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DECISION OF THE EURASIAN INTERGOVERNMENTAL COUNCIL

of September 8, 2015 No. 9

About the Main areas of industrial cooperation

(as amended of the Decision of Eurasian intergovernmental council of 27.11.2018 No. 5)

within the Eurasian Economic Union

For the purpose of realization of Item 6 of Article 92 of the Agreement on the Eurasian Economic Union of May 29, 2014 the Euroasian intergovernmental council decided:

1. Approve the enclosed Main areas of industrial cooperation within the Eurasian Economic Union (further – the Main directions).

2. Governments of state members of the Eurasian Economic Union:

according to paragraph two Item 1 of article 92 of the Agreement on the Eurasian Economic Union to perform industrial policy within the Union in the Main directions;

together with the Eurasian economic commission to provide realization of the Main directions.

3. The Eurasian economic commission together with state members of the Eurasian Economic Union till December 31, 2015 to prepare the draft of the plan of development of acts for realization of the Main directions of industrial cooperation within the Eurasian Economic Union and to provide its submitting for examination of Council of the Eurasian economic commission.

4. This Decision becomes effective from the date of its official publication.

Members of the Eurasian intergovernmental council:

From the Republic of Kazakhstan

From the Republic of Armenia

From the Kyrgyz Republic

From Respuliki Belarus

From the Russian Federation

Main areas of industrial cooperation within the Eurasian Economic Union

General provisions

The main directions of industrial cooperation within the Eurasian Economic Union (further – the Main directions or ONPS) are developed according to the Article 92 "Industrial Policy and Cooperation" of the Agreement on the Eurasian Economic Union of May 29, 2014 (further – Article 92 of the Agreement, the Union, EEU).

The main directions are the medium-term document for 5 years and determine the directions and forms of cooperation, rules of interaction, priority industries, sensitive goods, the purposes, tasks and mechanisms of interaction of state members with use of the tools and mechanisms of interaction determined by Article 92 of the Agreement.

The main directions are created for the medium term proceeding from:

feasibility of deepening of industrial cooperation for the purpose of stimulation of growth of industrial production and release jointly the made products;

the current tendencies of development of world economy and economy of EEU, including in separate state members, for the purpose of increase in stability of industrial development of state members;

potential of effective and mutually beneficial cooperation for overcoming the existing barriers, increase in competitiveness and innovative activity, building-up of industrial cooperation, implementation of joint investment projects and actions for export development.

In case of development and realization the politician in trade, customs and tariff, competitive, in the field of public procurements, technical regulation, developments of business activity, transport and infrastructure and other spheres are considered the Main directions.

The industrial cooperation of state members of EEU (further – the Parties) is performed in the Main directions including priority types of economic activity and sensitive goods. Interaction of the Parties in the field of development of industrial cooperation can be performed if necessary by means of the following main tools:

interaction according to the list of sensitive goods;

implementation of the joint programs and projects directed to increase in efficiency of industrial cooperation;

implementation of joint programs of development of priority types of economic activity for industrial cooperation;

implementation of mutual informing on development plans for the industry.

1. Current situation of industrial development of state members of EEU

In 2014 in the industry of state members of EEU performed productive activity of 495,3 of one thousand companies which provided with workplaces of 15,3 one million people (19,0 of % of total number of the state members occupied in economies). The amount of the industrial output made in EEU made 1 318 bln. dollars of the USA (growth to the level of 2008 on % 16,1), was enclosed investments into development of fixed capital of the industry on the amount of 304 bln. dollars of the USA, 8 bln. dollars of the USA are created the gross value added (GVA) by total amount 555,, in case of total contribution of industrial complex to forming of GDP of state members of EEU of 25,4 of %. The labor productivity in the industry of state members of EEU on value added in 2014 reached 36, 2 thousand dollars of the USA on one average worker that constitutes about 55% of labor productivity level in the European Union countries. The specific weight of value added in volume of the made industrial output of state members of EEU in 2014 made % 42,1.

In country structure of the industry of EEU: The Russian Federation creates 87% of amount of industrial output and 85% of industrial amount of VDS; The Republic of Kazakhstan – 7,4 of % and 10,7 of %, respectively; The Republic of Belarus – 5,0 of % and 3,7 of %, respectively; The Republic of Armenia – 0,3 of % and 0,4 of %, respectively; The Republic Kyrgyzstan – 0,3 of % of amount of industrial output and 0,2 of %, industrial amount of VDS of state members.

In industry structure of the industry of EEU the processing industry occupying % 64,8 in the total volume of industrial production of state members on mining industry prevails % 25,1 is necessary, other industrial types of activity create 10,1 of % of amount of the turned-out industrial output. In structure of processing industry types of activity of average technological level prevail: production of coke, oil products and nuclear materials; production of foodstuff; metallurgy and production of metal products. The total amount of mutual trade in products of processing industry of state members of EEU was created
in 2014 in the amount of 45 bln. dollars of the USA that constituted 5,3 of % of amount of its production in the territory of EEU.

1.1. Development of the industry of the Republic of Armenia in 2008-2014.

By data for 2014 in the industry of Armenia 2,7 of one thousand companies at which 83,5 of one thousand people (7,1 of the % of total number occupied in economy) was employed works. Since 2008 the number occupied increased in the industry on % 3,5, and the labor productivity on value added on one busy reached 24 thousand dollars of the USA in 2014, having increased to the level of 2008 by % 56,6. The amount of foreign investments in real production sector of the Republic of Armenia for 2014 made the 2nd 017, 7 mln. dollars of the USA from which 840, 9 mln. dollars of the USA were direct foreign investments (17,3 of % and 7,2 of % of GDP amount respectively).

Republic industrial output in 2014 constituted 3, 1 bln. dollars of the USA. The export volume of goods which basis is created by industrial output made 1, 5 bln. dollars of the USA, in case of negative balance of foreign trade 2, of 9 bln. dollars of the USA.

GDP amount for 2014 made 11, 6 bln. dollars of the USA and in comparison with 2008 increased in real terms by % 35,9 (on % 35,7 in dollar expression). Industrial production creates 17,3 of % of the total amount of national GDP.

For 2008-2014 the surplus of industrial production of the republic in the comparable prices constituted % 34,4. At the same time acceleration of development of industrial production was observed in 2010 - 2012 when products amount annually increased approximately by 10%. Then some delay of dynamics to surplus % 2,7 in 2014 followed. By industrial types of activity industrial production to the level of 2008 increased: in the mining industry – for 92%, in processing industry – on % 30,2, in electric utility service, supply of gas, couple and the conditioned air – on % 9,8, in water supply – on % 21,9.

In the considered period in the industry of the republic there were insignificant structural changes: the share of processing industry decreased with % 68,9 in 2008 to % 65,6 in 2014; the share of mining industry, on the contrary, increased with % 12,6 up to 15%, production of electricity, vapor, gas and water increased with % 18,5 to % 19,4.

The structure of processing industry occupies the greatest specific weight: production of food, drinks and tobacco products – % 58,5 (determines specialization of industrial complex of the republic); metallurgy – % 20,3; production of mineral products – % 6,6, mechanical engineering – % 3,1.

In foreign trade Armenia adheres to multivector external economic policy – trade with state members of EEU creates 24, % of the foreign trade goods turnover of the republic. In goods turnover of Armenia with state members of EEU the greatest I will eat around (1, 4 bln. dollars of the USA) and the specific weight (96%) is the share of Russia. During the period from 2008 to 2014 the share of Russia in the total amount of goods turnover with all countries grew with % 19,7 to % 23,2. Shares of other state members of EEU in general goods turnover of Armenia are insignificant and constituted in 2014: Republic of Belarus % 0,8, Republic of Kazakhstan % 0,1, Kyrgyz Republic of 0,1 of %. The general balance in trade with state members of EEU in 2014 developed negative in the amount of 716, 8 mln. dollars of the USA.

The main exported products: food and drinks, mineral products, non-noble metals and products from them, precious metals and stones and products from them.

The main imported products: oil and oil products, machines and equipment, food, automobiles.

1.2. Development of the industry of the Kyrgyz Republic in 2008-2014.

By data for 2014 in the industry of the Kyrgyz Republic 1,9 thousand companies at which 145 thousand people (6,3 of the % of total number occupied in economy) work works. In 2008-2014 the number occupied in the industry was reduced by % 31,3, and the labor productivity on value added on one busy reached 8 thousand dollars of the USA. The volume of investment into fixed capital into the industries in 2014 constituted 1972, 4 mln. dollars of the USA (26,6 of % of GDP amount, is 9,3 items above than the level of 2008), from them direct foreign investments constituted 799, 9 mln. dollars of the USA (10,8 of % of GDP amount).

The industrial output of the Kyrgyz Republic in 2014 constituted 3, bln. dollars of the USA, having increased in relation to 2008 by % 51,2. The specific weight of value added in volume of industrial output developed at the level of 37%. Development of metallurgical production became the main source of growth of the industry.

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