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EEC considered Kyrgyzstan's initiative to create a new development institution

EEC considered Kyrgyzstan's initiative to create a new development institution

7/15/2020

On July 15, at the first meeting of the working group on establishing the Eurasian Economic Union development and support institution, the participants discussed the new institution's role in the overall system of existing entities, the legal framework for its functioning and possible sources of financing.

Earlier, the Kyrgyz Republic had highlighted the need to create a development institution in order to equalize the development levels of the EAEU States. Having considered the initiative, the EEC Council instructed the EEC Board to form a working group from representatives of the Union States' public authorities and authorized organizations.

As emphasized by Sergei Glazyev, Head of the working group and EEC Minister in charge of Integration and Macroeconomics, the EAEU already has the Union development institutions, therefore, at the first stage, the place of the new institution in the overall system shall be determined.

“To fulfill the Union's integration potential, we should maximize the use of existing mechanisms and resources supporting the development of economies and, possibly, elaborate new approaches,” noted Sergei Glazyev.

According to the Kyrgyz side, the new institution's objective would be reducing imbalances in the EAEU countries development, bringing economies closer together and ensuring an advance development of the Union as a whole. It is expected that the conceived development institution would implement targeted development programs. Such an approach will lead to increasing the Union countries' cohesion and deepening the integration.

The working group participants also considered the prospects for expanding the tools and mechanisms for financing programs and investment projects aimed at equalizing the economic development of the Union States within the framework of the Eurasian Development Bank and the Eurasian Fund for Stabilization and Development, Russian Venture Company, JSC, as well as using the capabilities and infrastructure of the Astana International Financial Center, the Integration Club and the International Agency for Sovereign Development.

Following the meeting, an arrangement was reached to shape the development institution concept and examine possible mandate expansion for the Eurasian Fund for Stabilization and Development. The outcomes of this work will be presented to the EEC Council for consideration.

The discussion was attended by representatives of the Union States' authorities, EEC Ministers Oleg Pankratov and Timur Zhaksylykov, as well as invited experts from international development institutions and financial organizations.​