Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

​Eurasian Economic Union – a new reality in world affairs

Dr Alexander Yakovenko, Russian Ambassador to the United Kingdom of Great Britain and Northern Ireland, Deputy foreign minister (2005-2011).

Published time: May 30, 2014 10:34
(R-L): Russian President Vladimir Putin, President of Kazakhstan Nursultan Nazarbayev, President of Belarus Alexander Lukashenko during the ceremony of signing documents following the Supreme Eurasian Economic Council meeting of heads of state in Astana. (RIA Novosti / Michael Klimentyev)

The Agreement establishing the Eurasian Economic Union marks a major milestone in cooperation between Russia, Kazakhstan and Belarus.

President Vladimir Putin and the Presidents of Kazakhstan and Belarus, Nursultan Nazarbayev and Aleksandr Lukashenko signed the Agreement on Thursday. It will come into force on linking the three countries into the Customs Union on January 1, 2015. Work on the document began back in November 2011 at the first summit of the Supreme Eurasian Economic Council, when a declaration on Eurasian economic integration, a sort of “roadmap” for this integration project, was adopted.

The agreement opens up broad prospects for economic development and cooperation and leads to a new level of interaction by creating a common space based on the principles of free movement of goods, services, capital and labor. Our states will pursue policy coordination in key sectors – energy, industry, agriculture, transport. In fact, the Agreement leads to the creation of the largest single market within the Commonwealth of Independent States (CIS) with a huge potential of over 170 million people and enormous production, scientific and technological resources. The Union has immense natural resources, including energy. It accounts for 20 percent of the global natural gas reserves and 15 percent of oil reserves.

We are witnessing the creation of a new powerful and attractive economic center that operates on the basis of universal, transparent and clear principles, including the rules and principles of the World Trade Organization (WTO). It is important that the transfer of certain powers to supranational bodies of the Union does absolutely no damage to the sovereignty of our countries.

Mutual benefits from the integration have been already witnessed in practice. Economic ties between Russia, Belarus and Kazakhstan are expanding, structure of trade is improving, the proportion of high-tech products in it increasing and our competitiveness in the world economy strengthening. Over the past three years, turnover within the Customs Union (CU) grew by almost 50 percent (it amounted to $66.2 billion in 2013). Belarus and Kazakhstan came third in the trade balance of the Russian Federation (after the EU and China). Integration processes played a huge role in these achievements.

Russia continues to work actively with her partners in order to ensure the increase of trade flows and investment and expansion of industrial and technological cooperation within the Union. Utmost attention is paid to improving the business climate. Russia, Belarus and Kazakhstan intend to stimulate market competition, ensuring effectiveness of the protection of consumers’ and businesses’ interests.

The task is set to create a common financial market. By removing barriers to capital movement the members of the Union intend to diversify risks, improve the quality, availability and reliability of financial services. Gradual harmonization of monetary policy will also improve the stability of the financial systems of the Union and make national financial markets more predictable and better protected from currency fluctuations.

The members of the Union welcome further expansion. Armenia is considering joining soon. It has the potential to become a full-fledged participant shortly after the launch of the Union. There was also a discussion with Kyrgyzstan to initiate accession to the Union. The members of the Union have also agreed to intensify talks with Vietnam on a free trade area, to strengthen cooperation with China, including the exchange of customs information on goods and services, and to form expert groups to develop preferential trade regimes with Israel and India. The Union’s geography makes it possible to create transportation and logistics routes not only of regional, but also global significance and attract large-scale trade both from Europe and Asia.

The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of RT.

Follow us

Follow us