President Tokayev delivers address at Supreme Eurasian Economic Council meeting in St. Petersburg

Saint Petersburg, The Gulf Observer: On Monday, December 25, President Kassym-Jomart Tokayev participated in the meeting of the Supreme Eurasian Economic Council in Saint Petersburg, Russia, according to the reports of Akorda press service.

In his speech, the Head of State said the year 2023 was complicated for ongoing and accruing global instability.

According to him, inflationary pressure, transformation of international logistics chains, regional conflicts, and sanctions confrontation are just some of the factors that negatively affected the pace of global economic development.

Amid these tough conditions, Kazakhstan plans to finish the year with a 4.9% economic growth. It is gratifying that all of five Eurasian countries demonstrate positive dynamics. To preserve the trajectory of stable development of our economies, we must be ready for the challenges of the year 2024. Experts say, next year global economy will grow moderately, if not to say, at slow pace – from 1.5% to 3%, said Kassym-Jomart Tokayev.

In his words, the EAEU as an integral part of the global economy with the market estimated at $2.6 trillion will probably feel this slowdown.

Therefore, we need to use the economic reserves and existing potential of mutually beneficial integration, he noted.

The Kazakh leader said that one of the priority tasks of the EAEU is to boost technological cooperation in real sector of economy. He said that wide implementation of advanced technologies and innovations will strengthen positioning of the EAEU at the global arena. He welcomed the reflection of this issue in the Declaration “Eurasian Economic Path” adopted on Monday that is closely connected with China’s One Belt, One Road global initiative.

Kassym-Jomart Tokayev then emphasized the need to give a new impulse to a full-fledged implementation of the EAEU’s fundamental principle – free movement of goods. Despite the opening of customs borders, each country continues to de facto protect domestic producers from competition with other EAEU members.

We need to eliminate the existing barriers and restrictions in the common market and facilitate the implementation of unified technical regulation. The full-fledged functioning of the EAEU Integrated Information System would reduce the costs of goods transportation between the member countries, he said.

The President pointed out productive interaction in e-commerce. Last year the volume of this segment of the EAEU market reached $80 billion. This indicator may double in the nearest outlook, he said.

We need to work more actively on the improvement of customs procedures and creation of effective eco-system of online commerce, stressed Kassym-Jomart Tokayev.

The Kazakh President also touched upon the issues of the agro-industrial complex. According to him, the potential of the EAEU countries will let provide around 600 million people with food. One of the priority tasks for the EAEU should be the establishment of close cooperation ties to ensure manufacture of competitive, ecologically safe and export-oriented products meeting all international standards. He said the EAEU countries need to develop agrarian logistics and storage systems, and introduce digital solutions into agriculture, as well as to set up joint agro-innovation centers, which will focus on commercialization and industrial implementation of new technologies in agro-industrial complex.

In his words, the EAEU stands as a strategic link connecting the entire Eurasian space. And the member states have all chances to consolidate this status.

The point at issue is the development of North-South corridor with the access to the Near East, Iran, Pakistan and India. We are ready to reconstruct the ‘bottlenecks’ in our railroad lines and automobile roads, namely Beineu-Mangistau, Makat-Kandyagash railroad lines and Beineu-Shalkar road section, the Kazakh President said.

Kassym-Jomart Tokayev also suggested establishing a joint venture of the logistics companies of Kazakhstan, Russia and Turkmenistan and invited railways administrations of the EAEU states to join this work.

He reminded that Kazakhstan strengthens actively its transport and logistics potential and connectivity with the EAEU. He said that the country wraps up the construction of Kazakhstani terminals in China’s Xi’an and Poti Sea Port in Georgia. He added that Kazakhstan plans to launch five transborder transport and logistics hubs on the borders with Russia, China, Uzbekistan, Kyrgyzstan and on the Caspian Sea. The country is set to build 1,300 kilometers of new railroad lines, Bakhty and Kalzhat dry ports and a sea port in Iran’s Bandar Abbas in the nearest outlook. He invited the EAEU countries to join the implementation of mutually beneficial projects including construction of a network of major strategic ports, logistics centers and postal hubs.

Alongside, the Head of State proposed to consider the opportunity of synchronizing the EAEU Digital Agenda with China’s Digital Silk Road initiative. In his opinion, building an improved model of digital and intellectual interaction will contribute significantly to the development of the economies in the Eurasian space.

The interaction in the field of digital technologies and artificial intelligence opens huge prospects. It is evident that they will determine the future technological progress of both certain sectors and entire countries and unifications. Kazakhstan applies digital solutions successfully. More than 90% of governmental services are provided in Kazakhstan in electronic format. We intend to raise the export of IT sector to $1 billion by 2026, he said, adding that Kazakhstan stands for all-round development of cooperation in this sector.

In this regard, he proposed to discuss the opportunity of building a fiber-optic line on Russia-Kazakhstan-Iran route to connect with the international lines running along the Indian Ocean coast.

This will allow not only to create an additional route of transit traffic on the Eurasian space, but also to strengthen the EAEU’s positions in data logistics at the global level, the Kazakh President said.

Kassym-Jomart Tokayev emphasized the importance of consistent enhancement of the EAEU’s potential in its external activity, by developing trade-economic relations with third countries and integration associations.

We welcome the signing of a full-fledged free-trade agreement with Iran which holds an important place in the system of our trade and economic ties. We need to continue this work with India, the UAE, Egypt, Indonesia, Mongolia and other interested countries, said Tokayev.

In conclusion, he congratulated Vladimir Putin on successful completion of Russia’s chairmanship in the Union and wished productive chairmanship in the EAEU to Prime Minister of Armenia Nikol Pashinyan in 2024.

Besides, Kassym-Jomart Tokayev expressed gratitude to Mikhail Myasnikovich, who completes his mission as the Eurasian Economic Commission’s Chairman.

A number of documents was adopted at the Summit.

Bakytzhan Sagintayev was elected the Chairman of the Board of the Eurasian Economic Commission.

President of the Russian Federation Vladimir Putin, Prime Minister of Armenia Nikol Pashinyan, President of Belarus Aleksandr Lukashenko, President of the Kyrgyz Republic Sadyr Zhaparov participated in the Summit. Besides, President of Cuba Miguel Mario Díaz-Canel Bermúdez addressed the participants in a video message.