The Eurasian Intergovernmental Council approved the rules for selecting cooperation projects and providing them with financial assistance

In Bishkek, at a meeting of the Eurasian Intergovernmental Council, the heads of government of the EAEU countries approved the Regulations on the selection of joint cooperation projects in industries and the provision of financial assistance in their implementation by the EAEU member states.

This document provides the procedure and criteria for selecting joint cooperative industrial projects to receive financial assistance from the EAEU budget.

Thus, financing will be provided by subsidizing the interest rate on loans issued by banks for the implementation of cooperation projects.

For enterprises of the EAEU member states, this financing mechanism acts as a kind of «preferential lending program», which will ensure the further development of industrial cooperation within the EAEU and the introduction of new high-tech industries.

The criteria for selecting projects is the fulfillment of several basic conditions. One of which is the participation of enterprises from three or more member states.

Also, according to the Regulations, the project must be aimed at achieving one or more significant results, for example, creating a new enterprise or its modernization, forming a value chain, increasing exports, increasing trade or investment volumes. And entrepreneurs must implement it within five years.

It is important to note that the maximum subsidy amount will be about 2 billion tenge per project during the year.

We note that the selection of cooperation projects will be carried out using a point system, based on the most significant types of cooperation. For example, for the supply of materials, components and (or) equipment, 100 points are provided, for the supply of technological equipment or software - 80 points, for the provision of engineering and construction services - 50 points, for making a property contribution to the implementation of the project in the amount of at least 10 percent of its cost - 20 points.

Besides, additional points are provided for the participation in a cooperation project of business entities from 4 and 5 member states, the production of products not previously produced by enterprises of the EAEU member states, the creation of new jobs and ensuring an increase in exports of products to third countries.

Thus, the Commission, together with experts from the EAEU member states, will form a list of cooperation projects twice a year that meet the specified criteria and have received the highest number of points.

Subsequently, the final decision on the approval of a cooperative industrial project and the provision of a subsidy to a financial organization will be made by the Council of the Commission.

The new financial assistance mechanism is planned to be launched in 2024 from the date of entry into force of the Protocol on Amendments to the Treaty on the EAEU.