Joint press release of the Embassies of Belorussia, Kazakhstan and Russia on the occasion of signing agreement establishing the Eurasian Economic Union

On 29 May 2014, the leaders of Belarus, Kazakhstan and Russia Alexander Lukashenko, Nursultan Nazarbayev and Vladimir Putin signed Astana (Kazakhstan) the agreement establishing the Eurasian Economic Union (EEU).

This is a truly historical milestone that opens up broad prospects for the development of the economies of three nations and improving the well-being of the countries’ citizens.

Belarus, Kazakhstan and Russia are moving towards a completely new level of cooperation by creating a common space where goods, services, capital and work force can move freely. The three states will follow a coordinated policy in such key branches of the economy as energy, industry, agriculture and transport. First and foremost it is the economic union and does not engage the question of independence of the political sovereignty of the countries participating in the integration process.

The union, first proposed by President of Kazakhstan Nursultan Nazarbayev over 20 years ago, builds on the work of the Customs Union (CU) and Common Economic Space (CES) to create a common market of over 170 million people with an enormous production, research and technological potential and huge natural resources.

The union will further strengthen economy, providing more and greater opportunities for domestic and foreign businesses. This common market has significant potential over the next two decades, with experts predicting a 25 per cent growth in the member states’ GDP by 2030, which equates to over US$ 600 bn. Since the creation of the CU and CES, trade between Russia, Kazakhstan and Belarus has increased by 47 per cent, exceeding US $24 bn in 2013. The Commission of the EEU, the supranational body established to promote integration, is strictly regulated by the agreements between member states. Its powers relate exclusively to economic issues. The Commission of the EEU does not have any supranational authority over the respective Heads of State will not support the creation of any supranational political bodies, such as an EEU Parliament. The structure of the EEU Commission and its ruling council means that no single state can dominate the decision making process. Resolutions are based on the decision of the majority of the Council but each state has a veto on the process. In this case the issue is brought up to the level of the Head of States where the decision is made by consensus.

A new economic organisation has appeared on the international arena, one that has full juridical personality and acts based on the principles of the World Trade Organisation. And it is not surprising that major economies are already showing direct interest in this union. The success of the CU and the CES is dependent on strong relationships with Europe, Asia and other regional bodies and countries. We see great potential in its strategic location between Europe, Asia and the Middle East and will continue to promote these ties. The EEU will have no impact on our countries other bilateral or international relations or agreements, nor their integration into other organizations. The EEU preserves the sovereignty of each member state.

The EEU is aimed at facilitating trade, both within the organization and with outside partners – not to act as a barrier. Belarus, Russia and Kazakhstan strongly supports the proposal to create a free trade zone between the EEU and the European Union.

For the future, the states have set the goal of creating a common financial market. The absence of barriers in the flow of capital will make it possible to diversify risks and improve the quality, accessibility and reliability of financial services.

Stage-by-stage harmonisation of the currency policy will serve to enhance the stability of the financial systems of the Union member states and will make the national money markets more predictable and better protected from exchange rate fluctuations, and will enhance our sovereignty as well.

The citizens of our countries should be able to fully assess the benefits of Eurasian integration. They will receive the right to work freely in the three states without having to obtain any work permits.

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