Tag Archives: Eurasian Economic Union

Divisions grow in Eurasian Economic Union

MARCH 20 2015 (The Conway Bulletin) – The Kremlin-led Eurasian Economic Union’s (EEU) first year is shaping up to be one to forget.

A sharp devaluation in the value of the rouble, triggered by Western sanctions and falling oil prices, and meddling in Ukraine’s civil war have hit Russia’s credibility among its former Soviet partners. After a meeting in Astana, Kazakh President Nursultan Nazarbayev appeared to distance himself from the Kremlin.

Mr Nazarbayev hosted Russian President Vladimir Putin and Belarusian President Aleksandr Lukashenko at the meeting. Armenia, the fourth member of the EEU, didn’t attend.

Mr Nazarbayev appeared to suggest that Mr Putin’s alleged support for rebels in eastern Ukraine had gone too far.

“It is important for any decisions that get made to rely on fundamental principles of international law. We are interested in Ukraine staying a stable, independent, territorially integral country,” he said.

Apparent tension at the meeting in Astana between the leaders wasn’t contained to Ukraine.

Mr Putin once again brought up the prospect of a single currency throughout the Eurasian Economic Union, something that Mr Nazarbayev has already ruled out.

“The time has come to start thinking about forming a currency union,” news reports quoted Mr Putin as saying. Mr Putin also suggested a Central Bank for the single currency could be based in Almaty.
ENDS

(News report from Issue No. 224, published on March 25 2015)

Sargsyan skips EEU meeting

MARCH 13 2015 (The Bulletin) – Unnerving its three partners, Armenia’s President Serzh Sargsyan said he would skip a meeting of the Kremlin-led Eurasian Economic Union (EEU) in Astana on March 20, media reported.

His absence from the meeting has triggered questions about Armenia’s commitment to the project which it has only just joined.

The meeting between President Vladimir Putin of Russia, President Nursultan Nazarbayev of Kazakhstan and President Aleksandr Lukashenko of Belarus is billed as an important one to navigate out of the financial crisis.

It had been postponed from March 13 to March 20. Kazakh officials initially said Mr Putin was too unwell to attend.

But Armenia — the fourth member of the economic group — has chosen not to attend. Armenia only joined the EEU, which morphed out of the Customs Union, on Jan. 1.

It has always been considered a supporter of Russia which it relies upon for economic and military support.

Armenia’s government didn’t explain why Mr Sargsyan would not fly to Astana for the meeting. Instead a senior official said the meeting had been organised to sort out problems which did not concern Armenia.

Perhaps, but it has created noise around Armenia’s potential unhappiness around the state of the region’s finances so much so that the Kremlin was bounced into releasing a press statement which said that Mr Putin and Mr Sargsyan had shared a telephone conversation during which the Russian leader had been reassured of Armenia’s good intentions.
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(News report from Issue No. 223, published on March 18 2015)

Putin to head to Astana summit

MARCH 18 2015 (The Conway Bulletin) – Russian President Vladimir Putin is heading to Central Asia for his first overseas trip since re-emerging into public view.

He is due to fly to Astana for a summit with his Kazakh and Belarusian counterparts on March 20.

The meeting was postponed from March 13. Kazakh officials at first said that the meeting had been delayed because Mr Putin was ill. Russian officials denied this, keeping people guessing on just why he cancelled several appointments and disappeared for a few days without explanation.

And Central Asia has played a prominent role in the episode. Mr Putin used a brief video with visiting Kyrgyz President Almazbek Atambayev on March 16 to show the world that he was not hiding. He previous public appearance had been on March 5.

The summit with Kazakh President Nursultan Nazarbayev and Belarusian President Aleksandr Lukashenko has also stirred controversy, although this time not by Mr Putin.

It appeared to be a meeting of the heads of state of the Eurasian Economic Union members, except that the group’s newest member, Armenia, was missing.

This set off rumours that Armenia had grown increasingly disinterested in the Russia-led group since joining in January, especially given the context of the increasingly painful economic downturn.

Armenian President Serzh Sargsyan has had to step in and reassure both Russia and the general public that this was not the case. Instead, he said, the meeting just didn’t include Armenia.
ENDS

(News report from Issue No. 223, published on March 18 2015)

Kyrgyzstan and the EEU

FEB. 6 2015 (The Conway Bulletin) — Viktor Khristenko, chairman of the Kremlin-lead Eurasian Economic Union, said the final barriers to Kyrgyzstan’s entry to the group had been removed. He was talking to press after a meeting of the Eurasian Economic Union. Kyrgyzstan aims to join the EEU, which includes Belarus, Kazakhstan and Armenia, later this year.
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(News report from Issue No. 218, published on Feb. 11 2015)

Tajikistan is eyeing up EEU membership -Russia

>>Tajikistan is heavily linked to Russia economy>>

JAN. 23 2015 (The Conway Bulletin) — Tajikistan is actively considering applying for membership of the Russia-led Eurasian Economic Union, Belarusian news agency BelTA quoted Vasily Nebenzya, Russia’s deputy foreign minister, as saying at a meeting of the Russian parliament.

This is the first major statement this year that Tajikistan still intends to join the trade bloc. It’s also significant because it implies Russia wants Tajikistan in the club.

The Eurasian Economic Union came into existence at the start of the year, replacing the Customs Union. It’s a trade bloc although analysts have said that the Kremlin is looking to use it to promote its own political agenda.

Armenia joined the Eurasian Economic Union on Jan. 1. Kazakhstan and Belarus were already members and Kyrgyzstan is due to join later in the year.

“Tajikistan is also interested and is mulling over the prospects of joining the Eurasian integration processes,” BelTA quoted Mr Nebanzya as saying.

Tajikistan’s economy is closely linked to Russia. It relies on jobs in Russia for its workers, who send back remittances which make up roughly half the country’s GDP.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)

Karimov says Uzbekistan will never join EaEU

JAN. 12 2015 (The Conway Bulletin) — At the first session of the lower house of parliament after an election, Uzbek president Islam Karimov said Uzbekistan will never join a group that tries to recreate the USSR. Mr Karimov’s comments appear to be a reference to the Russia-led Eurasian Economic Union which includes Kazakhstan, Armenia and Belarus.

ENDS

(News report from Issue No. 214, published on Jan. 14 2015)

Armenia joins the Eurasian Economic Union

JAN. 1 2015, (The Conway Bulletin) — After a year long build up, Armenia joined the Russia-led Eurasian Economic Union (EaEU). The EaEU also includes Kazakhstan and Belarus. Kyrgyzstan will join in May. Critics of the project have said that it is a Kremlin power grab.

ENDS

(News report from Issue No. 213, published on Jan. 7 2015)

Kyrgyzstan to join Eurasian Economic Union

>>Membership to become political ahead of elections>>

DEC. 23 2014, (The Conway Bulletin) — Kyrgyzstan signed a deal that will make it the fifth member of the Eurasian Economic Union (EaEU) in May.

At a meeting in Moscow, Russian President Vladimir Putin said the union, which from Jan. 1 includes Belarus, Kazakhstan and Armenia as well as Russia, would benefit from Kyrgyzstan’s membership.

“All the participants of this integration process are already experiencing its real benefits,” media quoted Mr Putin as saying.

“We are convinced that Armenia and Kyrgyzstan’s membership in the Eurasian [Economic] Union meets the key national interests of both countries.”

Many analysts, though, and people on the streets of Bishkek questioned whether there would be any real economic benefit. Instead, they said that Kyrgyzstan had joined the Eurasian Economic Union for political rather than economic reasons.

Kyrgyzstan is, largely reliant on Russia for economic and military support, but its membership of the Eurasian Economic Union is likely to become a political issue later this year in the run up to its parliamentary election, scheduled for October.

In an interview with Russian state-linked newspaper Rossiskaya Gazeta before the official signing ceremony, Kyrgyz president Almazbek Atambayev waived aside concern.

“When making decisions, we guide solely by economic expediency,” he said.

“This step will revive our industry, strengthen security, open borders with neighbouring countries, improve the standard of living of the people. Entry into this union opens up new opportunities for economic development.”

ENDS

(News report from Issue No. 213, published on Jan. 7 2015)

Kyrgyzstan and the Eurasian Union

DEC. 8 2014 (The Conway Bulletin) – Alongside Armenia, Kyrgyzstan will finally join the Russia-led Eurasian Economic Union in 2015 despite few analysts deeming it ready or suited to full membership.

Bishkek will sign accession documents on Dec. 23, although it could be May before it adopts the protectionist taxes slapped on goods from outside the union, Kyrgyz PM Djoomart Otorbayev told journalists.

Eurasian Economic Union officials have even said they will allow Chinese goods “for domestic consumption” to enter Kyrgyzstan according to pre-existing Kyrgyz tariffs for an unspecified period of time, a concession that suggests other members view Kyrgyzstan’s membership as symbolic.

Kyrgyzstan first agreed in 2010 to enter a trade bloc with Russia, Belarus and Kazakhstan — the current members of the Customs Union which will morph into the Eurasian Economic Union next year — so it has been a long wait.

But Kyrgyzstan has an economy a tenth the size of Belarus’, an unresolved row over ownership of the Kumtor gold mine, its single largest industrial unit, and worries about rising inflation. This makes it a potential weak link.

Arkady Gladilov, editor of local analytical website polit.kg noted that Kyrgyzstan has had three prime ministers in the time it has been committed to joining the bloc. He said the government may have been dragging its feet over Eurasian Economic Union accession.

“Russia is facing a difficult time with sanctions, and Kyrgyzstan’s own picture is far from rosy. If I were them, I would probably do the same in their position,” he told the Conway Bulletin.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)

Kazakhstan plans correlating fuel prices

DEC. 9 2014 (The Conway Bulletin) – The Kazakh government plans to start regulating fuel against prices in neighbouring Russia, media reported. Kazakhstan imports a third of its fuel from Russia and has blamed price disparities and the downturn in the Russian economy for shortages.

ENDS

(News report from Issue No. 212, published on Dec. 10 2014)