Eurasian Economic Union: Cumulative Effect
A new integration association, the Eurasian Economic Union, will soon be launched in the post-Soviet space
The Eurasian Economic Union (EEU) Treaty was signed in Astana on 29 May 2014 and will take effect in 2015. The EEU will initially include Russia, Kazakhstan, Belarus and Armenia. Soon the economic union of four will welcome Kyrgyzstan. Tajikistan is considering the possibility of joining the organization. According to experts, the Eurasian Economic Union will be the world’s sixth biggest economy with the aggregate GDP of almost $3 trillion. The union is expected to generate another $1 trillion as a result of integration by 2030. A 170-million-strong market with a free movement of goods, services, capital and workforce promises great prospects for business and investors.
The history of economic integration in the Eurasian region is more than 20 years old. In fact it began immediately after the collapse of the Soviet Union as the national economies of the new states were closely interconnected. Therefore, soon after the establishment of the CIS in December 1991, the states that were ready for closer economic partnership continued the search for new forms of integration.
In October 2000 Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan instituted the Eurasian Economic Community (EurAsEC) with a view to strengthening cooperation, developing the integration and bolstering ties in various fields. This association became operational in 2001. But already in October 2007 the Eurasian troika – Belarus, Kazakhstan and Russia – took another step towards closer integration and signed the treaty to establish a common customs territory and the Customs Union which came into full being on 1 July 2011. In November 2011 the presidents of the three states signed the