Azernews.Az

An agreement on creating a free trade zone in the Commonwealth of Independent States was signed on Tuesday by the prime ministers of all member states of the union of former Soviet republics, except Azerbaijan, Uzbekistan and Turkmenistan.

But the three countries asked for a few weeks to consider joining the free trade agreement.

Russian Prime Minister Vladimir Putin said while addressing the meeting of the CIS heads of government that the initiative aims to "lay new groundwork" for long-term trade and economic relations among CIS countries.

Putin recalled that as early as in 1994, CIS states signed an agreement to set up a free trade zone, but the document essentially did not go into effect as it was not endorsed by the parliaments of most countries, including Russia. Work on a new agreement had been carried out for nearly ten years, he said.

The agreement is to simplify the legal framework of trade and economic relations among the signatories and replace a number of multilateral and about 100 bilateral documents regulating free trade.

The agreement eliminates export and import duties on a host of goods. It also contains a number of exemptions that will ultimately be phased out.

The deal will come into effect next year if it is ratified by the parliaments of the eight countries.

The CIS, a loose association of former Soviet republics, consists of Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan and Uzbekistan. Ukraine has not ratified the CIS Charter but participates in its activities, while Turkmenistan has observer status.

Belarus, Kazakhstan and Russia established their own customs union earlier this year.

Hinder further integration
But Radio Liberty reported that there have been concerns that such arrangements within the CIS could hinder the efforts of countries such as Ukraine and Moldova to further integrate with the European Union. Ukraine is in the final stages of negotiating a Deep and Comprehensive Free Trade Area (DCFTA) and an Association Agreement with the EU, although the status of those agreements is in doubt following the October 11 conviction of former Prime Minister Yulia Timoshenko on abuse-of-office charges that many in the West view as politically motivated.

Moldovan Deputy Economy Minister Octavia Calmac agreed that the Petersburg agreement does not contradict his country's Western integration strategy. However, he added that Chisinau has no intention of joining the Russia-Belarus-Kazakhstan Customs Union.

"It is not possible for Moldova to be in a customs union with CIS countries and, at the same time, continue to work for economic integration with the EU's common market," Calmac said. "These are opposing things with totally conflicting consequences."

Putin has made the closer integration of the CIS a major theme in recent weeks since it became clear that he intends to return to the Russian presidency in 2012. In an article published in "Izvestia" on October 4, Putin advocated the formation of a Eurasian Union, which he described as "a powerful, supranational body." He said such a union would be part of a "greater Europe" with shared values of "democracy and market laws" that would facilitate its members' closer integration with the European Union.

In an article in Germany's "Sueddeutsche Zeitung" in 2010, Putin argued for a free-trade zone spanning "from Lisbon to Vladivostok."