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SCO and EAEU: uniting efforts to fulfill economic potentials

SCO and EAEU: uniting efforts to fulfill economic potentials

11/3/2020
Prospects for economic cooperation in the region of the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization (SCO) were a focus of the thematic session "The SCO and the EAEU: joining efforts to fulfill the economic potential of the region and the global economy". The discussion was held on November 3 as part of the SCO Business Forum. The event was organized by the Eurasian Economic Commission with the assistance of the Chamber of Commerce and Industry of Russian Federation.

During the session, Sergei Glazyev, Member of the Board – Minister in charge of Integration and Macroeconomics of the EEC, made a keynote report. The session was moderated by Timofey Bordachev, Director of the Center for Comprehensive European and International studies, Faculty of World Economy and International Affairs, HSE University, and Program Director of the Valdai Discussion Club.

Sergei Glazyev has stated that the SCO is an important component of the interstate interaction and regional integration architecture in Eurasia and developing the dialogue with the SCO is provided for by the draft Strategic Directions for Developing the Eurasian Economic Integration until 2025.

​​​"The EAEU Member States and the SCO form the core of the Eurasian continent and their relations largely determine the vector of further region development," the EEC Minister stressed.  "For example, Kazakhstan, Kyrgyzstan and Russia are both members of the EAEU and the SCO. Belarus has the Observer State status at the SCO and Armenia is its dialogue partner. This ensures interdependence of our integration associations".

Sergei Glazyev has informed about the work performed by the Commission to formalize relations with the SCO, in particular about completion of the negotiation process for concluding a Memorandum of Understanding between the EEC and the SCO Secretariat. "The draft Memorandum focuses on economic interaction with an accent on such areas as transport, transportation, investment, trade and customs facilitation," the EEC Minister stated stressing that issues of the digital economy, technical regulation as well as SPS measures, where the EAEU has an advanced legal framework, can be of particular importance."The SCO and the EAEU economic agendas have the potential to complement each other," Sergei Glazyev concluded.

Informing about the prospects for cooperation between the EAEU and the SCO, the Minister has noted the need to couple both international agencies and set a priority to increase the share of mutual trade settlements in national currencies; to create common development institutions supporting investments in national currencies and integrate financial markets, including stock exchanges. Sergei Glazyev has also noted the importance of harmonizing currency regulation systems, integration of banking systems, creating a single digital space for monetary circulation as well as forming the Eurasian financial architecture.

The session attendees have focused on the need to find ways to develop comprehensive cooperation and mutual understanding between the EAEU and the SCO, including by establishing a dialogue as part of the Greater Eurasian Partnership idea as well as within implementing the Chinese Belt and Road Initiative. They have noted the negative impact of protectionist policy of individual States on developing the region's economies as well as supported the formation of fair economic relations in the Eurasian continent. The business associations’ representatives have paid attention to the high demand of the business community to develop a dialogue between the EAEU and the SCO, including within the context of creating a barrier-free economic environment.

The discussion is available for viewing at https://youtu.be/WyNj_Z48Uu0.

For reference

The discussion was attended by Marco Ricceri, Secretary General of the European Institute for Political, Economic and Social Studies (EURISPES); Wang Wen, Executive Dean at Chongyang Institute for Financial Studies, Renmin University of China; Kairat Kelimbetov, Chairman of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan, Governor at Astana International Financial Centre; Danil Ibrayev, President of the Kyrgyz Union of Industrialists and Entrepreneurs; Kazem Jalali, Ambassador Extraordinary and Plenipotentiary of the Islamic Republic of Iran in the Russian Federation; Abdul Jabbar, Former Vice-President of Federation of Pakistan Chambers of Commerce and Industry; Sergei Krasilnikov, Vice President, Managing Director of International Relations and Integration Directorate, The Russian Union of Industrialists and Entrepreneurs, and Liu Huating, Director of the Eurasia Institute, Chinese Academy of International Trade and Economic Cooperation.​