THE EURASIAN ECONOMIC UNION AT CROSSROADS: NAVIGATING TRADE INTEGRATION AND COMPETITIVENESS

This study investigates the Eurasian Economic Union (EAEU) as a regional economic integration bloc, analyzing its evolution, trade integration, and industrial policy framework amid shifting global dynamics. Established in 2015, the EAEU has encountered structural challenges, geopolitical upheavals, and intensifying sanctions, especially following the war in Ukraine. These pressures have disrupted trade flows, widened economic disparities among member states, and tested the bloc’s cohesion. The paper emphasizes the fact that enhancing competitiveness is critical for the resilience of the EAEU, with the industrial policy serving as the cornerstone of this effort. Employing trade indicators, such as intra-regional trade shares and the Revealed Comparative Advantage (RCA) index, the study highlights uneven integration and dependence on resource-based exports. It evaluates the institutional framework of the EAEU’s industrial policy, focusing on subsidy harmonization, value-added industry development, and coordination between national and regional priorities. Despite persistent institutional weaknesses and external pressures, the findings suggest that fostering industrial modernization and achieving better synergy between domestic policies and regional ambitions could strengthen the bloc’s resilience and global competitiveness.