EAEU has proved its efficiency over last 10 years - EEC minister 

ArmInfo. Recently, a delegation of the Eurasian Economic Commission (EEC), headed by the EEC Minister  for Customs Cooperation Ruslan Davydov, visited Armenia. ArmInfo correspondent met with the EEC Minister, asking him to answer a number of questions

Mr Davydov, could you share the goals of your visit to Armenia and the agreements reached in Yerevan?

- Of course, the main goal of the visit is to "synchronize watches" with your Armenian colleagues. In particular, we talked about the priority tasks and projects that we must solve with the participation of all countries of the Eurasian Economic Union. The focus in relation to Armenia is understandable due to the country's special position in the EAEU - exclave status, the absence of a common customs border, and for this reason, everything that concerns the movement of goods between Armenia and the rest of the Eurasian Union. For this, the EEC has its own tools - transit tools, navigation seals, etc. Considering that the Union should ensure the unity of  customs regulation, as stipulated in the Treaty on the Establishment of the EAEU, it is natural that the purpose of a visit to any country of the Eurasian Union is to discuss ways and actions to achieve this regulation: what needs to be done to achieve it in practice, what issues should be paid attention to. I will not hide here that the issue of control over customs value is one of the highest priorities for the states of the Eurasian Union. The EEC, in turn, does everything to ensure that this unity is observed in law enforcement practice. An equally important task is to coordinate the Strategy Plan. You know that there is a Declaration on the Strategy for the Development of Eurasian Integration until 2030 and for the period until 2045, approved by the heads of state of the Eurasian Union. A specific action plan for the implementation of the provisions of the Declaration is being developed for this document. This Plan is currently under discussion, including with colleagues in Armenia.

You mentioned electronic navigation seals. I remember that 1-1.5 years ago the Armenian parliament ratified the relevant agreement, but it seems that the system has not yet started working.

- The system is not yet fully operational. It is applied sectorally  under separate agreements between Russia and Belarus, and a number of pilot projects are being implemented with the participation of Kazakhstan and Kyrgyzstan. A decision has now been made on a pilot project between Russia and Armenia. We really hope that by the end of this year, together with the states of the Eurasian Union, we will be able to agree on all outstanding issues in order to launch, as they say, "with flying colors". Not individually, but as a whole.

- And what will this give, including to Armenia?

- For some reason, everyone perceives the very idea of using these seals as strengthening control. In reality, we are talking about a coin with two sides. On the one hand, yes, this will help the regulatory authorities to clearly see each shipment, each car, where it came from, where it is going, whether there were deviations on the route, God forbid, whether there were attempts to open these seals, despite the assurances of technical specialists about the impossibility of such actions. In this sense, we are really talking about helping the regulatory authorities, which will receive extensive information about the movement of goods. But, on the other hand, when this work began in 2018, businesses were already wondering  about the possibilities of simplifying customs procedures. We believe that along with the use of seals, simplifications should also be applied so that there is less physical control. If you have an electronic device that tracks the transportation from one place, from where the goods are delivered to the destination without incidents, interference or deviations from the route, including unforeseen stops, it is natural that the attitude towards such a delivery should be more loyal. In fact, there should be no problems if the risk profiles do not work. In addition, for businesses that insure their cargo, and there are the vast majority of them, this is also an increase in trust in carriers. It has the opportunity to communicate with insurance companies about reducing tariffs. If your cargo is sent under a seal, the insurance company also sees that it is under control. Previously, there were cases of attacks when trucks with  expensive cargo were stolen. With the use of seals, it will be  possible to quickly localize such incidents, and this, in turn,  should lead to a decrease in insurance rates. In principle, a seal, as a device, provides for downloading all the information about the driver, cargo, route. In other words, this is a source of a large volume of data, which in the long term should satisfy both the regulatory authority and business.

- There has been much talk lately about the advantages of  cross-border trade via the Internet. Does such trade really have  significant advantages?

- The Eurasian Economic Commission has developed a protocol on electronic trade. The document is, as they say, "on the way out". It remains for Kazakhstan to ratify it, after which it will be necessary to adopt several acts under this protocol concerning the list of goods that are not subject to the new regulation, simplification of customs declaration forms, thresholds and rates. After all these issues are resolved, the new chapter in the Customs Code of the EAEU  will begin to apply.

How much do you think the full implementation of the mechanisms of authorized economic operators can contribute to the simplification of customs procedures? As far as I know, in Armenia, agreements have been signed with two companies

- The institute of authorized economic operators is very actively  used all over the world. In the EU countries alone, there are about 18 thousand authorized economic operators, in China - 31-32 thousand, 5 thousand of which enjoy the highest level of trust.

In the Eurasian Union, the figures are somewhat different: Belarus is in the lead with 350-400 companies, in Russia - about 200. That is, in this case, we can talk about an institute that is widespread in the world, which is already the basis of that cluster of companies with a high level of trust, which is switching from the format of regular communication with the customs service to the format of periodic reporting and monitoring. All over the world, customs officers apply a reduced level of control to these companies. In practice, we are talking only about post-control by customs services.  - On May 15, a full-scale agreement on a free trade zone between Iran and the EAEU countries came into force. What do you think this will give to our republic?

- The agreement with Iran specifies the list of goods for which the duty is either zeroed or reduced. Over the past few years, Iran has become a major trading partner of the Eurasian Economic Union. Suffice it to say that over several years, the EAEU's trade with Iran has almost tripled: there was $2.1 billion in annual trade volume, now, according to 2024 data, $6.3 billion. The entry into force of the full-scale agreement with Iran, which replaced the temporary greement, will certainly give an additional impetus to the development of trade and economic relations between Iran and the EAEU. Since Armenia borders Iran and does not have a common border with the Eurasian Union, we can safely assume that the republic will become the main beneficiary of the development and deepening of  relations with Iran. We proceed from the postulate that what is good for one EAEU country is good for the entire Union. The Commission is optimistic about the development of these relations. It is difficult to predict this development in figures now, especially given the processes taking place in the world, including in the context of the tariff war on the part of the United States, but in any case, the EEC is optimistic about the development of Armenian- Iranian trade and  economic relations.

- During our conversation we already talked about Armenia's exclave position in the EAEU.  Meanwhile, the latest developments in Georgia are already causing concern for the Armenian authorities: first, aluminum was not allowed through, then alcoholic beverages, now flowers. Can the Commission somehow help resolve these issues?

To be honest, I am not aware of these issues, but if they really  exist, then they should first be resolved at the bilateral level. As  you know, Georgia does not have diplomatic relations with one of the EAEU states - the Russian Federation. In any case, I believe that the fraternal nature of bilateral relations will help resolve all existing issues.

This year, the EAEU countries celebrate an anniversary - the 10th anniversary of the entry into force of the Treaty on the  Establishment of the Union. How would you characterize this period, how effective has the integration been?

- Of course, over 10 years, the Eurasian Union has proven its  effectiveness. The combined GDP of the EurAsEC countries for the specified period grew by 60% and amounted to 2.6 trillion dollars at the end of last year. In addition, there has been a twofold increase in mutual trade, which is a clear indicator of the mutual usefulness of the EAEU countries. The volume of foreign trade has grown by about the same - 60%.  According to the EEC, in 2024 it almost reached 1  trillion dollars. Of course, against the background of trade data  from China, the USA and the EU, this is not the largest figure,  however, the growth of foreign trade of the EAEU countries is more than obvious. To this should be added the annual GDP growth rates, which in the EAEU continue to exceed the world average. In Armenia, for example, last year the growth rate was 6%, which is significantly higher than the world average. This is not my first time in Yerevan, and I see how the city is changing, becoming more beautiful. This is evident in the cars, and in the bustle on the streets of the Armenian capital, and in the well-being of the residents. By the way, over 10  years the average income of citizens of the EAEU countries has increased from 9 thousand dollars per capita to almost 14 thousand dollars, that is, this is also an increase of almost 60%. The Union is developing successfully, and we in the Commission will do everything to ensure that it prospers.

Thank you