Expanding support for industrial cooperation within EAEU possible, but should proceed gradually - Russian first deputy PM
TASHKENT. April 28 (Interfax) - Proposals to expand the co-financing mechanism for industrial cooperation projects in the Eurasian Economic Union (EAEU) to new sectors and countries remain under discussion, with the process requiring gradual implementation, Russian First Deputy Prime Minister Denis Manturov told Interfax.
This year saw approval of the union's first two joint projects receiving EAEU budget funding, he said. "The EEC [Eurasian Economic Commission] Council approved the first two cooperative projects in January this year. One in Kazakhstan to expand agricultural machinery production, including combine harvester cabin localization, and another in Russia to establish production capacities for railway switch manufacturing," he said.
The projects involve production of switches for high-speed rail lines at JSC Murom Switch Plant (Vladimir region, part of Track Superstructure Group) in collaboration with Belarus's Hydropress LLC and Kazakhstan's Astana Kala Kurylys, alongside a project from Kazakh agricultural machinery producer Kazrost Engineering to expand production of combine cabins with Russia's Rostselmash Combine Plant LLC and two Belarusian partner enterprises, Kuvo and Saleo.
"Business proposals to broaden the mechanism, including third-country participation and sectoral expansion, remain under discussion. We must proceed sequentially, balancing member states' interests with the union's strategic goals for technological development and deeper integration," Manturov said when answering a question about the prospects for expanding the mechanism, taking into account the proposals of business which previously advocated softening the criteria for selecting projects.
The financial support mechanism for industrial cooperation projects was launched in the EAEU last year. It stipulates that approximately 10% of funds received into the union's budget from anti-dumping duties will be allocated to subsidizing loans for industrial cooperation projects. The subsidy should cover the loan cost at the level of the key rate of the state where the project is implemented, while its maximum annual amount per project cannot exceed the equivalent of 350 million Russian rubles. The maximum interest rate for banks participating in the mechanism is the key rate plus 6.5%.
According to Interfax's information, the Union of Industrialists and Entrepreneurs (RSPP) approached Russian authorities in 2024 with proposals to relax project requirements, including allowing participation by countries that have trade agreements with the EAEU. The RSPP also proposed reducing the minimum required participation share in cooperation projects from 5% to 1% for smaller economies - Armenia and Kyrgyzstan. Among the business association's proposals were extending the mechanism to cover agriculture and related industries (a positive decision on this matter was adopted at the Eurasian Intergovernmental Council in February this year), adding trading houses and leasing companies as potential participants, and removing application review deadlines.
