Евразийская интеграция: экономика, право, политика (Mar 2022)

On the Issue of Free Movement of Financial Services and Capital in the Eurasian Economic Union

  • E. V. Zhiryaeva,
  • V. N. Naumov

DOI
https://doi.org/10.22394/2073-2929-2022-01-43-56
Journal volume & issue
Vol. 16, no. 1
pp. 43 – 56

Abstract

Read online

The article examines the macroeconomic indicators of the EAEU countries, used in quantitative methods for assessing financial integration, as well as a number of documents that form the common financial market (CFM) of the EAEU.Aim. To identify the content of the concept of the EAEU CFM, having determined the elements of control of the movement of financial services and capital, to assess the possibilities of its formation, taking into account the achieved integration.Task. To confirm the hypothesis that the insufficiently high existing level of financial integration in the EAEU is the reason why the mechanisms of the EAEU CFM cannot be sufficiently developed.Methods. Correlation analysis, analysis and comparison of texts.Results. Capital mobility is high in Russia and Kyrgyzstan. Converging consumption growth rates is a sign of equalizing financial risks. The countries differ in their exchange rate regimes, two of them maintain a double exchange rate, three have requirements for the repatriation of foreign exchange earnings. Capital flow measures are multidirectional. The CFM assumes the approximation of legislation in the field of financial services. Countries only commit to cross-border supply and consumption abroad for four subsectors, commercial presence is governed by national legislation, and the presence of natural persons is subject to migration regulations. The obligations to liberalize the services market taken to the WTO are not uniform, and the list of exemptions from obligations under the EAEU Treaty is more restrictive than obligations to the WTO. Most of the foreign exchange regulation measures are implemented in accordance with national laws. Investors from member states do not receive national treatment upon establishment.Conclusion. The hypothesis is confirmed. The significance of the work for the theories of financial integration lies in the identification of the forms in which the CFM EAEU exists. The recommendations are intended for use in the work of the Eurasian Economic Commission.

Keywords