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Law and Politics
Reference:

Key areas of formation of the legal framework of the common financial market of the EAEU, taking into account the European experience

Medzhitov Tamerlan Vaitovich

Postgraduate student, Department of Administrative and Financial Law, RUDN University

6 Miklukho-Maklaya str., Moscow, 117198, Russia

sashals1@yandex.ru

DOI:

10.7256/2454-0706.2024.1.69385

EDN:

LSRJOR

Received:

20-12-2023


Published:

02-02-2024


Abstract: The subject of the study is the political and legal processes of the formation of the common financial market of the EAEU, the processes of harmonization of legislation on banking and insurance services, as well as legislation on the securities market. The article examines the regulatory and conceptual foundations of the common financial market of the EAEU, draws parallels with similar processes in the European Union ("Lamfaloussi process", "Larosiere Process"). The concept of the formation of the common financial market of the EAEU in 2019 is analyzed in detail, its key components are highlighted. The emphasis is placed on the prospects of creating a supranational regulatory and supervisory authority as a necessary element of the emerging common market, some potential problems along this path are highlighted ("multi-speed integration", political differences), and the importance of taking into account the processes of digital transformation of financial services in the formation of a common market is pointed out. Research methods – analysis, synthesis, comparative legal (comparative) analysis, problem-chronological approach, as well as analysis of official documents. The scientific novelty of the article is determined by the relevance and constant dynamics of legal regulation of financial integration issues in the EAEU, elements of comparative legal analysis of models for building a common financial market of integration associations. The article analyzes the EAEU regulations and reports on the progress of building a common financial market, provides a comparison on a number of parameters of financial integration between the EAEU and the EU, and complements the theoretical definition of the term "common financial market". Based on the data obtained, the most promising directions for building a common financial market are recommended (digitalization of banking services, possible transition to a single currency, options for creating a supranational supervisory and regulatory mechanism in the financial sector), some problems and obstacles to the formation of a common financial market are identified.


Keywords:

financial market, internal market, eurasian integration, EAEU, financial services, banking services market, insurance services, investitions, financial integration, European Union

This article is automatically translated.

The introductory part

         As in the framework of any other modern integration project, a single (common) internal market is being formed within the Eurasian Economic Union (hereinafter referred to as the EAEU), the key characteristic of which is the principle of "four freedoms". This means that the free movement of goods, services, capital and labor is realized in the domestic market. The free movement of financial services and the movement of capital are closely intertwined: their implementation is impossible without building a common financial market based on the national financial markets of the EAEU member states (which are currently at different stages of their development, as well as the volume and quality of legal regulation of relations in these markets differ).

         The relevance of addressing this topic is undoubtedly due to the needs of the Russian Federation in the further development of Eurasian integration, including in the financial sphere, which can strengthen Russia's position on the world stage in difficult geopolitical conditions. Nevertheless, the problems of financial integration of the EAEU member states have not yet been studied in detail in the domestic literature. We note the works of R.A. Kasyanov, which conducted a detailed comparative legal analysis of financial and legal regulation in the EU and the EAEU, as well as articles by individual Russian researchers (L.A. Anosova, T.K. Blokhina, L.M. Borsch, E.A. Zvonova, V.S. Izotov, Yu.A. Krokhina, E.V. Kulakova, V.Yu. Mishina, V.Ya. Pishik, A.S. Teplov, T.V. Fursova, etc.). However, many of them do not take into account the latest innovations in the legal regulation of the financial integration of the EAEU, the comparative legal aspect is insufficiently expressed. 

The methodological basis of the article is represented by a set of general scientific and special research methods. Among them are analysis, synthesis, analogy, comparative legal (comparative) and formal legal methods, as well as a systematic approach. 

         From a theoretical point of view, as V.S. Izotov, T.A. Meshkova and A.S. Teplov point out, the common financial market in integration associations appears at the final stage of integration, anticipating the formation of an economic and monetary union. They point out that the common financial market is the result of convergence (convergence, unification) of three key segments of national financial markets: the banking market, the insurance market and the securities market [4, p.129]. Thus, if such a market is created within the framework of the EAEU, it will be possible to assert a sufficiently high level of integration maturity.

 

The EU's experience in building a financial market

In order to understand the mechanics of building a common financial market in the EAEU, it would be wise to refer to the experience of the EU, where similar processes have been taking place for decades to achieve similar tasks. Unlike the EAEU, where several provisions of the EAEU Treaty are devoted to financial market issues at once, initially the founding treaties of the EU did not contain special instructions on building a common financial market with unified approaches to its regulation. At the same time, as R.A. Kasyanov points out, already at the early stages of European integration, the legislation of the EU member states in the field of securities market regulation was harmonized, the legal basis of which was the norms of the EU primary law on the internal market as such [5, p. 83]. As a result, approximately forty directives made up a cquis communautaire in this area. However, the adoption of these acts was not systemic in nature and did not have a programmatic and targeted basis.

The situation changed in the late 1990s, when, as integration deepened (the creation of the Economic and Monetary Union in 1993) and its upcoming expansion (in 2004 at the expense of the countries of Central and Eastern Europe), the Union faced an urgent need to pursue a targeted policy in the field of the securities market. At that moment, the European Commission adopted a systematic, programmatic approach – in 1999, a five-year Financial Services Action Plan (IFAS) was adopted, which outlined the directions of future reforms in the field of regulatory and organizational framework for financial market regulation at the EU level [12].

This plan provided for several goals: creation of a single wholesale financial services market; improvement of openness and integration in the retail financial services market; ensuring more effective prudential regulation and supervision; elimination of tax barriers to financial market integration; creation of more effective and transparent corporate governance.

From a substantive point of view, the Plan provided for more than forty activities, of which about thirty directives were proposed for adoption. A schedule and priority have been set for each of these activities. By 2007, almost all of them had been fully implemented [13].

The implementation of the IFRS was designed for five years, and already in 2005 a new document was adopted – the EU White Paper on Financial Services Policy, also designed for a five-year period. The main purpose of the White Paper was to build on previous successes, review and expand existing regulation in order to further move towards the EU single financial market.

In 2001, the so-called "Lamfalussi process" was launched - a special model of regulatory decision-making in the field of financial market, within which four key links and the basis of interaction between them were identified. The process was named after the first president of the European Monetary Institute, A. Lamfaloussi, who in his report [14] proposed a uniform approach to financial market regulation through the distribution of powers between different structures.

At the first level, these are EU institutions such as the European Parliament and the Council of the EU, which adopt legislative acts that establish the broadest regulation. At the second level, the relevant regulation is detailed at the level of acts of the European Commission, which are developed in various advisory committees and commissions. Examples here are the European Securities Committee (ECB) and the Committee of European Securities Regulators (ECB), established in 2001. The ECB has become a kind of "think tank" for providing advice and analytical conclusions to the European Commission. At the third level of the "Lamfaloussi process", national regulators worked to coordinate the new rules with other countries. The aim here was cooperation and exchange between national regulators to develop common standards. Finally, the fourth level included the observance and application of the adopted acts [16, p. 45].

Thanks to the "Lamfaloussi process", the regulation of the securities market in the EU has become much more efficient and effective. Only the global financial crisis of 2008-2009 required adjustments to the established model (which by 2008 had already been expanded to other key sectors of the financial market – the banking sector and the insurance market) [1, p. 75]

Since 2009, a new, modern stage of legal regulation of the securities market in the EU has begun. It is related to the report of another prominent financier, Jacques de Larosiere [15]. This report emphasized that the single financial market in the EU has already been created, but it needs adjustments. Inconsistency in the national regulation of financial markets in the Member States was cited as one of the main problems. As a result, it was proposed to strengthen the supranational principle. This was most clearly manifested in the fact that financial market regulation began to occur more often not through directives, but at the level of acts of direct action – regulations [2, p. 57].

 

The concept of a common financial market in the EAEU and its organizational foundations

The process of financial integration takes place in the EAEU much more quickly, which is largely predetermined by the already existing positive experience of the EU, as well as by a competent decision to outline in advance the legal framework of the common financial market back in 2014, at the time of the development of the EAEU Treaty. This contributes to the consistency of decisions, coherence of actions, and the possibility of strategic goal-setting.

Thus, the founding act of the EAEU – the EAEU Treaty of 2015 – orients the member states in the medium term to build a common financial market in the Eurasian space (target - 2025), which will be regulated on the basis of harmonized norms of the legislations of the member states, and relations in this market will be controlled by a single supranational body [3]. After 2025, the second stage will begin, when the regulation of financial relations will be carried out on the basis of supranational principles.

The Protocol on Financial Services (which is Annex No. 17 to the EAEU Treaty) defines the term "common financial market": it is proposed to understand the financial market of the member states of the Union, which meets a number of criteria:

· Harmonized requirements for regulation and supervision of financial markets in the Member States;

· mutual recognition of licenses in three key sectors of the financial market (banks, insurance companies, securities market entities);

· provision of financial services throughout the EAEU territory without additional institution as a legal entity;

· Administrative cooperation between the authorized bodies of the Member States of the Union.

         R.A. Kasyanov, speaking about the doctrinal understanding of the general financial market, gives a definition based on the substantive aspect, i.e. those services that are provided in this market. In his opinion, these are three types of financial services: insurance services, banking services, as well as services in the securities market [5, p. 56]. In our opinion, this definition can be supplemented by an indication of the source of regulation of the relevant relations in the integration association – these are harmonized or unified norms (in the latter case, we are talking about the direct effect of acts of supranational law in the financial sector). Also, an essential feature of a common financial market is a single regulatory and supervisory mechanism that performs the functions of monitoring the functioning of such a market.

         In the Treaty on the EAEU, in Article 103, this mechanism is called a "supranational body for regulating the financial market", which is proposed to be established by 2025 in Almaty (Kazakhstan). Yu.A. Krokhina believes that we are talking here about the formation of a new institution - a supranational bank (Eurasian Central Bank), which should have independence – organizational, financial, functional [8, p. 67]. If this forecast is justified, it will be possible to talk about the gradual formation of prerequisites for the organization of a monetary union within the framework of the EAEU.

However, it is quite possible that this norm refers to the organization of a supervisory authority, following the example of how it is implemented within the framework of the European Union. It should be noted that the modern organizational basis of the common financial services market in the EU has been formed for many years; it has acquired its modern outlines since January 1, 2011, when three key structures were created within the framework of the "Larosiere process" – the European Supervisory Authorities (ESA's). In the banking sector, it is the European Banking Authority (EBA); in the field of pensions and insurance, it is the European Insurance and Pension Supervision Authority (EIOPA); in the field of securities market, it is the European Securities and Markets Authority (ESMA).

In addition, the European Systemic Risk Council (ESRB) can also be attributed to the European financial supervision system. This body is responsible for macroprudential supervision in the financial system, for a detailed analysis of risks, prevention of their occurrence and emergency response to them [11, p. 103].

It is no coincidence that all these organizations are integrated into the system: They carry out their activities in a coordinated manner, in constant coordination with each other and with key EU institutions. That is why the reform provided for the Joint Committee of European Supervisory Authorities, which includes all four of these bodies. The purpose of the Joint Committee is to exchange information on oversight methods, coordinate approaches and means to improve these methods [11, p. 104]. The Committee works in the field of microprudential analysis of "intersectoral" events, risks and vulnerabilities to financial stability; in the field of supervision of financial conglomerates; in the field of accounting and auditing, as well as anti-money laundering measures. In fact, it is within this committee that the systemic regulation of the financial market in the EU is most clearly visible.

         It seems that a similar model should eventually be implemented within the framework of the EAEU, and it is unlikely that this process will be equally rapid for three sectors of the financial market: for objective reasons, harmonization can be achieved most quickly in the field of banking services, since this market is the most developed in all member states of the Union. At the same time, the EU's experience in creating three different departments does not seem relevant for the EAEU: the formation of one body will be enough here, but some of the functions in the field of financial regulation should be transferred to the Eurasian Central Bank (if it is created).

 

Conceptual and regulatory foundations of the EAEU financial market

         In addition to the organizational foundations, it is equally important to develop normative legal acts on the basis of which the harmonization of national legislation will be carried out. A similar goal is set in the Concept of the formation of the common financial Market of the EAEU adopted in 2019 [7]. In particular, it points out the importance of bringing the national regulation of financial markets in the member States to comparable rules, where differences will not interfere with the achievement of a common goal, and the risks of regulatory arbitration will be leveled.

         The Concept also pays great attention to ensuring mutual access of financial market participants to the territory of other EAEU member states. This is one of the basic provisions directly related to the implementation of the principle of free movement of services. Such admission can be implemented in three main forms: the opening of a subsidiary (based on the mechanism of standardized licenses that can be granted to an insurance or banking organization while meeting the minimum requirements for the amount of regulatory capital, as well as the capital adequacy ratio), the opening of a foreign branch (regulated in accordance with WTO law), as well as cross-border provision services (for this purpose, the Member States agree on standards in the field of consumer protection of financial services, rules on the settlement of cross-border disputes, rules on the transfer of personal data across the territory of the Union).

         An important area of development of the EAEU financial market is the interaction of national regulators overseeing the activities of parent and subsidiary companies, as well as foreign branches. Such interaction should be ensured, inter alia, on the basis of administrative cooperation mechanisms, which is the subject of a separate section of the 2019 Concept.

         The concept also orients the EAEU member states to adopt a roadmap for the creation of a common exchange space, as it was implemented in the early 21st century in the EU. Dealers and brokers of each of the EAEU Member States should have unhindered access to organized trading in any EAEU member State.

         It is noteworthy that the Concept also pays attention to such important issues at the present stage as personal data protection, consumer protection and cybersecurity in the cross-border provision of financial services. After 2025, appropriate standards should be developed, the basis for which, in our opinion, should be the most stringent requirements existing in the EAEU member states, as well as the best international practices (references to which can be repeatedly found in the 2019 Concept).

 

Problems and risks of building a common financial market of the EAEU

         Having considered the content of the main activities for the formation of the common financial market of the EAEU, it is important to pay attention to some of the risks and problems faced by the process of forming such a market. Firstly, it is the different level of development of national financial markets in the EAEU member states (Russia occupies a leading position here, and in all three segments - the banking and insurance market, as well as the securities market). This also implies the risks of "multi-speed integration", when it is quite difficult to develop standards that are uniform for all five member states, since they differ both in the structure of national economies and in the parameters of financial markets. For example, some experts express fair concerns that without preliminary work, the integration of the securities markets of the EAEU member states will in practice lead to the absorption by the Russian market of less developed markets of other EAEU member states, which does not meet the integration goals in any way [6, p. 14].

         Russian researcher I.M. Kuchmezov rightly points out such a problem as the different monetary policies of the central banks of the EAEU member states (first of all, the high difference in key rates), which is explained by discrepancies in the pace of economic recovery and local shocks that may affect some states and not others [10, p. 93]. Suffice it to recall the sanctions imposed by the "collective West" after the start of Russia's special military operation in Ukraine on February 24, 2022, which came as a shock, first of all, to two of the five EAEU countries – Russia and Belarus.

         Another problem is the lack of a single currency or a common unit of account, which increases currency risks (including due to the high volatility of national currencies) and does not allow us to fully rely on the EU's experience in financial integration, where economies were more open, more involved in international investment relations [9].

         Finally, it is important to address the problem of rather slow progress towards the stated goals. Unfortunately, not all measures have been completed before the planned deadline – the construction of a common financial market by 2025 – and it seems that the required amount of work will no longer be done within this period. Interaction between responsible national and supranational bodies should be intensified so that the process of forming the internal market of the EAEU is not delayed.

 

Conclusion

         Thus, the common financial market of the EAEU, if it is successfully formed in accordance with the set goals, will bring Eurasian integration to a new level, bringing the formation of an economic and monetary union closer. Today, in particular, based on the experience of the EU, the necessary conceptual and regulatory frameworks for the approximation of the legislation of the EAEU member states in the field of banking and insurance regulation, as well as regulation of the securities market have been developed. By 2025, the organizational framework in the form of a supranational body with regulatory and supervisory functions should be launched in due course. The common financial market of the EAEU, therefore, can be defined as a common market for banking and insurance services, as well as services in the securities sector, for the member states of the integration association, relations in which are regulated by harmonized or unified norms under the control of a supranational regulatory and supervisory authority. In its construction in the EAEU space, the following risks and potential problems were identified: risks of "multi-speed integration" due to the difference between the level of development of the banking and insurance markets, as well as the securities market in different EAEU member states; increased currency risks due to the lack of a single unit of account; lack of coherence in the monetary policy of national central banks; slow pace implementation of agreed measures. 

References
1. Butorina, O.V. (2009). Anti-crisis strategy of the European Union: near and distant frontiers. Politia, 3, 115-130.
2. Buturlin, I.V. (2020). Financial and legal regulation of the securities market in the Russian Federation and the European Union. Moscow.
3. Izotov, V.S., Meshkova, T.A., & Teplov, A.S. (2020). Prospects for the formation of a single financial market of the EAEU from the point of view of Russian interests: opportunities and limitations. Bulletin of international organizations, 3(15), 125-136.
4. Kasyanov, R.A. (2019). Regulation of the financial services market according to EU and EAEU law. Moscow.
5. Kondratov, D.I. (2014). Prospects for the integration of credit and financial systems. Eurasian Economic Integration, 2(23), 19-27.
6. Krokhina, Yu.A. (2019). Prerequisites and problems of the formation of the Central Bank of the Eurasian Economic Union. Banking Law, 2, 21-28.
7. Kulakova, E.V. (2017). Opportunities and prospects for integration of the EAEU in the financial sector. World of New Economics, 2, 66-79.
8. Kuchmezov, I.M. (2019). Barriers to the integration of financial markets of the countries of the Eurasian Economic Union (EAEU). Vestnik VGU. Series: Economics and management, 4, 140-149.
9. Osokina, E.B. (2019). Legal basis for the organization and functioning of the European Banking Union. Moscow.
10. Valiante, D. (2016). Europe’s Untapped Capital Market Rethinking financial integration after the crisis. Center for European Policy Studies.

First Peer Review

Peer reviewers' evaluations remain confidential and are not disclosed to the public. Only external reviews, authorized for publication by the article's author(s), are made public. Typically, these final reviews are conducted after the manuscript's revision. Adhering to our double-blind review policy, the reviewer's identity is kept confidential.
The list of publisher reviewers can be found here.

The subject of the research in the article submitted for review is, as its name implies, the key areas of formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience. The stated boundaries of the study are fully respected by the author. The methodology of the research is not disclosed in the text of the article, but it is obvious that the scientists used universal dialectical, logical, historical, formal legal, comparative legal research methods, as well as methods of legal modeling and legal forecasting. The relevance of the research topic chosen by the author is undeniable and justified by him as follows: "As in the framework of any other modern integration project, a single (common) internal market is being formed within the Eurasian Economic Union (hereinafter referred to as the EAEU), the key characteristic of which is the principle of "four freedoms". This means that the free movement of goods, services, capital and labor is realized in the domestic market. The free movement of financial services and the movement of capital are closely intertwined: their implementation is impossible without building a common financial market based on the national financial markets of the EAEU member states (which are currently at different stages of their development, as well as the volume and quality of legal regulation of relations in these markets differ)." Additionally, the scientist needs to list the names of the leading experts who have been engaged in the study of the problems raised in the article, as well as reveal the degree of their study. The scientific novelty of the work is manifested in a number of conclusions of the scientist: "The process of financial integration takes place in the EAEU much more quickly, which is largely predetermined by the already existing positive experience of the EU, as well as a competent decision to outline in advance the legal framework of the common financial market back in 2014, at the time of the development of the EAEU Treaty. This contributes to the consistency of decisions made, coherence of actions, and the possibility of strategic goal-setting"; "R.A. Kasyanov, speaking about the doctrinal understanding of the general financial market, gives a definition based on the substantive aspect, i.e. those services that are provided in this market. In his opinion, these are three types of financial services: insurance services, banking services, as well as services in the securities market [4, p. 56]. In our opinion, this definition can be supplemented by an indication of the source of regulation of the relevant relations in the integration association – these are harmonized or unified norms (in the latter case, we are talking about the direct effect of acts of supranational law in the financial sector). Also, an essential feature of the common financial market is a single regulatory and supervisory mechanism that performs the functions of monitoring the functioning of such a market"; "It seems that a similar model should eventually be implemented within the framework of the EAEU, and it is unlikely that this process will be equally rapid for three sectors of the financial market: for objective reasons, the fastest Harmonization can be achieved in the field of banking services, since this market is the most developed in all member States of the Union. At the same time, the EU's experience in creating three different departments does not seem relevant for the EAEU: the formation of one body will be enough here, but some of the functions in the field of financial regulation should be transferred to the Eurasian Central Bank (if it is created)" and others . Thus, the article makes a certain contribution to the development of domestic legal science and, of course, deserves the attention of potential readers. The scientific style of the research is fully sustained by the author. The structure of the work is not entirely logical. In the introductory part of the article, the scientist substantiates the relevance of the chosen research topic. In the main part of the work, the author examines the stages of formation of the legal foundations of the common EU financial market, after which he analyzes the relevant processes in the EAEU, highlighting the relevant problems and making legal forecasts. The final part of the work is missing as such. The content of the article fully corresponds to its title and does not cause any particular complaints, however, the author needs to pay attention to the structure of the work - the introductory part of the article is very brief, it cannot be clearly separated from the main part of the study; the final part of the article is missing. The bibliography of the research is presented by 10 sources (dissertations, monographs, scientific articles), including in English. The nature and number of sources used in writing the article allowed the author to reveal the research topic with the necessary depth and completeness. There is an appeal to opponents, both general and private (R.A. Kasyanov), and it is quite sufficient. The scientific discussion is conducted by the author correctly; the provisions of the work are justified to the necessary extent and illustrated with examples. There are no final conclusions based on the results of the study as such. Meanwhile, all the scientific achievements of the author should be reflected in the final part of the article. The interest of the readership in the article submitted for review can be shown primarily by specialists in the field of administrative law, international law, financial law, provided that it is finalized: disclosure of the research methodology, additional justification of the relevance of its topic (within the framework of the comment made), clarification of the structure of the work, writing the final part of the article.

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The list of publisher reviewers can be found here.

The subject of the study. In the peer-reviewed article "Key directions for the formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience", the subject of the study is the norms of international and national law governing public relations in the field of the formation of the financial market of the EAEU, as well as legal and factual problems and risks in its construction in the EAEU space. A special place in the study is occupied by the European experience of integration in the field of finance. Research methodology. The main research methods are comparative legal and formal legal. The methodological apparatus consists of the following dialectical techniques and methods of scientific cognition: analysis, abstraction, induction, deduction, hypothesis, analogy, synthesis, typology, classification, systematization and generalization. The use of modern methods of scientific cognition allowed us to study the established approaches, views on the subject of research, develop an author's position and argue it. The relevance of research. The relevance of the research topic stated by the author is beyond doubt, since the legal regulation of financial services and capital flows on the territory of the EAEU states needs to be updated taking into account the political and economic situation in the world, primarily due to the sanctions policy of unfriendly countries. The author himself argues that "the relevance of addressing this topic is undeniable due to the needs of the Russian Federation in the further development of Eurasian integration, including in the financial sphere, which can strengthen Russia's position on the world stage in difficult geopolitical conditions." The relevance of doctrinal developments in this area of public relations is related to their importance and significance for improving national legislation and the practice of its application. Scientific novelty. Without questioning the importance of previous scientific research, which served as the theoretical basis for this work, nevertheless, it can be noted that this article for the first time formulated noteworthy provisions, for example: "The common financial market of the EAEU, thus, can be defined as a common market for banking and insurance services for the member states of the integration association as well as services in the securities sector, relations in which are regulated by harmonized or unified norms under the control of a supranational regulatory and supervisory authority. In its construction in the EAEU space, the following risks and potential problems were identified: risks of "multi-speed integration" due to the difference between the level of development of the banking and insurance markets, as well as the securities market in different EAEU member states; increased currency risks due to the lack of a single unit of account; lack of coherence in the monetary policy of national central banks; slow pace implementation of agreed measures". Based on the results of writing the article, the author has made a number of theoretical conclusions and suggestions, which indicates not only the importance of this study for legal science, but also determines its practical significance. Style, structure, content. The topic is disclosed, in general, the content of the article corresponds to its title. The author has met the requirements for the volume of the material. The article is written in a scientific style, using special legal terminology. However, the article is only partially structured, so there are no separate semantic distinctions in its content: the subject of the study, the purpose and results of the study, conclusions and scientific novelty. As comments, you can also note: 1. The author superficially touches on topical issues of legal regulation and law enforcement in the field of financial services and capital flows in the territory of the EAEU countries after February 2022; 2. The author's position on the progressiveness of European experience in the field of legal regulation of financial services remained without sufficient argumentation: what exactly should be taken from the EU experience for the EAEU? 3. The introduction does not meet the requirements for this part of the scientific article; 4. In conclusion, it would be necessary to formulate all the main results that the author achieved during the research; 5. Repetitions of words are noted in the sentences. Duplicate words should be replaced with synonyms or rephrased sentences. The comments are disposable. Bibliography. The author has used a sufficient number of doctrinal sources, but links to publications of recent years are not provided (the most "recent" publication is dated 2020). Bibliographic sources (and, accordingly, the content of the article) should be updated. References to sources are designed in violation of the requirements of the bibliographic GOST. Appeal to opponents. A scientific discussion is presented on certain issues of the stated topic, and appeals to opponents are correct. All borrowings are decorated with links to the author and the source of the publication. Conclusions, the interest of the readership. The article "Key directions for the formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience" is recommended for publication with the condition of its completion. The article corresponds to the topic of the journal "Law and Politics". The article is written on a topical topic, has practical significance and has elements of scientific novelty. This article may be of interest to a wide readership, primarily specialists in the field of international law, business law, and will also be useful for teachers and students of law schools and faculties.

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A REVIEW of an article on the topic "Key directions for the formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience". The subject of the study. The article proposed for review is devoted to topical issues of the formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience. The author considers the most important legal principles of the formation of the EAEU financial market, taking into account its comparison with the experience of the European Union countries. The specific subject of the study was legal acts, opinions of scientists, materials of the practice of the EAEU. Research methodology. The purpose of the study is not stated directly in the article. At the same time, it can be clearly understood from the title and content of the work. The goal can be designated as the consideration and resolution of certain problematic aspects of the issue of key areas for the formation of the legal foundations of the common financial market of the EAEU, taking into account the European experience. Based on the set goals and objectives, the author has chosen the methodological basis of the study. In particular, the author uses a set of general scientific methods of cognition: analysis, synthesis, analogy, deduction, induction, and others. In particular, the methods of analysis and synthesis made it possible to summarize and share the conclusions of various scientific approaches to the proposed topic, as well as draw specific conclusions from the materials of practice. The most important role was played by special legal methods. In particular, the author actively applied the formal legal method, which made it possible to analyze and interpret the norms of current legislation (first of all, the norms of international acts adopted by the EAEU). For example, the following conclusion of the author: "The Protocol on Financial Services (which is Annex No. 17 to the EAEU Treaty) defines the term "common financial market": it is proposed to understand the financial market of the member states of the Union, which meets a number of criteria: harmonized requirements for regulation and supervision in the field of financial markets of the member states; mutual recognition of licenses in three key sectors of the financial market (banks, insurance companies, securities market entities); provision of financial services throughout the territory of the EAEU without additional establishment as a legal entity; administrative cooperation between the authorized bodies of the member States of the Union." The following conclusion from the article is also important: "In addition to the organizational foundations, the development of normative legal acts on the basis of which the harmonization of national legislation will be carried out is no less important. A similar goal is set in the Concept of the formation of the common financial Market of the EAEU adopted in 2019 [7]. In particular, it points out the importance of bringing the national regulation of financial markets in the member states to comparable rules, where differences will not interfere with the achievement of a common goal, and the risks of regulatory arbitration will be leveled." Thus, the methodology chosen by the author is fully adequate to the purpose of the study, allows you to study all aspects of the topic in its entirety. Relevance. The relevance of the stated issues is beyond doubt. There are both theoretical and practical aspects of the significance of the proposed topic. From the point of view of theory, the topic of key areas of formation of the legal foundations of the common financial market of the EAEU is complex and ambiguous. The formation of general conceptual principles of the EAEU financial market is necessary for the effective operation of this international organization. This is especially important in the current conditions of sanctions, as well as contradictions between different states. It is difficult to argue with the author of the article that "As in the framework of any other modern integration project, a single (common) internal market is being formed within the Eurasian Economic Union (hereinafter referred to as the EAEU), the key characteristic of which is the principle of "four freedoms". This means that the free movement of goods, services, capital and labor is realized in the domestic market. The free movement of financial services and the movement of capital are closely intertwined: their implementation is impossible without building a common financial market based on the national financial markets of the EAEU member states (which are currently at different stages of their development, as well as the volume and quality of legal regulation of relations in these markets differ). The relevance of addressing this topic is undoubtedly due to the needs of the Russian Federation in the further development of Eurasian integration, including in the financial sphere, which can strengthen Russia's position on the world stage in difficult geopolitical conditions." Thus, scientific research in the proposed field should only be welcomed. Scientific novelty. The scientific novelty of the proposed article is beyond doubt. Firstly, it is expressed in the author's specific conclusions. Among them, for example, is the following conclusion: "the common financial market of the EAEU, if it is successfully formed according to the set goals, will bring Eurasian integration to a new level, bringing the formation of an economic and monetary union closer. Today, in particular, based on the experience of the EU, the necessary conceptual and regulatory frameworks for the approximation of the legislation of the EAEU member states in the field of banking and insurance regulation, as well as regulation of the securities market have been developed. By 2025, the organizational framework in the form of a supranational body with regulatory and supervisory functions should be launched in due course. The common financial market of the EAEU, therefore, can be defined as a common market for banking and insurance services, as well as services in the securities sector, for the member states of the integration association, relations in which are regulated by harmonized or unified norms under the control of a supranational regulatory and supervisory authority. In its construction in the EAEU space, the following risks and potential problems were identified: risks of "multi-speed integration" due to the difference between the level of development of the banking and insurance markets, as well as the securities market in different EAEU member states; increased currency risks due to the lack of a single unit of account; lack of coherence in the monetary policy of national central banks; slow pace implementation of agreed measures". These and other theoretical conclusions can be used in further scientific research. Secondly, the author proposes scientific generalizations related to the concepts of the development of the EAEU financial market. Such conclusions may be useful to specialists in the field under study. Thus, the materials of the article may be of particular interest to the scientific community in terms of contributing to the development of science. Style, structure, content. The subject of the article corresponds to the specialization of the journal "Law and Politics", as it is devoted to legal problems related to the legal principles of the formation of the EAEU financial market, taking into account its comparison with the experience of the European Union countries. The content of the article fully corresponds to the title, since the author considered the stated problems and achieved the research goal. The quality of the presentation of the study and its results should be recognized as fully positive. The subject, objectives, methodology and main results of the study follow directly from the text of the article. The design of the work generally meets the requirements for this kind of work. No significant violations of these requirements were found. Bibliography. The quality of the literature used should be highly appreciated. The author actively uses the literature presented by authors from Russia (L.A. Anosova, T.K. Blokhina, L.M. Borsch, E.A. Zvonova, V.S. Izotov, Yu.A. Krokhina, E.V. Kulakova, V.Y. Mishina, V.Ya. Pishik, A.S. Teplov, T.V. Fursova and others). Many of the cited scientists are recognized scientists in the field of stated problems. Thus, the works of the above authors correspond to the research topic, have a sign of sufficiency, and contribute to the disclosure of various aspects of the topic. Appeal to opponents.
The author conducted a serious analysis of the current state of the problem under study. All quotations of scientists are accompanied by author's comments. That is, the author shows different points of view on the problem and tries to argue for a more correct one in his opinion. Conclusions, the interest of the readership. The conclusions are fully logical, as they are obtained using a generally accepted methodology. The article may be of interest to the readership in terms of the systematic positions of the author in relation to the formation of the financial market of the EAEU, taking into account its comparison with the experience of the countries of the European Union. Based on the above, summing up all the positive and negative sides of the article, "I recommend publishing"