Russia lends Belarus: Moscow this week extended a 10-year $760m loan to Minsk as Belarus tries to meet $4bn in debt repayments in the middle of an economic slump. While Russia has been a traditional source of financial aid for Belarus, (more…)
EEU-China trade deal: The Russia-led Eurasian Economic Union (EEU) is starting negotiations on a trade deal with China and hopes to sign it off within two years, Russia’s First Deputy Prime Minister Igor Shuvalov has said while conceding that the talks would be “very difficult”. (more…)reuters Read More»
Single EEU currency: Kazakhstan’s President Nursultan Nazarbayev again ruled out the prospect of the Eurasian Economic Union adopting a single currency. “We depend on the rouble because Russia is our main trading partner,” he said this weekend. “After the collapse of the Soviet Union …we had no money for wages, because there was no tenge. We had a single currency then, but it is not on the agenda now.”AKIpress Read More»
Aktau seaport: Turkey wants to strengthen its ties and increase cooperation with Kazakhstan and its fellow EEU member states, its Economy Minister Nihat Zeybekci told his Astana counterpart Yerbolat Dossayev at a meeting this week. It would be particularly interested in getting involved in projects covered by Kazakhstan’s Nurly Zhol (Bright Path) national development program and in the modernisation of its Aktau seaport, which is set to become a major link in China’s One Belt One Road project.
Trade turnover between between the two countries totalled $1.2bn for the first seven months of the year.
Pakistan would consider importing oil and gas from Kazakhstan and would like to establish a free trade agreement with the Eurasian Economic Union, its Prime Minister Nawaz Sharif told Kazakh President Nursultan Nazarbayev during an official two-day visit to Astana this week. “[The Free Trade Agreement] will promote fruitful cooperation between the EEU and the Pakistani business community,” he said.AKIpress Read More»
EEU single drugs market: Officials from EEU member states are in the process of finalizing a package of more than 30 documents that will lay the groundwork for the creation of a single drugs and pharmaceutical market, its Chairman Viktor Khristenko said this week. The documents cover a number of issues including access for external suppliers, domestic production and distribution. “This is a huge market [both socially and economically].. and a top priority,” he said.NewsKaz Read More»
Belarus oil supply: In yet another indication that all is not necessarily plain sailing within the newly formed Eurasian Economic Union, Russia’s Energy Ministry Alexander Novak last week signalled that Russia was considering reducing crude oil supplies to Belarus after the volume of petroleum that its close ally is contracted to send back from its oil refineries fell by 300% year-on-year in the first quarter of 2015.
Minsk is justifying the drop in exports on the grounds that the devaluation of the rouble means that the price it can command for petroleum in Russia is now lower than the export parity price and that it is now commercially more logical for it to sell its petroleum elsewhere. Officials are citing a protocol that was signed last May which allows them to do just that.
For its part Russia, claims that Belarus is reneging on its commitments. “[We] have the right to cut volumes of oil stock supplied to the Republic of Belarus via pipelines in [any given] quarter if there is a shortfall in the delivery of motor fuel of more than 10% of the agreed delivery schedule” pursuant to the agreements,” Novak’s Ministry commented. A decision is to be taken by the end of June. Russia’s enforcement of the law will be considered in June 2015 when setting the schedule of oil delivery via cross-country pipelines outside Russia for the third quarter of 2015, the Ministry said.
EEU strategy: Leaders of the fledgling Eurasian Economic Union began fleshing out the new trading bloc’s long-term direction last week with the signing of a number of strategic documents at the meeting of the Eurasian Intergovernmental Council in the Kazakh town of Burabai.
The documents included (more…)
Kyrgyzstan EEU accession: President Almazbek Atambayev today signed off on a law that officially paves the way for the Kyrgyzstgan to join the Eurasian Economic Union. The law, which comes into immediate effect, will facilitate free trade with the other EEU members states of Russia, Belarus, Kazakhstan and Armenia. The EEU was set up in January to replace the old Customs Union and is intended to facilitate the free movement of goods, services, capital and labour.ITAR-TASS Read More»
In a sign that Armenia may be regretting joining the Russian-led Eurasian Economic Union, its government has entered into a Trade and Investment Framework Agreement (TIFA) with the US. Signed in Washington on May 7, the objective of the deal is to create “favourable conditions for investments and trade between the two countries”, and an Armenian-American Council of Trade and Investment will be set up to work on ways to implement the goals outlined in the pact. The US only accounted 4.6% of Armenia’s foreign trade last year, prompting some Armenian analysts to see this as a political move rather then an economic one; Russia currently controls large swathes of the country’s energy, telecommunications and mining sectors and Yerevan acknowledged its economic dependency on its giant neighbour by joining the Eurasian Economic Union (EEU) at the beginning of the year.eurasianet Read More»
The Eurasian Economic Union (EEU) has signed an MoU with China paving the way for joint infrastructure investment within the framework of the Chinese Silk Road Economic Belt project, Eurasian Economic Committee’s Minister of Trade Andrei Slepnev said today. The $7tr Silk Road Economic Belt (more…)rbth Read More»
Kyrgyzstan joins Eurasian Economic Union: At a meeting of the Supreme Eurasian Economic Council in Moscow yesterday, Kyrgyzstan’s President Almazbek Atambayev officially committed his country to membership of the Eurasian Economic Union. “I am convinced that the Eurasian Economic Union will be for the common good of our people,” he said. “The Union will strengthen stability in the Eurasian region and will provide forward movement across Eurasia.”Rosbalt Read More»
Chinese EEU tour: This Thursday, Chinese President Xi Jinping will begin a tour of the three founding member states of the Eurasian Economic Union with a visit to Astana where his plans to recreate the historic Silk Road trading route are expected to be on the agenda at a meeting with President Nazarbayev.
During the course of his travels, Jinping will discuss the development of deeper economic ties between China and the EEU in Moscow and Minsk as well as Astana and will promote the ‘ One Belt, One Road’ initiative, China’s ambition to create a modern Silk Road Economic Belt and a 21st Century Maritime Silk Road to extend its global influence.
Kazakhstan elections: The Kazakh people went to the polls today in snap elections called by the incumbent Nursultan Nazarbayev as he seeks to stem growing disillusionment with the country’s overall economic situation as well as with the newly-formed Eurasian Economic Union (EEU).
Russia, Belarus and Kazakhstan (more…)
Free Trade Zone between EU and EEU: Russia and the European Union should be looking to create a common economic space, the first step towards which would be the establishment of a Free Trade Zone between the EU and the newly formed Eurasian Economic Union (EEU). Speaking at the opening (more…)
Vietnam and EEU: The newly formed Eurasian Economic Union and Vietnam are close to agreeing a free trade deal Russia’s Prime Minister Dmitry Medvedev told journalists during the course of an official two -day trip to Hanoi. He also predicted that Russia’s annual trade with Vietnam could increase fourfold to $10 billion over the next five years, and confirmed that the two sides had agreed to expand oil and gas exploration in the South China Sea where Vietnam is embroiled with China. Vietnam ‘s willingness to reach out to Russia – and to historical enemies such as the US and Japan, is an attempt to counterbalance China’s growing influence in the region.The Moscow Times Read More»