Category: India

Translartion. Region: Russians Fedetion –

Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

Deputy Prime Minister Alexey Overchuk spoke at the plenary session of the XXXIV Congress of the Russian Union of Industrialists and Entrepreneurs.

The main topics of discussion at this year’s RSPP congress were key areas of interaction between business and government and proposals for the participation of the business community in achieving national development goals for the country and implementing national projects.

From the transcript:

A. Overchuk: Dear colleagues!

Thank you very much for the invitation and the opportunity to speak before the congress of the Russian Union of Industrialists and Entrepreneurs. The success of our economy and the country as a whole truly depends on those present in this hall.

Entrepreneurship involves competition for access to resources and markets, whether nationally or internationally. It is this activity that provides the source of progress, income and wealth for individual households, businesses and nations.

We are participants in the formation of a new world with new trade and economic ties and priorities.

The Russian economy is adapting to deal with that part of the world that has higher rates of economic growth, good demographics, and wants to work with us. And the Government is facilitating this adaptation.

We see our main task in this process as providing Russian industrialists and entrepreneurs with the best competitive conditions for doing business throughout the entire international value chain, that is, at every stage of the process of creating a product or service and delivering it to consumers.

Within the framework of the Eurasian Economic Union, the Union State of Russia and Belarus, our actions are aimed at expanding opportunities for our exporters, as well as improving the balance of supply and demand in our common domestic market. Work here is carried out in several areas – this is customs and tariff protection of the domestic market of the Eurasian Economic Union; the formation of common markets and a barrier-free environment in the single customs territory of the EAEU; the development and creation of international transport corridors; the formation of a network of free trade agreements and non-preferential agreements on trade and economic cooperation and the adoption of technical regulations and standards of the EAEU by other countries.

Within the framework of the single customs space of the EAEU, we strive to respond flexibly to the market situation and accordingly regulate single customs tariffs and import volumes.

Imported goods and services are part of international value chains and also affect supply and prices in the domestic consumer market. This has a dampening effect on inflation, affects interest rates and labor costs, and is ultimately reflected in production costs.

Cheap imports can pose threats by displacing domestic producers, reducing employment and income levels, and slowing economic growth. Here, we strive first and foremost to stand on the side of our producers’ interests, giving priority to import substitution and strengthening our economic and technological independence.

To solve this problem, as well as to stimulate the development of production and economic ties and trade between our countries, the EAEU has launched a support mechanism in the form of subsidizing the interest rate on loans issued by banks for the development of industrial cooperation projects covering three or more EAEU member states. The first two fairly large projects have already been approved. Options for expanding this mechanism to the agro-industrial complex are being considered. I urge Russian entrepreneurs, in conjunction with partners from EAEU member states, to actively use this already existing support mechanism.

We monitor the balance of supply and demand in the consumer market, primarily the food market, which underlies the cost of the consumer basket. This is one of the elements in determining the level of inflation, which affects the key rate and the cost of lending for business.

In order to influence the cost of the consumer basket within the EAEU, in addition to tariff measures, over the past two or three years we have begun to apply such a mechanism as a joint indicative balance of supply and demand for individual types of agricultural crops. The EAEU today determines balances for such types of goods as grain, sunflower seeds, sunflower oil and sugar.

In the event of a reduction in the supply of certain types of goods on the national markets of individual EAEU member states, the EEC Council takes targeted tariff measures. At the same time, decisions to reduce tariffs are taken only after it becomes clear that an increase in supply on the EAEU domestic market is only possible through imports from outside the union. We call for close cooperation with both manufacturers and associations of manufacturers, that is, with businesses.

Due to the similarity of the structures of our economies within the EAEU, we often compete with our union partners in foreign markets. This affects the reduction of our producers’ income. Now our partners are realizing the benefits of coordinating efforts to promote exports, and we already have positive examples. We will support and develop such initiatives if it is beneficial to our business.

Within the EAEU, we are forming common markets for goods, services, capital and labour. We have made significant progress in the electric power market. In December 2024, we recorded that the gas market in the EAEU had already taken shape in the form in which it actually exists. Within the Union State, we are reaching agreements on a common oil market and will continue to develop this within the EAEU.

Common markets within the Union State and the EAEU not only expand opportunities for the sale of goods and services, but also create healthier competitive conditions.

We will continue to work to reduce and eliminate barriers that hinder the formation of single markets throughout the Eurasian Economic Union, as provided for in our major agreement.

As the largest economy in the EAEU, Russia is a premium market. And business representatives from EAEU partner states closely monitor changes in the Russian regulatory framework and quickly identify decisions that prevent them from entering our market, if such appear. We would like our business community to more actively enter the markets of other EAEU member states and promptly provide us with information on violations of EAEU law, if such arise.

Based on economic and geopolitical realities, we focus on ensuring transport and logistics connectivity of our market with the markets of the global South. A program for the modernization and construction of international checkpoints is being implemented. We are working on the construction of the Rasht-Astara railway section in Iran, which will ensure uninterrupted connectivity of the ports of the Russian northwest with Iranian ports in the Indian Ocean.

We are discussing the modernization of the Ulaanbaatar railway that runs through Mongolia. We are using existing routes and seeking from our partners to improve tariff conditions for our shippers.

A pilot project was launched to use electronic international consignment notes for international road freight transportation within the single customs territory of the EAEU. To protect the internal market of the Union State, navigation seals began to be used for transit products.

I would like to draw attention to the Agreement on the Unified Customs Transit System of the EAEU concluded in December 2024 and the fact that states that are not members of the union can also join this agreement. This will allow external partners to be involved in certain aspects of the customs regulation of the union, which will help reduce the time spent on the passage of goods.

In the context of illegal sanctions, we rely more on internal forces, we are pursuing a policy of import substitution, but we also strive to rely on the opportunities that are provided to us by trade regimes within the Union State of Russia and Belarus, the EAEU, the CIS, as well as those states with which we are establishing free trade zones. And we strive to develop trade with friendly countries.

The world is beginning to notice the successes of our integration association. They see that the EAEU is becoming a center of attraction for states located to the south of the post-Soviet space, such as Iran, Pakistan, Afghanistan, Mongolia, the ASEAN countries, the Arab countries of the Persian Gulf, and African states. We are building closer trade relations with them, including in the form of free trade agreements.

For example, just the day before yesterday, the Islamic Republic of Iran notified the Eurasian Economic Commission of the completion of the procedures necessary for the entry into force of a full-scale free trade agreement between the EAEU and Iran. The agreement will enter into force on May 15, and this means that for the EAEU member states, the export market will increase by 85 million consumers. At the same time, Iranian producers will gain access to the common market of the EAEU member states, which is more than 180 million people, which will lead to improved competition in our markets.

Similar work is currently underway with a number of other countries. By the end of the year, we can expect that the EAEU may sign two more free trade agreements. I believe that our business community should carefully study these new opportunities.

In conclusion, I would like to say that this year an action plan for the implementation of the EAEU Declaration for 2030–2045, “The Eurasian Economic Path,” is being prepared for adoption. I would like the members of the Business Council to participate more actively in this work.

Thank you for your attention.

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