27.03.2024, 12:18 20161

Bill on financing industrial cooperative projects within the EAEU presented in the Mazhilis of the Parliament of Kazakhstan

Minister of Industry and Construction of Kazakhstan, Kanat Sharlapaev, during the plenary session of the Mazhilis of the Parliament, introduced a bill for the ratification of the Protocol on Amendments to the Treaty on the Eurasian Economic Union (EAEU), signed by the Heads of the Member States on May 24, 2023, press service of the Ministry of Industry and Construction reports.

This protocol will lay the foundation for financing joint cooperative projects in industry, using EAEU budget funds.

 In response to the needs of the business communities of the member states, the new financing mechanism will provide significant support for the development of industrial cooperation within the EAEU, allowing enterprises to implement industrial projects.

The pilot financial assistance mechanism will be valid for five years with the possibility of extension. Financing will be provided from 10% of the proceeds from special, antidumping, and compensatory duties.

The mechanism includes providing subsidies to national financial organizations and the Eurasian Development Bank at 100% of the base rate set by the national banks, with a commercial loan rate not exceeding 6.5% above the base rate.

The project selection criteria include the participation of enterprises from at least three member states and project completion within no more than five years. The selection will be conducted in several stages, involving state bodies and business communities. The decision to approve a project is made by the Council of the Eurasian Economic Commission.

This mechanism will contribute to job creation, the production of industrial goods with added value, and an increase in the export of products to third countries.
 

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