Today, Nur-Sultan will host anniversary summit of the Eurasian Economic Union (EAEU). The meeting is timed to two dates - 25th anniversary of the idea of Eurasian integration, proposed by Nursultan Nazarbayev, and 5th anniversary of the signing of the EAEU Treaty. Yesterday, Kazakh President Kassym-Zhomart Tokayev signed a decree, awarding leaders of Russia, Belarus and Kyrgyzstan with the Order of the First President of the Republic of Kazakhstan, Leader of the Nation, Nursultan Nazarbayev.
The first president of Kazakhstan, Nursultan Nazarbayev, initiated the creation of the Eurasian Economic Union. He was the first leader to come up with the idea of reintegrating the CIS countries. In March of 1994, Nazarbayev gave a speech at the Moscow State University, proposing to create a new association - the Eurasian Union, in the framework of which supranational coordinating bodies should be created. In May of 2014, presidents of Kazakhstan, Russia and Belarus signed an agreement on the establishment of the EAEU. Later, Kyrgyzstan and Armenia joined the integration association. Tajikistan and Moldova also want to become members of the EAEU, especially since participation in the association provides great economic benefits for member states.
According to official data, the annual trade turnover between the participating countries of the EAEU is $35 billion. The trade volume within the EAEU grows by 30% annually. At the same time, the aggregate GDP of the member countries increased by 2% just in 2018. A united labor market was created. Despite the existing restrictions on a number of goods, intensity of commodity flow has increased. Union's institutions are working on a regular basis, which allow to implement unified norms.
In an interview with Vestnik Kavkaza, several experts highlighted pros and cons of the first five years of work of the integration association. Joining the EAEU was particularly beneficial for Armenia. Armenian political scientist Armen Khanbabyan said: “Five years ago, after Armenia’s ascension to the EAEU, a number of privileges were provided to the country. The main privilege was abolition of customs duties. That's why Armenia has basically become the main market for relatively cheap imported cars for the EAEU countries. It's noteworthy that Kazakhstan became the main consumer of these cars. However, this privilege expires on January 1, 2020. Armenia is preparing for increased customs duties and, accordingly, increased prices of basic goods and services," he said.
Kyrgyz political analyst Mars Sariev discussed pros and cons of Kyrgyzstan's ascension to the EAEU. "Pros undoubtedly include supply of Russian oil products to the republic at domestic prices. Transfers made by Kyrgyz migrants working in Russia amount to about $2 billion. This is a huge help for the Kyrgyz budget. It's also important to note benefits that Kyrgyz migrants received in Russia. Kyrgyz fruit and vegetable products are supplied to the Russian market more actively. There's increased supply of meat and dairy products. Finally, phytosanitary laboratories have started working and there are some expectations that Kyrgyz products will appear on the EAEU market much mor," Mars Sariyev told Vestnik Kavkaza.
In addition, despite all of that, expert said that the population of Kyrgyzstan is disappointed in the EAEU. “When we joined the Eurasian Union, then Prime Minister Temir Sariev promised many things, including better market for Kyrgyz goods, but customs barriers and trade wars became a hindrance. Kyrgyzstan survived thanks to counterfeit products. Today, famous Dordoi market is no longer working. Pro-Western forces are using this disappointment. If people of Kyrgyzstan were asked today to answer the question of whether you approve the country's ascension to the EAEU, the public opinion would be divided," he stressed.
"Kazakhstan is working as supplier of mineral raw materials in the framework of the EAEU. There's no increase in the share of agricultural and manufacturing products when it comes to exports," Zhanar Tulindinova, deputy director of the Eurasian Monitoring Center, told Vestnik Kavkaza. Among the existing problems, the expert also noted the absence of significant increase in mutual trade indicators, the lack of Kazakh exports, and the fact that Kazakhstan works as supplier of mineral raw materials in the framework of the EAEU. These problems are not connected with external factors, but are rather associated with domestic: export structure of Kazakhstan, the need to expand production and exports of the manufacturing industry, expand the range of products with focus on consumer goods — Nursultan Nazarbayev emphasized all of that in October of 2019.
Zhanar Tulindinova believes that it's possible to bring Eurasian integration to a new level of development by undertaking certain drastic measures. One of examples of such measure could be creation of single currency. However, this step is unacceptable for the national elites of the EAEU countries, since it involves delegation of a part of sovereignty to certain emission center, which implies political dependence.
