YEREVAN, March 9. /ARKA/. The Armenian government on Thursday approved a draft law on ratification of the Agreement on Establishment of Eurasian Reinsurance Company, signed on October 20, 2022 in Yerevan.

The Eurasian Reinsurance Company (ERC) is an international financial organization, designed to stimulate mutual and foreign trade throughout the Eurasian Economic Union (EEU), as well as implementation of joint cooperation projects by increasing the insurance capacity and professional management of risks.

The authorized capital of the ERC will be formed by contributions of member states and will amount to 15 billion Russian rubles. The major founders of the ERC will be Russia and Belorussia with 45% and 30% of the authorized capital respectively, 20% will be contributed by Kazakhstan, 3% by Armenia and 2% by Kyrgyzstan.

The company will supplement the functions of national insurance agencies at the supranational level by reinsuring export credits and investments against business and political risks in the EEU member states and third countries.

The potential insurance capacity of the company is up to $2 billion. According to expert estimates, the emergence of additional insurance capacity may lead to a $6 billion rise in mutual trade within the EEU.

It is planned that the ERC will start operating in 2023 and will be open for other states outside the EEU and international financial organizations. --0-