Russia, Belarus and Kazakhstan signed Eurasian Economic Union Treaty in Astana

May 30, 2014 17:17 IST

Russia, Belarus and Kazakhstan on 29 May 2014 signed a treaty to form the Eurasian Economic Union (EEU) also known as Eurasian Union (EaU). The treaty was signed by the leaders of three countries at a meeting of the Supreme Eurasian Council at Palace of Independence in Astana, Kazakhstan.

The leaders of three countries who signed the treaty are President Nursultan Nazarbayev of Kazakhstan, President Vladimir Putin of Russia and Alexander Lukashenko of Belarus


Main Highlights
• The EEU will come into effect on 1 January 2015 in case the treaty is approved by the Parliaments of each country.
• After coming into effect, the Union will create a market of 170 million people with a combined annual GDP of 2.7 trillion dollar and a quarter of the world energy resources.
• As per the treaty, the three countries will form common market with free movement of goods, services, capital and workforce.
• Further, these three countries will also conduct a coordinated policy in the energy sector, agriculture, industry and transport.
• The treaty is based on a contractual and legal basis of the Customs Union and the Common Economic Space which were brought in compliance with the World Trade Organisation (WTO) rules.
• EEU will be a full-fledged economic bloc and will work as a bridge between Asia and Europe and a counterweight to Western integration unions.  

The Genesis of EEU
For the first time, the idea was proposed by the Kazakh President Nursultan Nazarbayev in his speech at Lomonosov Moscow State University in March 1994. Drafting of the treaty began at the first summit on the Supreme Eurasian Economic Council in November 2011. Then the presidents of the three countries have adopted a declaration on Eurasian economic integration which became some kind of roadmap for development of integration co-operation.

Future Plans of the EEU
EEU community has planned to negotiate with Armenia and Kyrgyzstan to join the Union. According to Putin, the Union will also negotiate with Vietnam to create a free trade zone to strengthen cooperation with China. It is also intended to create expert groups on developing trade regimes with Israel and India.

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Comment
This step of establishment of EEU can be considered as an effort to re-integrate the post-Soviet states. But it seems that Ukraine will not be a part of the new bloc as Ukraine has opted in favour of integration with Europe. Previous refusal of signing an association with the European Union led to ousting of President Victor Yanukovych, leading to a major crisis and civil conflict in Ukraine.

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Read more Current Affairs on: Russia , Belarus , Kazakhstan , Eurasian Economic Union , Eurasian Union

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