MOSCOW, December 29. /TASS/. Cooperation within the framework of the Eurasian Economic Union (EAEU) that developed actively in 2023 under Russia’s chairmanship, became a stabilizing mechanism for economies of the Union’s member states, experts interviewed by TASS believe.

"2023 is almost over, and it is safe to say that despite strong external pressure, integration cooperation in the EAEU keeps strengthening. <…> High interdependence of EAEU countries’ economies, the presence of the common market of goods, common market of services played a buffer role amid restrictions that were imposed against Russia and Belarus," Head of the Center for economic integration at the Russian Foreign Trade Academy Nikita Pyzhikov said.

Despite existing restrictions and their extension, the trend of sustainable growth of most countries of the Union persisted, he said, adding that according to preliminary estimates, EAEU’s GDP grew by more than 3% in January-October 2023, while mutual trade of member states rose by almost 8% in January-September to $64 bln.

Deputy Director of the Center for Comprehensive European and International Studies at the Higher School of Economics (HSE University) Alexander Korolyov shares positive evaluation. Among the key achievements of the Eurasian Economic Union he noted continued shift of member states to national currencies in payments, whose uptake rose to 90%, while the ruble’s share increased to 75%.

"Fundamentally, the creation of the single stock space is underway quite successfully, this being one of important elements of the financial market creation by 2025. The single Eurasian Reinsurance Company has been launched in a test mode. So far it operates on the Eurasian market but with a view to connect external partners," Korolyov said.

Head of the Department of International Commerce and Logistics at the Russian Presidential Academy of National Economy and Public Administration, Leading Research Fellow at the RAS (Russian Academy of Sciences) Institute of Economics Aza Mihranyan also noted progress in the development of the common electricity market and the mechanism of its functioning.

"It basically allows creating free competitive relations on this specific market, change approach to the price formation system, which may also form particularly through the balance and regulation of demand and supply volumes. This market balance may form quite unbiased price that is not limited by any national restrictions and, naturally, this will allow lifting any claims by countries related to issues of price formation in this sector," she explained.

"Overall, looking back on the year, of course, it is safe to acknowledge the stabilizing function of the integration union. <…> It is worth saying that 2023, which coincided with Russia’s chairmanship, basically facilitated an increase in the EAEU’s role as a platform where integration ties intensify, not only in trade and economic relations, but also <…> regarding acceleration and promotion of cooperation in the production process that has long been viewed within the framework of the EAEU’s coordinated industrial policy, though not so fast promoted by states," Mihranyan said.

Expansion of EAEU’s external ties

Experts also noted that in 2023, the Eurasian Economic Union successfully expanded external ties, first of all with Iran, with an agreement on the creation of a free trade zone singed on December 25.

"In terms of international economic ties, we also see that within the framework of Russia’s chairmanship much has been done, notably, with very important, promising partners. Three rounds of talks were held with Indonesia and, according to various estimations, the signing of the free trade zone agreement is to be reached roughly in 2025. Talks with Egypt continued. And what is most important, on December 25, during the Supreme Eurasian Economic Council in St. Petersburg, a full-fledged agreement on a free trade zone with Iran was signed. It appears that it will be ratified within 1-1.5 years," Korolyov said.

Mihranyan stressed that the signing of an agreement with Iran may substantially expand the possibilities for national producers inside the Union as Iran is quite a broad market with 90 mln people, which is able to ensure notable consumer demand. Moreover, Iran supplies critical goods and services, which may also be of interest for EAEU member states.