On December 9, 2022, the Supreme Eurasian Economic Council of the Eurasian Economic Union (EEU) met in Bishkek, the capital of Kyrgyzstan. Prime Minister of Armenia Nikol Pashinyan, President of Belarus Aleksandr Lukashenko, President of Kazakhstan Kassym-Jomart Tokayev, President of Russia Vladimir Putin and President of Kyrgyzstan Sadir Caparov and Chairman of the Board of Eurasian Economic Commission Mihail Myasnikovic attended the summit.
At the meeting of the Supreme Eurasian Economic Council, integration issues in the Eurasian region were discussed and the activities of the EEU in 2022 were summarized. Also at this meeting, the leaders of the EEU decided to finance industrial cooperation. Myasnikovic described the decision in question as “a new page in Eurasian integration.”[1] According to Myasnikovic, more than 150 projects have been identified in twenty-five high-tech sectors.
EEU Heads of State signed a protocol amending the procedure for collecting VAT in electronic service provision. This agreement contributes to the development of a competitive environment and further economic integration in the field. It also clarifies the business world in the taxation of VAT related to services provided in the electronic environment within the EEU.
During the summit, the leaders discussed the funding sources and mechanisms of industrial cooperation projects in the EEU. In this context, Kremlin Spokesperson Dmitri Peskov made the following statement emphasizing the importance of the EEU for member states:[2]
“Every state naturally looks after its interests. The Eurasian integration platform also allows member states to satisfy these interests.”
In addition, the negotiation process was initiated for the signing of a free trade agreement between the EEA and the United Arab Emirates (UAE). The creation of a free trade zone with the UAE foresees the creation of conditions for the supply of more than 1,300 commodity products in industry and agriculture.
The importance of this multifaceted interaction is closely related to the high interest of many companies from the EEA in the UAE and its role as the international trade, transport, and logistics hub of this country. In addition, the agreement with the UAE is noteworthy in that it strengthens the position of EEU exporters in the countries of the Persian Gulf in the context of the Greater Eurasian Partnership and the North-South Corridor.
In addition, EEU countries; The Shangai Cooperation Organization (SCO) also aims to develop cooperation with other regional unions such as BRICS and ASEAN. Belarusian President Lukashenko, in his speech at the AEB Summit, stated that they respect these organizations and made the following sentences:[3]
“We are systematically expanding our business cooperation with our partners at a time when they are trying to divide and isolate us. Negotiations on free trade zones with Iran and Egypt have reached the final stage. We are about to start negotiations with Indonesia and Mongolia. The signing of such agreements, along with the economic benefits, demonstrates the futility of attempts by the collective West to suffocate us with sanctions.”
According to the President of Kazakhstan, Tokayev, who defines his foreign policy priorities as cooperation with Moscow, Beijing, and Central Asian capitals, should focus on issues like the EEU countries have priorities such as minimizing the impact of global inflation, strengthening international relations, ensuring the free passage of goods in the internal market of the union, and fully implementing the Eurasian integration strategy. In addition, Tokayev who is stated that Kazakhstan is very interested in deepening the integration within the EEU and intends to make every effort for this saying:[4]
“There is no slowdown in the integration processes of Kazakhstan. On the contrary, Kazakhstan makes every effort to improve and optimize the economic integration process, in line with the interests of all member states of the union, by the EEU Treaty, and of course, considering the national interests of our country.
In addition, after the meeting of the heads of state of the five countries, it was decided to establish a council consisting of the heads of the authorized bodies of the EEU countries in the energy sector. According to Russian President Putin, the Moscow administration supports the long-term supply of basic energy resources to national economies and the creation of a coordination structure that will deal with issues related to the establishment of the union’s common energy market. Reminding that Russia will preside over the EEU for the second time in 2023, Putin stated that Moscow would be interested in updating the strategic development guidelines during its term presidency.[5]
As a result, the issue of economic integration for the landlocked Central Asian states is important in terms of increasing their role in international trade. Steps such as improving the investment cooperation of the member states, creating favorable conditions for mutual investment, simplifying administrative procedures, and securing the rights of investors are expected from the EEU, the successor of the Customs Union and the international economic integration association. Central Asian states, as members of the economic bloc, also aim to increase their competitive advantage with third countries in the world market. Particularly, Central Asian states, which seek multilateral cooperation in an equal way and the interests of all parties, suggest that the union expand its foreign trade area every year and focus on third parties and partners with which preferential agreements are signed. Russia, on the other hand, seeks long-term cooperation.
[1] ““Новая страница в евразийской интеграции”. Лидеры ЕАЭС определились с промышленной кооперацией”, Belta, https://www.belta.by/economics/view/novaja-stranitsa-v-evrazijskoj-integratsii-lidery-eaes-opredelilis-s-promyshlennoj-kooperatsiej-539247-2022, (Date of Accession: 10.12.2022).
[2] “Эффективность ЕАЭС, торговля и промышленная кооперация. О чём говорили на заседании Евразийского экономического совета?”, CTV, https://ctv.by/effektivnost-eaes-torgovlya-i-promyshlennaya-kooperaciya-o-chyom-govorili-na-zasedanii-evraziyskogo, (Date of Accession: 10.12.2022).
[3] “Лукашенко призвал организовать совместный саммит ЕАЭС, ШОС и БРИКС”, Evraziya Expert, https://eurasia.expert/lukashenko-prizval-organizovat-sovmestnyy-sammit-eaes-shos-i-briks/, (Date of Accession: 10.12.2022).
[4] “Токаев заявил, что о приостановке интеграции с ЕАЭС Казахстаном «не может быть и речи»”, Evraziya Expert, https://eurasia.expert/tokaev-zayavil-chto-o-priostanovke-integratsii-s-eaes-kazakhstanom-ne-mozhet-byt-i-rechi-/, (Date of Accession: 10.12.2022).
[5] “Путин подвел итоги 2022 года для ЕАЭС”, Vedomosti, https://www.vedomosti.ru/politics/articles/2022/12/09/954627-putin-podvel-itogi, (Date of Accession: 10.12.2022).
