The Eurasian Economic Union is an international organization for regional economic integration that has international legal personality and was established by the Treaty on the Eurasian Economic Union. The EAEU ensures freedom of movement of goods, services, capital and labor, as well as the implementation of a coordinated, coordinated or unified policy in sectors of the economy.
The member states of the Eurasian Economic Union are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and Russian Federation.
The EAEU was created for the purpose of comprehensive modernization, cooperation and increasing the competitiveness of national economies and creating conditions for stable development in the interests of increasing standard of living population of the member states.
The EAEU Customs Union is a form of trade and economic integration of the participating countries, providing for a single customs territory within which customs duties and economic restrictions are not applied in mutual trade in goods, with the exception of special protective, anti-dumping and countervailing measures. At the same time, member countries of the Customs Union apply uniform customs tariffs and other regulatory measures when trading with third countries.
The single customs territory of the Customs Union consists of the territories of the member countries of the Customs Union, as well as artificial islands, installations, structures and other objects over which the member states of the Customs Union have exclusive jurisdiction.
Member countries of the Customs Union:
Officials of the member states of the Customs Union have repeatedly stated that they view this organization as open to the entry of other countries. Negotiations are already underway with some countries to join the Customs Union, so it is likely that the territory of the Customs Union will soon be significantly expanded.
Technical regulation is one of the key elements of integration of the member states of the Customs Union.
The mechanisms contained in technical regulation make it possible to eliminate numerous, in many cases artificially created, technical barriers to trade, which are a serious problem for business. This is helped by the legal framework created over several recent years, including thanks to the efforts of specialists from the Eurasian Economic Commission.
Within the framework of the Customs Union and the Eurasian Economic Community, the following main international agreements have been adopted to date, designed to simplify the movement of goods on the territory of the participating states:
You can obtain detailed information about technical regulation in the EAEU Customs Union from a special brochure prepared by specialists of the Eurasian Economic Commission:
Brochure of the Eurasian Economic Commission (PDF, 3.4 MB)
The Customs Union (CU) is an official association based on the agreement of the participating countries on the abolition of customs borders between them, and accordingly the abolition of duties. Also, the basis for the functioning of the union is the use of a single tariff for all other states. As a result, the Customs Union has created a huge single customs territory, within which goods are moved without the expense of crossing customs borders.
Although the Customs Union was legally created in 2010, it actually began to work only on July 1, 2011, when acts on the creation of a single customs territory came into force in the participating countries, and all control and regulatory bodies were created and began to operate. On this moment The CU members are five states - Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan. Several other countries are official candidates to join the organization or are considering doing so.
The Russian Federation is the initiator and basis of the CU. This country has the most powerful economy among all participating countries, and within the Union it has the opportunity to increase the competitiveness of its goods within the common market, which, according to experts, will give it additional profits in less than 10 years, totaling $400 billion.
For Kazakhstan, participation in the Customs Union is primarily good because it allows it to enter an association that provides a total of up to 16% of world grain exports. Working in the same field, Kazakhstan and Russia had the opportunity to significantly influence the world grain market, changing its conditions in their favor. In addition, the rapidly developing agricultural industry of Kazakhstan in this way managed to significantly strengthen its position in the Russian Federation and other countries of the association.
For Belarus, which has long been partially integrated with Russia into a single customs and economic field, participation in the Customs Union made it possible to expand the geography of preferential supplies of its products to several more countries, and also increased the influx of investments, in particular from Kazakhstan. According to experts, participation in the Customs Union annually brings Belarus up to $2 billion in additional profit.
These countries have recently become members of the Customs Union. Their involvement made it possible to further strengthen the association’s position in the global energy market. These same countries have received preferential access to markets, the total volume of which significantly exceeds their economic capabilities, so they are predicted to accelerate GDP growth and the general well-being of the population.
In general, the Customs Union is considered as a mutually beneficial economic partnership of geographically and mentally close countries that have equal rights and opportunities within the framework of the association. Considering the prospects for the accession of new members, we can expect that in the near future the CU will become an even more powerful and influential economic bloc.
Eurasian Union is an integration project in the Eurasian space, the goal of which is the economic and political rapprochement of post-Soviet countries (at the same time, this association could potentially attract many other Eurasian countries outside the former USSR). To date Eurasian integration implemented in the form of a number of alliances different levels, the most important of which are the EAEU Customs Union and the Eurasian Economic Union.
On May 29, 2014, a more advanced form of integration was created on the basis of the Customs Union and the Common Economic Space - Eurasian Economic Union (EAEU, EurAsEC), which began its work on January 1, 2015. The Chairman of the EAEU in 2015 was Belarus, and in 2016 - Kazakhstan.
At the EAEU level, a common market of 183 million people was formed. Allied states- Kazakhstan, Russia and Belarus, as well as Armenia and Kyrgyzstan - pledged to guarantee the free movement of goods and services, capital and labor, as well as to implement a coordinated policy in energy, industry, agriculture, and transport.
In ancient times, on the territory of Eurasia in the areas of what is now Central and Central Asia, Southern Siberia, Black Sea region, Caucasus and South European Russia There were large state formations of a number of nations. It is in this Eurasian area that, according to the most common hypotheses, the historical ancestral homelands of the Indo-Europeans are located (the Indo-European peoples include the Slavs, Armenians, Ossetians, Tajiks, etc.), the Turks (Kazakhs, Kyrgyz, Tatars, Uzbeks, etc.) and Finno-Ugric peoples ( Karelians, Mordvins, Udmurts, Mari, Komi, etc.). In the space of Eurasia, the Scythians, Sarmatians, Huns, Turks, Khazars, and Mongols created their own empire states.
Since the 16th century, Russia has become the largest state in the Eurasian space (in the 20th century - the Soviet Union). With the arrival of Russia in Eurasia, it became possible to unite this most important geopolitical region on the basis of agriculture and industrial production, while the Eurasian traditions of pastoralism and nomadic farming were largely preserved. The disintegration of the USSR in the 1990s disrupted the built economic ties, which led to a deep and long-term socio-economic crisis, from which some post-Soviet states have not yet emerged. It is very typical that the collapse Soviet Union V to the greatest extent Kazakhstan and some other Asian republics opposed the USSR.
The initiator of Eurasian reintegration can rightfully be considered the President of Kazakhstan Nursultan Nazarbayev, who in March 1994 presented the project of the Eurasian Union, which at the first stage was to include Russia, Kazakhstan, Belarus, Kyrgyzstan, and Tajikistan. However, at that time destructive political processes in the post-Soviet space were still too strong, and full integration had to be postponed. Nevertheless, the unification process began. In 1995, the leaders of Kazakhstan, Russia, Belarus, and a little later Kyrgyzstan, Uzbekistan and Tajikistan signed the first agreement on plans to create a customs union.
Full-fledged Eurasian integration became possible with the coming to power in Russia of Vladimir Putin, who supported the ideas of Nursultan Nazarbayev; they were also supported by the President of Belarus Alexander Lukashenko (by January 26, 2000, the Union State of Russia and Belarus was created as a special integration association).
On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed an agreement on the creation of the Eurasian Economic Union (EAEU), which will come into force on January 1, 2015. On October 10, 2014, Armenia joined the union (accession agreements were signed), and on December 24, 2014, Kyrgyzstan joined (accession agreements were also signed).
Thus, at the moment, the formation of a common market of 183 million people has been completed, integration is increasing compared to integration at the level of the Customs Union. The union states undertake to guarantee the free movement of goods and services, capital and labor, as well as to implement coordinated policies in key sectors of the economy: energy, industry, agriculture, transport.
Other potential participants
On July 21, 2015, Syria announced its desire to join the EAEU. On August 11, 2016, Tunisia also announced a similar intention through its ambassador to the Russian Federation.
On January 1, 2012, the Common Economic Space of Russia, Belarus and Kazakhstan was created, which at that time became the closest form of integration of these countries. Key points of the agreements on the SES came into force in July 2012. The Customs Union is part of the agreements on the SES.
The SES is designed to ensure freedom of movement of goods, capital, services and labor between member states. The goal is also to ensure the beginnings of coordination of macroeconomics and the financial sector, transport and energy, trade, industrial and agro-industrial complexes and other important areas of the economy.
The composition of the SES is the same as that of the Eurasian Economic Union (Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia). Tajikistan, Uzbekistan and Abkhazia also express interest in joining the SES.
Customs Union of the EAEU(until 2014 - the Customs Union of the Eurasian Economic Community, CU EurAsEC) - one of the forms of economic integration in the post-Soviet space. Among the people and the media, this organization is simply called “TS”. It was the term “Customs Union” in 2010-2014. was most often mentioned in the media when discussing economic integration in the post-Soviet space.
The main body of the Customs Union of Belarus, Kazakhstan and Russia is the Supreme Eurasian Economic Council, which includes the heads of state and government of the Customs Union. At the level of heads of state, the council meets at least once a year, at the level of heads of government - at least twice a year. Decisions are made by consensus and become binding in all participating states.
The functions of the regulatory body have been performed by the Eurasian Economic Commission since January 1, 2012.
Currently, the Customs Union includes the following states:
A number of unrecognized or partially recognized states also want to join the CU (due to their status, they face obstacles in realizing their intentions):
Former potential candidates
On September 20, 2012, the free trade area of the commonwealth countries (CIS FTA) began operating between Belarus, Russia and Ukraine, which ratified the agreement. In 2012-2013 The treaty was also ratified by Kazakhstan, Armenia, Kyrgyzstan and Moldova, Uzbekistan joined the FTA in a special manner, and Tajikistan signed the treaty, but has not yet ratified it.
A free trade area would "minimize exceptions to goods subject to import duties" and export duties would first be fixed and then phased out.
Agreements on a free trade zone bilaterally by individual EAEU countries were also signed with Serbia (a free trade regime has been in effect between Serbia and Russia since 2000, with Belarus - since March 31, 2009, with Kazakhstan - since October 7, 2010). The agreement with Vietnam was signed on May 25, 2015. On May 27, 2015, Egypt submitted an application to form an FTA with the EAEU.
In 2014, it was planned to sign a similar agreement on a free trade area with New Zealand (now in question due to New Zealand’s participation in anti-Russian sanctions). Negotiations on concluding such agreements are also underway with the European Free Trade Association (Switzerland, Norway, Iceland, Liechtenstein) , Israel, India, Syria, Montenegro and a number of Latin American countries.
In total, up to 40 countries intend to join the free trade zone with the EAEU; as of the beginning of 2017, about 50 countries expressed a desire to cooperate with the EAEU.
The EAEU is intended to improve economic interaction and significantly simplify the lives of citizens of Eurasian countries in a number of respects:
Western politicians are by no means enthusiastic about the prospect of economic and political reintegration in the post-Soviet space. US Secretary of State Hillary Clinton, for example, said that “the United States will try to prevent the re-creation of the Soviet Union.”
The only thing the United States has achieved so far in obstructing Eurasian integration is organizing a coup in Ukraine in February 2014, as a result of which the country actually collapsed during the Ukrainian crisis. At the same time, the part of Ukraine that remained under the control of American puppets was imposed a suicidal course of breaking economic ties with the Russian Federation and “European association” with the EU. The collapse of Ukrainian industry and a serious energy crisis were clearly evident already in 2014.
Despite such clear intentions and actions of the United States, European political scientists believe that Russia will be able to expand its borders to approximately Soviet size in the next 20-30 years.
Putin, meanwhile, does not miss the opportunity to tease Europeans who are now suffering from separatist sentiments, hinting at inviting certain European countries to the Customs Union. Nazarbayev allows Turkey to be involved in Eurasian integration.
IN modern world many countries unite into unions - political, economic, religious and others. One of the largest such unions was the Soviet Union. Now we see the emergence of the European, Eurasian, and also Customs unions.
The Customs Union was positioned as a form of trade and economic integration of a number of countries, which provides not only a common customs territory for mutually beneficial trade with the absence of duties, etc., but also a number of points regulating trade with third countries. This agreement was signed on October 6, 2007 in Dushanbe; at the time of its conclusion, the union included the Russian Federation, Kazakhstan and Belarus.
The first article of the contract on the movement of goods within this territory states the following:
There are both permanent member countries of the Customs Union that were its founders or joined later, and those that have only expressed a desire to join.
Candidates for membership:
There was a special CU commission, which was approved at the time of signing the agreement on the Customs Union. Its rules were the basis of the legal activities of the organization. The structure worked and remained within these legal frameworks until July 1, 2012, that is, until the creation of the EEC. The highest body of the union at that time was a group of representatives of the heads of state (Vladimir Vladimirovich Putin (Russian Federation), Nursultan Abishevich Nazarbayev (Republic of Kazakhstan) and Alexander Grigoryevich Lukashenko (Republic of Belarus)).
The following prime ministers were represented at the level of heads of government:
The countries of the Customs Union, with the main goal of creating a single regulatory body, meant the formation of a common territory, which would include several states, and all duties on products would be abolished on their territory.
The second goal was to protect one’s own interests and markets, first of all, from harmful, poor-quality, and also competitive products, which makes it possible to smooth out all the shortcomings in the trade and economic sphere. This is very important, since protecting the interests of one’s own states, taking into account the opinions of the members of the union, is a priority for any country.
First of all, the benefits are obvious for those enterprises that can easily purchase from neighboring countries. Most likely, these will only be large corporations and companies. As for future prospects, contrary to some economists’ forecasts that the Customs Union will entail a decrease in wages in participating countries, at the official level the Prime Minister of Kazakhstan announced an increase in wages in the state in 2015.
That is why the world experience of such large economic entities cannot be attributed to this case. Countries that have joined the Customs Union can expect, if not rapid, but stable growth in economic ties.
The final version of the Agreement on the Customs Code of the Customs Union was adopted only at the tenth meeting, 10.26.2009. This pact spoke of the creation of special groups that would monitor activities to bring the revised draft treaty into effect.
The countries of the Customs Union had until July 1, 2010 to make changes to their legislation to eliminate contradictions between this Code and the Constitution. Thus, another contact group was created to resolve problems arising from differences between national legal systems.
All the nuances related to the territories of the Customs Union were also finalized.
The countries of the Customs Union have a common customs territory, which is determined by the borders of the states that have entered into an agreement and are members of the organization. The Customs Code, among other things, determines the expiration date of the commission, which was July 1, 2012. Thus, a more serious organization was created, which has much more powers and, accordingly, more people on its staff in order to fully control all processes. On January 1, 2012, the Eurasian Economic Commission (EAEC) officially began its work.
The Eurasian Economic Union includes member countries of the Customs Union: the founders - Russia, Belarus and Kazakhstan - and the recently joined states, Kyrgyzstan and Armenia.
The establishment of the EAEU implies a wider range of relationships in the freedom of movement of labor, capital, services and goods. Also, a coordinated economic policy of all countries must be constantly pursued, and a transition to a single customs tariff must be carried out.
The total budget of this union is formed exclusively in Russian rubles, thanks to the share contributions made by all member countries of the Customs Union. Their size is regulated by the Supreme Council, which consists of the heads of these states.
Russian has become the working language for the regulations of all documents, and the headquarters will be located in Moscow. The financial regulator of the EAEU is in Almaty, and the court is in the capital of Belarus, Minsk.
The highest regulatory body is the Supreme Council, which includes the heads of participating states.
A judicial body was also created, which is responsible for the application of treaties within the Union.
The Eurasian Economic Commission (EEC) is a regulatory body that provides all the conditions for the development and functioning of the Union, as well as the development of new proposals in the economic sphere regarding the format of the EAEU. It consists of the Ministers of the Commission (deputy prime ministers of the Union member states) and the Chairman.
Of course, the EAEU, compared to the CU, has not only broader powers, but also a much more extensive and specific list of planned work. This document no longer has any general plans, and for each specific task the path for its implementation is determined and a special working group is created that will not only monitor the implementation, but also control its entire progress.
In the resulting agreement, the countries of the single Customs Union, and now the EAEU, secured an agreement on coordinated work and the creation of common energy markets. The work on energy policy is quite large-scale and will be implemented in several stages until 2025.
The document also regulates the creation of a common market for medical devices and medicines by January 1, 2016.
Great importance is attached to transport policy on the territory of the EAEU states, without which it will not be possible to create a single joint action plan. The development of a coordinated agro-industrial policy is envisaged, which includes the mandatory formation of veterinary and phytosanitary measures.
A coordinated macroeconomic policy provides an opportunity to translate all planned plans and agreements into reality. In such conditions, general principles of interaction are developed and the effective development of countries is ensured.
A special place is occupied by the common labor market, which regulates not only the free movement of labor, but also the same working conditions. Citizens who go to earn money in EAEU countries, now there will be no need to fill out migration cards (if their stay does not exceed 30 days). The same simplified system will apply to medical care. The issue of exporting pensions and counting the length of service accumulated in a Union member country is also being resolved.
The list of countries of the Customs Union may soon be replenished with several more states, but, according to experts, in order for full growth and influence on similar Western unions similar to the EU (European Union) to be noticeable, a lot of work and expansion of the organization is needed. In any case, the ruble will not be able to become an alternative to the euro or dollar yet for a long time, and the impact of recent sanctions has clearly shown how Western policy can work to serve its own interests, and that at the same time neither Russia itself nor the entire Union can actually do anything about it. As for Kazakhstan and Belarus specifically, the conflict in Ukraine showed that they will not give up their benefits to please Russia. The tenge, by the way, also fell sharply due to the fall of the ruble. And on many issues, Russia remains the main competitor of Kazakhstan and Belarus. However, at the moment, the creation of the Union is an adequate and only correct decision that can help at least somehow strengthen relations between states in the event of further Western pressure on Russia.
It is now known which countries in the Customs Union are more interested in its creation. Despite the fact that even at the stage of its inception it was constantly plagued by all sorts of problems, the joint coordinated actions of all members of the Union make it possible to solve them as quickly as possible, which makes it possible to look into the future with optimism and hope for the rapid development of the economies of all states participating in this treaty.
The Customs Union is an agreement adopted by the participants of the Eurasian Economic Union, the purpose of which is abolition of customs duties in trade relations. Based on these agreements, common methods of implementation are created economic activity, a platform for quality assessments and certification.
Thanks to this it is achieved abolition of customs controls at the borders within the Union, general provisions for regulating economic activity for the external borders of the CU are concluded. In view of this, a common customs space is being created, using a generally accepted approach to border control. Another distinctive feature is the equality of rights of citizens of the customs area during employment.
In 2017, the Customs Union consists of next members of the EAEU:
The desire to become a party to this agreement was voiced by Syria and Tunisia. In addition, we know about the proposal to include Turkey in the CU agreement. However, to date, no specific procedures have been adopted for these states to join the Union.
It is clearly visible that the functioning of the Customs Union serves as a good tool for strengthening economic relations countries located on the territory of the former Soviet countries. We can also say that the approach established in the agreement by the participating countries speaks of restoring lost connections in modern conditions.
Customs duties are distributed through a single sharing mechanism.
Given this information, it can be stated that the Customs Union, as we know it today, serves serious tool for the economic unification of countries that are members of the EAEU.
To understand what the activities of the Customs Union are, it will not be amiss to gain an understanding of how it was formed to its current state.
The emergence of the Customs Union was initially presented as one of the steps in the integration of the CIS countries. This was evidenced in the agreement on the creation of an economic union, signed on September 24, 1993.
Step by step moving towards this goal, in 1995, two states (Russia and Belarus) entered into an agreement between themselves on the approval of the Customs Union. Later, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan also joined this group.
More than 10 years later, in 2007, Belarus, Kazakhstan and Russia signed a pact to unite their territories into a single customs region and approve the Customs Union.
In order to specify the previously concluded agreements, from 2009 to 2010, more than 40 additional agreements were concluded. Russia, Belarus and Kazakhstan have decided that, starting in 2012, a Common Market thanks to the unification of countries into a single economic space.
On July 1, 2010, another important agreement was concluded, which set into motion the work of the Unified Customs Tariff and the Customs Code.
On July 1, 2011, the current customs control at the borders between countries was canceled and general rules on borders with states not in the agreement. Until 2013, uniform legislative norms for the parties to the agreement will be formed.
2014 – The Republic of Armenia joins the Customs Union. 2015 – The Republic of Kyrgyzstan joins the Customs Union.
The unification of the borders of the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan became the basis for the emergence of the Single Customs Space. This is how the territory of the Customs Union was formed. In addition, it includes separate territories or objects under the jurisdiction of the parties to the agreement.
The management and coordination of the Eurasian Economic Union is carried out by two organs:
When creating the Customs Union, countries declared the main goal socio-economic progress. In the future, this implies an increase in trade turnover and services produced by business entities.
The increase in sales was initially expected directly in the space of the vehicle itself due to following conditions:
Having collected available information about the emergence and activities of the Customs Union, we can come to the conclusion that the results of increasing the turnover of goods and services are published much less frequently than news about the signing of new agreements, i.e. its declarative part.
But, nevertheless, analyzing the stated goals when creating the Customs Union, as well as observing their implementation, one cannot remain silent that simplification of trade turnover has been achieved and competitive conditions have been improved for economic entities of the Customs Union states.
It follows from this that the Customs Union is on the way to achieving its goals, however, in addition to time, this requires the mutual interest of both the states themselves and the economic elements within the Union.
The customs union consists of countries that have the same economic background, but today these states are very different from each other. Of course, even in Soviet times, the republics differed in their specialization, but after gaining independence, many more changes occurred that affected the world market and the division of labor.
However, there are also common interests. For example, many participating countries remain dependent on the Russian sales market. This trend is economic and geopolitical in nature.
Throughout the whole time leading positions in the process of integration and stabilization of the EAEU and the Customs Union played Russian Federation. This was possible due to its stable economic growth until 2014, when prices for raw materials remained high, which helped finance the processes launched by the agreements.
Although such a policy did not predict rapid economic growth, it still assumed the strengthening of Russia's position on the world stage.
To achieve these goals, the Republic increased tariffs on imported cars in the absence of its own production. Because of such measures it was necessary to install rules for certification of goods light industry , which hurt retail trade.
In addition, the standards adopted at the CU level were unified with the WTO model, despite the fact that Belarus is not a member of this organization, unlike Russia. Enterprises of the Republic have not received access to Russian import substitution programs.
All this served as obstacles for Belarus on the path to achieving its goals in full.
It should not be overlooked that the signed CU agreements contain various exceptions, clarifications, anti-dumping and countervailing measures, which have become an obstacle to the achievement of common benefits and equal conditions for all countries. At various times, virtually every participant in the agreement expressed disagreement with the terms contained in the agreements.
Although customs posts on the borders between the parties to the agreement were eliminated, border zones between countries have been preserved. Sanitary control at internal borders also continued. A lack of trust in interaction practice has been revealed. An example of this is the disagreements that flare up from time to time between Russia and Belarus.
Today it is impossible to say that the goals that were declared in the agreement on the creation of the Customs Union have been achieved. This is evident from the decrease in the turnover of goods within the customs area. There are also no economic development benefits when compared with the time before the agreements were signed.
But there are still signs that in the absence of an agreement the situation would deteriorate more rapidly. The manifestation of the crisis would be broader and deeper. A significant number of enterprises gain relative benefits by participating in trade relations within the Customs Union.
The agreements signed by the parties benefited the production of automobiles. Duty-free sales of cars assembled by manufacturers in participating countries have become available. Thus, conditions have been created for the implementation of projects that previously could not succeed.
What is the Customs Union? Details are in the video.
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Among the largest modern international associations— Eurasian Formally, it was established in 2014, but by the time the agreement on its creation was signed, the EAEU member states already had significant experience of interaction in the mode of active economic integration. What are the specifics of the EAEU? What is this - an economic or political association?
Let's begin our exploration of the question posed by reviewing the key facts about the organization in question. What are the most noteworthy facts about the EAEU? What kind of structure is this?
The Eurasian Economic Union, or EAEU, is an association within the framework of international economic cooperation of several states of the Eurasian region - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. Other countries are expected to join this association, since the Eurasian Economic Union (EAEU) is an open structure. The main thing is that candidates for joining the association share the goals of this organization and show a willingness to fulfill the obligations stipulated by the relevant agreements. The creation of the structure was preceded by the establishment of the Eurasian Economic Community, as well as the Customs Union (which continues to function as one of the structures of the EAEU).
As a number of sources testify, the state that was the first to initiate the processes of economic integration in the post-Soviet space, which grew into the establishment of the EAEU, is Kazakhstan. Nursultan Nazarbayev expressed a corresponding idea at a speech at Moscow State University in 1994. Subsequently, the concept was supported by other former Soviet republics— Russia, Belarus, Armenia and Kyrgyzstan.
The main advantage of a state being part of the Eurasian Economic Union is freedom economic activity entities registered in it on the territory of all member countries of the union. It is expected that a single trade space will soon be formed on the basis of the EAEU institutions, characterized by common standards and norms for doing business.
So, what is the EAEU, a purely economic structure, or an association that may be characterized by a political component of integration? At the moment and in the near future, as various sources testify, it would be more correct to talk about the first interpretation of the essence of the unification. That is, the political aspect is excluded. Countries will integrate in pursuit of economic interests.
There is evidence of initiatives regarding the creation of certain supranational parliamentary structures in within the EAEU. But the Republic of Belarus and Kazakhstan, as evidenced by a number of sources, do not consider the possibility of their participation in building the respective countries. They want to maintain full sovereignty, agreeing only to economic integration.
At the same time, it is obvious to many experts and ordinary people how close political relations countries included in the EAEU. The composition of this structure is formed by the closest allies who have no publicly expressed fundamental differences regarding the difficult situation on the world stage. This allows some analysts to conclude that economic integration within the framework of the association under consideration would be very difficult if there were significant political differences between the countries participating in the association.
Studying some facts from the history of the association will help us better understand the specifics of the EAEU (what kind of organization it is). In 1995, the heads of several states - Belarus, the Russian Federation, Kazakhstan, and a little later - Kyrgyzstan and Tajikistan, formalized agreements establishing the Customs Union. On their basis, the Eurasian Economic Community, or EurAsEC, was established in 2000. In 2010, a new association appeared - the Customs Union. In 2012, the Common Economic Space opened - first with the participation of the states that are members of the Customs Union, then Armenia and Kyrgyzstan joined the structure.
In 2014, Russia, Kazakhstan, and Belarus signed an agreement on the creation of the EAEU. Later Armenia and Kyrgyzstan joined it. The provisions of the relevant document came into force in 2015. The EAEU Customs Union continues to function, as we noted above. It includes the same countries as the EAEU.
Thus, the member states of the EAEU - the Republic of Belarus, Kazakhstan, Russia, Armenia, Kyrgyzstan - began to interact long before the corresponding association was established in its modern form. According to a number of analysts, the Eurasian Economic Union is an example of an international organization with a progressive, systematic development of integration processes, which can determine the significant stability of the corresponding structure.
Several stages of development of the Eurasian Economic Union have been defined. The first is the establishment of a free trade zone, the development of norms according to which trade between the EAEU member countries can be carried out without duties. At the same time, each state retains independence in terms of conducting trade with third countries.
The next stage in the development of the EAEU is the formation of the Customs Union, which involves the formation of an economic space within which the movement of goods will be carried out unhindered. At the same time, foreign trade rules that are common to all member countries of the association should also be determined.
The most important stage in the development of the union is the formation of a single market. It is expected that it will be created within the framework of which it will be possible to freely exchange not only goods, but also services, capital and personnel - between the member states of the association.
The next stage is the formation of an economic union, the participants of which will be able to coordinate the priorities of implementing economic policy among themselves.
After the listed tasks are solved, it remains to achieve complete economic integration of the states included in the association. This involves the creation of a supranational structure that will determine priorities in building economic and social policy in all countries included in the union.
Let’s take a closer look at the key benefits that EAEU members receive. We noted above that among the key ones is the freedom of economic activity of economic entities that are registered in any state of the union throughout the entire territory of the EAEU. But this is far from the only advantage of the state joining the organization we are studying.
EAEU members will have the opportunity to:
Take advantage of low prices for many goods, as well as reduced costs associated with the transportation of goods;
Develop markets more dynamically by increasing competition;
Increase labor productivity;
Increase the volume of the economy due to increased demand for manufactured goods;
Provide employment for citizens.
Even for such economically powerful players as Russia, the EAEU is the most important factor in economic growth. Russia's GDP, according to some economists, may, thanks to the country’s entry into the association in question, receive a very powerful growth stimulus. Other EAEU member countries—Armenia, Kazakhstan, Kyrgyzstan, and Belarus—can achieve impressive indicators of GDP growth.
Apart from the positive economic effect, the EAEU member countries are expected to integrate into social aspect. International business activities, as many experts believe, will contribute to the establishment of partnerships and stimulate strengthening the friendship of nations. Integration processes are facilitated by the common Soviet past of the peoples living in the countries of the Eurasian Economic Union. The cultural and, what is very important, linguistic proximity of the EAEU states is obvious. The composition of the organization is formed by countries in which the Russian language is familiar to the majority of the population. Thus, many factors can contribute to the successful solution of the tasks facing the heads of state of the Eurasian Economic Union.
The Treaty on the EAEU has been signed, it’s up to its implementation. Among the most important tasks within the framework of the development of the Eurasian Economic Union is the creation of a number of supranational institutions, whose activities will be aimed at promoting economic integration processes. According to a number of public sources, the formation of some basic institutions of the EAEU is expected. What structures could these be?
First of all, these are various commissions:
Economics;
For raw materials (she will set prices, as well as quotas for goods and fuel, coordinate policies in the field of precious metals circulation);
For interstate financial and industrial associations and enterprises;
By entering the monetary unit for calculations;
On environmental issues.
It is also planned to create a special Fund, whose competence will include cooperation in the most different areas: in economics, in the field of development of science and technology. It is assumed that this organization will deal with financing issues various studies, help cooperation participants in resolving a wide range of issues - legal, financial or, for example, environmental.
Other important supranational structures of the EAEU that are planned to be created are the International Investment Bank, as well as the arbitration of the Eurasian Economic Union.
Among the successfully created associations that are part of the governance structure of the EAEU - Let us study the features of its activities in more detail.
It can be noted that the EEC was created in 2011, that is, even before the agreement on the creation of the EAEU was signed. It was founded by Russia, Kazakhstan and Belarus. Initially, this organization was created to manage processes at the level of such a structure as the Customs Union. The EAEU is a structure in the development of which the Commission is called upon to directly participate now.
The EEC has established a council and a board. The first structure should include deputy heads of government of the member states of the association. The board should consist of three people from the EAEU member countries. The Commission provides for the creation of separate departments.
The Eurasian Economic Commission is the most important, but not the most important supranational governing body of the EAEU. It is subordinate to the Supreme Eurasian Economic Council. Let's look at the key facts about him.
This structure, like the Eurasian Economic Commission, was created several years before the states signed the agreement on the creation of the EAEU. Thus, for a long time it was considered a supranational body within the structure of the Customs Union, as well as the Common Economic Space. The Council is formed by the heads of the EAEU member states. It must meet at least once a year for top level. The heads of government of the member countries of the association must meet at least 2 times a year. A peculiarity of the functioning of the Council is that decisions are made in a consensus format. The approved provisions are mandatory for implementation in the EAEU member countries.
How do analysts assess the prospects for the development of the EAEU? We noted above that some experts believe: simultaneously with economic integration political rapprochement of the member states of the association is inevitable. There are experts who share this point of view. There are experts who completely disagree with her. The main argument of those analysts who see prospects for the politicization of the EAEU is that Russia, as the leading economic player in the association, will in one way or another influence the decisions made by the authorities of the EAEU member states. Opponents of this point of view believe that, on the contrary, it is not in the interests of the Russian Federation to show excessive interest in the politicization of the corresponding international association.
Provided that a balance is maintained between the economic and political components in the EAEU, the prospects for the union, based on a number of objective indicators, are assessed by many analysts as very positive. Thus, the total GDP of the member states of the structure under consideration will be comparable to the indicators of the leading economies of the world. Taking into account the scientific and resource potential of the EAEU, the volume of economic systems of the member countries of the union can grow significantly in the future.
According to a number of analysts, the prospects for cooperation with the EAEU are attractive for countries that seem to be far from the economic space formed by the countries that signed the EAEU treaty - Russia, Kazakhstan, Kyrgyzstan, Belarus and Armenia. For example, Vietnam recently signed a free trade agreement with the EAEU.
Syria and Egypt are showing interest in cooperation. This gives analysts reason to say that the Eurasian Economic Union can become a powerful player in the world market.
The Russian diaspora is one of the largest in the world, but for Russia it is more of a problem than an instrument of influence
Alexander Khaldei
A few months ago I wrote an article about how difficult it is for Russians in Kazakhstan if they occupy some significant position or active position in life. In general, the topic of discrimination against Russians in Kazakhstan is so old that it is even somehow inconvenient to return to it again, but since there is a problem, it is impossible not to react to it.
With the collapse of the USSR, a huge number of Russians in the former republics turned out to be unnecessary neither to the republics nor to Russia. Russia and its citizens did not know what to do, but in the republics the process of national construction was underway, and the Russians, bearers of the idea of a bygone international statehood, became a hindrance.
In the Baltics, Russians were reduced to the status of non-citizens, in Kazakhstan they are squeezed out of positions by all means, provoking them to leave for Russia, and it’s also good that they were not killed, as in Dudayev’s Chechnya or Kyrgyzstan. As they say - thank you for being alive.
The extraordinary adventures of a Kazakhstani in Russia
Gennady Osipov, a former resident of Kazakhstan, now a refugee in Russia, went through all the circles of this hell, facing arbitrariness as an employee of the local district administration. There he was responsible for the housing and communal services sector, where he quickly restored order, which did not comply with the plans of the local leadership, who knew how to make a profit from the mess. Osipov began to be persecuted, he looked for the truth everywhere, ran for deputy, was removed, ordered criminal cases were opened and closed, in a word, they beat him from all calibers. Osipov turned out to be a persistent fighter and reached Nazarbayev himself. He ordered the persecution to be cancelled, but after a while they began again. There was only one way out: a suitcase, a train station, Russia. Russians have been walking this bitter path of Exodus since 1991. And there is no end in sight.
Here are fragments of Osipov’s correspondence with Russian organizations, where he turned for help in defending his rights. The correspondence is so eloquent that it is worth simply citing it without any comments. Texts speak better. Reads like a detective novel in letters.
1. Embassy of the Russian Federation in the Republic of Kazakhstan. The Consular Section.
Gennady Dmitrievich, in accordance with the appeal, we inform you that in Russia there is no concept of political asylum for citizens of the former USSR. Entry into the territory of the Russian Federation is free and visa-free. You can freely travel from Kazakhstan to the Russian Federation. Head of the Consular Section of the Russian Embassy in Kazakhstan D. Ignatiev.
2. Deputy Chairman State Duma. G.D. Osipov. Dear Gennady Dmitrievich! In connection with your appeal regarding the violation of your labor and other rights, I sent a parliamentary request to the State Secretary of the Ministry of Foreign Affairs of the Russian Federation G.B. Karasin, who is in charge of issues of bilateral relations with the CIS states and work with compatriots abroad, to consider this appeal on the merits. You will be informed additionally about the results. Sincerely, P.O. Tolstoy.
3. Fund for the support and protection of the rights of compatriots living abroad. Dear Gennady Dmitrievich! According to the Charter, the foundation provides legal support to compatriots living abroad in case of violation of their rights, freedoms and legitimate interests. ... It is unclear from the information you provided which rights you consider to be violated. We believe that the solution to the issues you raised is entirely within the legal framework of Kazakhstan. In this regard, we see no reason to use our Fund. Executive Director I.K. Panevkin.
4. Russian Ministry of Foreign Affairs. Dear Gennady Dmitrievich! In connection with your appeal addressed to the President of the Russian Federation V.V. Putin, we inform the following: The refusal you received in court objectively does not provide grounds for confidently asserting discrimination against ethnic Russians in Kazakhstan. The relationship between Russia and Kazakhstan is based on a solid foundation of strategic partnership and close interaction, enshrined in the Treaty on Good Neighborhood and Alliance signed in 2013... Moreover, if you have at your disposal specific factual information about the infringement of the rights of Russians living in Kazakhstan, please send it to us. Deputy Director of the Third Department of the CIS countries V. Spirichan.
5. Office of the Commissioner for Human Rights in the Russian Federation. Osipov G.D. Dear Gennady Dmitrievich! Your next appeal to the Commissioner for Human Rights in the Russian Federation has been studied. ... The competence of the Commissioner does not extend to foreign citizens. ...You have Kazakhstan citizenship. Thus, the Commissioner is deprived of any grounds for intervention. Based on this, further correspondence with you will be stopped.
6. State Duma of the Russian Federation, faction of the Communist Party of the Russian Federation. To the President of the Republic of Kazakhstan N.A. Nazarbayev. Copy: G.D. Osipov. Dear Nursultan Abishevich! G.D. Osipov from the city of Pavlodar, Republic of Kazakhstan, contacted the faction. Russian by nationality, he lived in your republic for many years, but has now been fired from government service (he reports that he worked as the head of municipal property in the city of Pavlodar). He asks to help him regain his job or move to the border region of Kazakhstan with the Russian Federation and help him find a job in his specialty. I am sending you an appeal from Osipov G.D. I ask you, if possible, to help him reinstate himself in the service or help him find a job elsewhere in his specialty. The leader of the faction is G.A. Zyuganov.
7. Dear Gennady Dmitrievich! We have received your materials. It clearly follows from them that Kazakhstani justice has a clear selective nature. Your story confirms numerous facts of discrimination against Russians based on their nationality. These facts are known to us, and a member of our Institute has also encountered them. (The following are the coordinates of the Kazakh Legal Aid Center "Nadezhda", whose lawyers help Russian compatriots - my note, A.Kh). Your example will certainly be taken into account when analyzing the situation of Russians in Kazakhstan. Legal Center Institute of CIS Countries, Dokuchaeva A.V.
Russia is a giant, ashamed of its greatness
The whole range of reactions to the problem is before us. The rule is that the further an organization is from real opportunities to help, the more adequate its response (Institute of CIS Countries). The closer an organization is to international or legal relations, the pace she puts more effort into avoiding solving the problem. The main desire is not to get involved in conflict. The main remedy is to never admit the existence of the problem itself. Then follows a filigree game of passing, when the complaint is sent to someone else, and outright annoyance and even hostility towards the complainer is clearly visible.
What can I say? Yes, Russia has lost many, although not all, levers of influence on the former Soviet republics, and they sometimes allow themselves to be completely boorish in relation to both Russia and the Russians living in these republics. And Russia, so as not to aggravate the already difficult relationships, strives to avoid any controversial topics. And these topics are supplied in abundance by Russian communities in the former republics, where Russians from an imperial nation have turned into second-class citizens. Lacking the means of involving the republics in unions, but desperately needing these unions, Russia is trying not to conflict with the leadership of Kazakhstan. The attitude towards other republics is similar.
Just as interests in the field of export of petroleum products through the Baltic states at one time did not allow interference in the arbitrariness of local authorities against Russians, now the interests of the unity of the EAEU do not allow this in Kazakhstan. If this was not practiced against a NATO member, what can we say about an EAEU ally? Even now, when Kazakhstan is already openly putting the interests of the United States above those allied with Russia, declaring that it will immediately leave the EAEU if it considers that Russia is trying to limit their sovereignty, Russia prefers not to react sharply and smooth out corners.
This shows one thing for now: Russia is too weak and too in need of alliances on its Asian borders. After the collapse of the USSR, she cannot afford to argue with those whom she considers key partners. Any pressure on Kazakhstan regarding the interests of the Russians will immediately cause an extremely irritated reaction with far-reaching consequences - a transfer of power is being prepared in Kazakhstan and pro-American clans are quite strong, for which the dispute over the Russians will be a gift for inflating the topic of Russian interference in the internal affairs of Kazakhstan. That’s why the Russian Foreign Ministry avoids this topic like the plague.
This only means that in Russia there is no adequate institution capable of solving the problem of Russians in the near abroad in general and in Kazakhstan in particular. Yes, the Ministry of Foreign Affairs is not the authority that needs to be involved conflict topic, if the task of the Ministry of Foreign Affairs is to find points of contact and build bridges, and not points of divergence and conflict. The situation when the interests of Russians abroad are most adequately understood by... the Research Institute of CIS Countries is also not normal. The institute understands everything correctly, but it can’t do anything. The Foreign Ministry can do more than anyone, but then it will engage in destruction international relations, and not by establishing them.
This requires other institutions of civil society. They have not yet been created in Russia. So far there is not even an idea of what it should be and how it should be formalized. Obviously, this should be some kind of public organization with a federal platform, around which there will be business structures, cultural organizations, political parties, which will find it more difficult to win elections without the support of this structure. Most likely, it should be a powerful non-profit organization in the form of a foundation with research and policy divisions.
But powerful NPOs mean powerful money, and Russia is not yet in a position to shape the internal situation in the countries it is interested in through strong NPOs. Even with friendly Belarus, there are still no levers to work with other than the ambassador. Ukraine has already been lost because of this. Belarus is balancing on a dangerous brink. It is clear that opening another line of confrontation with Kazakhstan is inappropriate.
But this is a chicken and egg debate. What cannot happen without what - money without influence or influence without money. You can say: if we get rich, then we’ll start building NPOs. Or you can say this: if you don’t start building NPOs, you will never get rich. You will even lose those who are still friends today. If you wait for money and don’t build institutions of influence, you will never have either influence or money. Russians abroad are a colossal resource, but due to the fact that it is not in demand in Russia, there are no institutions to support and use this resource.
This is for those cynics who look at everything in the world as a resource. And if we understand that our people are there, our people and our brothers, whom we have already lost in many ways and continue to lose, then there is no reason at all to postpone this work. We can definitely say that the seriousness of Russia’s intentions in building alliances in the post-Soviet space is determined not by the degree of hushing up the Russian problem, but, on the contrary, by the maximum use of this topic in the matter of a new gathering of lands.
The new union must have a supranational - international - idea, and only Russians can carry this idea - the only state-forming people capable of global state building on the basis of a global idea. All other narrowly national projects ultimately lead to the loss of sovereignty in front of global centers of power.
The idea was proposed by the President of the Republic of Kazakhstan Nursultan Nazarbayev. Back in 1994, he came up with an initiative to unite the countries of Eurasia, which would be based on a common economic space and defense policy.
On May 29, 2014, in Astana, the presidents of Russia, Belarus and Kazakhstan signed an agreement on the Eurasian Economic Union, which came into force on January 1, 2015. The next day - January 2 - Armenia became a member of the union, and on August 12 of the same year, Kyrgyzstan joined the organization.
For twenty years, since Nazarbayev’s proposal, there has been forward motion. In 1995, Russia, Kazakhstan and Belarus signed an agreement on the Customs Union, designed to ensure free exchange of goods between states, as well as fair competition among business entities.
Thus, the first stone was laid in the integration of the former republics of the USSR, based on deeper principles than those on which the Commonwealth of Independent States (CIS), created at the time of the collapse of the Soviet Union, was based.
Other states in the region have also shown interest in the Customs Union, in particular, Kyrgyzstan and Tajikistan have joined it. The process smoothly moved to a new stage - in 1999, the countries participating in the Customs Union signed an agreement on the Common Economic Space, and in the following 2000, Russia, Kazakhstan, Belarus, Tajikistan and Kyrgyzstan established the Eurasian Economic Community (EurAsEC).
Things didn't always go smoothly. Disagreements arose between the states, but in the disputes a legal basis for cooperation was born - in 2010, the Russian Federation, the Republic of Belarus and the Republic of Kazakhstan signed 17 basic international treaties, on the basis of which the Customs Union began to operate in a new way. A single customs tariff was adopted and abolished customs clearance and customs control at internal borders, the movement of goods within the territory of the three states has become unhindered.
The following year, 2011, countries moved to create a single economic space. In December, a corresponding agreement was signed between Russia, Belarus and Kazakhstan, which came into force on January 1, 2012. According to the agreement, not only goods, but also services, capital, and labor began to move freely on the territory of these countries.
The Eurasian Economic Union (EAEU) became a logical continuation of this process.
The main goals of the creation of the EAEU according to the agreement are stated:
The main body of the EAEU is the Supreme Eurasian Economic Council, which consists of the heads of state of the organization’s members. The tasks of the Council include resolving strategically important issues of the functioning of the union, determining directions of activity, prospects for the development of integration, and making decisions aimed at realizing the goals of the EAEU.
Regular meetings of the Council are held at least once a year, and extraordinary meetings are convened at the initiative of any member state of the organization or the current Chairman of the Council.
Another governing body of the EAEU is the Intergovernmental Council, which includes heads of government. Its meetings are held at least twice a year. The agenda of the meetings is formed by the permanent regulatory body of the Union - the Eurasian economic commission, whose powers include:
There is also a permanent Court of the Union, which consists of two judges from each state. The Court considers disputes arising on the implementation of the main treaty and international treaties within the Union and decisions of its governing bodies. Both member states of the Union and individual entrepreneurs operating on their territory can apply to the court.
The Union is open for any state to join, and not only the Eurasian region. The main thing is to share its goals and principles, as well as to comply with the conditions agreed upon with the members of the EAEU.
At the first stage, it is necessary to obtain the status of a candidate state. To do this, it is necessary to send a corresponding appeal to the Chairman of the Supreme Council. Under his leadership, the council will decide whether or not to grant candidate state status to the applicant. If the decision is positive, a working group will be created; it consists of representatives of the candidate state, current members of the Union, and its governing bodies.
The working group determines the degree of readiness of the candidate state to accept the obligations arising from the fundamental documents of the Union, then the working group develops a plan of activities necessary for joining the organization, determines the scope of the rights and obligations of the candidate state, and then the format of its participation in the work of the bodies of the Union .
Currently, there are a number of potential applicants for candidate status to join the EAEU. Among them are the following states:
According to experts, the most ready countries for cooperation in this format are Tajikistan and Uzbekistan.
Another form of cooperation with the EAEU is the status of an observer state. It is acquired in a similar way to the status of a candidate for membership and gives the right to take part in the work of the Council’s bodies and to get acquainted with accepted documents, with the exception of documents that are confidential.
On May 14, 2018, Moldova received EAEU observer status. In general, according to Russian Foreign Minister Sergei Lavrov, about 50 states are currently interested in cooperation with the Eurasian Economic Union.
The Customs Union is an organization that has legal personality obtained under the Treaty on the Economic Union of the Eurasian States. The document was signed on May 29, 2014.
Members of the Customs Union
The creation of the Union is aimed at ensuring the solution of the following issues:
Currently, the following states are participants in the Customs Union:
Also, Tunisia, Syria and Turkey stated that they intend to join the Customs Union. But so far, these countries have not taken any concrete steps for this.
The evolution of the process will help to better understand the prerequisites and goals of creating a TS.
In other words, integration processes were developed throughout the entire period. As a result, general norms of legislation and customs tariffs should be developed so that it would be possible to carry out trade operations with those states that were not included in the Customs Union.
The main goal pursued by the powers that signed the Treaty on the Eurasian Economic Union is to strengthen economic ties. First of all, strengthening ties was meant between the participating countries, and then with those states that were part of the Soviet Union. And also the task is to restore the once existing technological and economic chains. But this will have to happen taking into account the current economic and political situation of each state.
The following structures coordinate and manage the work of the EAEU bodies:
The powers of the commission are quite extensive; it is authorized to resolve almost all issues:
Governing bodies of the Eurasian Economic Union
In addition, the duties of the commission include ensuring the implementation of the legal basis Union of International Treaties.
The Commission is competent to approve documents and make decisions that the countries of the Eurasian Economic Union will be obliged to implement.
The first goal of the CU concerned issues related to increasing markets where Union members could sell the goods and services they produced. So that, first of all, sales grow within it.
For this purpose the following was proposed:
In order to unify the approach to safety and quality, the participating countries signed an agreement that all products offered for sale must have a certificate. Its form was specified in one of the Customs Union documents.
This agreement contains more than 30 regulations. All of them relate to the quality of services/products and their safety. Moreover, a certificate issued by one member state of the Union remains valid in other member states.
The following TS goals:
Unfortunately, to date, no mutual understanding has been reached between the states on the listed points. Each of them has its own priorities regarding the development of production and intends to primarily protect its own interests, and not take care of the production of its neighbors. Because of this, both importing enterprises and the population suffer.
Unfortunately, at the moment it cannot be said that the CU has achieved the goals that were declared during its creation. Such conclusions are led by the fact that there is a decline in trade turnover between the participating countries.
If we compare the period before the agreement on the Eurasian Economic Union was concluded with the period following this event, then no particular economic growth was noticed.
But its decline is not observed either. Moreover, if the Customs Union had not been concluded, the situation would have been much more complicated due to crisis phenomena in all CU countries. Participation in the intra-Union market provides certain advantages.
The shares of customs duties are distributed as follows (indicators in the list are given as a percentage of the total amount):
Besides Russia, Kazakhstan and Belarus have the most advantages in customs duties. Thus, thanks to existing agreements, it became possible to sell cars manufactured in the Union without paying duties.
Economy and industry of the countries of the Eurasian Economic Union
In order to carry out industrial assembly, enterprises were built in Belarus with foreign investment, where they then began to assemble from imported kits passenger cars. Previously, it was unprofitable to do this due to the fact that the demand of the country's citizens for cars of this class is low.
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