related liabilities of the judges, officials and employees of the Eurasian Economic Union Court, as well as the members of their families
11. On determining the amount, currency, procedure for entering into an account, use and repayment of the duty paid by economic operators for applying to the Eurasian Economic Union Court
12. On entry into force of the Protocol on Amendments to the Agreement on Determining the Customs Value of the Goods Carried across the Customs Border of the Customs Union, dated January 25, 2008
13. On amendments to the List of Sensitive Goods, for which the Decision on Changing the Import Duty Rate is Made by the EEC Council
14. On development of a system fol labeling of certain types of light industry products in the territories of the Member-States of the Customs Union and Single Economic Space

Instructions:

1. Instruct the Eurasian Economic Commission to prepare, jointly with the governments of Russia, Belarus and Kazakhstan, proposals for approaches to develop economic cooperation with key trade partners of the Eurasian Economic Union

Russian President Vladimir Putin signed a federal law on ratification of the treaty on the Eurasian Economic Union

October 3, Russian President Vladimir Putin signed a Federal law "On Ratification of the Treaty on the Eurasian Economic Union."

Previously, October 1, the Council of Federation had approved the Federal Law. September 26, at the Morning Plenary Session of the State Duma of the RF, the Treaty was ratified by the votes of 441 deputies.

The Treaty is a fundamental document that determines the agreements of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan on creation of the Eurasian Economic Union in order to remove the barriers to the free movement of goods, services, capital and labor, pursue coordinated, harmonized and single policy in the key sectors of economy.

The Treaty on the EAEU was signed by the President of the Republic of Belarus Alexander Lukashenko, the President of the Republic of Kazakhstan Nursultan Nazarbayev and the President of the Russian Federation Vladimir Putin on May 29, 2014, in Astana.

Alexander Lukashenko and Nursultan Nazarbayev discussed key areas of cooperation within the integration structures

August 27 in Minsk, a bilateral meeting was held between the President of the Republic of Belarus Alexander Lukashenko and the President of Kazakhstan Nursultan Nazarbayev. During the meetings, the Parties discussed the results of the meeting held the day before between the leaders of the CU countries, Ukraine and representatives of the European Union. The Heads of States expressed their confidence that the agreements reached based on the meeting would affect the situation in Ukraine in a positive way.

Besides, Nursultan Nazarbayev and Alexander Lukashenko discussed the key areas of bilateral cooperation in trade, economic, industrial, innovation and agricultural sectors. Besides, the matters of cooperation within integration structures and current aspects of international agenda were also addressed.

In Astana, presidents of Belarus, Kazakhstan and Russia signed treaty on establishment of Eurasian Economic Union

May 29 in Astana, based on the results of the Supreme Eurasian Economic Council session, a ceremony of signing the Treaty on the Eurasian Economic Union (EAEU) was held. The ceremony was attended by the President of the Republic of Belarus Alexander Lukashenko, President of the Republic of Kazakhstan Nursultan Nazarbayev, President of Russia Vladimir Putin. Subject to the Treaty signed, the Eurasian Economic Union will start operating as of January 1, 2015.

In their press statements based on the session of the Supreme Eurasian Economic Council, the Heads of States pointed out the positive significance of the creation of the EAEU for the three countries' economies.

Kazakh President Nursultan Nazarbayev emphasized that "a new economic reality of the 21st century is being born today." According to President Nazarbayev, it is only logical that Astana became venue for signing of the EAEU Treaty, since it is here where the idea to create an association was born. "It will become a great chronicle of good-neighborly relations between Russia, Kazakhstan and Belarus. Twenty years ago I voiced an idea to create a new association. The idea of Eurasian integration was supported by Vladimir Putin and Alexander Lukashenko. And we started to embody it. We need to unite potentials of our States for joint growth," Nursultan Nazarbayev said. "Enhancing the Eurasian integration is beneficial for our countries and nations. One of our key goals is to unite each country's potentials to jointly upgrade, raise and improve the competitiveness of our countries," Kazakh President said.

He also added that the EAEU will create a long-term environment for the development. "By developing the integration we are coming through a free trade zone, the Customs Union. We will have to show the whole world that our decision was right. We had little time to come to today's decision. We have done a great deal of work and solved complicated issues. Now we are going to have the new document ratified by Parliaments of our States so that the Union would become effective as of January 1, 2015. The 29th of May must become the Day of Eurasian Integration," Nursultan Nazarbayev said.

The President of Belarus Alexander Lukashenko said that "we are ready to move consistently and steadily along the path of fulfillment of the agreements reached in a very difficult negotiation process." He noted that: "I wish our further joint work in these areas did not slow down, and we moved persistently along this path. Signing the Treaty is not the end of the process; it's a beginning of a more serious process President Nazarbayev just spoke about. The process where we will have to prove to our nations and the whole world that we have made right steps in this direction."

The President of Russia Vladimir Putin pointed out that "it is in Kazakhstan where the Treaty is being signed, in its capital. Because it was President Nazarbayev who was at the source of the very idea of the Eurasian Union. He was the first who voiced that idea in his speech, as I remember, at Moscow State University in 1994." He added: "Russia, Belarus and Kazakhstan are reaching an absolutely new level of interaction, creating a common space with free movement of goods, services, capital and labor. The three States will pursue a coordinated policy in the key sectors of economy: energy, industry, agriculture and transport. We are forming essentially the largest single market within the CIS (over 170 million people) with huge production, science and technology potential and enormous natural resources." The Head of the Russian State emphasized the importance of the fact that "delegation of certain powers to supranational bodies of the Union does not damage our countries' sovereignty whatsoever."

Lecture of the President of Kazakhstan at Lomonosov Moscow State University

On May 28, the President of the Republic of Kazakhstan Nursultan Nazarbayev spoke in Lomonosov Moscow State University. In his speech the President of Kazakhstan pointed out that 20 years ago in his lecture at MSU he for the first time voiced the idea to create the Eurasian Economic Union.

The President of Kazakhstan said that the concept of the Eurasian Economic Union was based on the truth which is equally close and clear to our countries' citizens. "Common history, mutual economic gravitation, close cultural ties and closeness of people's aspirations give our nations a chance to build a new type of multilateral interstate connections. I have always been and remain a strong advocate of the idea that the Eurasian Union is only possible on the principles of voluntariness, equal rights, mutual benefits and taking into account interests of each Member-State," Nursultan Nazarbayev pointed out.

The Head of Kazakhstan also emphasized that the key task of the association is to raise competitiveness of our States, which does not go beyond the economic component.

In conclusion of the meeting, the Rector of Lomonosov MSU handed a commemorative diploma to Nursultan Nazarbayev in dedication of his visit.

Further prospects of the Eurasian economic integration outlined at the SEEC in Minsk

April 29, a regular session of the Supreme Eurasian Economic Council (SEEC) was held in Minsk, attended by President of Belarus Alexander Lukashenko, President of Kazakhstan Nursultan Nazarbayev, President of Russia Vladimir Putin. Chairman of the Board of the Eurasian Economic Commission (EEC) Viktor Khristenko also took part in the SEEC session.

During the meeting, the Heads of Belarus, Kazakhstan and Russia discussed the operation of the Customs Union (CU) and Single Economic Space (SES), progress of the work on the Treaty on establishment since January 1, 2015 of the Eurasian Economic Union, as well as preparation of a Treaty on accession of Armenia to the CU and SES.

Based on the results of the SEEC session, Chairman of the Board of the Eurasian Economic Commission (EEC) Viktor Khristenko pointed out clear development prospects for the Eurasian economic integration: «The highest state level itself implies not only the complexity of the negotiation process, but also the significance and most advanced prospects in many areas. For instance, in forming a common market for oil, oil products and gas. These are fundamentally new constructs that we have not had before and that have only existed as deletions".

He also pointed out that "the issues of interaction in the oil and gas area will be regulated subject to applicable agreements of 2010 and relevant bilateral arrangements that would ensure a proper cooperation status in these areas for the whole period until the common market is formed." Viktor Khristenko emphasized: "the common markets of gas, oil and oil products will be launched no later than 2025, and the Presidents will approve the concepts of each market by 2016. By 2025, the issues of interaction in this area will be regulated subject to applicable and additional agreements. Duties for oil products shall be a subject of bilateral arrangements." The EEC Board Chairman Viktor Khristenko said that the single financial regulator of the Eurasian Economic Union will start its operation in 2025,"Speaking about financial regulator, it is stipulated in the agreement that the financial regulator will start functioning by 2025 and will be located in Almaty, Kazakhstan."

The EEC Board Chairman also pointed out that the draft Treaty on Armenia's accession to the Customs Union and Single Economic Space of Belarus, Kazakhstan and Russia is planned to be prepared for consideration by the Heads of states by June 1, 2014. Speaking about the progress in implementation plan for Armenia's accession to the CU and SES, he pointed out that during Minsk session "the work completed by today was approved." Viktor Khristenko noted that "out of 126 items on the 'road map' that were supposed to be implemented prior to signing of the Accession Treaty, 111 have already been implemented and 15 will be included in the Treaty itself."

Based on the results of the Supreme Eurasian Economic Council session, the Presidents of Belarus, Kazakhstan and Russia instructed the governments of the tree states and the EEC to complete studying all the individual issues as soon as possible in order to submit the document for signing to the Heads of states by the end of May, at the summit of the Supreme Eurasian Economic Council in Astana.

Heads of the governments of Belarus, Kazakhstan and Russia had a meeting in Moscow

April 15, Heads of the governments of the CU and SES Member-States had a meeting in Moscow. The meeting was attended by Prime Minister of Belarus Mikhail Myasnikovich, Prime Minister of Kazakhstan Karim Masimov, Prime Minister of the Russia Dmitry Medvedev. The session was also attended by the Chairman of the EEC Board Viktor Khistenko and Members of the EEC Board

In the course of the session, the Heads of the Governments of Belarus, Kazakhstan and Russia discussed the operation of the Customs Union and Single Economic Space, the progress in preparation of the draft Treaty on founding the Eurasian Economic Union as of January 1, 2015.

The Supreme Eurasian Economic Council held its regular meeting in Moscow

On March 5, the Supreme Eurasian Economic Council held its regular meeting attended by the President of Belarus Alexander Lukashenko, the President of Kazakhstan Nursultan Nazarbayev, the President of Russia Vladimir Putin, and the Chairman of the Board of the Eurasian Economic Commission Viktor Khristenko.

In the course of the meeting, the Leaders of Belarus, Kazakhstan and Russia discussed the functioning of the Customs Union and Single Economic Space, progress achieved in the work on the Treaty on the establishment of the Eurasian Economic Union, scheduled for January 1, 2015 as well as a prospect of preparing an Agreement on accession of Armenia to the future union.

Following the results of the Supreme Eurasian Economic Council session, the State Leaders agreed that preparation of the draft Treaty shall be finished by May, and that all the essential documents shall be signed until the timeframe agreed.