WORLD
Problems of Customs Union partners unlikely to pose risks for Eurasian Economic Union
Baku, December 22 AZERTAC
The Russian ruble’s steep fall against the currencies of Moscow’s other partners in the Customs Union and the current trade disagreements between Belarus and Russia may spill over into the Eurasian Economic Union, which is to officially emerge on January 1, 2015 on the basis of the Customs Union to incorporate Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan.
On the eve of a meeting of the Supreme Eurasian Economic Council in Moscow, due on Tuesday, Belarussian President Alexander Lukashenko and his Kazakh counterpart Nursultan Nazarbayev mentioned that in their view there were certain risks facing the EEU. However, Russian analysts believe it is highly improbable the integration process will be either disrupted or slowed down.
Kazakhastan's President Nursultan Nazarbayev said: “The Eurasian Union today is exposed to a major risk. I will be frank - the crises are the reason.” He explained that the devaluation of the Russian ruble made Russian manufacturers far more competitive on the open Customs Union market. In a situation like this the EEU member-states will have to choose between counter-devaluation and protection of their markets, while the EEU’s anti-protectionist nature and the Union’s previously adopted agreements make it rather hard to achieve.
“We should not be so careless as to ruin this association we have established over so many years,” Belarusian President Alexander Lukashenko said on Friday. “The three of us worked really hard to make the union due to emerge on January 1 possible, and it would be a great disgrace if we ruined it with our own hands.”
The outside shock hit Russia in the first place. But, given its tight relationship with Belarus and Kazakhstan, Pukhov believes that devaluation of national currencies in these two countries will be possible, too. In Belarus, the chances of this are higher and it may happen soon. In Kazakhstan the degree of devaluation will be smaller.