Sergey Glaziyev: “The future of the former Soviet republics is in the Eurasian Economic Union”

Interview by Vestnik Kavkaza

The economic situation in the North Caucasus and business relations between Russia and the South Caucasus countries have been associated recently with the tense situation in the Russian economy. Russian economist and politician, presidential aide Sergey Glaziyev told Vestnik Kavkaza about the prospects of development of various economic spheres in the North Caucasus and the development of economic relations with the South Caucasus.

-       What do you think about the prospects of economic development in the North Caucasus?

-       The North Caucasus is a very diverse region with different climatic and business opportunities. This diversity can create material results only in case of successful training of personnel. This is why I am certain that the key to successful development in the Caucasus is culture and education. The better and more modern an education the residents of the Caucasus can get, the quicker the economic development of the region will be. This concerns not only the tourist industry, which can solve the problem of unemployment in the region, but also high-tech production.

A good ecological situation may be used for the microbiological industry, electronics and nanotechnologies. No sphere should be dominant, economic policy should be manifold and based on the region's advantages.

-       What are the promising economic directions in the countries of the South Caucasus?

-       Right now we are trying to reestablish economic ties with Armenia, which is going to join the Customs Union and the Eurasian Economic Union. We are trying to establish a common economic space in order to enhance mutual cooperation, encourage the development of processing and high-tech industry. That is why we established the Customs Union and decided to destroy customs barriers. Cooperation with Armenia will be enhanced in the spheres of machinery construction, instrument-making and the atomic energy industry. These plans will be implemented in the framework of Armenia's integration into the Customs Union.

The Azerbaijani economy is based on oil production, which is the country's major advantage. The country's oil income is sufficient for the development of the social sphere, education and state institutions. In order to enhance our cooperation with Azerbaijan we should co-ordinate our policies in the oil and gas market.

Georgia's development was threatened by the Saakashvili regime. The country has been damaged within the last 20 years more than any other former Soviet republic. Georgia's GDP is lower than before the dissolution of the Soviet Union, even though the majority of the countries have already overcome this hardship. If Georgia returned to the common economic space and joined the Customs Union, the old ties would be re-established.

-       What economic ties exist at the moment?

-       These ties are broken. Now our manufacturers have to buy Georgian manganese from Ukrainians. Such examples are quite numerous. Georgian wine is delivered to Russia by middlemen. This is true for other fields as well.

I think that the only way to encourage economic growth for Georgia is to resume economic ties with Abkhazia and South Ossetia and to join the Customs Union of Russia, Kazakhstan and Belarus. Unfortunately, Georgia has decided to sign an association agreement with the EU.

-       Unfortunately for whom?

-       This will not encourage economic development, because the EU is not interested in Georgia's economic growth. The body simply wants to use the country in its struggle against Russia. The same is true for the US and Nato. The Americans invest in Georgia's law-enforcement agencies, but do nothing to support the economy. I believe that if Georgia eventually signs the agreement with the EU, it will leave no chance for successful economic development, because cooperation with the Eurasian Union will be impossible.