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The purpose of establishing the Eurasian Reinsurance Company is to support mutual trade between the EEU member states, the development of economic integration by increasing the volume of investments, the increase of investment attractiveness and the expansion of trade and economic relations of the Union with the third countries. In the Charter of the Company, there are provisions providing financial obligations for Armenia, which is the co-founder of the Company. The Deputy Minister of Economy Narek Teryan said this. The draft law on Ratifying the Agreement on the Establishment of the Eurasian Reinsurance Company authored by the Government was debated at June 12 sitting of the Standing Committee on Regional and Eurasian Integration.

The Agreement, which was signed in Yerevan on 20 October 2022, was revised in the format of multilateral international agreements, which regulate the issues of the creation and operation of the Company. The Company is an international financial organization, which is established for the purpose of promotion of the EEU mutual and foreign trade, implementation of joint cooperative projects and investments.

The Deputy Chair of the Committee Vagharshak Hakobyan asked to clarify the provisions providing financial obligations for Armenia.

“The trade turnover between the RA and the EEU states is growing rapidly. In the first five months of 2023, it increased almost twice compared to the previous year. We need a new toolkit to export goods to the EEU states. International Reinsurance Companies do not work with the EEU member states, that is why it is necessary to have a reinsurance company within the EEU framework.” In response to Vagharshak Hakobyan’s question, how much the additional burden on the state budget will be, Narek Teryan stated that the capital investment is 450 million Russian rubles. He added that the urgency of the draft is conditioned by the sharp increase in export volumes.

It is noted in the conclusion of the RA Ministry of Justice on the draft the Agreement contains a number of problematic norms in terms of the RA legislation, on which the Head of the Department of International Legal Cooperation of the RA Ministry of Justice Anahit Abrahamyan presented in detail.

According to her, though the Agreement on Establishing the Eurasian Reinsurance Company contains norms contradicting the RA laws, but it does not contain amendment to the law or norms designing adoption of a law. A series of privileges and encroachments, which are problematic in terms of our legislation, are set for the Company and Company members by the Agreement. Some provisions of the Agreement also contradict a number of provisions of the Tax Code.

Anahit Abrahamyan noted that the Agreement can be ratified, but the Company will not make use of relevant privileges. She added that the Agreement was discussed with the Ministry of Justice, and the Ministry of Economy adopted all proposals.

The draft was endorsed.