The Kazakh Parliament, the Majilis, has ratified an agreement to establish the Eurasian Reinsurance Company (ERC), a new international financial organization within the framework of the Eurasian Economic Union (EAEU), Turanews.kz reports.
The ERC will provide reinsurance for exporters in the EAEU, helping to reduce their insurance costs and increase their competitiveness. It will also help to promote trade and investment between the EAEU countries and with third countries.
The agreement was signed by the heads of government of the EAEU countries in August 2023. The Kazakh Parliament’s ratification is the final step required for the ERC to be established.
The ERC will have a authorized capital of $15 billion, with each EAEU country having a share in the capital proportional to its population. Kazakhstan will have 20% share of the capital. (Armenia – 3%; Kyrgyzstan – 2%; Belarus – 30%; Russia – 45%)
The ERC will be headquartered in Astana, Kazakhstan. It is expected to start operations in early 2024.
