Eurasian Economic Union
The Eurasian Economic Union represents the opening of new economic opportunities without sacrificing political independence. The EEU builds on the economic success of the Customs Union, and the EEU is in line with Kazakhstan's multi-vector foreign policy. Kazakhstan unequivocally maintains the EEU will not erode the country's political independence, which is critical to Kazakhstan’s priorities and multi-vector orientation. The EEU in its final form serves to advance Kazakhstan’s economic integration with the European Union, the United States, China and Latin America.
Facts about the EEU:
• The EEU builds on the Customs Union (CU) and Common Economic Space (CES) to establish a market for more than 171 million people. The EEU currently includes three states: Belarus, Russia and Kazakhstan with a combined GDP of $2.7 trillion. The objective of the union is to form a legal framework for a united economic zone, establish a common energy market, and enable the free movement of people within the community.
• The EEU is an economic, not political union. It will not have any supra-national authority, over the sovereign states. Kazakhstan has made it clear that it will not support any supra-national political bodies, such as an EEU Parliament.
• No country will dominate the decision-making process in the Union as each country has an equal vote as well as the right to veto. Resolutions will be based on the ruling of the majority.
• As in the case of the EU, the member countries have various predispositions and concerns reflecting their endowments and power. Kazakh officials favor an economic association (much like UK’s disposition to the EU) while Belarus and Russia support stronger and deeper political and economic union (much like Germany). Given Kazakhstan’s insistence that EEU will not go beyond economic union, it is unlikely that integration will proceed further than the currently agreed-to format.
• The Union is created to facilitate trade, both inside of the Union and with outside economies – not to act as a barrier to trade.
• As a result of the creation of a new business environment and conditions for interaction between different businesses, all countries will see structural benefits that manifest themselves in the use of workforce, production and infrastructural cooperation and mutual investments. According to analysts, this will generate up to 25 per cent growth in member states by 2030 (15 years after the creation of the economic space), or around $600bn.