Eurasian Economic Union

What Is The Eurasian Economic Union (EEU)?

The Eurasian Economic Union (EEU) is an international economic union established in January 2015. It aims to provide a common economic space for all its member countries. The EEU’s free trade zone includes countries from Central and Northern Asia, as well as Eastern Europe.

The EEU seeks to accomplish its goals by integrating economic policies, removing non-tariff trade barriers, unifying laws, and upgrading the financial systems of its member states. To function, the union employs intergovernmental and supranational structures. The Eurasian Economic Commission, the Union’s executive body, is in charge of carrying out the daily affairs of the EEU.

Eurasian Economic Union Explained

The Eurasian Economic Union (EEU) is an international trading union founded in January 2015. This initiative aimed to unite the member countries into a new, united economic system and establish a common economic area under a single customs association. 

The Union provides a structure for unity, which involves establishing a common marketplace with no internal barriers. It includes aligning different domestic policies, removing non-tariff barriers, and setting up shared markets in the power, manufacturing, and agricultural industries. 

The leaders of Russia, Belarus, and Kazakhstan signed the EEU treaty in May 2014. It specified that the internal customs regulations, tariffs, and non-tariff barriers are not applicable when conducting business between the member nations. The Eurasian leaders have proclaimed the EEU as a counterpart for comprehensive unification similar to that of the EU.

History

The Eurasian Economic Union history started when Russia and the Central Asian republics witnessed financial distress and declining GDP in the 1990s following the fall of the Soviet Union. The union’s member states faced privatization and financial reforms. As soon as the Soviet Union broke up, the Eurasian integration initiative started taking place. As the USSR started to collapse, the presidents of the founding republics of Belarus, Kazakhstan, and Russia signed the Belavezha Accords on December 8, 1991. They announced the end of the Soviet Union and the formation of the Commonwealth of Independent States in its place.

In a 1994 speech at Moscow State University, Nursultan Nazarbayev, the first president of Kazakhstan, proposed the creation of a regional trade union known as the “Eurasian Union.” The union would help integrate with and benefit from the developing economies of East Asia and Europe. The union’s goal was to facilitate the free flow of commodities all over Eurasia. The proposal was considered an effective way to promote the Eastern Partnership and increase trade and investment in Central Asia, Armenia, and Belarus.

Goals

The EEU’s primary goals are to enhance the member nations’ financial competitiveness and collaboration. Additionally, it aims to encourage steady growth in order to improve living standards across all member countries. The EEU enables the free transfer of products and services, workforce, and funds between its member nations. It also seeks to establish standard regulations in the world of macroeconomics, transportation, agriculture and industry, power, international trade and investment, customs, technological regulations, competition, and antitrust legislation.

Member States

Three nations that were formerly members of the Soviet Union, Belarus, Kazakhstan, and Russia, initially signed the treaty that created the EEU.

The five Eurasian Economic Union member states are mentioned below:

• Russia
• Kazakhstan
• Kyrgyzstan
• Belarus
• Armenia

Significance

The significance of EEU is as follows:

• Since the EEU generates over 20% of the natural gas produced worldwide, it is regarded as an energy superpower.
• By 2025, Russia, Belarus, Armenia, and Kazakhstan want to establish an integrated electricity market and a unified hydrocarbon market.
• 9% of the electrical energy produced worldwide comes from the EEU.
• It generates 5.9% of the global production of coal.
• It is the world’s largest producer of sunflower and sugar beets.
• The EEU is responsible for ensuring collective food security and coordinating agricultural policy-making among its member nations. Additionally, the member countries receive subsidies for agriculture.
• By 2025, the EEU had proposed creating a common currency known as the “altyn.”

European Union And Eurasian Economic Union

The EEU was created with the aim of functioning as the EU’s Eurasian counterpart and prospective partner. Russia has positioned the EEU as an EU partner in an expected free-trade zone that would extend from Lisbon to Vladivostok. Moreover, many of EEU’s organizations and structures are based on that of the EU. In European countries, there had been an immense amount of support for the EEU. It was anticipated that Russia would become a more stable and cooperative neighbor by pursuing trade liberalization through an intercontinental alliance.

Especially in Germany, the EEU was seen as an initiative that would increase connection and trade between Europe and Russia. Even after Russia annexed Crimea in 2014, there was support for an EU and EEU trade deal to reduce conflicts and bring Russia into positive discussions about European security.

Frequently Asked Questions (FAQs)

Frequently Asked Questions

What is the language of the Eurasian Economic Union?

<p>The official working language of the EAEU is Russian.</p>

What is the GDP of the Eurasian Economic Union?

The EEU Commission’s Minister in charge of Integration and Macroeconomics, Sergei Glazyev, highlighted that the EEU GDP grew to 3.7% overall at the end of 2023, which is greater than the average worldwide rate. In addition, Kyrgyzstan and Armenia emerged as developing leaders.

Is the Eurasian Economic Union a customs union?

The Customs Union and the Common Economic Space of Russia, Kazakhstan, and Belarus serve as the foundation for the EEU. The Customs Union was established in January 2010, and in December 2011, a decision was made about implementing the international treaties that constitute the Common Economic Space.

What is the regulation of the Eurasian Economic Union?

The EEU’s technical regulation is a document adopted by the Eurasian Economic Commission. It specifies the legally enforceable rules on the Union’s territory for technical regulation subjects. The EEU adopts technical regulations to ensure the fulfillment of safety goals. The Commission has authorized the processes for the drafting, adoption, amendment, and revocation of the Union’s technical regulations.