M. AGASANDYAN. ECONOMY OF OPPORTUNITY

Mikael Agasandyan, Head of the First Department of the CIS Countries at the Russian Foreign Ministry

EAEU, CIS, CSTO: DRIVERS OF ECONOMIC INTEGRATION

A thriving and dynamic business sector is undeniably a cornerstone in many respects—ensuring a decent standard of living, driving sustainable socio-economic growth, and, even more importantly in today’s geopolitical landscape, extensively advancing integration. Yet, the list, of course, extends far beyond that.

It comes as no surprise that creating the most favourable climate for business—both at home and abroad—has become a strategic priority. Supporting Russian participants in foreign economic activities through diplomatic and international legal means has emerged as a key mission of the Russian Foreign Ministry, as enshrined in its Charter.

The Ministry’s contribution to the Government’s efforts, lies in fostering an institutional environment that is not merely functional but truly conducive to the Russian economic actors—with a particular focus on Eurasia. In practical terms, this work is concentrated on steadily developing economic integration, improving the legal framework, strengthening interstate trade relations, bolstering technological sovereignty, and fostering dialogue between regions and business.

The primary drivers of robust economic growth are undoubtedly our joint efforts with partners within regional multilateral frameworks in-volving Russia—namely the EAEU, the CIS, and, to a certain extent giv en its focus, the CSTO.

The flagship project here is the Eurasian Economic Union, which stands out not merely as an eco nomic structure, but as the most deeply integrated interstate associ ation with supranational regulation and a single market for services. Harmonised requirements across over 140 service sectors ensure that national permits and professional qualifications issued in any of the five member states are automatically recognised throughout the Union, reducing bureaucratic burdens on businesses, streamlining operations and cutting costs.

Since mid-last year, the EAEU has introduced a supranational mechanism for preferential financing of joint cooperative projects in various industrial sectors, funded directly from the Union’s budget. This support is delivered through subsidised interest rates on loans and credits given to enterprises in member states. The core condition for receiving it is the involvement of businesses from at least three EAEU countries. In 2025, approximately 5.2 billion roubles have been allocated for this end.

This year, the first two cooper ative projects—in railway engineering and agricultural machinery in Russia and Kazakhstan—has been approved. Another 16 multination all applications are under consideration—in railway manufacturing, road engineering, computers, building materials, metal work, thermal paper, elevator equipment, paints are varnishes. The Deputy Prime Ministers of the EAEU states have endorsed a list of over 70 financial institutions eligible to participate in the preferential financing mechanism. Relevant decisions have been made, and efforts are underway to extend the reach to the agro-indus trial sector, which should provide further incentive for agriculture.

The EAEU’s external trade also opens broad prospects for businesses, primarily through negotiating Free Trade Agreements (FTAs) with third countries. The Union currently has three active FTAs—with Vietnam, Serbia, and Iran. Two more agreements—with the UAE and Mongolia—were signed this summer and are expected to enter into force shortly. Work on the FTA with Indonesia is in its final stages, and discussions with India are set to begin soon. The feasibility of a preferential trade regime with Tunisia is also under consideration. Two non-preferential agreements have been concluded with China. This for mat of cooperation enables producers from EAEU member states to expand exports to foreign markets and en hance the competitiveness of their goods.

The EAEU’s supranational body, the Eurasian Economic Commission (EEC), continuously analyses sectors and goods with export potential, as well as promising foreign markets.

Within the scope of Eurasian inte gration, the EAEU has developed several information resources valuable to entrepreneurs. A prime example is the EAEU Industrialisation Map, which reflects the current production and import-substitution capacity of member states. This cross-sectoral and cross-border database allows businesses and government agencies to access data on ongoing and planned investment projects, as well as identify opportunities for expanding import-substituting capacities.

Another key instrument for supporting and developing entrepreneurship is the Eurasian Development Bank (EDB), an international financial institution, which includes all EAEU member states, as well as Tajikistan and Uzbekistan.
It provides financing and/or technical aid for projects that strengthen regional integration, particularly through infrastructure and industrial development. The EDB also places special emphasis on promoting public-private partnerships (PPPs) across its countries.

In this context, the “Work in the EAEU” project by the EDB deserves special mention. This application is designed to simplify employment for citizens across the five member states by providing a wide range of public and commercial services required to begin work in a host country.

Finally, no overview of business support within the Union would be complete without mentioning the EAEU Business Council. Its work is to foster direct connections between entrepreneurs, creating a favourable business climate, promoting trade, economic, industrial, and investment cooperation. The Council also advances the EAEU’s foreign trade agenda by actively engaging with both the EEC and national business communities to strengthen industrial cooperation and remove barriers within the Union’s single market. Thus, the Council acts as a bridge between the business community and the EEC, ensuring that the voice and the interests of the business community are heard and included into the Eurasian integration.

On the international track, the Council organises business missions and public events to promote the EAEU to third countries, also working to unlock the potential of the Union’s foreign trade contacts for entrepreneurs from the five member states.

Economy holds no less significance for cooperation within the CIS as well. The framework is supported by an extensive legal foundation, a key component of which is the Free Trade Area Agreement of 18 October 2011, under which goods manufactured in the CIS countries are supplied to national markets duty-free, provided they meet all necessary technical and sanitary norms. As a result, the CIS markets remain among the most important for the majority of its participants, fostering business contacts and facilitating joint ventures.

The CIS Interstate Statistical Com mittee reports that the total trade turnover of the CIS countries in 2024 reached $1.1 trillion, marking a 1.6% increase compared to 2023. Exports grew by 1.4%, while imports rose by 1.8%. The year 2024 saw positive growth across most key indicators in the participating economies: GDP increased by 4.5%, industrial output increased by 4.4%, freight traffic ex panded by 7.8%, retail trade turnover rose by 7.6%, and investments in fixed assets surged by 9%.

These positive dynamics are also seen at the regional level. For instance, over the first nine months of 2025, companies based in Moscow in creased their exports to the CIS coun tries by 25% compared to the same period in 2024.

Given the growing share of services in foreign trade, a major step in deepening economic cooperation was the Agreement on Free Trade in Services, Establishment, Activity, and Implementation of Investment signed by the heads of CIS governments in June 2023. This agreement, which entered into force in June 2024, establishes a unified standard for protecting investors and their investments across member states. It provides guarantees against expropriation, ensures compensation for damages, and establishes dispute resolution procedures between investors and host governments.

Moreover, the CIS has developed an extensive network of sectoral cooperation bodies. In economy alone, there are 38 such entities, covering virtually all key areas of economic in teraction.

Supporting entrepreneurship is also a core priority for the Council of Heads of Chambers of Commerce and Industry of the CIS member states, as well as the CIS Business Centre for Economic Development. The latter, essentially an “association of associ ations,” assists businesses in promoting joint projects across the countries.

Together, these initiatives weave a dense network of horizontal ties, enabling businesses to operate effectively across the CIS and providing the means to swiftly address any emerging challenges or obstacles.

In 2023, to ensure the smooth functioning of the CIS market—with no barriers, minimal restrictions and exemptions—a High-Level Working Group was established. Comprising representatives from economic ministries and agencies of the CIS member states, and drawing on the expertise of chambers of commerce and the wider business community, its mandate is to analyse complaints regarding obstacles to mutual trade. Over the course of a dozen meetings, the group examined more than 40 such complaints. Solutions were identified for 37 cases directly by the group, while four others were referred to the CIS Council of Heads of Government. One complaint remains under negotiation.

A particularly vital development was the statement adopted during the CIS Council of Foreign Ministers’ meeting on October 7, 2024, which condemned the use of unilateral restrictive measures in international relations. This landmark text, reflecting the collective will of the CIS member states, underscores the negative impact of such measures on global trade and emphasises the need to develop a financial, credit, payment, insurance, and transport-logistics infrastructure resilient to external pressure. Such instruments reaffirm the commit ment of the CIS countries to leverage the potential for deepening economic cooperation and facilitating robust business chains that align with the core interests of the entrepreneurial community.

Cooperation on migration, particularly labour migration, provides a stable foundation for long-term business projects and a common space for the legal movement of workers across the CIS. Efforts to improve the efficiency of migration mechanisms enable companies and citizens to plan their workforce strategies more effectively, optimise recruitment and training costs, and mitigate the risks associated with illegal employment. The digitalisation of migrant records will further empower the business community to respond more flexibly and promptly to changes in the CIS labour market. This, in turn, creates vast opportunities for long-term in vestment projects.

The Concept for the Phased For mation of a Common Labour Market and Regulation of Labour Migration establishes long-term principles for creating a single economic space within the CIS. Key priority areas un derpinning this framework include or ganised labour recruitment, the digitalisation of migration, the harmonisation of relevant legislation among CIS member states, as well as vocational training and skills assessment.

Another vital instrument for economic cooperation with CIS countries, as well as for strengthening business ties and enhancing our nation’s scientific, technological, and innovative sovereignty, is the Interstate Program of Innovative Cooperation of the Member States of the Commonwealth until 2030, which holds significant potential for fostering and develop inginterstate and public-private innovation ecosystems within the CIS. It creates the conditions necessary to boost the global competitiveness of CIS economies by effectively integrating national innovation systems—both within the CIS and with the world’s leading innovation hubs, while naturally accounting for current geopolitical realities.

Practical mechanisms are already being established, including shared research facilities and innovation commercialisation. Notably, pilot interstate innovation projects are underway in nanotechnology, information technology, energy efficiency, and medicine. The International Scientific and Practical Conference, “Universities—New Centres of Attraction for Science, Business, and Society,” held in Minsk on 11–12 November, serves as a pertinent case study for evaluating the Programme’s implementation.

Within the framework of the Collective Security Treaty Organisation (CSTO)—the foremost military-political alliance in the post-Soviet space—member states place particular emphasis on military-economic and industrial cooperation. This focus is directly linked to the development of national defence-industrial complexes and the corresponding logistics systems for the armed forces of CSTO member countries.

Interaction between defence enterprises proceeds both through direct bilateral contacts and under the aegis of the CSTO’s Interstate Com mission for Military-Economic Cooperation, which marked its twentieth anniversary this year.

Through joint efforts within the Commission, a sound legal framework has been established and conceptual approaches devised to strengthen the Organisation’s capabilities, expand military ties, and foster cooperation among the defence-industrial complexes and specialised enterprises of CSTO nations. Addressing these tasks has become even more urgent given the current geopolitical instability and rising global tensions.

In the spirit of alliance and commitment to common goals—while respecting the national interests of each member state—meticulous work continues to further integrate and consolidate the capabilities and expertise of defence-sector enterprises and organisations across the CSTO space. These efforts also focus on creating the necessary conditions for implementing joint projects in priority areas.

In summary, it must be acknowl edged that, despite the progress achieved, the economic potential of organisations operating within our common space remains far from fully realised. Sustained efforts at all levels must continue to advance integration cooperation, identify mutually acceptable solutions, and set new ambitious goals. The expertise and resources of our regional structures are particularly in demand within the framework of President Vladimir Putin’s initiative to establish the Greater Eurasian Partner ship.

It is worth recalling that this initiative envisions a broad integration framework across Eurasia, fostering the win-win alignment of all states and integration associations in the region. In the long run, this is intended to yield a powerful synergistic effect.