Tag Archives: Eurasian Economic Union

Kyrgyzstan concerns over EaEU accession

BISHKEK/Kyrgyzstan, NOV 5 2014 (The Conway Bulletin) — It would seem to be a done deal. Despite parliamentary opposition from an unlikely cast of nationalists and liberals — as well as serious concerns on the street — Kyrgyzstan appears to be primed to join Russia, Kazakhstan, and Belarus in the Eurasian Economic Union in 2015.

And, of course, Armenia will accede on the same day.

But accession will be problematic for many Krygyz. The Customs Union, from which the Eurasian Economic Union will emerge, mandates higher tariffs on imports from third countries. China’s share of Kyrgyzstan’s import pie is 55%, dwarfing Russia and Kazakhstan’s combined share of 25%.

Prices for goods from cars to household items will go up significantly. Kyrgyz President Almazbek Atambayev has ceded that inflation is likely to jump in the short term after joining the Eurasian Economic Union.

Such price hikes would be hard to swallow anywhere; in a poor country like Kyrgyzstan, they will be punitive. Many people in Bishkek are afraid and everyone from taxi drivers to professionals, is quick to share their concerns.

One Bishkek-based foreign national in the NGO sector underscored this analysis. “Many fear that the lifeblood of Kyrgyzstan’s economy, cheap goods ranging from cars to shower curtains to raw materials imported from China, will either stop flowing due to newly-imposed tariffs or will dramatically rise in price,” he said, preferring to remain anonymous.

Of course, Russia and Kyrgyzstan are bound in many ways. As many as 500,000 Kyrgyz citizens work in Russia, and Russian news media is widely watched in Kyrgyzstan.

There are, of course, silver linings to Kyrgyzstan’s accession. Kyrgyz citizens working in other EEU countries will not need to register with the police for stays of less than 90 nights. Currently, a Kyrgyz citizen staying longer than five nights is compelled to register.

ENDS

(News report from Issue No. 207, published on Nov. 5 2014)

Inflation to rise in Kyrgyzstan

OCT. 27 2014 (The Conway Bulletin) – Kyrgyz president Almazbek Atambayev has said inflation will increase in Kyrgyzstan when it joins the Customs Union, which is morphing into the Eurasian Economic Union next year. He also said the country no alternative to joining the Russia-led economic bloc, highlighting the Kremlin’s tightened grip over Kyrgyzstan.

ENDS

(News report from Issue No. 206, published on Oct. 29 2014)

Armenia signed EaEU deal

OCT. 10 2014 (The Conway Bulletin) – As expected, Armenia signed a deal in Minsk with Russia, Belarus and Kazakhstan to join the Eurasian Economic Union. The Eurasian Economic Union will come into effect from Jan. 1 as the successor of the Customs Union. The Kremlin sees the Eurasian Economic Union as a counterbalance to the EU.

ENDS

(News report from Issue No. 204, published on Oct. 15 2014)

Russia’s PM visits Armenia

OCT. 8 2014 (The Conway Bulletin) – Russian PM Dmitri Medvedev visited Armenia two days before it officially signed up to become the fourth member of the Russia-led Customs Union/Eurasian Economic Union. Mr Medvedev was visiting an agriculture exhibition in Yerevan but, more importantly, his visit will be seen as another show of support for Armenia.

ENDS

(News report from Issue No. 204, published on Oct. 15 2014)

Opposition protest in Yerevan

OCT. 10 2014 (The Conway Bulletin) – An estimated 10,000 people rallied against Armenia’s government in central Yerevan, media reported, the biggest protest since a presidential election last year.

Opposition rallies, calling for the government to resign, are relatively commonplace in Yerevan. The issue is whether they turn violent or grow so large that the government has to react to them.

In 2008, eight people died in clashes between the security forces and demonstrators after elections.

The protest in Yerevan was the culmination of severally carefully choreographed anti-government demonstrations around the country.

And the protagonists were the same. Former president Levon Ter-Petrosian, a canny opponent for current president Serzh Sargsyan, addressed the crowd. He is credited with whipping up the anger that led to the clashes in 2008.

The protesters actual demand are hard to decipher. They, broadly, want their lives improved and the economy strengthen. No easy task for the government which is having to navigate the country through a tricky economic environment.

What is different now is the opposition’s cry that moving into Russia’s Eurasian Economic Union and away from the European Union is partly to blame for the general malaise. If the opposition can harness this, they may make more headway.

ENDS

(News report from Issue No. 204, published on Oct. 15 2014)

Kyrgyzstan wants to export meat to Russia

OCT. 14 2014 (The Conway Bulletin) – As part of Kyrgyzstan’s move towards membership of the Russia-led Customs Union, it has started preparing to export processed meat to Russia, media reported.

This is, potentially, significant as it shows just how the Customs Union, which turns into the Eurasian Economic Union, can help the poorer parts of the former Soviet Union.

It also shows how Russia is looking to its neighbours and allies for economic support to help it cope with the sanctions that the West has thrown over it.

Armenian cheese producers, for example, have said that they could export more cheese to Russia to make up for the shortfall of from France and other parts of the European Union.

Now the Kyrgyz news website 24.kg has quoted the agriculture minister as saying that he had spoken to his Russian counterpart and asked for guidance on bringing the meat processing industry in Kyrgyzstan up to standard for imports to Russia.

“Until now, the export of this product is prohibited. We asked about test batches in order for our businesses to start to explore the markets of Russia in anticipation of entering the Customs Union,” he said.

“The Minister gave a positive response and concluded a verbal agreement.”

Kyrgyzstan intends to join the Eurasian Economic Union, which also includes Belarus and Kazakhstan, next year. Armenia has also agreed to join the bloc.

ENDS

(News report from Issue No. 204, published on Oct. 15 2014)

Kyrgyzstan readies for Customs Union

OCT. 2 2014 (The Conway Bulletin) – Kyrgyzstan’s parliament passed a raft of economic reforms that paved the way for its accession into the Russia-led Customs Union. Kyrgyzstan wants to join the Customs Union by the end of this year. The Customs Union will morph into the Eurasian Economic Union at the start of 2015.

ENDS

(News report from Issue No. 203, published on Oct. 8 2014)

Armenia to join Eurasian Union

OCT. 3 2014 (The Conway Bulletin) – Armenia’s government approved a draft treaty for joining the Russia-led Eurasian Economic Union, media reported.

The treaty should be signed by Russia, Kazakhstan and Belarus at the end of summit this week in Minsk, paving the way for Armenia to join the group by the end of the year.

This is a critical moment in modern Armenian history. Armenia has been pulling away from the EU. By making the final jump into the Eurasian Economic Union, or Customs Union as it is currently known, Armenia will be confirming its pro-Russia allegiance.

The Eurasian Economic Union is mainly an economic union although it brings with it a more pro-Russia general alliance. And with Russia’s involvement in Ukraine that is, currently, a controversial stance.

But Armenia sees itself as having few options. It is surrounded by enemies and needs Russian support to bolster both its economy and military.

Leonid Slutsky, the chairman of the Russian parliament’s committee on Eurasian integration, was candid in on the merits of an enlarged Eurasian Economic Union.

“The Eurasian Economic Union will be a powerful regional economic union, which will inevitably expand,” he said according to the ITAR-Tass news agency. “Apart from completely new regional economic architecture, the EEU will certainly become a powerful barrier on the way of those who are today trying to build unipolar world.”

ENDS

(News report from Issue No. 203, published on Oct. 8 2014)

Kazakh president question the Eurasian Economic Union

AUG. 30 2014 (The Conway Bulletin) – The Eurasian Economic Union (EaEU) is still a few months from coming into existence and yet Kazakh President Nursultan Nazarbayev is already threatening to quit the Russia-led alliance.

In an interview with a local TV station, Mr Nazarbayev said he wouldn’t be afraid of quitting the EaEU if the group was damaging the national interests.

“Our independence for which our forefathers fought is our greatest asset,” he said. “First, we will never sacrifice our independence. Second, we will do everything to defend it.”

Mr Nazarbayev’s comments are important as they come against the backdrop of fighting in Ukraine, where Russia is accused of supporting pro-separatist forces. Kazakh officials have become increasingly nervous that the Russia dominated north of the country may look to secede with Russia’s support.

Although economics and business interests weren’t mentioned by My Nazarbayev, there was also a clear underlying message.

Kazakhstan’s increased association with Russia has hurt it economically. Russia’s economy is so important for Central Asia that if it is impinged, this economic malaise is felt further down the chain.

The Eurasian Economic Union will come into place in 2015 and will be a direct descendent of the current Customs Union. Russia, Kazakhstan and Belarus are members Customs Union. Kyrgyzstan and of the Armenia plan to join the group in the next few months.

ENDS

(News report from Issue No. 198, published on Sept. 3 2014)

Relations mended ahead of Kyrgyz CU membership

JULY 28 2014 (The Conway Bulletin) – Kazakh officials travelled to Bishkek to patch up their differences before Kyrgyzstan’s expected entry into the Customs Union of Belarus, Kazakhstan and Russia in 2015.

The meeting, attended by Kazakh deputy PM Bakitzhan Sagyntayev and Kyrgyz PM Djoomart Otorbayev ended positively with Kazakhstan pledging up to $200m in grants for Kyrgyzstan’s entry into the Union and discussing a possible electricity-for-water swap this winter.

But relations between the two sides have been unusually thorny in recent months.

Since April 14, Kazakh Customs Officials have been holding up wagons carrying petrol from the Russian energy giant Rosneft to Kyrgyzstan. Kazakh officials say they are simply complying with a government ruling banning all petrol exports from Kazakhstan. Kyrgyz officials have said that they are being obtuse.

Kazakh and Russian firms are expected to further dominate Kyrgyzstan’s domestic economy when Bishkek becomes a member of the Customs Union, which is morphing into the Eurasia Economic Union, either at the end of this year or the start of next year.

The Customs Union/Eurasian Economic Union will harmonise trade customs procedures and increase tariffs against non-members such as China. This all increases Kyrgyzstan’s reliance on Kazakhstan, making this week’s meeting even more important.

ENDS

(News report from Issue No. 193, published on July 30 2014)