Azernews.Az

By Aynur Jafarova

Kazakhstan, Belarus, and Russia signed an agreement on the establishment of the Eurasian Economic Union (EEU).

Vladimir Putin of Russia, Nursultan Nazarbayev of Kazakhstan, and Alexander Lukashenko of Belarus signed an agreement on the Eurasian economic integration following the meeting of the Supreme Eurasian Economic Council in Astana on May 29.

The history of the EEU began in November 2011 with the signing of a series of documents, specially a declaration on the establishment of the Eurasian Economic Integration and an agreement on the establishment of the Eurasian Economic Commission and its regulations.

Speaking at the meeting of the Supreme Eurasian Economic Council, Kyrgyz President Almazbek Atambayev said his country plans to enter the EEU by late 2014.

"Of course, we would like to start the New Year in the EEU," the Kyrgyz president said.

He went on to add that the EEU will be a mutually beneficial platform for all the member states.

"I'm confident that the EEU will be an effective organization that will create a mutually beneficial platform for all the member states. Integration into the Customs Union and the subsequent accession to the EEU will be a deliberate decision and the most important vector in Kyrgyzstan's economic policy," Atambayev said.

He also noted that deepening cooperation by pursuing a mutually beneficial industrial and economic policy will allow the optimization of the overall structure of the economy, and from which each country will get dividends.

The fulfillment of these tasks meets the national interests of Kyrgyzstan and all Customs Union countries, he added.

"I believe that partnership with our country will provide an opportunity to all the countries of the Customs Union to solve regional problems more easily and quickly, and bring about enormous geopolitical advantages," the Kyrgyz president concluded.

The Customs Union was established in 2010 with the aim of forming a single customs territory within which no customs duties or economic restrictions are applied. The Single Economic Space of the Customs Union started operating on January 1, 2012.

By entering the Customs Union, Kyrgyzstan expects certain preferences for its major markets, the establishment of a special fund to support entrepreneurs, and financial aid in the amount of about $200 million to equip customs and frontier point on its border with China, Uzbekistan, and Tajikistan.

After joining the Union, Kyrgyzstan also will be able to receive raw materials from the organization's member states at more profitable prices.

However, the accession of Kyrgyzstan to the Russian-backed Customs Union will bring about many negative consequences as well, including significant price increase in the country, which would make Kyrgyzstan dependent on other members of the organization.