Tag Archives: Eurasian Economic Union

Kazakhstan bans Russian poultry

APRIL 30 2015 (The Conway Bulletin) – Kazakhstan banned poultry products from Russia after the Russian ministry of agriculture identified an outbreak of Bird Flu on the Caspian Sea near the Kazakh border.

Some analysts and media pundits, though, said Kazakhstan’s speedy ban on poultry goods from Russia was an escalation of a trade war.

Although both Kazakhstan and Russia are members of the Eurasian Economic Union, a Kremlin-led club supposed to smooth trade in the region, the fall in the value of the Russian rouble has increased tension. Businesses in Kazakhstan have been lobbying the government to impose barriers against the now far-cheaper goods from Russia.

It has banned oil-product imports as well as butter, chocolate, sweets and mayonnaise to defend jobs and companies. In retaliation, Russia has banned flour and dairy products from Kazakhstan.

Both governments have denied they are involved in a trade war and have instead insisted that various bans have been triggered by health concerns.

ENDS

(News report from Issue No. 230, published on May 6 2015)

Russia pressured Armenia to join EEU, says parliament

APRIL 1 2015 (The Conway Bulletin) – Russia used its control of gas supplies to Armenia to pressure the government into joining its Eurasian Economic Union, a parliamentary inquiry has said.

The inquiry said Russia increased gas prices to Armenia until it agreed to join the Eurasian Economic Union in 2013.

The findings are strong evidence that Russia uses its economic leverage over Central Asia and the South Caucasus for political gain.

Also in the past week, Russia approved a $1 billion development fund for Kyrgyzstan. This, again, appears linked to Kyrgyzstan’s entry to the Eurasian Economic Union later this year.

The West has long said the Kremlin’s aim in the region is to coerce governments into doing its bidding.

In Armenia and Kyrgyzstan, it has found vulnerable partners. Both are relatively poor with few natural resources. They both host Russian military bases and are reliant on Russian business and remittances from workers living in Russia for growth.

Importantly too, Gazprom owns the gas pipeline network in both Armenia and Kyrgyzstan. This has often been the choke point. Controlling a country’s gas supply gives Russia huge power.

There is one other major similarity between Armenia and Kyrgyzstan regarding membership of the Eurasian Economic Union. Bulletin correspondents in both countries report that most ordinary people, and also many of the politicians, don’t really want to join the group. Instead, they feel compelled to.

Belarus and Kazakhstan, both far larger economies, are also members of the EEU.
ENDS

(News report from Issue No. 225, published on April 12015)

Russia creates fund for Kyrgzstan

MARCH 27 2015 (The Conway Bulletin) – Russia has approved a law that will create a Russia-Kyrgyzstan development fund worth $1b, media reported. Kyrgyzstan has agreed to join the Kremlin-led Eurasian Economic Union later this year and it is likely that the fund’s creation was linked to Kyrgyz membership of the group.
ENDS

(News report from Issue No. 225, published on April 12015)

Russia gives Armenia $47m sweetner

MARCH 25 2015 (The Conway Bulletin) – Russia will give Armenia $47m as a sweetener for joining the Kremlin-led Eurasian Economic Union (EEU), media reported. Armenia joined the EEU on Jan. 1 but has yet to fully embrace it. Armenia’s president, Serzh Saargsyan, ducked out of a meeting of EEU heads of state last week.
ENDS

(News report from Issue No. 224, published on March 25 2015)

Putin clears Kyrgyzstan for Eurasian Union accession

MARCH 24 2015 (The Conway Bulletin) – Russian president Vladimir Putin signed a protocol that officially cleared Kyrgyzstan’s accession to the Eurasian Economic Union (EEU) later this year, Russian media reported. Russia, Kazakhstan, Belarus and Armenia are already members of the EEU.
ENDS

(News report from Issue No. 224, published on March 25 2015)

Divisions grow in Eurasian Economic Union

MARCH 20 2015 (The Conway Bulletin) – The Kremlin-led Eurasian Economic Union’s (EEU) first year is shaping up to be one to forget.

A sharp devaluation in the value of the rouble, triggered by Western sanctions and falling oil prices, and meddling in Ukraine’s civil war have hit Russia’s credibility among its former Soviet partners. After a meeting in Astana, Kazakh President Nursultan Nazarbayev appeared to distance himself from the Kremlin.

Mr Nazarbayev hosted Russian President Vladimir Putin and Belarusian President Aleksandr Lukashenko at the meeting. Armenia, the fourth member of the EEU, didn’t attend.

Mr Nazarbayev appeared to suggest that Mr Putin’s alleged support for rebels in eastern Ukraine had gone too far.

“It is important for any decisions that get made to rely on fundamental principles of international law. We are interested in Ukraine staying a stable, independent, territorially integral country,” he said.

Apparent tension at the meeting in Astana between the leaders wasn’t contained to Ukraine.

Mr Putin once again brought up the prospect of a single currency throughout the Eurasian Economic Union, something that Mr Nazarbayev has already ruled out.

“The time has come to start thinking about forming a currency union,” news reports quoted Mr Putin as saying. Mr Putin also suggested a Central Bank for the single currency could be based in Almaty.
ENDS

(News report from Issue No. 224, published on March 25 2015)

Sargsyan skips EEU meeting

MARCH 13 2015 (The Bulletin) – Unnerving its three partners, Armenia’s President Serzh Sargsyan said he would skip a meeting of the Kremlin-led Eurasian Economic Union (EEU) in Astana on March 20, media reported.

His absence from the meeting has triggered questions about Armenia’s commitment to the project which it has only just joined.

The meeting between President Vladimir Putin of Russia, President Nursultan Nazarbayev of Kazakhstan and President Aleksandr Lukashenko of Belarus is billed as an important one to navigate out of the financial crisis.

It had been postponed from March 13 to March 20. Kazakh officials initially said Mr Putin was too unwell to attend.

But Armenia — the fourth member of the economic group — has chosen not to attend. Armenia only joined the EEU, which morphed out of the Customs Union, on Jan. 1.

It has always been considered a supporter of Russia which it relies upon for economic and military support.

Armenia’s government didn’t explain why Mr Sargsyan would not fly to Astana for the meeting. Instead a senior official said the meeting had been organised to sort out problems which did not concern Armenia.

Perhaps, but it has created noise around Armenia’s potential unhappiness around the state of the region’s finances so much so that the Kremlin was bounced into releasing a press statement which said that Mr Putin and Mr Sargsyan had shared a telephone conversation during which the Russian leader had been reassured of Armenia’s good intentions.
ENDS

(News report from Issue No. 223, published on March 18 2015)

Putin to head to Astana summit

MARCH 18 2015 (The Conway Bulletin) – Russian President Vladimir Putin is heading to Central Asia for his first overseas trip since re-emerging into public view.

He is due to fly to Astana for a summit with his Kazakh and Belarusian counterparts on March 20.

The meeting was postponed from March 13. Kazakh officials at first said that the meeting had been delayed because Mr Putin was ill. Russian officials denied this, keeping people guessing on just why he cancelled several appointments and disappeared for a few days without explanation.

And Central Asia has played a prominent role in the episode. Mr Putin used a brief video with visiting Kyrgyz President Almazbek Atambayev on March 16 to show the world that he was not hiding. He previous public appearance had been on March 5.

The summit with Kazakh President Nursultan Nazarbayev and Belarusian President Aleksandr Lukashenko has also stirred controversy, although this time not by Mr Putin.

It appeared to be a meeting of the heads of state of the Eurasian Economic Union members, except that the group’s newest member, Armenia, was missing.

This set off rumours that Armenia had grown increasingly disinterested in the Russia-led group since joining in January, especially given the context of the increasingly painful economic downturn.

Armenian President Serzh Sargsyan has had to step in and reassure both Russia and the general public that this was not the case. Instead, he said, the meeting just didn’t include Armenia.
ENDS

(News report from Issue No. 223, published on March 18 2015)

Kyrgyzstan and the EEU

FEB. 6 2015 (The Conway Bulletin) — Viktor Khristenko, chairman of the Kremlin-lead Eurasian Economic Union, said the final barriers to Kyrgyzstan’s entry to the group had been removed. He was talking to press after a meeting of the Eurasian Economic Union. Kyrgyzstan aims to join the EEU, which includes Belarus, Kazakhstan and Armenia, later this year.
ENDS

(News report from Issue No. 218, published on Feb. 11 2015)

Tajikistan is eyeing up EEU membership -Russia

>>Tajikistan is heavily linked to Russia economy>>

JAN. 23 2015 (The Conway Bulletin) — Tajikistan is actively considering applying for membership of the Russia-led Eurasian Economic Union, Belarusian news agency BelTA quoted Vasily Nebenzya, Russia’s deputy foreign minister, as saying at a meeting of the Russian parliament.

This is the first major statement this year that Tajikistan still intends to join the trade bloc. It’s also significant because it implies Russia wants Tajikistan in the club.

The Eurasian Economic Union came into existence at the start of the year, replacing the Customs Union. It’s a trade bloc although analysts have said that the Kremlin is looking to use it to promote its own political agenda.

Armenia joined the Eurasian Economic Union on Jan. 1. Kazakhstan and Belarus were already members and Kyrgyzstan is due to join later in the year.

“Tajikistan is also interested and is mulling over the prospects of joining the Eurasian integration processes,” BelTA quoted Mr Nebanzya as saying.

Tajikistan’s economy is closely linked to Russia. It relies on jobs in Russia for its workers, who send back remittances which make up roughly half the country’s GDP.
ENDS

(News report from Issue No. 216, published on Jan. 28 2015)