The year 2024 marks the 10th anniversary of the Treaty on the Eurasian Economic Union (TEAEU), an organisation established to deepen economic integration and cooperation between its members. The first to sign the Treaty were the member states of the Customs Union (EACU) — Belarus, Russia and Kazakhstan; and in 2015, Armenia and Kyrgyzstan joined the Union. In 2025, the five-year term of the document defining the Strategic Guidelines for the Development of Eurasian Economic Integration until 2025 (Strategy 2025) will expire; and on December 31, 2025, the Action Plan to implement them, approved by the EEC Council on April 5, 2021, will terminate. These are significant dates for Eurasian integration to conclude the interim results.
The first decade of EAEU activities sets the stage for its shaping and development. That period yielded substantial results: from building a common market for goods and services to developing foreign economic policy and unifying customs standards. At the same time the EAEU faced a number of external pressures, which highlighted the need to develop a strategy to guide the Union towards further development while adapting to the evolving global climate.
This led to the adoption of the “Strategy 2025,” an audacious document aimed at strengthening economic cooperation, developing technological independence and enhancing EAEU’s role in the internation-al arena. Assessing the ten years of EAEU’s activities through the lens of “Strategy 2025” allows to understand how the Union managed to tackle the challenges and gain a stronger foothold amidst a rapidly changing geopolitical and eco-nomic environment.
EAEU: FIRST DECADE ACCOMPLISHMENTS
Over the first decade, the EAEU has achieved significant progress in trade and economic cooperation, making important steps towards a single market and a unified legislative frame-work. As the border opened for goods and services, the Union’s countries were able to simplify trade procedures and ease administrative barriers, which was especially important given the volatile global economy. As Dmitry Volvach, Deputy Minister of Economic Development of the Russian Federation, noted at the 7th International Forum of the EAEU, the volume of mutual trade between EAEU countries has almost doubled over the past ten years — from 3.9 to 7.4 trillion roubles, which shows the increased integration efficiency. Simplifying customs procedures and abolishing customs duties on most goods within the Union has created conditions for their free movement. Common standards and regulations have also facilitated trade and im-proved product quality in the common EAEU market.
Other accomplishments include:
As for EAEU’s international activity aimed at expanding trade cooperation, it is worth noting the free trade agreements with Vietnam, Iran, Singapore, Serbia, and the trade and economic agreement with China. In addition, projects are being implemented to integrate the Union with the “One Belt, One Road” initiative, which opens up new prospects for investment and trade.
The EAEU also continues to reinforce its cooperation with the SCO, ASEAN, MERCOSUR, the African Union and other groupings, strengthening its role in the world arena. However, despite the obvious successes, the EAEU encountered a number of internal obstacles, including different national legislations, a large number of exceptions, barriers and restrictions. These challenges became prerequisites for the “Strategy 2025” aimed at deepening integration and strengthening the Union.
STRATEGY 2025: PRIORITIES AND ACHIEVEMENTS
The “Strategy 2025” sets complex tasks for the EAEU related to over-coming internal barriers, increasing economic resilience of the member states, and strengthening international standing. One of the priorities of the Strategy is deepening economic integration. So, it includes tasks to expand the common market, and among others, a full liberalisation of trade in services and free capital flow aimed at encouraging the removal of remaining barriers and closer integration, which in turn will enable a stronger and more robust economic environment within the EAEU.
The Strategy also seeks to make the EAEU economic space more attractive for business by removing administrative barriers and harmonising tax regimes. Amid sanction pressure and glob-al turbulence, EAEU’s technological independence has gained special significance. One of the priorities is to create conditions for scientific and technological cooperation between the member states. The Strategy stresses the need to develop scientific and technical cooperation and support innovative projects, which will allow the Union to consolidate its foothold amid limited access to Western technologies. An important area is also the environmental agenda, where measures are planned to converge policies on sustainable development and green standards.
This will pave the way for the EAEU countries to integrate into global environmental initiatives and encourage the transition to sustain-able economic models. The Strategy has strengthened EAEU’s role in the international arena. The Union doesn’t seek to “build a fortress,” but to expand partnerships with other integration groupings and countries, forming a kind of “bridge” between the East and the West. Co-operation with such groupings as the SCO, ASEAN and BRICS is becoming a priority. However, the “Strategy 2025” faced serious challenges in its implementation. Political and economic instability resulting from sanctions and strained international relations has a negative impact on the development of the EAEU states and hampers the fulfilment of long-term goals.
And different economic interests and approach-es to development create obstacles to further harmonisation of legislation within the scope of competence referred to the Union and convergence of approaches in key economic sec-tors. Some states also face challenges in implementing import substitution measures and developing local production. In the modern world, the EAEU is compelled to find ways to coordinate scientific and technical cooperation un-der these constraints. The environmental agenda also faces challenges: priorities in this field set out in the “Strategy 2025” require significant financial and infrastructural investments, which hinders the transition to a green economy, particularly for economies relying on traditional energy.
To meet the objectives of the “Strategy 2025” and overcome the challenges ahead, the EAEU has focused on the following key areas:
1. Development of digital infrastructure and creation of a common digital space between the EAEU member states. This has become an important element for facilitating interaction and increasing trade efficiency. Joint digitalisation projects reduce administrative barriers and simplify collaboration, making the Union’s eco-nomic space more accessible to businesses.
2. Expansion of cooperation with new partners and third countries. The development of free trade agreements with the Middle East, Africa, South-East Asia and Latin America significantly improves the competitiveness of the Union.
3. Development of uniform standards and regulations in environmental policy, which allows to adapt to international environmental requirements and create conditions for sustainable growth. Scientific and technical cooperation development is also an important driver of technological development, and strengthening EAEU’s institutional framework will improve coordination and increase integration efficiency.
So far, the EAEU has completed the important stage of establishing and strengthening economic cooperation among its states, proving the potential for further development. The “Strategy 2025” has shaped a long-term vision focused on deepening integration, building a sustainable economy and strengthening EAEU’s international standing. However, the full fledged implementation of these goals calls on the states for flexibility, innovation potential and readiness to work more closely.
NEW HORIZONS AND PROSPECTS
The EAEU is now on the threshold of a new stage in its development, and its capacity to adapt to changes will be a key factor in achieving its audacious goals. The priorities set out and implemented in the “Strategy 2025” have undoubtedly influenced the Union’s development, which to a large extent proved its sustainability and competitiveness. However, given the current challenges and the need for further development, there is a demand for new strategic priorities for the next five years.
The “Main Areas of EAEU’s Economic Development up to 2030”, a recommendation document approved by the Supreme Eurasian Economic Council on 16 October 2015, can serve as a basis for this.
The following key potential areas for further EAEU development can be recommended.
Firstly, deepening integration and establishing common markets: a single market for banking, insurance and investments. It is also vital to fina lise the development of common oil and gas markets to ensure energy security.
Secondly, development of innovation and digital economy: introducing common digital platforms for businesses and individuals, supporting AI R&D, biotechnology and other promising areas.
Thirdly, harmonisation of legislation: unification of legal norms in fiscal, customs and labour law, development of common standards in consumer protection, ecology and labour relations.
Fourth, broadening international cooperation: continued negotiations with India, Egypt, Mongolia, UAE and other countries to work out agreements on free trade, active engagement with international organisations and initiatives.
Development of the following promising areas, defined in part in the “Strategy 2025,” should also continue:
1. Strengthening the institutional framework: increasing the efficiency of the Eurasian Economic Commission, reinforcing its powers and resources; establishing new institutions to address specific tasks in economy, science and technology.
2. Removing internal barriers: monitoring and control over the fulfilment of obligations, enforcing the Union’s decisions at the national level, stepping up efforts to harmonise legislation, holding joint events, exchange of experience.
3. Investing in human capital: developing education and science, creating joint educational programmes, supporting academic mobility, providing social protection for EAEU’s citizens, improving working conditions.
4. Attracting investment and devel-oping infrastructure: creating a favourable investment climate, simplifying procedures, providing legal protection for investors; developing transport and energy infrastructure, implementing joint projects, modernising existing networks.
The implementation of the “Strategy 2025” enabled the EAEU to make significant progress in integration, but now it is facing new challenges that require coordinated action and strategic planning. The EAEU’s development prospects until 2030 are closely linked to deeper integration, digital economy development, legislation harmonisation and enhanced international cooperation. The Declaration on further development of economic processes within the EAEU until 2030 and for the period until 2045 “The Eurasian Economic Path” signed by the Heads of State in December 2023 marked a new stage of strategic planning in the EAEU.
During 2024, the EEC together with the member states developed an Action Plan to implement it, and they intend to adopt in 2025. So, for further effective development of the Union, it seems pertinent to elaborate a new five-year strategy, tailored to reflect the current challenges,
and the following goals and objectives:
This led to the adoption of the “Strategy 2025,” an audacious document aimed at strengthening economic cooperation, developing technological independence and enhancing EAEU’s role in the internation-al arena. Assessing the ten years of EAEU’s activities through the lens of “Strategy 2025” allows to understand how the Union managed to tackle the challenges and gain a stronger foothold amidst a rapidly changing geopolitical and eco-nomic environment.
EAEU: FIRST DECADE ACCOMPLISHMENTS
Over the first decade, the EAEU has achieved significant progress in trade and economic cooperation, making important steps towards a single market and a unified legislative frame-work. As the border opened for goods and services, the Union’s countries were able to simplify trade procedures and ease administrative barriers, which was especially important given the volatile global economy. As Dmitry Volvach, Deputy Minister of Economic Development of the Russian Federation, noted at the 7th International Forum of the EAEU, the volume of mutual trade between EAEU countries has almost doubled over the past ten years — from 3.9 to 7.4 trillion roubles, which shows the increased integration efficiency. Simplifying customs procedures and abolishing customs duties on most goods within the Union has created conditions for their free movement. Common standards and regulations have also facilitated trade and im-proved product quality in the common EAEU market.
Other accomplishments include:
- Conditions favouring access to quality medical products and simplified procedures for their registration within the Union;
- Common approaches to pricing and energy transportation, optimising internal and external supplies;
- Coordinating agricultural policies leading to increased production and export of agricultural products and contributing to the Union’s food security;
- Exchange of data between public authorities to improve the transparency and efficiency of administrative procedures;
- Faster cargo clearing, reduced business costs;
- Projects on AI and big data, promoting technological development and increasing competitiveness;
- Lifting restrictions on labour activity, recognising competences and diplomas, and facilitating labour mobility;
- Access of labour force to health care, education and social insurance on equal terms with the citizens of the host country.
As for EAEU’s international activity aimed at expanding trade cooperation, it is worth noting the free trade agreements with Vietnam, Iran, Singapore, Serbia, and the trade and economic agreement with China. In addition, projects are being implemented to integrate the Union with the “One Belt, One Road” initiative, which opens up new prospects for investment and trade.
The EAEU also continues to reinforce its cooperation with the SCO, ASEAN, MERCOSUR, the African Union and other groupings, strengthening its role in the world arena. However, despite the obvious successes, the EAEU encountered a number of internal obstacles, including different national legislations, a large number of exceptions, barriers and restrictions. These challenges became prerequisites for the “Strategy 2025” aimed at deepening integration and strengthening the Union.
STRATEGY 2025: PRIORITIES AND ACHIEVEMENTS
The “Strategy 2025” sets complex tasks for the EAEU related to over-coming internal barriers, increasing economic resilience of the member states, and strengthening international standing. One of the priorities of the Strategy is deepening economic integration. So, it includes tasks to expand the common market, and among others, a full liberalisation of trade in services and free capital flow aimed at encouraging the removal of remaining barriers and closer integration, which in turn will enable a stronger and more robust economic environment within the EAEU.
The Strategy also seeks to make the EAEU economic space more attractive for business by removing administrative barriers and harmonising tax regimes. Amid sanction pressure and glob-al turbulence, EAEU’s technological independence has gained special significance. One of the priorities is to create conditions for scientific and technological cooperation between the member states. The Strategy stresses the need to develop scientific and technical cooperation and support innovative projects, which will allow the Union to consolidate its foothold amid limited access to Western technologies. An important area is also the environmental agenda, where measures are planned to converge policies on sustainable development and green standards.
This will pave the way for the EAEU countries to integrate into global environmental initiatives and encourage the transition to sustain-able economic models. The Strategy has strengthened EAEU’s role in the international arena. The Union doesn’t seek to “build a fortress,” but to expand partnerships with other integration groupings and countries, forming a kind of “bridge” between the East and the West. Co-operation with such groupings as the SCO, ASEAN and BRICS is becoming a priority. However, the “Strategy 2025” faced serious challenges in its implementation. Political and economic instability resulting from sanctions and strained international relations has a negative impact on the development of the EAEU states and hampers the fulfilment of long-term goals.
And different economic interests and approach-es to development create obstacles to further harmonisation of legislation within the scope of competence referred to the Union and convergence of approaches in key economic sec-tors. Some states also face challenges in implementing import substitution measures and developing local production. In the modern world, the EAEU is compelled to find ways to coordinate scientific and technical cooperation un-der these constraints. The environmental agenda also faces challenges: priorities in this field set out in the “Strategy 2025” require significant financial and infrastructural investments, which hinders the transition to a green economy, particularly for economies relying on traditional energy.
To meet the objectives of the “Strategy 2025” and overcome the challenges ahead, the EAEU has focused on the following key areas:
1. Development of digital infrastructure and creation of a common digital space between the EAEU member states. This has become an important element for facilitating interaction and increasing trade efficiency. Joint digitalisation projects reduce administrative barriers and simplify collaboration, making the Union’s eco-nomic space more accessible to businesses.
2. Expansion of cooperation with new partners and third countries. The development of free trade agreements with the Middle East, Africa, South-East Asia and Latin America significantly improves the competitiveness of the Union.
3. Development of uniform standards and regulations in environmental policy, which allows to adapt to international environmental requirements and create conditions for sustainable growth. Scientific and technical cooperation development is also an important driver of technological development, and strengthening EAEU’s institutional framework will improve coordination and increase integration efficiency.
So far, the EAEU has completed the important stage of establishing and strengthening economic cooperation among its states, proving the potential for further development. The “Strategy 2025” has shaped a long-term vision focused on deepening integration, building a sustainable economy and strengthening EAEU’s international standing. However, the full fledged implementation of these goals calls on the states for flexibility, innovation potential and readiness to work more closely.
NEW HORIZONS AND PROSPECTS
The EAEU is now on the threshold of a new stage in its development, and its capacity to adapt to changes will be a key factor in achieving its audacious goals. The priorities set out and implemented in the “Strategy 2025” have undoubtedly influenced the Union’s development, which to a large extent proved its sustainability and competitiveness. However, given the current challenges and the need for further development, there is a demand for new strategic priorities for the next five years.
The “Main Areas of EAEU’s Economic Development up to 2030”, a recommendation document approved by the Supreme Eurasian Economic Council on 16 October 2015, can serve as a basis for this.
The following key potential areas for further EAEU development can be recommended.
Firstly, deepening integration and establishing common markets: a single market for banking, insurance and investments. It is also vital to fina lise the development of common oil and gas markets to ensure energy security.
Secondly, development of innovation and digital economy: introducing common digital platforms for businesses and individuals, supporting AI R&D, biotechnology and other promising areas.
Thirdly, harmonisation of legislation: unification of legal norms in fiscal, customs and labour law, development of common standards in consumer protection, ecology and labour relations.
Fourth, broadening international cooperation: continued negotiations with India, Egypt, Mongolia, UAE and other countries to work out agreements on free trade, active engagement with international organisations and initiatives.
Development of the following promising areas, defined in part in the “Strategy 2025,” should also continue:
1. Strengthening the institutional framework: increasing the efficiency of the Eurasian Economic Commission, reinforcing its powers and resources; establishing new institutions to address specific tasks in economy, science and technology.
2. Removing internal barriers: monitoring and control over the fulfilment of obligations, enforcing the Union’s decisions at the national level, stepping up efforts to harmonise legislation, holding joint events, exchange of experience.
3. Investing in human capital: developing education and science, creating joint educational programmes, supporting academic mobility, providing social protection for EAEU’s citizens, improving working conditions.
4. Attracting investment and devel-oping infrastructure: creating a favourable investment climate, simplifying procedures, providing legal protection for investors; developing transport and energy infrastructure, implementing joint projects, modernising existing networks.
The implementation of the “Strategy 2025” enabled the EAEU to make significant progress in integration, but now it is facing new challenges that require coordinated action and strategic planning. The EAEU’s development prospects until 2030 are closely linked to deeper integration, digital economy development, legislation harmonisation and enhanced international cooperation. The Declaration on further development of economic processes within the EAEU until 2030 and for the period until 2045 “The Eurasian Economic Path” signed by the Heads of State in December 2023 marked a new stage of strategic planning in the EAEU.
During 2024, the EEC together with the member states developed an Action Plan to implement it, and they intend to adopt in 2025. So, for further effective development of the Union, it seems pertinent to elaborate a new five-year strategy, tailored to reflect the current challenges,
and the following goals and objectives:
- Greater efficiency of the EAEU bodies by strengthening the Union’s institutional system;
- Further efforts to remove barriers and restrictions impeding the free movement of goods, services, capital and labour;
- Investment in human capital and innovation to secure sustainable development of the EAEU’s economies;
- Further development of cooperation in education, including through joint Master’s and Bachelor’s degree programmes, consortiums of universities, and harmonisation of curricula.
It may also be wise to envisage a special high position in the Eurasian Economic Commission for cooperation in education.
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The decade since the signing of the TEAEU has marked significant progress in the integration processes in the Eurasian space. The Union has succeeded in strengthening economic ties between its states, improving the living standards and gaining its rightful place on the global economic map. But still there remain goals to achieve, and the complex geopolitical and economic environment poses new challenges for the EAEU, which can only be effectively addressed through joint efforts and political will. However, it is safe to say that the EAEU has become an important regional grouping with new horizons for its development ahead.