The Eurasian Development Bank as a mechanism of scientific and technological integration within the framework of EAEU: legal aspects

Shugurov Mark Vladimirovich ORCID: 0000-0003-3604-3961 Doctor of Philosophy Professor of the Department of Philosophy, Saratov State Law Academy 410028, Russia, Saratov, Volskaya str., 1 shugurovs@mail.ru Other publications by this author

The research was carried out with the financial support of the RFBR within the framework of scientific project No. 20-011-00780 ("Model of legal regulation of scientific, technological and innovative integration within the EAEU and the challenges of the Fourth Industrial Revolution").

Introduction

The dynamic processes that take place in the field of science, technology and innovation in the modern world have largely become possible thanks to the active and direct participation of financial institutions supporting high-tech projects. These are national and international development banks and funds. The participation of these institutions consists in the allocation of financial resources in the format of co-financing, as well as in the provision of technical and advisory services. The portfolio of financial development institutions includes projects related, for example, to technology transfer and the organization of high-tech industries in various sectors of the economy. The projects that contribute to the transition to a new technological order characteristic of Industry 4.0, which is simultaneously integrated into a larger phenomenon, such as the transition to sustainable development and the achievement of its goals at the national, regional and universal levels, are of the highest priority today.

High-tech and high-tech projects and programs can be classified into national and international. Within the framework of interstate associations of an integration nature, projects with an integration component are of particular importance. Their meaning is to combine the scientific, technological and production potentials of the member states of the integration association in order to technologically modernize the economy and increase global competitiveness. The noted patterns clearly declare themselves in relation to the integration processes within the EAEU. Thus, the Declaration on the Further Development of Integration Processes in 2018 ^[1] refers to joint high-tech projects that are designed to become symbols of Eurasian integration. In addition, in the Strategic Directions of the development of the Eurasian economic integration until 2025 (hereinafter – the Strategy-2025)^[2], an increase in investment and innovation activity is planned, as well as an expansion of the list of areas of economic interaction.         

Success in implementing joint high-tech projects and increasing the scientific and production potential of the Union depends on numerous factors, starting from the proper quality of human resources and pumping the state of industrial and innovative infrastructure facilities. Due to the fact that joint projects and programs within the EAEU are of an interstate nature, international financial organizations as sources of investment are of key importance here. Moreover, these are not only and not so much universal organizations, such as the World Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, etc., which usually support projects at the national level, namely international financial structures focused on supporting projects, programs and initiatives of a national and interstate nature implemented in the EAEU and CIS states. In this case, the Eurasian Development Bank (hereinafter referred to as EDB) belongs to this kind of international financial organization.

It should be noted that the Bank's multilateral activities arouse increased interest in the scientific literature. In particular, complex works began to be published, in which various directions of his activity are systematized, both in the field of project activity and in the field of analytics and expertise ^[3-5]. However, it is quite noticeable that attention to his activities is peculiar mainly to representatives of economic science. Meanwhile, the functioning of the Bank, including from the point of view of its contribution to ensuring industrial and technological integration within the EAEU, directly relates to the subject field of international legal science and is at the junction of research conducted in the field of law of international financial organizations and the law of interstate integration associations.  

The purpose of the presented research is the conceptual systematization of the program, strategic and legal foundations of the EDB's activities as a mechanism for the development of cooperation between the EAEU member states in the field of technological modernization of the economy and the production of high-tech and knowledge–intensive products based on cooperative projects with an integration component.

To achieve the purpose of the study, it is assumed that the following tasks will be solved:

-1) determine the legal and program-strategic basis for regulating the implementation of the Bank's functions, which relate to its internal law;   

- 2) to establish instruments included in the law of the Union and aimed at involving the Bank in integration processes, including production and technological ones; 

- 3) to reveal the trends in the development of the Bank's project activities and demonstrate their compliance with the trends in line with which multilateral banks (MDBs) operate as such.  

Due to the fact that industrial and technological cooperation, which includes cooperation in all parts of the innovation cycle, is a key strategic priority of the EAEU, the dogmatic and legal method was used in the work, which allowed explicating the content of this priority, enshrined in the legal acts of the EAEU and the EDB and related program and strategic documents. The use of the method of legal modeling was also of great importance, which made it possible to identify a combination of various legal instruments that form a mechanism for legal regulation of the Bank's activities in the direction of its activity considered in this article. In addition to these methods, the research methodology included such special scientific methods as comparative legal and historical legal methods. Their use was supplemented by an appeal to general scientific methods, such as analysis and synthesis, abstraction and generalization. The key role was played by a systematic approach, which made it possible to establish a system of EDB activities in this aspect, including from the point of view of the completeness of its legal and program-strategic support. The forecasting method was used to determine the optimal measures to increase the Bank's potential as an investment and financial mechanism for industrial and technological integration within the EAEU.

The relevance of the study is determined by the fact that both scientific and technological and industrial and technological cooperation within the EAEU, carried out on a cooperative program and project basis, requires an influx of sufficient investments, including "green" investments, the source of which is not only national financial and credit organizations and development institutions, but also MDBs. Hence, the investment, as well as analytical and expert potential of the EDB requires the most detailed study, including from the point of view of assessing the level of legal and related programmatic and strategic support for its implementation and strengthening.  

The scientific novelty of the work lies in the substantiation of scientific ideas about the EDB not only as an investment mechanism of industrial and technological integration, mainly of the EAEU member states, but also as a catalyst capable of deepening their cooperation in the field of joint efforts to increase the technological potential of production processes and products.

This study was carried out on the basis of an analysis of the legal and program-strategic documents of the EDB and the EAEU, as well as an analysis of the Bank's project activity on the territory of the Union. Qualitative and quantitative indicators of the EDB's activity were taken into account, as well as the degree of its involvement in the functioning of the EAEU's own institutional structure.  

1. Areas of activity of the Eurasian Development Bank: legal and strategic foundations

To begin with, the EDB was established in 2006 on the basis of the Agreement on the Establishment of the Eurasian Development Bank dated January 12, 2006 ^[6]. Currently, its authorized capital is $7 billion. Over the past 15 years, the Bank has been carrying out its investment activities within the Eurasian space on the territory of its member countries, such as Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. If we turn to Article 1 "Objectives of the Bank", included in Section 1 "Objectives, functions and participants of the Bank" of its Charter ^[7], then the objectives include, firstly, the promotion of the formation and development of the market economy of the member states of the Bank, and, secondly, the expansion of their trade and economic relations through the implementation of investment activities. This indicates the aspiration to participate directly in ensuring the integration of the participating States within the Customs Union, as well as the Common Economic Space. Naturally, with the establishment of the EAEU, this continued to promote the development of trade and economic relations not only between the participating states that are members of the EAEU, but also to expand their cooperation with other participating states that are not members of the EAEU.

If we turn to the characteristics of the functions, then from the list given in Article 2 "Functions" of the Charter, one can clearly see the positioning of the Bank as a development institution. The fact is that he is not only engaged in purely investment activities by financing projects and programs in the participating states, and also participates in the authorized capital of organizations implementing certain projects using his own capital and funds raised on international and national financial markets, but also engages in other activities. This includes consulting on economic development and efficient use of resources, as well as expanding trade and economic ties. It is impossible not to mention the information and analytical work in the field of public and international finance.

As defined in clause 2 of Article 9 "Resources of the Bank", the resources and services of the Bank are provided solely to achieve its goals and perform its functions in full compliance with the rules, procedures and regulations approved by the Board of the Bank. According to clause 3. of Article 9 "Bank Resources", the Bank may create funds for the implementation of certain functions. It is also provided that at the expense of deductions from profits, they can form a reserve fund, as well as other trust funds, the procedure for the formation and management of which is approved by its Council. In addition, it has the right, on the basis of a decision of the Council and on the basis of agreements with the governments of the participating States, to assume obligations to manage special funds that are formed by a participant or a group of participants of the Bank, other organizations in accordance with its tasks and objectives. It is envisaged that the costs of managing special funds are carried out at the expense of these funds.

Paragraph 2 of Article 10 "Investment activity" clarifies that it has the right to provide loans jointly with other international financial institutions, commercial banks and other interested institutions. Thus, this confirms its commitment to the closest cooperation with other financial organizations of a very different nature, which makes it possible to consolidate a much larger amount of financial resources, further provided to borrowers in order to support their projects.

The functions noted by us found their details in the content of the subsequent articles of the Charter. Thus, paragraph 1 of Article 10 "Investment activity" contains an important provision for the subject of our article that the Bank, within the framework of its investment activities, finances projects and programs that are highlighted in interstate and intergovernmental agreements of the participating states as priorities. Here the second purpose of its functioning, indicated above, has found its confirmation. The achievement of this goal is based on the basis presented by such a regulatory legal act of the international financial organization under consideration as the Regulation on Investment Activity ^[8].

We should immediately note that the objectives of the Bank's investment activities are systematically disclosed not in the Charter, but in the Regulations. The following is listed here: development and modernization of energy, transport, communication and agro-industrial infrastructure in order to intensify trade and economic cooperation of the participating states; achievement of qualitative structural shifts in the economies of the participating states by financing projects aimed at developing a market economy; elimination of infrastructural and other constraints of sustainable growth; improving the efficiency of natural resources, environmental protection and improvement of the ecological situation; increase in the production of competitive high-tech products with high added value in non–primary sectors of the economy; development of small and medium-sized businesses through lending or direct investment in organizations supporting small and medium-sized businesses; formation of financial and investment mechanisms to support integration processes in the participating states, including development support there are financial markets in them. Describing the tasks, we emphasize that they all correspond to its statutory goals and functions, which once again demonstrates its identification as a development bank. From the point of view of the subject of our article, the most important tasks are to promote the implementation of projects that strengthen the economic interconnection of the participating States.   

At the same time, do not forget that a Bank is a financial organization, and like any financial organization, it must pursue a policy aimed at its own self–reproduction, which means the need to obtain financial profit. Hence, a very balanced attitude to the examination of project applications and the assessment of the solvency of beneficiaries. It is also envisaged that the Bank will provide services related to financing (clause 5 of Article 11). Let us explain that there is no overestimated desire for a high rate of profit, which confirms its status as a development institution. Therefore, it operates on conditions that ensure sufficient profitability of its operations at a completely acceptable level of risk. Its target products and tools include the following: project financing; investment financing; equity participation; trade financing; documentary operations; participation in funds, organization and management of them; consulting services and technical assistance in project preparation.

The provision of technical services, including project preparation services, is inextricably linked with the provision and use of financial instruments proper.This work is carried out by the Technical Assistance Fund (FCS), whose funds are also used for grant financing. The Fund focuses on providing technical assistance in the process of preparing project documentation as a key condition necessary to open financing for projects and programs. The Fund's funds are mainly used for the development of a feasibility study of certain projects, the implementation of industry, marketing and technological research and assessments, for example, the assessment of the impact of the proposed project on the environment.

Confirmation of the orientation to the implementation of information and analytical activities has found its further consolidation in Article 11 of the Charter. This activity includes the following: collection, systematization and analysis of information on the state of the economy and financial markets of the participating states; analysis of their investment opportunities, banking legislation, etc. Information and analytical materials are not only provided to the Bank's participants, but also to other users, for example, organizations with which a corresponding agreement has been concluded. Borrowing and other activities are described in detail in Article 12 of the Charter.

Like any international development bank, the EDB in its activities follows not only the provisions of its Charter, but also the provisions of its own strategic documents containing relevant guidelines and at the same time summarizing the results of its work over a five-year cycle. The content of these strategies belongs to an independent subject of study in the scientific environment ^[9].As a result of the completion of its five–year cycle of operation, the subject contours of which were outlined by the Strategy for the period 2013-2017^[10], the Bank has fully established itself as a multilateral international financial development institution, which in its activities contributes to deepening the processes of economic integration between the participating states. During this period, the system of its priority industry projects (energy; transport and infrastructure; strategic industries such as mining and metallurgy, mechanical engineering, chemical industry, agro-industrial complex; financial sector) crystallized.

As indicated in the Strategy for 2018-2022 ^[11], the Bank intends to focus its activities on financing projects that have a high integration effect, while not forgetting the importance of supporting national development projects, building cooperation with "anchor" clients, i.e. with large companies. It is cooperation with the latter that can lead to the fact that the Bank will be able to occupy priority, i.e. systemically significant niches in the economies of the countries of operations. The key place here is occupied by projects aimed at the production of products with high added value, primarily high-tech products, as well as initially assuming technological development of the economy. Hence, the focus is on the introduction of additive technologies (AF-technologies), especially at enterprises of the automotive and aircraft industry, which will significantly reduce the gap from the leading countries. Another setting of the Bank's Strategy is the deployment of investment activities in the direction of promoting the deepening of industrial cooperation of enterprises of economic entities of the participating states, which creates the possibility of jointly produced high–tech products. This will, firstly, increase the share of domestic industrial products in domestic markets and increase the level of their localization, and, secondly, strengthen the export potential of industrial products.

In the 2018-2022 Strategy, we again see confirmation of the list of priority categories of industry projects specified in the previous strategy. An innovation was the desire to support the ICT sector. In addition, at the expense of the Technical Assistance Fund, it is planned to support projects aimed at developing humanitarian cooperation between the participating States, i.e. projects in the field of culture and art, science and education. This kind of effort can lead to the formation of a single Eurasian humanitarian space.

The question arises as to what are the factors determining the given list of industrial production projects that are priority in terms of financing and technical support? The answer can be found in the Strategy itself: This is not only their priority in accordance with national development programs, but also the presence of their integration potential. If we consider the project activity in the field of transport infrastructure development, the Bank unequivocally proceeds from the fact that this kind of projects will contribute to the realization of integration potential in the Eurasian space towards the formation of a single transport space of the EAEU. Of course, all this is in direct and feedback connection with the support of achieving the goals of national sectoral development strategies. There is no doubt that, both at the national and at the integration level, projects related to improving the transport connectivity of regions, the development of modern and efficient transport infrastructure, increasing the stability and safety of the transport system, the development of intelligent transport systems, etc., involve the introduction of the latest transport technologies, which means the implementation of industrial and technological cooperation.  

This kind of logic can be clearly seen in section 5.6. "Target projects" of the Strategy. During the period 2018-2022, the following nomenclature of projects with a strong integration effect was identified as a priority for the Bank's support: cross-country infrastructure projects that contribute to strengthening trade, economic and investment ties between the Bank's member states, the creation and development of common markets: cross–border roads, including international transport corridors, bridges, oil and gas pipelines, telecommunication lines, power transmission lines with system infrastructure (networks, substations, etc.), as well as national integration infrastructure projects (sea and river ports, airports, logistics multimodal terminals). The list also includes projects that contribute to the growth of trade turnover and cargo mobility in border regions, as well as facilitating the movement of citizens and creating other cross–border effects for the Bank's member countries. We will also point out projects that provide for real corporate integration of economic entities of various member countries of the Bank when creating a product or providing services (projects embedded in global and/or regional production chains), as well as projects aimed at developing trade operations between counterparties of the Bank's member countries, supported, inter alia, using financial institutions-intermediaries – commercial banks and leasing companies.

The Bank is involved in a whole series of national development projects, which are understood as investment projects characterized by sufficiently long payback periods and high risks. This kind of characteristics of these projects do not allow them to become the subject of investment attractiveness from the commercial banking sector and other investors. Therefore, this project is supported by development institutions, in our case, the EDB, which uses the principle of complementarity in its work and proceeds from the principle of public-private partnership. The Bank's investment portfolio includes national, regional and municipal infrastructure projects in a variety of industries: transport infrastructure; housing and communal services (water supply, heat supply, solid waste disposal, etc.); energy infrastructure; social infrastructure (preschool and general educational institutions, medical institutions, etc.). This category of projects is complemented by projects involving the development and creation of new industries, which leads to the involvement of economic entities of the country in additional value chains. Particularly significant is the support provided by the Bank to the efforts of the participating countries and their economic entities in the field of import substitution and strengthening the export potential of national economies. It should be recalled that import substitution and increasing export potential belongs to one of the directions of the coordinated industrial policy of the EAEU member states. The Bank's role in the development of the manufacturing sector is complemented by its efforts to develop the financial sector.

It is necessary to specifically focus on the fact that the main choice falls on projects that have an innovative component and involve a change in the technological structure. Consequently, priority is given to projects that are aimed at changing the way of production and involve a high level of R&D costs, participation in the transfer of promising technologies, which, ultimately, can lead to the production of high-tech products that are competitive in domestic and foreign markets. In essence, the innovative and technological component as a criterion for making a decision on support is also characteristic of infrastructure projects. This approach is characteristic of the support provided to the development programs of micro, small and medium-sized enterprises, small agricultural producers, as well as programs involving, for example, the introduction of energy-efficient technologies at enterprises.

Like all the most important international financial organizations, the EDB is currently implementing the agenda of social and environmental responsibility of financial institutions (ESG-agenda: "environment", "social sphere", "corporate governance") and at the same time focuses its activities on contributing to the achievement of the Sustainable Development Goals enshrined in the Agenda in areas of sustainable development for the period up to 2030 ^[12].

The constituent elements of social and environmental responsibility were stated in section 2 "Basic Principles of the Bank's Investment Activity" of the Investment Regulations, which emphasized that the implementation of projects financed by the Bank should not lead to a real deterioration of the living environment and social working and living conditions of the population. On the contrary, investments are designed to ensure an increase in the standard of living of the population and the level of social security, as well as to improve the state of the environment. In clause 1.3 of such a special document as the Policy of Environmental and Social Responsibility of the Eurasian Development Bank ^[13], the goal of environmental policy is to increase positive environmental and social effects while avoiding or reducing negative environmental and social consequences in the preparation and implementation of investment projects, which will contribute to ensuring the contribution of the latter to sustainable development. In addition, it is not only about avoiding or reducing negative effects, but also about improving the efficiency of using natural resources and strengthening environmental protection. This is achieved by assessing the ability of project initiators (borrowers) to fulfill their obligations to comply with environmental protection and social impact requirements established by national legislation when preparing investment projects. In the process of implementing the approved project, the fulfillment of the obligations assumed by the borrowers is monitored.

We would like to add that the Bank will primarily support projects in the field of transport infrastructure, digital systems, green energy, agriculture, industry and mechanical engineering, which make a significant contribution to achieving the Sustainable Development Goals (hereinafter – SDGs) at the national and regional level. This reflects an increased focus on promoting economic integration while respecting the principles of social and environmental responsibility. Therefore, the project portfolio includes projects whose implementation will significantly improve the quality of life of the population in the participating countries while improving the state of the environment and increasing the efficiency of the use of natural resources. In the latter case, it is quite reasonable to talk about its contribution to the achievement of SDG No. 12 "Sustainable consumption and production models".

Modern international financial organizations belong to development institutions, including for the reason that they accumulate and disseminate a wide variety of knowledge that contributes to the development of certain areas in the States of their operations. For example, the World Bank has taken a strong position not only as a "globalizer", but also as a "knowledge bank". And the EDB is no exception here. In its structure, there is an Integration Research Center working in numerous areas. One of them is the initiative to develop the Concept of the Eurasian Commodity Production System, which is a trade system that is not burdened with unnecessary barriers and restrictions, as well as functioning through a digital platform ^[14]. The results of a special study will be taken as the basis of the concept.   

The Bank's Charter provides for active activity in the field of expert analytics. Due to the statutory nature of this direction, a special section VI "Analytical activity" was included in the Strategy for 2018-2022. This section reproduces and clarifies the expert advisory and analytical functions already mentioned above. As can be seen from the example of the Bank's website, not only its project activities are open, but also its analytical activities, which have a country, industry and integration character ^[15]. Analytical publications, industry and thematic reviews are published on an ongoing basis.

Studies on topical issues of economic development of the countries of the Bank's region of operations are published on a quarterly basis as part of special reports. A significant expansion of the list of published reviews, including a description of external economic conditions, the current macroeconomic situation in the region, drivers and risks of economic development, as well as medium–term forecasts of the main macroeconomic indicators of the EDB member States, occurred during the implementation of the Strategy for 2013-2017. Conferences are equally open and permanent (for example, the annual international conference "Eurasian Integration").

In this section of the Strategy for 2017-2022, it is explained that investment projects submitted for consideration undergo a mandatory assessment procedure for their compliance with the mission and strategic goals of the Bank. Due to the fact that the form of implementation of strategic guidelines is project support, monitoring the implementation of the Strategy is, in fact, the identification of integration and socio-economic effects of the implementation of projects from its investment portfolio.

From the point of view of the approach to the Bank as an integrator, analytical work within the framework of the task related to the study of integration processes between the participating states and the support of their project and investment activities is very interesting. Cooperation with the Eurasian Economic Commission (hereinafter referred to as the EEC) is developing in this direction, which avoids duplication. Due to the interest in cooperation with other MDBs, the activities of the latter are constantly monitored, as well as the unfolding processes of economic integration on the territory of the Bank's countries of operations. Cooperation with other international organizations also engaged in analytical activities is aimed at strengthening analytical capacity.

Taking into account the existing experience of analytical and expert activities, the following types of work are planned in the Strategy for 2018-2022: conducting analytical studies that are related to the issues of strategic and institutional development of the EDB; monitoring and evaluating the implementation of decisions on these issues; continuing the preparation of sectoral and macroeconomic reviews on a systematic basis; analytical support of project and investment activities; analysis of investment activities of other MDBs in the Bank's region of operations; conducting joint applied research with other MDBs, MFIs, the EEC, national development institutions; analysis of the volume, structure and dynamics of investments within the EAEU, trends in mutual trade, integration in financial markets, development of transport corridors, opportunities for expanding non-commodity exports, as well as other integration processes.

Due to the fact that the validity period of the considered strategy is expiring, the Bank is faced with the task of developing and adopting a new strategy. At the meeting of the EDB Council (July 2021, Almaty), a significant event occurred for all subsequent activities of the Bank: its strategy for 2022-2026 was approved ^[16]. The document shows that it is supposed to focus on the implementation of cross-border investment projects with an integration component. Moreover, it is planned to double the volume of investments to $ 11 billion. It follows from the materials of the said meeting of the EDB Council that the Bank's efforts will be directed to the implementation of very large investment projects, such as the Europe- Western China transport and digital corridor, the EAEU+ unified commodity distribution network and the water and energy complex of Central Asia. In addition, project activities will be expanded in the countries that are minority shareholders (Armenia, Kyrgyzstan, Tajikistan). It is planned to allocate about $ 500 million for it. In addition, a feature of the new cycle of strategic planning of the Bank's work has become such a very important addition as adaptation to the needs of each participating country. This is continued in the development of country strategies, for example, the Bank's strategy for Tajikistan is currently being developed ^[17]. It will take into account the specific conditions of its economic development and specific macroeconomic indicators.

Thus, the analysis showed that the Bank meets all the criteria of a financial development institution, which today includes an innovative and technological vector. This is what makes it an important actor and even a kind of catalyst for industrial and technological integration within the EAEU.        

2. EDB as a catalyst for integration processes in the EAEU in the production and technological sphere: program-strategic and legal framework

It is quite obvious that the EDB is not actually a financial organization of the EAEU. Therefore, the arguments about it as a financial institution of the Union look quite erroneous ^[18]. However, it should be taken into account that it actually took a prominent place in the processes of Eurasian integration precisely as a financial development institution that assists integration processes. As noted by D.V. Pankin, the Bank's task is to support projects in which there is a value chain, including taking into account export potential. "It is important for us not just to produce goods in Russia, and then sell them in Kazakhstan. It is necessary that the goods be created in the process of production cooperation, for example, in Russia, Kazakhstan and Belarus" ^{[19, p. 4]}.

 From our point of view, the Bank should reasonably be attributed to the mechanisms of scientific, technological and industrial integration within the EAEU, which is an aspect of its participation in ensuring industrial cooperation of the member states of the Union ^[20]. However, no less significant is his participation in ensuring integration in the transport sector ^[21], as well as in the agro-industrial complex.  Such a function has the appropriate political and legal, in particular strategic, as well as the legal framework itself, setting the framework for its participation in the financing of projects and programs with an integration component. However, before proceeding to the characterization of the legal foundations proper, let us focus on the provisions of strategic documents that consolidate the EDB's place in the processes of Eurasian integration.

The initial framework of interaction between the EAEU and the EDB is set by the provisions of the Memorandum of Cooperation between the EEC as one of the Union's bodies, on the one hand, and the Bank, on the other ^[22]. It is noteworthy that the signing of the document took place within the framework of the VIII International Scientific and Practical Conference of the EDB "Deepening and expanding Eurasian Integration" (2013). Within the framework of this, as well as the previous, as well as subsequent conferences, according to the established tradition, a kind of summing up of the expert and analytical work carried out by the Bank ^[23]. Both the studies coordinated by the EDB Integration Research Center and the conferences themselves, not to mention other initiatives, and even more so projects, demonstrate its involvement in promoting integration processes. In a certain sense, the Memorandum fixed his function as an "integrator" and introduced clarifying points into it.

Of course, the Memorandum is not a legal act in which the rights and obligations of the Parties would find their consolidation: it is rather a statement of intent, combined with elements of strategic planning of areas of cooperation in various forms. In other words, it is an organizational framework for cooperation in areas of mutual interest.

 The provisions of the Memorandum are based on the provisions of the EAEU Treaty of 2014 and the Agreement on the Establishment of the Eurasian Development Bank of 2006. In addition to this, there is also a practical basis for the planned cooperation. This should include the experience and knowledge that was accumulated and implemented by the Parties in their previous work in relation to the development of integration processes within the framework of the Single Economic Union and the Customs Union. It follows directly from the preamble of the Memorandum that the Parties intend to further promote Eurasian integration and promote its transfer to a qualitatively new level, namely, to transfer it to the format of the establishment of the Eurasian Economic Union, within which the planned cooperation will receive its further impetus. The general context of these intentions is cooperation between the EEC and the Bank to improve regional cooperation and economic development of the participating countries.

If we turn to the characteristics of the main areas of cooperation, then three groups can be distinguished here. The first group is represented by cooperation in the field of joint analytical research. They are distinguished by species diversity: research on a wide range of issues; sectoral (sectoral) and regional studies; formation of a system for analyzing and forecasting the development of the economies of the member states of the Customs Union and the Single Economic Space, the functioning of the Single Economic Space, and in the future of the EAEU member states; creation and use of analytical economic and mathematical tools necessary in to study the potential and economic feasibility of expanding the Customs Union, the Common Economic Space and the Eurasian Economic Union being formed, as well as to analyze interaction with other integration associations. From all of the above, two circumstances clearly follow. First, it is the creation by joint efforts of an analytical and predictive base necessary as a basis for developing recommendations on the coordination of economic policies of states participating in the process of Eurasian integration. Secondly, the EEC and the Bank position themselves as partners in conducting joint analytical work and represent an integral part of the subject composition of the analytical space of Eurasian integration.

As we mentioned at the beginning of the article, the main thing for international development banks is their support for the implementation of promising projects. Due to the fact that the EEC performs the role of coordinator in the development and implementation of projects with an integration component, the second area of cooperation includes the analysis and evaluation of investment projects with an integration component, which then continues with the preparation of proposals for financing relevant investment projects, including using technical assistance tools. Further assistance is provided to their implementation.

Paragraph 2 of the Memorandum provides for various forms of cooperation. These include mutual information on activities and issues of mutual interest, participation in events held by one or another Party (symposiums, round tables, seminars, etc.), exchange of analytical and reference materials, publication of joint research. In order to implement the areas of cooperation set out in the Memorandum, a Plan of joint activities conducted by the Bank and the Department of Industrial Policy of the EEC was developed ^[24]. The plan provided for coordination in the process of conducting analytical studies and reviews, as well as the exchange of information materials. The practical implementation of the Plan's activities was the participation of representatives of the Bank in the work of expert/working groups of the Commission on Infrastructure Projects, as well as on the development of cooperative industrial projects based on public-private partnership mechanisms within the EAEU

Since the central function of the EDB is the financing of projects, this function was taken into account in the Main Directions of Industrial Cooperation within the EAEU for the period up to 2020, approved in 2015 (hereinafter – ONPS-2015) ^[25] from the point of view of the interests of ensuring Eurasian integration.In section 4.1.3 "Financing of priority areas and projects", the Bank is considered as the main international financial organization that is designed to finance projects with a cooperative effect within the framework of industrial cooperation of the member States. Further, by the Decision of the EEC Council on March 17, 2016 No. 17, the Plan for the Development of Acts and Measures for the implementation of the ONPS-2015 was approved ^[26].According to section 2 "On the procedure for approval by member States of cooperative projects with integration potential and submitted to the Eurasian Development Bank in order to consider their priority financing, as well as the criteria for compliance with such projects", the following measures were proposed: development of criteria for classifying projects as cooperative (paragraph 5); development of the procedure for considering cooperative projects (including project passports) for their referral to the Eurasian Development Bank (item 6); development of a mechanism for interaction between the Commission, member States and the Eurasian Development Bank on the implementation and financing of cooperative projects (item 7).

It is quite obvious that the formation of a financing mechanism should proceed from the concrete fullness of cooperation. For example, it hardly makes sense to select and further send a request to the Bank regarding the financing of projects that do not belong to the priority areas of Eurasian integration.  Hence, section 3 "On the areas of cooperative cooperation, the list of which is submitted by the member States to the Eurasian Development Bank in order to consider the issue of priority financing of projects corresponding to such areas" looks quite reasonable. This includes such activities as analysis and identification of the potential of industrial cooperation (item 8), development of a list of mutually beneficial areas of cooperative cooperation for priority financing of the EDB (item 9), monitoring of cooperative interaction and implementation of cooperative projects (item 10).

The development of a mechanism for interaction between the EEC, the EAEU member States and the EDB is in the field of attention of the EEC Industry Advisory Committee. In particular, this issue was considered at the meeting of the Committee on September 30, 2016 ^[27].We emphasize that this interaction affects not only the possible participation of the Bank in the formation of the common financial market of the Union, but mainly interaction at the level of development and implementation of joint projects. Based on the results of expert meetings, the Department of Industry and Agriculture functioning within the framework of the EEC developed draft documents in which the specified mechanism of interaction closely overlapped with the mechanism for consideration and further selection of cooperative projects that can be financed by the EDB.  In turn, this required improving the criteria according to which projects can be classified as cooperative and having integration potential.

Due to the fact that much of what was planned in the ONPS-2015 regarding the use of the EDB potential as one of the mechanisms of production and technological integration was implemented, in the ONPS-2025 ^[28] in subsection 4 "Deepening cooperation" of the Direction No. 1 "Using the potential of the Union market" There is only a general provision that the EEC, in order to stimulate the interest of industrial organizations of the member States in the formation and deepening of cooperative cooperation, will develop proposals for expanding mechanisms for supporting cooperative projects within the Union for consideration by its bodies. Attraction of investments of international financial institutions is attributed to one of the mechanisms. It is worth assuming that the EDB is primarily meant here. 

Further, the role of the latter in the process of Eurasian integration was quite succinctly and essentially reflected in the Strategy-2025. As noted in section 1 "General Provisions" of the Strategy-2025, the activation and simultaneously strengthening of the scientific and technical potential of the EAEU involves the development of joint innovation programs and investment projects in order to increase the competitiveness of key areas of economic integration - industry, agriculture and other sectors of the economy of the member states. At the same time, the development of joint programs and projects should be carried out simultaneously with the formation of mechanisms for industrial and technological cooperation of enterprises of the member States. And this provides for the use of flexible lending tools for cooperative projects, joint investments and the creation of production and technological value chains in the Union, including through existing institutions such as the Eurasian Development Bank, the Eurasian Fund for Stabilization and Development, as well as the Astana International Financial Center. A similar topic is touched upon in paragraphs 6.4.4 and 7.1.4, where it is once again emphasized that in order to build an effective system for managing cooperative projects and financing them, as well as stimulating investment activity, the full potential of these financial institutions should be used.

Moreover, within the framework of the Direction No. 8 "Joining efforts to stimulate joint research", which, in fact, fixes the allocation of scientific and technological cooperation as an independent direction of integration, attention was again focused on the EDB. Thus, in paragraph 2 of subsection 8.1 "Formation of proposals for scientific and technological cooperation" it was stated that the implementation of joint programs and high–tech projects agreed by the member states would involve the involvement of international development institutions – the Eurasian Development Bank and the Eurasian Fund for Stabilization and Development. From our point of view, another reference to these financial institutions should not be perceived as a mechanical repetition. In contrast to paragraphs 6.4.4 and 7.1.4, which dealt with industrial and technological cooperation and the role of the EDB and the EFSR in them, in section 8.1 these financial institutions are marked as sources of financing for projects of a scientific and technological nature, i.e. characterized by an increased level of implementation of innovative developments.

In fact, the EDB can reasonably be considered as one of the main mechanisms of integration processes in various fields, including the implementation of joint projects and programs involving the production of high–tech products, which will also be complemented by its positioning as a mechanism to increase the export potential, including enterprises from the EAEU member states on an integration basis. The correlation of the Bank's policy and the integration policy pursued by the EAEU bodies is carried out due to its involvement in the space of development and implementation of decisions taken within the Union. Thus, in order to implement the order of the EEC Council dated December 19, 2019 No. 33, the EEC Board adopted Order No. 86 dated June 30, 2020 "On the Working Group on Developing Proposals for the establishment of the Institute and Support of the EAEU" ^[29]. Further, by Order of the EEC Board No. 9 dated February 2, 2021, representatives of the EDB were included in the Group, namely, the Head of the Strategy and Shareholder Relations Department and the Managing Director for Assets and Liabilities. 

At the same time, a considerable number of initiatives come from the Bank itself. They are put forward not only within the framework of its own events, but also within the framework of events held by the bodies and structures of the EAEU. In particular, representatives of the Bank take part in meetings of the EAEU Industrial Policy Council ^[30].At the meeting of the Board held in April 2021, the Chairman of the Management Board of the Bank once again confirmed his readiness to finance interstate projects within the framework, which in some cases can be implemented in the form of direct participation in the equity capital of companies ^[31]. To confirm that the Bank quite consciously sees itself as an integrator, we point to the statement of its management that it intends to concentrate on the development and implementation of end-to-end integration projects ^[32]. They mean projects implemented on the territory of several states at once and representing a common subject of their interest in relation to the formation of digital platforms, the development of transport systems, logistics, the water sector, as well as in such areas as energy, food, agriculture, industrial cooperation, etc.

Thus, the relevance of projects with an integration component is gradually increasing in the Bank's activities. Ultimately, the implementation of this trend will be accompanied by multiplier effects for the national economies of the participating countries, which, ultimately, will allow improving the welfare of their citizens. Of course, such initiatives are possible only with the active participation of the Bank's shareholders.

3. EDB support for high-tech projects: status and prospects

As we noted in the first part of the study, priority in the process of forming a portfolio of supported projects is given to projects involving technological modernization and innovative activity. This vector fully meets the modern strategic guidelines of the EAEU in general and its member states in particular. At the same time, there is a need to refer to the Bank's project portfolio. This will allow, firstly, to assess the degree of fulfillment of the statutory and strategic goals, and, secondly, to form reasonable ideas about the importance of the support provided for the development of the economy of the EAEU member states in an innovative way, as well as to form a common vision of the state and prospects of the Bank's contribution to the development of integration processes in the production and technological sphere within the framework of Union.

If we turn to statistical data, as of 2021, the Bank supports about 90 projects, which account for $ 4.525 billion. investments ^[33]. In terms of financing from the total volume, the energy sector is leading (17.1%), as well as transport and infrastructure (24.8%). The legal basis is agreements on the support of various projects and programs concluded with the Government of the participating countries. There are also framework agreements of a programmatic and strategic nature concluded with institutions and organizations from the countries of operations. The Bank's direct assistance to the development of scientific and technological potential can also be based on such instruments as memoranda. As an example, we will point to the Memorandum of Cooperation between the EDB and JSC "National Scientific and Technical Holding "Samgau" ^[34]. The stated goal of cooperation here is to assist in the implementation of medium- and long-term investment and infrastructure projects that are aimed at infrastructure development, as well as, which is particularly significant from the point of view of the subject of our article, to increase the output of high-tech products with high added value, creating new jobs in the information and communication industry, and also in the scientific and technological complex, industry, energy, transport and other sectors of the economy. The exchange of information on investment projects, as well as the exchange of experience and knowledge is an integral part of cooperation. The expected result is the strengthening of the scientific and technological potential of Kazakhstan. The objective basis for concluding the Memorandum was that EDB and Samgau Holding, in principle, have common interests, and therefore intend to cooperate in the format of funded investment and infrastructure projects, as well as export operations not only in Kazakhstan, but also in Russia.

Currently, multilateral development banks (MDBs) have become powerful drivers for ensuring the transition to sustainable development and achieving its goals. And the EDB is no exception here. If we turn to its Strategy for 2018-2022, we can see that special attention is paid to the support of "green" financing projects ^{[11, pp. 35-45]}, the key source of which is traditionally the leading MDBs (World Bank Group, European Investment Bank, Inter-American Development Bank Group, European Bank for Reconstruction and Development, Asian Development Bank and African Development Bank). Moreover, they directly define "green" financing as a priority in their investment activities. Green financing projects include not only national projects, but also projects with a pronounced integration effect. An example here is the EU's strategic framework for the transition to sustainable development, which recently included the Green Deal ^[35].There is no formal strategic document in the EAEU that outlines a comprehensive transition to sustainable development, but the corresponding course has been announced at the national level. This was the basis of the initiative enshrined in paragraph 8.3.7 of the Strategy-2025 and involving the development of a concept for the implementation of the principles of the "green" economy in the Union, which, of course, will require the expansion of "green" investment. This correlates with the EDB's plans to expand the scope of expert work of its research center and include in it the topics of the "green" economy, which, as is known, operates on the basis of "green" technologies, attention to which is given in paragraph 8.3.5. of the Strategy-2025. The EDB makes its practical contribution to the transition to sustainable development by gradually increasing the portfolio of "green" projects not only in the amount of 20-200 million US dollars, but also projects in the amount of 10-15 million US dollars and below. Such micro–projects are especially relevant for participating countries with small economies (Armenia, Tajikistan, Kyrgyzstan).

The peculiarity of the transition to sustainable development as such is that it is carried out on the basis of projects that involve the development of the production sector and infrastructure without having a negative impact on the environment. In addition, ongoing projects, including those related to the development, transfer and implementation of "green" technologies, have the potential to counter climate change, as well as mitigate its negative consequences. The scope of "green" projects is very wide today. These are the electric power industry, especially the renewable energy sector; transport and municipal infrastructure; mining and manufacturing industries. At the same time, the mentioned projects have a social component. This is reflected in the positive impact on the quality of life of the population while increasing the competitiveness of the economy and the rational use of resources.

Recall that one of the basic directions of integration processes within the EAEU is the energy sector. The Union is confidently moving towards the formation of common energy markets. The legal basis of energy cooperation is fixed in section XX "Energy"The EAEU Treaty (Articles 79-85) ^[36], although the implementation of scientific, technological and industrial-technological cooperation is not explicitly provided for in it. But, nevertheless, at the same time as efforts to form common energy markets, increased attention is paid to the structural reorganization of the industry in the direction of increasing the degree of energy efficiency and energy conservation, as well as, of course, the development of the renewable energy sector in line with the transition to "green" energy, the course of which is reflected in paragraph 3.6 of Direction No. 8 Strategies-2025. The interaction of the member states in the field of energy conservation, energy efficiency, renewable energy use and environmental protection is highlighted here, which confirms the "green" contour of economic integration within the EAEU. Moreover, clause 8.3.1 formulates an initiative to use EDB and EFS tools to stimulate the use of energy- and resource-saving technologies. In fact, the strategic guidelines of the EAEU and the strategic guidelines of the Bank in the development of "green" energy completely coincide. Moreover, the priority projects in the Bank's portfolio include projects in the energy sector as a whole ^[37].

The Bank's partner on this path was the Global Energy Association, established in 2002. This non-governmental organization supports research and innovation in the energy sector in the context of the transition to the energy of the future and the development of energy cooperation. Such members of the Association as PJSC Gazprom, PJSC Surgutneftegaz and others are interested in these developments and their promotion.

During the cycle of activities corresponding to the strategic planning for 2018-2022, the Bank focused on financing projects that are directly aimed at diversifying the energy balances of the participating countries. This is the construction of new generating capacities that use renewable energy sources (hydro-power plants, wind and solar power plants). In addition, projects aimed at improving energy efficiency are supported, as well as projects for the technical modernization of existing power facilities; projects for the construction of new efficient sources of electric and/or thermal energy to replace physically and/or morally obsolete ones; projects involving a significant reduction in electricity losses in electrical and thermal networks, including through the use of technologies and equipment manufactured by enterprises of the Bank's member countries; projects in the field of energy efficiency of consumption. Equally important are projects for the construction of a cross-border electric grid infrastructure, which will mean bringing the infrastructure framework under the implementation of the EAEU plan for the formation of a common energy market. In general, the share of financing of investment projects with an integration component in the energy sector during 2018-2022 is planned to be 30% of the total volume of the current portfolio of investments in the electric power sector.

In December 2021, a joint report of the EDB and the Global Energy Association on "Breakthrough Energy Technologies for a Green Future of Eurasia", prepared by leading experts, was presented at the Second Eurasian Congress ^[38]. Leading experts and scientists of the energy industry took part in the preparation of the report. The focus is on the existing developments in the field of "green" technologies in the field of energy, long–term energy storage systems, hydropower technology. At the same time, a special place was given to the characteristics and role of carbon dioxide capture and storage technologies, which will become drivers of the transition to carbon neutrality. The enumeration of technologies is not an end in itself. Pointing to these technologies, the Bank makes it clear that it is ready to finance national and especially integration projects, within the framework of which the performers will expand regional energy cooperation in terms of their implementation.

At the St. Petersburg Economic Forum-2021, EDB and RUSNANO JSC signed a cooperation agreement for the implementation of projects in the field of alternative energy, high technologies and green hydrogen in the EAEU countries ^[39].As follows from information sources, RUSNANO intends to establish an alternative energy fund, which will invest in projects implemented in the EAEU countries. For its part, the EDB intends to participate in the financing of both the fund itself and its projects. The Bank's participation as an international financial organization is quite logical, since such financial structures as the AIFC Green Finance Centre and the Astana International Financial Center have announced their desire to become shareholders. During the implementation of projects supported by the fund, it will be possible to raise the scientific and technical level of alternative energy in the EAEU, which will contribute to the implementation of climate policy aimed at reducing the so-called carbon footprint.

Moving towards expanding its participation in supporting the development and use of "green" technologies, EDB became one of the shareholders of the Center for Green Finance of the Astana International Financial Center (AIFC), planning to participate in the creation of the Center for Green Finance in Kazakhstan and the Center for Green Expertise.  And, finally, he took the initiative to obtain accreditation in the Green Climate Fund (CCF), which operates within the framework of the global legal climate regime ^[40]. As shown in the literature, this Fund pays special attention to supporting projects that include the transfer and implementation of various climate technologies ^[41]. Access to ZKF funds will allow the EDB to increase the share of projects in its portfolio that involve taking into account modern standards of responsible investment.

So, the EAEU is on the verge of deploying scientific and technical cooperation in the climate sphere. This should be considered in close connection with the recently adopted Joint Statement of the Heads of the EAEU member States on the Climate Agenda ^[42].The implementation of the provisions of the statement will be carried out in the direction of the formation of a unified system of climate regulation within the Union, which means the promotion and implementation of promising initiatives in the field of control to reduce greenhouse gas emissions and management of natural ecosystems.

As follows from the Joint Statement, the EAEU member States pay special attention to the development of broad international exchange and non–discriminatory use of technologies that reduce emissions and lead to the vector of low-carbon development with its characteristic efficient and rational use of fossil sources, nuclear energy and hydrogenation, low-carbon transport, expanded use of renewable energy sources. Cooperation in line with the transition to low-carbon development means stimulating the introduction of hydrogen technologies, energy-efficient approaches and technologies in industry, agriculture and housing and communal services. Further, the Heads of State of the Union spoke in favor of the convergence of national approaches to monitoring and verification of greenhouse gas emissions and uptake, which is aimed at facilitating the accounting and development of the absorption capacity of ecosystems. And for this, it is necessary to use more widely the tools of "green" financing in the process of supporting climate projects, and also, most importantly for the topic of our article, to expand the transfer of the best available technologies. As M. Mishustin correctly noted in his speech at the Second Eurasian Congress organized by the EDB, the success of the planned actions will depend on the availability of new technologies and, of course, on financing ^[43].

As world practice shows, the private sector at the national and international levels takes an expanded part in solving the task of developing, transferring and implementing climate technologies. With regard to the implementation of the climate agenda within the EAEU, and especially in the planning and implementation of major interstate initiatives, great hopes are pinned on the EDB. It seems that this will mean strengthening its work in support of projects involving the development and use of climate technologies. 

Another major and extremely promising area of the Bank's investment and project activities is the ICT sector, which includes the creation of IT infrastructure, software development, and the formation of digital platforms, including using blockchain technologies. The creation of IT infrastructure includes the establishment of data processing centers, the introduction of supercomputers, as well as the use of broadband data transmission channels. If we keep in mind data processing centers, then due to the fact that the relevant projects do not have a high level of profitability, which is critical for private investors, then investment support from the Bank is of great importance. As well as the creation of data processing centers, the development of domestic software and digital platforms has integration potential, since software products can be replicated and used on the territory of all EDB member states, which in the future will lead to increased trade and investment cooperation, as well as the integration of markets in the countries of operations. In turn, the development of cooperation will require the unification of standards and protocols.

The inclusion of IT projects in the Bank's investment portfolio can be considered as a tool to facilitate the implementation of national programs for the digital transformation of the economy and society of the participating countries of the Bank as a whole and those countries that are member states of the EAEU. Thus, the Bank's work in the field of supporting the development and promotion of ICT fully meets the priorities of the development of the national economies of the member countries in the context of digital transformations. However, the Bank's role may become quite significant in relation to the implementation of the EAEU Digital Agenda, which means the need to expand its interaction with the EEC and participate in initiatives that it coordinates.

The Digital Initiatives Fund, which supports a significant number of projects aimed at the formation of the digital economy, has become an instrument of the Bank's catalytic function in the process of digital transformations ^[44].To this end, the Bank's analytical services monitor current and prospective digital projects that are directly related to the digital agenda of the participating countries, as well as highlight the most important ones that have the potential of the Bank's own participation in them. The register of such projects includes projects on the digital transformation of public administration, in particular the digitalization of the most important public services; projects in the field of digital remote medicine; projects on the formation of a digital platform on international taxation and law; a project on international factoring, the implementation of which will ensure settlements between countries for the supply of goods and services with deferred payment. In this regard, a landmark event in the Bank's work was the holding in 2020.  The First Eurasian Congress, where digital investment initiatives of the EAEU member states were discussed.In fact, based on the results of the discussion of these initiatives, the Bank developed strategic guidelines to support the development of the potential of digital competencies and at the same time promote the development of digital infrastructure as a contribution to the formation and improvement of the Unified Digital Space of the EAEU. Such strategems have found their consolidation in the already mentioned Strategy for 2022-2027. 

The areas of the Bank's project and investment activities that we have considered are not the only ones. In the context of the Fourth Industrial Revolution, in addition to the "green" energy and the ICT sector, the problems of development and technological modernization of the machine-building industry are being actualized. To put it bluntly, the participating states have not yet become leaders in the machine–building and machine-tool industries. And the point here is not only in the absence of an insufficiently advanced technological base, but also in the lack of the necessary amount of investment, the influx of which often leads to an influx of technology. With the renaissance of the machine-building industry in Russia, Belarus and Kazakhstan, on the basis of special state programs, a new field for the Bank's activities has appeared, represented by fairly large projects, especially those that involve the formation of cross-country value chains within the framework of the supply of intermediate products for the purpose of further assembly, as well as the production of finished products. Since the machine-building industry needs serious technological re-equipment, the Bank aims to participate in financing projects for the modernization of production, as well as financing cross-border supplies of products of transport and railway engineering, aircraft, shipbuilding, energy and electrical engineering, machine tools, instrumentation, agricultural machinery, production of road-building machinery and equipment for the mining and oil and gas industry. During 2018-2022, the projects supported by him helped to stimulate technological and industrial cooperation between machine-building enterprises and manufacturers of components in order to increase the competitiveness of the industry itself and the products produced within it on the basis of the introduction of additive technologies (AF-technologies), both at the national and integration levels. This area of work includes assistance in the development of leasing activities in the EDB member countries, as well as cooperation with the Russian Export Center in the field of promoting trade in machine–building products. As in the case of supporting the high-tech development of the energy sector, the strategic bar for the share of integration projects implemented in the engineering industry is 25%.

If we consider the Bank's participation in integration projects within another key area, such as the agro-industrial complex, then it is necessary to make preliminary explanations here. The fact is that the international financial development Institute we are considering has firmly become one of the participants in the state programs of the participating countries in the field of agriculture. For example, in 2017, he was selected by the Ministry of Agriculture of Russia as an authorized bank that participates in the implementation of the mechanism of preferential lending to agricultural producers in Russia.It performs a similar function in Kazakhstan. As is the case with the support of projects in other sectors of the economy, a general pattern is fully implemented in the agricultural sector: support is provided to those projects that are aimed at facilitating the implementation of the main competitive advantages of a particular EDB member state in this sector while simultaneously contributing to the development of integration in agricultural trade.

Once again, we emphasize that from the point of view of increasing the competitiveness of the agro-industrial complex, as well as other industries, are associated with the introduction of the latest technologies. Therefore, the Bank, as a development institution, supports such projects as a priority. This may include projects related to the creation of year-round greenhouse complexes based on modern advanced technologies; projects on the use of efficient technologies for processing seasonal vegetables and reducing losses during their storage; projects for the production of livestock products, etc. For 2018-2022, the share of integration projects in the investment portfolio was planned at the level of 50%.

4. Prospects for the EDB's institutional development from the point of view of improving its integration function

Due to the fact that the EDB, like other MDBs, perform a number of interrelated functions, the effectiveness of project activities both in terms of making a profit from investments and the impact of projects on the economy of the participating states, as well as in terms of the impact on the expansion and deepening of integration processes largely depends on the development and implementation of the whole a number of directions of its institutional development, which means the improvement of existing and the deployment of new areas of work.

This should include, firstly, the use of innovative financial products and instruments.  To this end, the Bank undertakes various initiatives. For example, there is an expansion of financial products and instruments that involve the provision of new services in the field of settlement and clearing customer service, which will attract new "anchor" customers, as well as create additional opportunities to improve the management of their own investment risks associated with the implementation of functions to support funded projects.

Secondly, initiatives emanating from the EEC, which, as you know, is the coordinator of the preparation and implementation of joint projects and programs, in which the Bank plays an extremely large role, are aimed at expanding the function of the Bank as an integrator. A more advanced level of cooperation includes joint ventures, such as Eurasian multinational companies, the creation of which is planned in the Strategy-2025. In order to support industrial enterprises, the Commission is working on the possibility of concessional financing of projects. This implies the introduction of new aspects in the tools and in the work of the EDB. In particular, representatives of industry and business point to such a disadvantage as the absence of a preferential loan rate and the effect of a high threshold for financing cooperative industrial projects. Therefore, the EEC believes that the EDB could use the funds of the Eurasian Stabilization and Development Fund to subsidize the interest rate. In addition, a proposal has been formulated for the participation of the EEC in the financing of cooperative projects by compensating for the loss of income on loans issued by the EDB ^[45].

Thirdly, the main directions of the Bank's institutional development include its internal organizational changes affecting the improvement of project work at all its stages. Of course, they have accumulated sufficient experience in project financing, which has become the subject of analysis in the scientific literature ^[46], however, project work is not successful in all cases. This was especially noticeable in 2014-2015, when financing of some projects was unprofitable. The situation changed in 2016, which was the result of improvements, including the technical side of project activities. This improvement primarily affects the functioning of the Technical Assistance Fund, whose working procedures need to be improved.

Fourth, it is the formation of national and international partnerships and alliances, which will attract additional sources of investment projects that correspond to the priority areas of support provided by the Bank. Thus, one of the results of the First Eurasian EDB Congress was the creation of a coalition of national development banks of Russia, Kazakhstan and Belarus with the participation of the EDB ^[47]. This should be seen as an important step towards pooling investment resources, but not only. As it is shown in the literature, this kind of interaction between national and international development institutions is not only an aspect of integration, but also a factor of large–scale integration processes in the Eurasian space ^[48].

The Bank's international cooperation is provided for in Article 1 of the Agreement, according to which, in its activities, it assists in strengthening international financial and economic cooperation through participation in the work of other international financial and banking organizations and unions. A similar provision is contained in Article 2, from which it follows that the Bank not only interacts with member States and their economic entities, but also with international organizations, as well as economic entities of other countries that are interested in financing development. In the strategic plan, the EDB aims to expand its cooperation with all MDBs present in the region, namely the Asian Infrastructure Investment Bank, the New BRICS Development Bank, the International Investment Bank, the European Bank for Reconstruction and Development, the Asian Development Bank, the World Bank Group, the European Investment Bank. It is planned to actively exchange project proposals, create credit syndications in order to mobilize additional resources to finance projects in priority sectors of the economy of the Bank's member states; pool technical assistance resources to prepare new joint operations; conduct joint analytical studies.

 The implementation of these initiatives will create favorable conditions for achieving the goals of economic development of the EAEU member states in the integration format. It is planned that this will double the volume of the project portfolio to $ 10 billion. EDB openly declares its ambitions to become a leader in project financing by 2027 with the simultaneous participation of national and international development institutions. Of course, this will be accompanied by the expansion of the shareholders and the attraction of additional funds to the authorized capital. This is what creates the conditions for solving one very significant problem. As T.B. Tyulebekov notes, "the relatively low threshold of paid-up capital does not allow the EDB to implement large-scale infrastructure projects that could become landmark investment projects in the context of the geography of states. It should also be noted that, taking into account the EDB's borrowings, the cost of its monetary resources, expressed in the interest rate, is often less attractive to customers in comparison with other banks, and even more so with national development institutions" ^{[49, p. 23]}. Similar conclusions are also expressed by A.E. Mordvinova. She emphasizes that "despite the fact that the integration direction of activity is becoming a priority of the EDB policy in the region, the bank has not yet been able to become an effective tool for deepening Eurasian integration. The realization of its potential in this area is hindered by the lack of liquidity in national currencies, weak representation in small republics, high cost of borrowed funds and intense competition for borrowers from international development institutions. At the same time, there is still no unified vision of the strategic role and tasks of the EDB in integration processes within the EAEU, and the expansion of the bank's functions causes concern in some member countries of the organization" ^{[5, p. 148]}. The solution of this, as well as other related problems, will make it possible to further realize its potential to assist in deepening integration processes, and at the same time in realizing the hopes that are placed on it in the Strategy-2025.

In this regard, the proposals formulated in scientific research concerning possible changes in the structure of the Bank's equity capital, as well as other measures that will contribute to its institutional development, make great practical sense ^[50]. In this regard, A.E. Mordvinova's conclusion is of great interest that the EDB's attempts to solve the accumulated problems will be successful when, firstly, its independent efforts will be complemented by the support of national governments. Secondly, it involves the development of formulated strategic guidelines for its participation in integration processes. And, finally, thirdly, it will be important to expand access to liquidity in national currencies for the implementation of projects with high integration potential ^{[5, pp. 148-149]}. The way to solve these problems is, for example, the active development of cooperation with the national development institutions of the participating countries.

Conclusion

Summing up the results of the study, we will formulate a number of conceptual conclusions that have not only theoretical, but also applied significance.

Firstly, despite the fact that the EDB is not formally an integral part of the institutional system of the EAEU, it is nevertheless integrated into it as an integral part of the mechanism for developing and implementing cooperative projects with integration potential.

Secondly, this inclusion has a kind of two-layer program-strategic and legal basis. The first layer is represented by provisions relating to the law of the Bank, the second – to the law of the Union.

Thirdly, it should be noted that there is a correlation between the strategic guidelines of the Bank and the Union in terms of the focus on deepening industrial and technological integration in the context of the Fourth Industrial Revolution and the need to achieve Sustainable Development Goals as a condition for increasing the competitiveness of the Bank's member states, the vast majority of which are EAEU member states.

Fourth, overcoming the systemic problems that persist in the Bank's activities, relying on the support of national governments and national development institutions, as well as with active cooperation with the EEC, will have the most positive effect on increasing the intensity of the processes of industrial and technological cooperation and turning the Union into one of the most influential integration associations of the modern world.