The formation of an anti-crisis fund of the Eurasian Economic Community (EAEC or EurAsEC) was announced last February. The member-states are Russia, Kazakhstan, Kyrgyzstan, Belarus and Tajikistan. In December 2008, Uzbekistan resigned its membership of the organization.

Armenia has observer status at the organization, which, however, is not an obstacle to her being co-founder. Each member-country will be involved in managing the fund in accordance with its membership fee. Russia and Kazakhstan are ready to pay the largest membership fees, which actually means they will make all the strategic decisions. The other countries’ membership fees are mere formality.

Russia’s membership fee is U.S. $7.5bn, followed by Kazakhstan (U.S. $1bn), Belarus (U.S. $10m). Armenia, Kyrgyzstan and Tajikistan will pay U.S. $1m each.

Armenia hopes it will finance certain sub-structural programs with the EurAsEC Fund’s help – the North-South railway construction project, or the construction of a new nuclear power plant. RA Prime Minister Tigran Sargsyan proposed development programs for the Nairit and Armelektromash plants, as some of the member-states have taken interest in the enterprises.

Armenia’s application to EurAsEC exceeds U.S. $1bn. However, the reality falls short of the expectations. RA President Serzh Sargsyan’s participation in the sitting of the EurAsEC Interstate Council had been expected to cause some progress. Armenia was hardly refused. Rather, the country did not agree to the terms and demanded easier ones.

Interestingly, after the July 5 meeting, the acting foreign minister Ruslan Kazarbaev stated that the Interstate Council decided to issue a U.S. $600m soft credit. The RA Ministry of Finance refuted the information.

Tajikistan is the only country that has to date received a EurAsEC credit, a 20-year U.S. $70m credit at an annual interest rate of 1%.

At present Armenia cannot get softer credits – particularly ones with grace periods – from the international institutions. However, the governments are free to utilize the EurAsEC funds, as it has recently been content with providing consultations.