The discussion was opened by Gohar Barseghyan, Minister of Industry and Agro-industrial Complex of the Eurasian Economic Commission. Photo: Sofia Sandurskaya/TASS
Today, the EAEU and the SCO are the largest associations of countries on the Eurasian continent, and the BRICS are undergoing a historic process of expansion. At first glance, the three formats have little in common: the EAEU is an economic union in the post-Soviet space, the SCO is dedicated to strengthening peace and security in Eurasia, and the BRICS is a club of developing economies of the world. However, all three communities are located mainly in Eurasia, which provides additional opportunities for mutually beneficial partnerships.
“POLE OF ECONOMIC GRAVITY”
The discussion was opened by Gohar Barseghyan, Minister of Industry and Agro-industrial Complex of the Eurasian Economic Commission. He recalled that this year marks 10 years since the signing of the Treaty on the establishment of the EAEU. And during this time, the partnership has proven its effectiveness and viability.
“We have had the opportunity to subsidize the implementation of cooperation projects. This direction will undoubtedly have a positive impact on the development of the real sector of the economy of our countries,” Barseghyan noted. He stressed that the EAEU is becoming “a pole of economic attraction for other associations,” and above all for the BRICS and the SCO.
In support of this, the minister cited concrete figures: in 2023, trade turnover between the EAEU and BRICS countries amounted to $63 billion, an increase of 26% compared to the previous year. Gohar Barseghyan’s achievements also included the signing of a large-scale agreement on a free trade zone between the EAEU and Iran and the meeting of the industry ministers of the BRICS countries in August.
Another participant in the discussion, First Deputy Director General of Russian Railways Sergei Pavlov, announced a record increase in container traffic between the EAEU and BRICS countries – 66% compared to last year. “Together with partners from the EAEU, SCO and BRICS, we are forming additional export and import routes and developing new logistics solutions,” said a representative of Russian Railways.
PROBLEMS HAVE SOLUTIONS
The participants of the WEF session separately discussed the problems faced by the members of the EAEU, the SCO and the BRICS. The main contradictions are related to the labour market and payments.
The chairman of the State Duma Committee on CIS Affairs, Eurasian Integration and Relations with Compatriots, Leonid Kalashnikov, drew attention to the fact that immigrants from other countries take the place of local residents, which causes conflicts. Therefore, the authorities are forced to seek a balance by protecting the interests of citizens. “These contradictions must be resolved by meeting our citizens halfway,” the deputy noted. For example, Russia has adopted a number of laws aimed at overcoming the conflict of interests between the national and global labor markets.
More and more states are turning to protectionism and self-sufficiency, said Dmitry Volvach, Deputy Minister of Economic Development of Russia, during the debate. “Today we live in conditions where global cooperation is becoming more and more difficult to implement,” the official stressed. He drew attention to the fact that protectionism sometimes becomes a necessary measure due to sanctions from other states. Russia has something to share with other countries thanks to its experience in circumventing illegal restrictions, says Sergey Ryabukhin, First Deputy Chairman of the Federation Council Committee on Budget and Financial Markets.
For example, the Russian Ministry of Industry and Trade considers it necessary to create an independent platform for cross-border payments. This work is already being carried out within the framework of BRICS, said the deputy head of the department, Roman Chekushov. “It is necessary to understand that absolutely all business entities of all member countries of the associations we are discussing today are interested in creating such a structure, because this will ensure the independence of business transactions,” the deputy minister concluded.
Now the BRICS, EAEU and SCO countries are faced with the task of verifying the regulatory framework and synchronizing it so that market participants can freely conduct financial transactions. This will benefit trade and cooperation between the countries of the three associations.
THE PRIORITY IS TO STRENGTHEN TRUST AND THE CREATION OF NEW TECHNOLOGIES
The task for the future is to strengthen trust between such different countries and close the information gap, says Alexander Shokhin, President of the Russian Union of Industrialists and Entrepreneurs. “We can talk not only about the exchange of information, but also about the creation of information platforms that allow us to find out how the regulation for attracting investment is structured in each country. We can talk about creating a joint database of projects and tasks that companies from our countries are interested in solving,” Shokhin stressed.
The second promising area of cooperation is the use of modern technologies in industry. According to the Deputy Head of the Ministry of Economic Development of Russia Dmitry Volvach, the EAEU countries already have an industrialization map. It is important that it be transformed from an information program into a guide for action and that it be linked to the BRICS and SCO projects.
Charlie Tan, Minister of Industry of Myanmar, drew attention to attracting new participants and organizations: “The more companies and organizations participate in the work with the support of coordinated actions of their governments, the more friendly the environment will be in which we will find ourselves.” The participants of the session agreed that the development of innovation and cooperation will help the EAEU, SCO and BRICS to realize the enormous potential of Greater Eurasia.
