EAEU to finance new industrial projects

PanARMENIAN.Net - The Eurasian Economic Commission (EEC) has decided to subsidize the first two cooperation projects under the new industrial financing mechanism within the Eurasian Economic Union (EAEU). This was announced by Gohar Barshegyan, Minister for Industry and Agro-Industrial Complex of the EEC.

She urged Armenian businesses to take an active role in these initiatives.

Barshegyan noted that during the January 22 meeting, the EEC Council approved the first programs involving three EAEU member states, Armenpress reported.

The primary goal of this mechanism is to create cooperative value chains that will contribute to the development of new production capacities and the modernization of existing factories using the resources of EAEU member states. Under the program, EAEU will subsidize interest rates on loans or borrowings issued for the implementation of industrial projects. These subsidies will cover 100% of the Central Bank's base interest rate in the respective member state.

The initiative is experimental and set for a five-year period, covering all manufacturing sectors except food processing. Each project will be eligible for a maximum annual subsidy of 350 million rubles, while loan interest rates must not exceed the base rate of the respective country plus 6.5%.

According to Barshegyan, a list of 64 banks and 9 development institutions has already been compiled to participate in the mechanism. In Armenia, 17 banks will be eligible to offer this financing.

"I encourage Armenian businesses to actively participate in project development. The Commission is ready to support any business initiative in the real sector by providing consultations, explaining the mechanism's details, facilitating connections within the EAEU, and helping find partners. I hope Armenian businesses will soon become an integral part of Eurasian cooperation chains," Barshegyan stated.