Eurasian Economic Union Deepens Its Integration

The heads of government of the countries that make up the Eurasian Economic Union, meeting in the capital of Kyrgyzstan, Bishkek, agreed on Friday to create the Eurasian Reinsurance Company to support trade ties and continue reducing the dependence of these nations on the West.

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According to media reports, the decision taken by the Prime Ministers of Russia, Kyrgyzstan, Armenia, Belarus, and Kazakhstan will provide insurance support for foreign trade, stimulate mutual investments and provide export loans, among other possibilities.

During the meeting, the Prime Minister of Russia, Mikhail Mishustin, denounced the deepening of Western economic sanctions against his country and Belarus in recent months, undermining the financial system and international trade.

He explained that, despite this scenario, the Eurasian Economic Union has proven effective and less dependent on the United States and the European Union. In this regard, he highlighted that the bloc's gross domestic product (GDP) increased by more than 3.5 percent in the first quarter of 2022.

Mishustin said that agricultural production and industrial goods production also increased, while unemployment fell by almost a third.

He added that trade flows between the five countries have increased through the use of national currencies, an indicator that has reached 75 percent. In this regard, he urged the Member States to deepen this strategy in the short term.

He continued to explain that the bloc has achieved greater self-sustainability in food production and is more robust in industrialization, with around 150 investment projects, including 27 in automotive, chemical, metallurgical, paper, and others.

Press reports indicate that during the last decade, this integration scheme increased its industrial production by 20 percent and significantly increased its population and labor force.

In addition, it reports unemployment rates close to 4.9 percent, lower than the European average (7 percent) and the world unemployment rate (6.2 percent).