Eurasian Economic Union

Discussion in 'Europe and Russia' started by amoy, May 29, 2014.

  1. amoy

    amoy Senior Member Senior Member

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    Russian, Kazakh, Belarusian leaders sign treaty on creation of Eurasia

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    Read more: Russian, Kazakh, Belarusian leaders sign treaty on creation of Eurasian Economic Union - News - Politics - The Voice of Russia: News, Breaking news, Politics, Economics, Business, Russia, International current events, Expert opinion, podcasts, Video
     
    Illusive, Kaalapani and W.G.Ewald like this.
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  3. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Re: Russian, Kazakh, Belarusian leaders sign treaty on creation of Eur

    Putin building a new economic block in Asia shifting away from europe and the
    West after sanctions. Seems like the sanctions could backfire miserably on Europe,
    After all, their investments and efforts to bring Russia into the global economy.
     
  4. Kaalapani

    Kaalapani Tihar Jail Banned

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    http://rt.com/business/162200-russia-bealrus-kazakhstan-union/

    Russia, Belarus, Kazakhstan sign ‘epoch' Eurasian Economic Union.

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    Russia, Belarus, and Kazakhstan signed the historic Eurasian Economic Union which will come into effect in January 2015. Cutting down trade barriers and comprising over 170 million people it will be the largest common market in the ex-Soviet sphere.

    "The just-signed treaty is of epoch-making, historic importance," Russian President Vladimir Putin said.

    The troika of countries will cooperate in energy, industry, agriculture, and transport.

    "In fact, we are shaping the largest common market in the CIS, with huge production, scientific and technological potential and enormous natural resources," the President added.

    Citizens of Russia, Belarus, and Kazakhstan will have the right to work freely throughout the member states without having to be issued any special work permits, Putin said.

    Over the last three years, trade within the Customs Union has increased by $23 billion, or nearly 50 percent. At the end of 2013, it stood at $66.2 billion.

    Belarus and Kazakhstan are in third place in foreign trade with the Russian Federation, after the EU and China, Putin said.

    The Russian leader said that the document brings Russia, Kazakhstan and Belarus to a new level of integration yes lets each individual state fully retain its sovereignty.

    “We ensure a close and coherent economic collaboration and cooperation. Today we have created a powerful and attractive center of economic development, a large regional market that brings together more than 170 people. Our union has huge reserves of natural resources, including energy, which accounts for one fifth of the world’s gas reserves and 15 percent of oil reserves,” Putin said.


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  5. W.G.Ewald

    W.G.Ewald Defence Professionals/ DFI member of 2 Defence Professionals

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  6. pmaitra

    pmaitra Moderator Moderator

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  7. amoy

    amoy Senior Member Senior Member

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    Re: Russian, Kazakh, Belarusian leaders sign treaty on creation of Eur

    How Significant Is the Eurasian Economic Union?
    Moscow’s high hopes for the union have come up against reluctance among its neighbors.

    Last Thursday, the presidents of Kazakhstan, Russia, and Belarus met in Astana to consecrate the founding of the Eurasian Economic Union (EEU). Structured as the maturation of the current Customs Union shared by the three states, and sold as the most substantive effort to reintegrate the post-Soviet space to date, the gathering presented the final step toward the creation of Russian President Vladimir Putin’s foremost geopolitical project.

    The signing of the founding documents of the EEU – set to come into force on January 1, 2015 – was marked by all of the attendant pomp and ceremony that the post-Soviet space so well knows. Putin noted the signing marked a new “epoch.” Belarusian President Aleksandr Lukashenko claimed the new union embodied “happiness.” And Kazakhstan President Nursultan Nazarbayev, who originally lobbied the idea of a Eurasian Union over twenty years ago, termed the new grouping as a “blessing.”

    But where the rhetoric crafts the idea of a unified, complementary front, numbers and trajectory present a far bleaker, far more strained outlook for the EEU. While the union was never meant as a reimagined Soviet Union, as some wrongheadedly posit, the EEU, with 170 million member-citizens and a combined GDP of $2.7 trillion, also stands far from the economic hegemon Nazarbayev would wish – or the neo-imperial project Putin has imagined. Instead of presenting another geopolitical “pole” or “link” between Europe and Asia, as Putin claimed in 2011, it seems far likelier the EEU will morph into another diluted post-Soviet assemblage, a far cry from the union’s original proposition.

    The most obvious factor weighing on the EEU stems from newfound tensions between the Kazakhstani and Russian notions union’s potential. Where Putin and his Duma had wished for a common parliament, common passport, and common currency within the EEU, Astana remained steadfast in confining the organization to a purely economic union. As Kazakhstan’s lead negotiator pointedly observed on Thursday’s signing, “[The Eurasian Union] is a pragmatic means to get benefits. We don’t meddle into what Russia is doing politically, and they cannot tell us what foreign policy to pursue.” There would, it seems, be no better indication of Kazakhstan’s resolutions on limiting the EEU’s outcome than the fact that the final treaty signed ended up less than one third of the length of the text originally proposed – with Kazakhstan continually boasting along the way of its ability to hamper attempts at political incorporation. Indeed, as seen in the Kazakhstani EEU factsheet, Astana spent nearly as much text delineating what the EEU was not as what the treaty actually was.

    Such pushback arose in concert with increasing emphasis on maintaining Kazakhstani sovereignty, which has only increased following Russia’s Crimean annexation. This reality is, in a sense, understandable. Ethnic Russians still make up nearly a quarter of Kazakhstan’s population, and there is a discernible history of secessionist attempts in northern Kazakhstan. It is no coincidence that, following the Crimean annexation, Kazakhstan both eased the citizenship process for ethnic Kazakhs and discussed increasing penalties for those calling for separatism. Likewise, the EEU has sparked nationalistic protests heretofore unseen in independent Kazakhstan – structured both around economic concerns, as well as opposition to the resurgent imperialism rising through Russia.

    But it’s not simply that the Kazakhs rightly fear territorial shifts. The issues of the EEU – currently constructed to impose external tariffs and swell intra-EEU trade – have thus far failed to present the viable economic benefit intended within the current member-states, a trend that would seem to only accelerate as integration continues. The World Bank has noted the lack of wholesale long-term benefit to union participants; the EU’s Institute for Security Studies has reiterated such findings. Russia’s deputy finance minister has noted that, under EEU structures, Russian subsidies of member-states could explode to $30 billion annually, while, as Aitolkyn Kourmanova relates, “Without direct subsidies, the Central Asian countries will not perceive any significant advantage to integrating with the Union.”

    These concerns – the combination of economic and sovereign – are by no means limited to Kazakhstan. Kyrgyzstan, a likely future member, has seen numerous attempts at slowing the process of accession. Likewise, Armenia, despite its reliance on Moscow’s economic prop, has witnessed substantive domestic pushback. And in a fascinating turn, Nazarbayev, at last Thursday’s signing, demanded that Armenia only be allowed to accede to the EEU within its UN-recognized borders – that is, without the disputed region of Nagorno-Karabakh alongside. As former Armenian Foreign Minister Alexander Arzumanyan retorted, “How can Russia enter the Eurasian Union with Crimea that has not been recognized by any state, and Armenia is admitted only within the borders recognized by the UN?”

    Surging nationalism, brittle economics, a flaccid and faltering Russian economy – these ingredients would be more than enough to temper expectations about the EEU’s potential. But two additional factors stand to mitigate the EEU’s prospects that much further.

    The first is the Chinese presence, and the continued push within Beijing’s “March West” strategy. On the heels of President Xi Jinping’s whirlwind 2013 journey through Central Asia, which saw him expound and expand upon his projected Silk Road Economic Belt, Xi gathered regional heads in Shanghai for a recent Conference on Interaction and Confidence Building Measures in Asia (CICA). In addition to backing Russia into a gas deal slanted heavily toward Beijing, Xi cemented economic and energy-based hegemony within the region. If, as Martha Brill Olcott observed, Xi’s 2013 swing presented a “victory lap” in Central Asia, the recent gathering saw him accelerate Beijing’s pace, that much more to the detriment of Moscow’s regional influence.

    China has, thus far, remained largely quiet on the matter of the EEU – and its silence is, if not resounding, then at least noteworthy. According to Dr. Alexander Cooley, a political science professor at Barnard College, “The Chinese have been very cautious – initially they expressed support for [the EEU] and said it was compatible with Chinese interests in the region, but now there are more critical voices about its purpose and potential harmful effects on Chinese economic interests and trade.”

    But where China, outside the EEU, will only continue to swell in geopolitical import in Central Asia, it is the lack of a Ukrainian presence in the EEU that presents the final, fatal strike against any attempt to craft the union as the “pole” Putin originally desired. The likelihood of Ukraine – with a market of nearly 50 million, and industrial potential second only to Russia within the EEU roster – joining the union remains next to nil, effectively neutering the EEU’s geopolitical consequence.

    As it is, Ukraine’s decision to forego EEU membership parallels its prior decision to decline full membership within the Commonwealth of Independent States, the most substantive prior attempt at post-Soviet agglomeration. And in a unique twist of timing, just as Putin, Nazarbayev, and Lukashenko gathered in Astana, Ukraine was going through the final procedures of exiting the CIS permanently. Ukraine’s non-membership, which all but doomed the CIS to irrelevancy, looks to repeat itself with the EEU. Despite Putin’s aims, and incorporating marked pushback from Kazakhstan, the EEU looks likely to stand as but one more shallow, stilted attempt at post-Soviet integration.

    How Significant Is the Eurasian Economic Union? | The Diplomat
     
  8. JBH22

    JBH22 Senior Member Senior Member

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    Re: Russian, Kazakh, Belarusian leaders sign treaty on creation of Eur

    This Union lacks Ukraine the strong members of erstwhile USSR.

    As regards to Belarus to join this union I can understand, but what happened to Kazakhstan.
     
  9. pmaitra

    pmaitra Moderator Moderator

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    Armenia to join Eurasian Economic Union

    And, more interesting news from a NATO country:

    Turkey May Create Free Trade Zone with Eurasian Customs Union – Development Minister

     
  10. amoy

    amoy Senior Member Senior Member

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    Re: Russian, Kazakh, Belarusian leaders sign treaty on creation of Eur

    TASS: Economy - Kyrgyzstan’s treaty to join Customs Union, Common Economic Space to be signed December 23

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    The next will be Armenia. What's its implication for the region?

    Kyrgyzstan: A Reluctant Accession to the EEU | The Diplomat
     
  11. amoy

    amoy Senior Member Senior Member

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    Russia, China agree to integrate Eurasian Union, Silk Road, sign deals



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    May 8, 2015. Russia's President Vladimir Putin (L) shakes hands with China's President Xi Jinping. (Reuters/Mikhail Klimentyev/RIA Novosti/Kremlin)


    10 May 2015 Moscow : Russia and China have signed a number of energy, trade and finance deals on Friday aimed at strengthening economic ties. The two countries have multiple mutual projects which “achieved a unity of views on a wide range of issues.”

    Russian President Vladimir Putin and Chinese leader Xi Jinping have signed a decree on cooperation in tying the development of the Eurasian Economic Union with the “Silk Road” economic project.

    “The integration of the Eurasian Economic Union and Silk Road projects means reaching a new level of partnership and actually implies a common economic space on the continent,” Putin said after the meeting with his Chinese counterpart. President Xi Jinping arrived in Moscow on Friday for the 70th anniversary celebration of the defeat of Nazi Germany in World War II.

    China will also invest $5.8 billion in the construction of the Moscow-Kazan High Speed Railway, the Russian President said. The railway is to be extended to China, connecting the two countries through Kazakhstan. It can become part of the route of the new Silk Road project, which is aimed at tying China with European and Middle Eastern markets. The total cost of the Moscow-Kazan high speed railroad project is $21.4 billion.

    Russia’s largest gas producer Gazprom and China’s National Petroleum Corporation (CNPC) signed an agreement on the basic conditions of gas supplies from Russia to China through the Western route. The two companies decided to extend a strategic partnership agreement for five years, according to Gazprom’s CEO Aleksey Miller. The agreement provides for the construction of the first, second and third Altai pipelines.

    Sberbank – Russia’s biggest lender – has signed a facility agreement with China’s Development Bank in the amount of $966 million. They also agreed on financing an industrial project by Sberbank to the tune of $256.4 million.

    The goal of the agreement is to develop the “long-term cooperation between Sberbank and China Development Bank in the area of financing foreign trade operations between Russia and China,” Sberbank said.

    Russia’s state-owned VTB Bank and the Export-Import Bank of China signed a $483.2 million loan facility agreement to finance trading operations between Russia and China.

    An agreement to create a leasing company which will promote the sale of the Russian Sukhoi Superjet-100 passenger planes to the Chinese and South-East Asian markets over the next three years has been set up. Russia and China will also develop a new heavy helicopter, called the Advanced Heavy Lift. The helicopter will be able to lift 38 tons and operate in mountain areas, performing a variety of missions in any weather conditions.

    President Putin also said that Moscow welcomes Chinese companies’ participation in resource extraction in the Arctic and Sakhalin shelf.

    Earlier on Friday, Russian Direct Investment Fund (RDIF), the Russia-China Investment Fund (RCIF) and the People’s Government of Heilongjiang Province agreed to launch a $2 billion fund targeting investment in agricultural projects in both countries. The share of Chinese investment in Russia may soon reach 20 percent and amount to 40 percent in the medium to long-term, according to the CEO of RDIF Kirill Dmitriev.
     

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