– Mr. Sagintaev, one of the most important activities of the EEC in economics and fi nancial policy is the solution of issues related to the development of entrepreneurship in the territory of the Eurasian Economic Union. What is the current situation in this area?
– The development of cooperation between our countries in the business sphere is the most important priority of the Eurasian integration.
Today, the Union states face specific tasks to deepen cooperation in the real sector of the economy, develop industrial and technological cooperation, and increase the competitiveness of economies.
by creating favorable conditions for business, which is the leading force of the economy, improving the investment climate, improving regulatory policy, ensuring freedom of movement of goods, capital, services and labor, which in principle is the essence of the Eurasian Economic Union.
The creation of a single market of services within the Union is important for the successful development of business in our countries. Its functioning assumes that any service provider operates in any state of the Union without an additional institution in the form of a legal entity, licenses and other permits. There is mutual recognition of national permits and professional qualifications of personnel for the supply of services.
The functioning of the single market will create new jobs, increase the competitiveness of goods, works and services, reduce prices and tariff s for consumers; reduce the costs of service providers, which are associated with the need to re-obtain permits, establish a legal entity, confirm the qualifications of personnel, etc.
The Commission is actively working on the further development of the single market of services.
Since 2015, it has been transferred to the single market format 142 sectors, including construction, engineering, trade, agriculture. At the same time, 14 services will be transferred to the format of the Unified services market in 2022 – these are meteorology, household and auxiliary services.
In addition, the Supreme Eurasian Economic Council approved a list of priority areas in the service sector for subsequent liberalization, which included 117 services, including services for the production of textiles, paper and paper products, base metals (including casting), cars, trailers, transport equipment, chemicals and chemical products, plastic products, consulting services in various fields (law, environment) and others.
The Commission also adopted recommendations on the possibility of applying the unified services market rules in the field of construction and tourism services, which will be an additional impetus for the economic growth of our countries. As you know, the development of the construction industry and tourism has a multiplier effect for many other sectors of the economy.
– The development of cooperation between our countries in the business sphere is the most important priority of the Eurasian integration.
Today, the Union states face specific tasks to deepen cooperation in the real sector of the economy, develop industrial and technological cooperation, and increase the competitiveness of economies.
by creating favorable conditions for business, which is the leading force of the economy, improving the investment climate, improving regulatory policy, ensuring freedom of movement of goods, capital, services and labor, which in principle is the essence of the Eurasian Economic Union.
The creation of a single market of services within the Union is important for the successful development of business in our countries. Its functioning assumes that any service provider operates in any state of the Union without an additional institution in the form of a legal entity, licenses and other permits. There is mutual recognition of national permits and professional qualifications of personnel for the supply of services.
The functioning of the single market will create new jobs, increase the competitiveness of goods, works and services, reduce prices and tariff s for consumers; reduce the costs of service providers, which are associated with the need to re-obtain permits, establish a legal entity, confirm the qualifications of personnel, etc.
The Commission is actively working on the further development of the single market of services.
Since 2015, it has been transferred to the single market format 142 sectors, including construction, engineering, trade, agriculture. At the same time, 14 services will be transferred to the format of the Unified services market in 2022 – these are meteorology, household and auxiliary services.
In addition, the Supreme Eurasian Economic Council approved a list of priority areas in the service sector for subsequent liberalization, which included 117 services, including services for the production of textiles, paper and paper products, base metals (including casting), cars, trailers, transport equipment, chemicals and chemical products, plastic products, consulting services in various fields (law, environment) and others.
The Commission also adopted recommendations on the possibility of applying the unified services market rules in the field of construction and tourism services, which will be an additional impetus for the economic growth of our countries. As you know, the development of the construction industry and tourism has a multiplier effect for many other sectors of the economy.
– The most important condition for the Eurasian integration process is to ensure a favorable investment climate in the EAEU member states. What results of the EEC's work in this area can we talk about now?
– Indeed, the EAEU Treaty creates certain conditions for the development of investment cooperation of the EAEU member states. These are providing investors with a favorable legal regime, investment protection and guarantees of investors' rights, settlement of investment disputes.
Stimulating mutual investments is one of the important factors in the development of integration cooperation between our countries.
The need to activate investment processes within the EAEU has been repeatedly noted by the heads of the Union states. On January 15, 2021, the President of the Republic of Kazakhstan K.K. Tokayev in his address to the heads of the EAEU member states noted the importance of creating in our countries, joint ventures in the service sector. On December 9, 2022, at a meeting of the Supreme Eurasian Economic Council, President of the Russian Federation Vladimir Putin outlined the need to develop investment ties between the EAEU member states, create favorable conditions for mutual investments, simplify relevant administrative procedures and increase guarantees for the protection of investors' rights.
In this regard, a report was prepared on the conditions for the establishment and operation of joint ventures (JVs) in the conditions for the establishment and operation of joint ventures (JVs) in the manufacturing sectors of services in the EAEU member States. The purpose of the report is to study the current conditions for the establishment and operation of joint ventures in the countries of the Union, as well as international experience in this field.
In addition, the report, in accordance with the proposals submitted by the States of the Union, reflects priority service sectors in terms of creating a joint venture, which include services for the production of metals and metal products, machinery and equipment, chemical products, plastic products, etc.
Based on the report, the Commission adopted a recommendation on the formation or improvement of conditions for the creation and operation of joint ventures in the production sectors in the EAEU member States. The recommendation highlights such important areas for creating favorable conditions for joint venture activities as simplifying the procedure for registering joint ventures, reducing the control and supervisory burden, state support for joint ventures, improving information support for investors of the Union countries, and others.
In addition, a report on the state of the business and investment climate in the EAEU member states was prepared.
The subject of the report is the analysis and identification of the best international and national practices on the creation of the most favorable conditions for the establishment and conduct of business. The report analyzes international ratings reflecting the state of the business and investment climate in the EAEU member states and third countries, the practice of creating and conducting business, institutions of investor support in the Union countries.
The analysis made it possible to conclude that it is necessary to take further practical measures to improve the business and investment climate.
In particular, the level of mutual investments of the Union countries from the total volume of attracted direct investments remains insufficiently high. Thus, in 2021, the share of mutual investments in the total volume of FDI, according to the Eurasian Economic Commission, in the Republic of Armenia amounted to 32.9%, the Republic of Belarus – 31.4%, the Republic of Kazakhstan – 3.6%, the Russian Federation – 0.9%.
In this regard, in 2023, based on the report, recommendations will be developed on the introduction of the most favorable conditions for improving the business and investment climate in the Union states, which will become an important factor in the sustainable economic growth of our countries
– Indeed, the EAEU Treaty creates certain conditions for the development of investment cooperation of the EAEU member states. These are providing investors with a favorable legal regime, investment protection and guarantees of investors' rights, settlement of investment disputes.
Stimulating mutual investments is one of the important factors in the development of integration cooperation between our countries.
The need to activate investment processes within the EAEU has been repeatedly noted by the heads of the Union states. On January 15, 2021, the President of the Republic of Kazakhstan K.K. Tokayev in his address to the heads of the EAEU member states noted the importance of creating in our countries, joint ventures in the service sector. On December 9, 2022, at a meeting of the Supreme Eurasian Economic Council, President of the Russian Federation Vladimir Putin outlined the need to develop investment ties between the EAEU member states, create favorable conditions for mutual investments, simplify relevant administrative procedures and increase guarantees for the protection of investors' rights.
In this regard, a report was prepared on the conditions for the establishment and operation of joint ventures (JVs) in the conditions for the establishment and operation of joint ventures (JVs) in the manufacturing sectors of services in the EAEU member States. The purpose of the report is to study the current conditions for the establishment and operation of joint ventures in the countries of the Union, as well as international experience in this field.
In addition, the report, in accordance with the proposals submitted by the States of the Union, reflects priority service sectors in terms of creating a joint venture, which include services for the production of metals and metal products, machinery and equipment, chemical products, plastic products, etc.
Based on the report, the Commission adopted a recommendation on the formation or improvement of conditions for the creation and operation of joint ventures in the production sectors in the EAEU member States. The recommendation highlights such important areas for creating favorable conditions for joint venture activities as simplifying the procedure for registering joint ventures, reducing the control and supervisory burden, state support for joint ventures, improving information support for investors of the Union countries, and others.
In addition, a report on the state of the business and investment climate in the EAEU member states was prepared.
The subject of the report is the analysis and identification of the best international and national practices on the creation of the most favorable conditions for the establishment and conduct of business. The report analyzes international ratings reflecting the state of the business and investment climate in the EAEU member states and third countries, the practice of creating and conducting business, institutions of investor support in the Union countries.
The analysis made it possible to conclude that it is necessary to take further practical measures to improve the business and investment climate.
In particular, the level of mutual investments of the Union countries from the total volume of attracted direct investments remains insufficiently high. Thus, in 2021, the share of mutual investments in the total volume of FDI, according to the Eurasian Economic Commission, in the Republic of Armenia amounted to 32.9%, the Republic of Belarus – 31.4%, the Republic of Kazakhstan – 3.6%, the Russian Federation – 0.9%.
In this regard, in 2023, based on the report, recommendations will be developed on the introduction of the most favorable conditions for improving the business and investment climate in the Union states, which will become an important factor in the sustainable economic growth of our countries
– The Commission is actively working on the formation of a common financial market of the EAEU. What tasks related to this process are most relevant at the moment?
– This activity, carried out by the Economics and Financial Policy Unit, is focused on three sectors of the financial market – banking, insurance and the securities market sector.
For the effective functioning of securities exchange trading, a Roadmap for the formation of a common exchange space within the EAEU has been developed and approved.
The implementation of the Roadmap will increase the cross-border activity of market participants, investment opportunities and will serve as a catalyst for the development of financial markets and economies of the Union states
To date, work on the draft Agreement on Cross-border admission to the placement and Circulation of Securities at Organized auctions in the EAEU member States has almost been completed. The agreement is aimed at ensuring cross-border admission of securities from the quotation list of the highest category, ensuring freedom of issue and trading operations with securities on the common exchange space of the Union, as well as creating conditions for the growth of liquidity of exchange markets and strengthening trade and investment cooperation.
Currently, the internal procedures necessary for the signing of this Agreement are being carried out in the member States of the Union.
Work on the draft Agreement on the admission of brokers and dealers of one EAEU member state to participate is also nearing completion in organized trades of exchanges (trade organizers) of other member states. The Agreement grants the right to national exchanges to recognize the licenses of brokers and dealers issued by the authorized bodies of the Union states, and to provide them with the opportunity to directly participate in auctions for the conclusion of contracts for the purchase and sale of securities and derivative financial instruments. The admission of brokers and dealers of one country to the organized trading of the exchange of another state of the Union is provided on equal terms.
The implementation of this agreement will significantly expand mutual trade and investment cooperation of the EAEU states, create prerequisites for the inflow of additional liquidity on the exchange and increase the funding of issuers.
– This activity, carried out by the Economics and Financial Policy Unit, is focused on three sectors of the financial market – banking, insurance and the securities market sector.
For the effective functioning of securities exchange trading, a Roadmap for the formation of a common exchange space within the EAEU has been developed and approved.
The implementation of the Roadmap will increase the cross-border activity of market participants, investment opportunities and will serve as a catalyst for the development of financial markets and economies of the Union states
To date, work on the draft Agreement on Cross-border admission to the placement and Circulation of Securities at Organized auctions in the EAEU member States has almost been completed. The agreement is aimed at ensuring cross-border admission of securities from the quotation list of the highest category, ensuring freedom of issue and trading operations with securities on the common exchange space of the Union, as well as creating conditions for the growth of liquidity of exchange markets and strengthening trade and investment cooperation.
Currently, the internal procedures necessary for the signing of this Agreement are being carried out in the member States of the Union.
Work on the draft Agreement on the admission of brokers and dealers of one EAEU member state to participate is also nearing completion in organized trades of exchanges (trade organizers) of other member states. The Agreement grants the right to national exchanges to recognize the licenses of brokers and dealers issued by the authorized bodies of the Union states, and to provide them with the opportunity to directly participate in auctions for the conclusion of contracts for the purchase and sale of securities and derivative financial instruments. The admission of brokers and dealers of one country to the organized trading of the exchange of another state of the Union is provided on equal terms.
The implementation of this agreement will significantly expand mutual trade and investment cooperation of the EAEU states, create prerequisites for the inflow of additional liquidity on the exchange and increase the funding of issuers.
– If we talk about the banking and insurance sectors, perhaps we need to solve licensing problems as well?
– Sure. Currently, work is underway on a draft agreement on a standardized license in the banking and insurance services sectors within the EAEU. The purpose of the agreement is to ensure mutual recognition of a standardized license to carry out activities in the banking and insurance sectors of services issued by the authorized body of the State of origin and allowing for a simplified procedure to establish (acquire) a legal entity in the form of a subsidiary of a bank (insurance organization) in the territory of the host state.
– Sure. Currently, work is underway on a draft agreement on a standardized license in the banking and insurance services sectors within the EAEU. The purpose of the agreement is to ensure mutual recognition of a standardized license to carry out activities in the banking and insurance sectors of services issued by the authorized body of the State of origin and allowing for a simplified procedure to establish (acquire) a legal entity in the form of a subsidiary of a bank (insurance organization) in the territory of the host state.
– Of course, it is impossible not to ask: how is the issue of credit risks solved in the process of forming a common financial market?
– On December 21, 2021, the heads of government and heads of national (central) banks of the member states signed an agreement on the procedure for exchanging information included in credit histories within the EAEU. Currently, the document is being ratified in the parliaments of the member States of the Union. The agreement is aimed at ensuring equal conditions for residents of all Member States when applying for credit resources to banks located in the territories of other member States. The document prescribes a mechanism for identifying and assessing the credit risk of potential borrowers for banks and other financial service providers. The agreement will stimulate the development of cross-border lending within the Union. Currently, the Commission, together with the authorized bodies of the Member States, is developing regulatory documents regulating legal, methodological, organizational, technical and other aspects of the practical implementation of this agreement.
– On December 21, 2021, the heads of government and heads of national (central) banks of the member states signed an agreement on the procedure for exchanging information included in credit histories within the EAEU. Currently, the document is being ratified in the parliaments of the member States of the Union. The agreement is aimed at ensuring equal conditions for residents of all Member States when applying for credit resources to banks located in the territories of other member States. The document prescribes a mechanism for identifying and assessing the credit risk of potential borrowers for banks and other financial service providers. The agreement will stimulate the development of cross-border lending within the Union. Currently, the Commission, together with the authorized bodies of the Member States, is developing regulatory documents regulating legal, methodological, organizational, technical and other aspects of the practical implementation of this agreement.
– Is it obvious that the unity of financial markets implies unity in the field of foreign exchange transactions?
– Certainly. Currently, work is underway on an Agreement on coordinated approaches to the regulation of currency Legal relations and the adoption of liberalization measures. The document defines currency transactions for which restrictions will not be applied by the member states – this applies to settlements between residents of the EAEU countries, as well as transactions on accounts and deposits.
Restrictions will not apply to settlements related to trade in goods and services; acquisition of shares in the authorized capital of companies; purchase of securities and real estate; receipt and repayment of loans and loans; receipt and fulfillment of bank guarantees and obligations under surety and pledge agreements. This also applies to money transfers by individuals within the customs territory of the EAEU.
– Certainly. Currently, work is underway on an Agreement on coordinated approaches to the regulation of currency Legal relations and the adoption of liberalization measures. The document defines currency transactions for which restrictions will not be applied by the member states – this applies to settlements between residents of the EAEU countries, as well as transactions on accounts and deposits.
Restrictions will not apply to settlements related to trade in goods and services; acquisition of shares in the authorized capital of companies; purchase of securities and real estate; receipt and repayment of loans and loans; receipt and fulfillment of bank guarantees and obligations under surety and pledge agreements. This also applies to money transfers by individuals within the customs territory of the EAEU.
– And what kind of work is being carried out by the Commission in the field of consumer protection of financial services?
practices in the field of consumer protection of financial services, the Commission, together with the Federal Public-State Fund for the Protection of the Rights of Depositors and Shareholders of the Russian Federation, has been holding an annual international conference "Territory of Financial Security".
Within the framework of the event, the experience of national regulators in the field of consumer protection of financial services in the EAEU and in third countries is being exchanged. The conference is attended by financial ombudsmen and representatives of public organizations for the protection of consumers of financial services.
practices in the field of consumer protection of financial services, the Commission, together with the Federal Public-State Fund for the Protection of the Rights of Depositors and Shareholders of the Russian Federation, has been holding an annual international conference "Territory of Financial Security".
Within the framework of the event, the experience of national regulators in the field of consumer protection of financial services in the EAEU and in third countries is being exchanged. The conference is attended by financial ombudsmen and representatives of public organizations for the protection of consumers of financial services.
– Due to the importance of the process of developing the economic integration of the EAEU member states, is there no need to create a separate body that would allow such integration to be conducted more actively and on a large scale?
– The agreement provides for the creation of a supranational body for the regulation of the financial market.
To do this, the Member States must complete the harmonization of their legislation of the member States in the field of the financial market, and then conclude a separate international agreement regulating the powers and functions of this body.
Here it should be noted at once that the Concept of the formation of the common financial market of the EAEU, approved by the presidents of our countries on October 1, 2019, it clearly stipulates that the creation of a supranational body does not imply a reduction in the role of financial market regulators of the member states and national (central) banks of the member states. The mandate of the financial market regulators of the Member States and their independence in matters of monetary policy, ensuring financial stability, admission of financial market participants, supervision of financial market entities of the Member States remain.
– The agreement provides for the creation of a supranational body for the regulation of the financial market.
To do this, the Member States must complete the harmonization of their legislation of the member States in the field of the financial market, and then conclude a separate international agreement regulating the powers and functions of this body.
Here it should be noted at once that the Concept of the formation of the common financial market of the EAEU, approved by the presidents of our countries on October 1, 2019, it clearly stipulates that the creation of a supranational body does not imply a reduction in the role of financial market regulators of the member states and national (central) banks of the member states. The mandate of the financial market regulators of the Member States and their independence in matters of monetary policy, ensuring financial stability, admission of financial market participants, supervision of financial market entities of the Member States remain.
– Could you also tell us what range of issues is facing the Block on Economics and Financial Policy in the tax sphere?
– If we talk about the tax policy in the field of excise taxes on certain, the most sensitive goods, then on March 4, 2022, the Agreement on the Principles of conducting tax policy in the field of excise taxes on tobacco products of the EAEU member states entered into force. This agreement is aimed at providing conditions for the functioning of the tobacco market within the Union and the development of a competitive environment in this area.
The norms of the document provide for the harmonization of excise rates through the mechanism of application in the member States of a single indicative rate and the range of deviation from it of actual excise rates. The established range can be adjusted every five years. For 2024, the size of the indicative excise tax rate on cigarettes is set in national currencies at an amount equivalent to 35 euros per 1000 pieces; in turn, the actual excise rate in a Member State may deviate from the indicative rate by no more than 20 percent up or down. The size of the indicative excise tax rate on tobacco products for 2029 will be determined by the Member States this year.
In addition, the Commission is doing a lot of work on taxation of cross-border electronic trade in goods and services in the EAEU.
On December 9, 2022, a Protocol was signed in Bishkek on amendments to the EAEU Treaty regarding the determination of the procedure for collecting indirect taxes when providing services in electronic form. The amendments to the Treaty on the Union provided for in the document are aimed at creating a supranational mechanism for collecting VAT for cross-border provision of services in electronic form in the EAEU, as well as eliminating gaps in the legal regulation of taxation issues identified during law enforcement practice.
In turn, the Protocol being developed on amendments to the EAEU Treaty regarding the procedure for levying indirect taxes on cross-border electronic trade in goods sold to individuals is aimed at creating a supranational mechanism for taxation of cross-border electronic trade in goods within the EAEU, providing for VAT collection on the basis of the country of destination, as well as to resolve the existing difficulties of administering this tax. Currently, active work is underway to coordinate certain provisions of the draft protocol with the member States of the Union.
– If we talk about the tax policy in the field of excise taxes on certain, the most sensitive goods, then on March 4, 2022, the Agreement on the Principles of conducting tax policy in the field of excise taxes on tobacco products of the EAEU member states entered into force. This agreement is aimed at providing conditions for the functioning of the tobacco market within the Union and the development of a competitive environment in this area.
The norms of the document provide for the harmonization of excise rates through the mechanism of application in the member States of a single indicative rate and the range of deviation from it of actual excise rates. The established range can be adjusted every five years. For 2024, the size of the indicative excise tax rate on cigarettes is set in national currencies at an amount equivalent to 35 euros per 1000 pieces; in turn, the actual excise rate in a Member State may deviate from the indicative rate by no more than 20 percent up or down. The size of the indicative excise tax rate on tobacco products for 2029 will be determined by the Member States this year.
In addition, the Commission is doing a lot of work on taxation of cross-border electronic trade in goods and services in the EAEU.
On December 9, 2022, a Protocol was signed in Bishkek on amendments to the EAEU Treaty regarding the determination of the procedure for collecting indirect taxes when providing services in electronic form. The amendments to the Treaty on the Union provided for in the document are aimed at creating a supranational mechanism for collecting VAT for cross-border provision of services in electronic form in the EAEU, as well as eliminating gaps in the legal regulation of taxation issues identified during law enforcement practice.
In turn, the Protocol being developed on amendments to the EAEU Treaty regarding the procedure for levying indirect taxes on cross-border electronic trade in goods sold to individuals is aimed at creating a supranational mechanism for taxation of cross-border electronic trade in goods within the EAEU, providing for VAT collection on the basis of the country of destination, as well as to resolve the existing difficulties of administering this tax. Currently, active work is underway to coordinate certain provisions of the draft protocol with the member States of the Union.
– Does the Eurasian integration somehow affect the issues of auditing in the EAEU member states?
– Undeniably. Back on April 19, 2022, the heads of the member States signed an Agreement on the implementation of auditing activities within the EAEU, which is aimed at granting interested persons of the Union member States the right to supply and receive audit services without restrictions and exemptions, the formation of unified approaches to the organization, regulation and control of auditing activities.
This agreement defines uniform requirements for legal entities and individual entrepreneurs engaged in audit ing activities, qualification requirements for auditors when the right to conduct auditing activities arises and ceases, the organization procedure and requirements for external quality control of audit organizations, their responsibilities, and so on. Currently, the document is being ratified in the parliaments of the member States of the Union.
I would also add that work is also underway on harmonized requirements for service providers in the field of reporting and accounting of one EAEU member state operating on the territory of another member state.
– Undeniably. Back on April 19, 2022, the heads of the member States signed an Agreement on the implementation of auditing activities within the EAEU, which is aimed at granting interested persons of the Union member States the right to supply and receive audit services without restrictions and exemptions, the formation of unified approaches to the organization, regulation and control of auditing activities.
This agreement defines uniform requirements for legal entities and individual entrepreneurs engaged in audit ing activities, qualification requirements for auditors when the right to conduct auditing activities arises and ceases, the organization procedure and requirements for external quality control of audit organizations, their responsibilities, and so on. Currently, the document is being ratified in the parliaments of the member States of the Union.
I would also add that work is also underway on harmonized requirements for service providers in the field of reporting and accounting of one EAEU member state operating on the territory of another member state.
– What other relevant areas of the Block's activity are worth noting?
– Among other areas of the Block's work is the implementation of a coordinated policy in the field of intellectual property. The Commission carries out consistent work in the field of intellectual property in order to create the most favorable conditions for the right holders of the Union countries.
Currently, constructive interaction between the Commission and state bodies involved in the fight against the spread of counterfeit products has been established, comfortable conditions have been created for authors and other copyright holders, which allow them to control the fairness of the distribution of royalties, as well as ensure transparency of the activities of organizations for the collective management of copyright and related rights.
In addition, a legal basis has been created for the registration of EAEU trademarks and appellations of origin of EAEU goods, the legal protection of which will be provided on the territories of all countries of the Union simultaneously
The work on the formation of regulation on the protection of intellectual property rights on the Internet by concluding an agreement within the framework of the EAEU, which has already been developed by the Commission based on the analysis of international experience on this issue, is in an active stage. When forming approaches to protection on the Internet, we proceed from the need to take into account the interests of all interested parties in order to avoid creating unreasonable barriers in business activities for copyright holders, owners of Internet resources and information intermediaries.
The application of our proposed measures is aimed at reducing the volume of violations of intellectual property rights on the Internet, which, in turn, will have a positive impact on the development of creative, investment and economic potential of our countries.
Another area of the Block's activity is the regulatory impact assessment (RIA) of the Commission's draft decisions.
The RIA procedure has been introduced into the practice of the Commission since 2015 in order to take into account the interests of the business community in the formation and improvement of supranational regulation within the Union.
During this time, the RIA has become the main procedural instrument of the Commission's interaction with the business circles of the EAEU countries. A significant number of incoming comments and suggestions indicates the demand for the RIA procedure by the business community, and the share of their accounting, which is about two-thirds, confirms the high level of "regulatory flexibility" of the Commission.
In addition, the issue of introducing a procedure for assessing the actual impact of the Commission's decisions and the dissemination of RIA to draft international treaties within the Union is currently being worked out. This approach will allow us to provide a comprehensive "coverage" assessment of the impact on business conditions of the entire life cycle of supranational regulation within the EAEU.
– Among other areas of the Block's work is the implementation of a coordinated policy in the field of intellectual property. The Commission carries out consistent work in the field of intellectual property in order to create the most favorable conditions for the right holders of the Union countries.
Currently, constructive interaction between the Commission and state bodies involved in the fight against the spread of counterfeit products has been established, comfortable conditions have been created for authors and other copyright holders, which allow them to control the fairness of the distribution of royalties, as well as ensure transparency of the activities of organizations for the collective management of copyright and related rights.
In addition, a legal basis has been created for the registration of EAEU trademarks and appellations of origin of EAEU goods, the legal protection of which will be provided on the territories of all countries of the Union simultaneously
The work on the formation of regulation on the protection of intellectual property rights on the Internet by concluding an agreement within the framework of the EAEU, which has already been developed by the Commission based on the analysis of international experience on this issue, is in an active stage. When forming approaches to protection on the Internet, we proceed from the need to take into account the interests of all interested parties in order to avoid creating unreasonable barriers in business activities for copyright holders, owners of Internet resources and information intermediaries.
The application of our proposed measures is aimed at reducing the volume of violations of intellectual property rights on the Internet, which, in turn, will have a positive impact on the development of creative, investment and economic potential of our countries.
Another area of the Block's activity is the regulatory impact assessment (RIA) of the Commission's draft decisions.
The RIA procedure has been introduced into the practice of the Commission since 2015 in order to take into account the interests of the business community in the formation and improvement of supranational regulation within the Union.
During this time, the RIA has become the main procedural instrument of the Commission's interaction with the business circles of the EAEU countries. A significant number of incoming comments and suggestions indicates the demand for the RIA procedure by the business community, and the share of their accounting, which is about two-thirds, confirms the high level of "regulatory flexibility" of the Commission.
In addition, the issue of introducing a procedure for assessing the actual impact of the Commission's decisions and the dissemination of RIA to draft international treaties within the Union is currently being worked out. This approach will allow us to provide a comprehensive "coverage" assessment of the impact on business conditions of the entire life cycle of supranational regulation within the EAEU.
– The most important aspect of Eurasian integration is the creation of a single labor market and related issues of labor migration. Please tell us what kind of work is being done in this area?
– Indeed, one of the goals of the Eurasian Economic Union is the formation of a common single labor market, where countries with high labor productivity solve the issue of providing labor resources, and countries with a shortage of jobs – the employment of their citizens.
Today, the single labor market of the EAEU is 93 million workers who can freely move and work in any of the countries of the Union.
Since the creation of the EAEU, citizens of the member states have been granted equal rights to work, issues of pension provision for workers have been resolved, wide access to state and commercial services has been provided, and social security issues are being improved.
Thus, the EAEU has created conditions for legal, voluntary and safe labor migration. It should also be recalled that the coronavirus pandemic has hurt the global economy and this was especially sensitive for vulnerable segments of the population. And if highly qualified employees could be transferred to remote operation, then low-skilled personnel were left without work and without the ability to move in conditions of closed borders.
In these circumstances, it was extremely important to develop common approaches to regulating labor migration processes in a single integration space during pandemics.
In 2021, the recommendation of the Board of the Commission was adopted, aimed at ensuring the freedom of movement of workers of the EAEU countries, in respect of which the employer's need to attract them to work was confirmed, taking into account compliance with the sanitary and epidemiological requirements of the state of departure and the state of entry
The digital system "Work without Borders" was created as a mechanism to promote the development of organized forms of employment, which allows citizens to look for work without leaving their place of residence, and employers to select employees in other EAEU countries. Mobile applications are also being launched that provide access to online services to provide free movement of workers between countries and receive the necessary services.
In addition, in order to further develop the single labor market, modern digital technologies are being introduced, allowing all its participants to communicate and perform legally significant actions across borders.
– Indeed, one of the goals of the Eurasian Economic Union is the formation of a common single labor market, where countries with high labor productivity solve the issue of providing labor resources, and countries with a shortage of jobs – the employment of their citizens.
Today, the single labor market of the EAEU is 93 million workers who can freely move and work in any of the countries of the Union.
Since the creation of the EAEU, citizens of the member states have been granted equal rights to work, issues of pension provision for workers have been resolved, wide access to state and commercial services has been provided, and social security issues are being improved.
Thus, the EAEU has created conditions for legal, voluntary and safe labor migration. It should also be recalled that the coronavirus pandemic has hurt the global economy and this was especially sensitive for vulnerable segments of the population. And if highly qualified employees could be transferred to remote operation, then low-skilled personnel were left without work and without the ability to move in conditions of closed borders.
In these circumstances, it was extremely important to develop common approaches to regulating labor migration processes in a single integration space during pandemics.
In 2021, the recommendation of the Board of the Commission was adopted, aimed at ensuring the freedom of movement of workers of the EAEU countries, in respect of which the employer's need to attract them to work was confirmed, taking into account compliance with the sanitary and epidemiological requirements of the state of departure and the state of entry
The digital system "Work without Borders" was created as a mechanism to promote the development of organized forms of employment, which allows citizens to look for work without leaving their place of residence, and employers to select employees in other EAEU countries. Mobile applications are also being launched that provide access to online services to provide free movement of workers between countries and receive the necessary services.
In addition, in order to further develop the single labor market, modern digital technologies are being introduced, allowing all its participants to communicate and perform legally significant actions across borders.
– The single labor market is inextricably linked with the issue of personnel training through the vocational education system. What are the results of the Commission's activities in this area worth noting?
– In order to forecast the needs of the economies of the EAEU countries for workers, the Commission annually prepares and publishes on its website a list of the most popular professions in the single labor market, for which recommended qualification requirements are developed, used by the EAEU countries when developing their national qualification requirements. This list is also a kind of guide when choosing a profession for young people.
The Agreement on the Union regulates the automatic recognition of educational documents, but the issue of recognition of qualifications is also important.
In case of interstate employment, the employee must meet the qualifications required by the employer. The lack of equivalent qualifications may complicate the access of their holders to work in another State. The Commission is working together with the parties to eliminate this gap.
However, despite the conditions created, there are a number of difficulties faced by the citizens of our states. They are primarily related to issues of insufficient awareness and lack of certain skills. All this gives us a reason to recommend to the Governments of the member States of the Union to include migration issues in the development of national policies. The countries of departure should provide pre–departure training of citizens, including issues of training and retraining, the introduction of organized forms of employment, and the host countries should provide conditions for the legal stay of citizens, integration into local communities and protection of their rights.
– In order to forecast the needs of the economies of the EAEU countries for workers, the Commission annually prepares and publishes on its website a list of the most popular professions in the single labor market, for which recommended qualification requirements are developed, used by the EAEU countries when developing their national qualification requirements. This list is also a kind of guide when choosing a profession for young people.
The Agreement on the Union regulates the automatic recognition of educational documents, but the issue of recognition of qualifications is also important.
In case of interstate employment, the employee must meet the qualifications required by the employer. The lack of equivalent qualifications may complicate the access of their holders to work in another State. The Commission is working together with the parties to eliminate this gap.
However, despite the conditions created, there are a number of difficulties faced by the citizens of our states. They are primarily related to issues of insufficient awareness and lack of certain skills. All this gives us a reason to recommend to the Governments of the member States of the Union to include migration issues in the development of national policies. The countries of departure should provide pre–departure training of citizens, including issues of training and retraining, the introduction of organized forms of employment, and the host countries should provide conditions for the legal stay of citizens, integration into local communities and protection of their rights.
– And the final question. The heads of state and government of our countries at the meetings of the EAEU bodies constantly raise various aspects of the "digital agenda" of the development of the Union, emphasize the importance of digitalization for the development of integration processes. Thus, at the last meeting of the Supreme Eurasian Economic Council on December 9, 2022, the President of the Republic of Kazakhstan K. Tokayev stressed the need to give impetus to the implementation of the digital agenda and the creation of projects of a common Eurasian scale. What is the Economics and Financial Policy Unit doing in this area?
– On July 1, 2022, a pilot project was launched to introduce a traceability mechanism for the movement of foreign goods between the EAEU member states in accordance with the Agreement on the Traceability Mechanism for Goods Imported into the Customs Territory of the EAEU dated May 29, 2019.
The agreement is aimed at eliminating "gray" flows of traceable goods between member States and stimulating legal trade schemes.
Currently, a pilot project is being carried out with respect to goods imported into the customs territory of the EAEU from the category of "household refrigerators and freezers". On an ongoing basis, the traceability mechanism will begin to function in accordance with the decision of the Eurasian Intergovernmental Council, which will be adopted based on the results of the pilot project.
The traceability system of foreign goods is being built on the basis of the integrated information system of the EAEU and this project is one of the stages of "digitization" of information about goods moved between the countries of the Union and the exchange of this information between control authorities.
As a mechanism for promoting employment, a search system "Work without Borders" has been created, allowing citizens to search for work without leaving their place of residence, and employers to select employees in other EAEU countries. Currently, the possibility of expanding the functionality of this system by adding the services that allow you to remotely perform actions necessary for staying in the state of employment.
employment. Another area of work related to the use of electronic technologies is the implementation of common processes within the EAEU. Currently, active work is being carried out to translate the interaction of the Parties in the establishment and payment of pensions to workers within the framework of the Agreement on the Pension Provision of the EAEU Workers from paper to electronic format.
Technological documents are being developed regulating information interaction in the implementation of common processes in the field of pension provision for workers of the Member States by means of the Integrated Information System of the Union.
The new format of interaction between the Parties using electronic technologies will allow for the exchange of information between the competent authorities necessary for the establishment and payment of pensions to workers, as well as significantly reduce the time for consideration of citizens' applications for the appointment and payment of pensions.
– On July 1, 2022, a pilot project was launched to introduce a traceability mechanism for the movement of foreign goods between the EAEU member states in accordance with the Agreement on the Traceability Mechanism for Goods Imported into the Customs Territory of the EAEU dated May 29, 2019.
The agreement is aimed at eliminating "gray" flows of traceable goods between member States and stimulating legal trade schemes.
Currently, a pilot project is being carried out with respect to goods imported into the customs territory of the EAEU from the category of "household refrigerators and freezers". On an ongoing basis, the traceability mechanism will begin to function in accordance with the decision of the Eurasian Intergovernmental Council, which will be adopted based on the results of the pilot project.
The traceability system of foreign goods is being built on the basis of the integrated information system of the EAEU and this project is one of the stages of "digitization" of information about goods moved between the countries of the Union and the exchange of this information between control authorities.
As a mechanism for promoting employment, a search system "Work without Borders" has been created, allowing citizens to search for work without leaving their place of residence, and employers to select employees in other EAEU countries. Currently, the possibility of expanding the functionality of this system by adding the services that allow you to remotely perform actions necessary for staying in the state of employment.
employment. Another area of work related to the use of electronic technologies is the implementation of common processes within the EAEU. Currently, active work is being carried out to translate the interaction of the Parties in the establishment and payment of pensions to workers within the framework of the Agreement on the Pension Provision of the EAEU Workers from paper to electronic format.
Technological documents are being developed regulating information interaction in the implementation of common processes in the field of pension provision for workers of the Member States by means of the Integrated Information System of the Union.
The new format of interaction between the Parties using electronic technologies will allow for the exchange of information between the competent authorities necessary for the establishment and payment of pensions to workers, as well as significantly reduce the time for consideration of citizens' applications for the appointment and payment of pensions.
Bakytzhan Sagintayev is a statesman and politician.
He was born on October 13, 1963 in the village of Usharal, Talas district, Dzhambul region of Kazakhstan. Graduated from S.M. Kirov Kazakh State University; Candidate of Economic Sciences.
He began his career as a lecturer at the Department of Political Economy of the Alma-Ata Institute of National Economy (1985-1988); in 1988-1992 – assistant, senior lecturer, associate professor of the Department of Sociology of the Kazakh State University named after S.M. Kirov.
Then he worked in commercial structures.
In subsequent years, he held the positions of Deputy Akim of Zhambyl region, Deputy Chairman of the Agency of the Republic of Kazakhstan for the Support of Small Business, Chairman of the Board of "Fund for the Development of Small Entrepreneurship", Chairman of the Agency of the Republic of Kazakhstan for the Regulation of Natural Monopolies, Head of the Office of the Prime Minister of the Republic of Kazakhstan, Akim of Pavlodar region, Minister of Economic Development and Trade of the Republic of Kazakhstan, first Deputy Chairman of the People's Democratic Party "Nur Otan".
In 2013-2022 – First Deputy Prime Minister of the Republic of Kazakhstan-Minister of Regional Development, Prime Minister of the Republic of Kazakhstan, Secretary of State of the Republic of Kazakhstan, Head of the Presidential Administration of the Republic of Kazakhstan, Akim of Almaty.
Since June 1, 2022 – Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission from the Republic of Kazakhstan. Oversees the activities of the Department of Business Development, the Department of Financial Policy and the Department of Labor Migration and Social Protection of the EEC.
He was born on October 13, 1963 in the village of Usharal, Talas district, Dzhambul region of Kazakhstan. Graduated from S.M. Kirov Kazakh State University; Candidate of Economic Sciences.
He began his career as a lecturer at the Department of Political Economy of the Alma-Ata Institute of National Economy (1985-1988); in 1988-1992 – assistant, senior lecturer, associate professor of the Department of Sociology of the Kazakh State University named after S.M. Kirov.
Then he worked in commercial structures.
In subsequent years, he held the positions of Deputy Akim of Zhambyl region, Deputy Chairman of the Agency of the Republic of Kazakhstan for the Support of Small Business, Chairman of the Board of "Fund for the Development of Small Entrepreneurship", Chairman of the Agency of the Republic of Kazakhstan for the Regulation of Natural Monopolies, Head of the Office of the Prime Minister of the Republic of Kazakhstan, Akim of Pavlodar region, Minister of Economic Development and Trade of the Republic of Kazakhstan, first Deputy Chairman of the People's Democratic Party "Nur Otan".
In 2013-2022 – First Deputy Prime Minister of the Republic of Kazakhstan-Minister of Regional Development, Prime Minister of the Republic of Kazakhstan, Secretary of State of the Republic of Kazakhstan, Head of the Presidential Administration of the Republic of Kazakhstan, Akim of Almaty.
Since June 1, 2022 – Member of the Board (Minister) for Economics and Financial Policy of the Eurasian Economic Commission from the Republic of Kazakhstan. Oversees the activities of the Department of Business Development, the Department of Financial Policy and the Department of Labor Migration and Social Protection of the EEC.
