Eurasian Customs Union

[Eddo211]

Re: Eurasian Customs Union

I read and respect a lot of your statements on this forum since you joined, but i'm dissapointed to read how pro-Russia you are. Afterall, your father and uncle as you stated went to war BECAUSE of Russia. Russia is nothing but a slow blood sucking leach, we need to become more independent. We need to work on our infrastructure and settle these wars to avoid having to depend on Russia or the west.

Well said

It will take time but we have come a long way in two decades and if we keep our priority straight there is nothing we cant achieve.

I am not pro Russian or pro West......I am pro Armenian.

[Eddo211]

Re: Eurasian Customs Union

You guys watch your language....it can get you banned, doesn't matter who started it.

[Shant03]

Re: Eurasian Customs Union

Sorry I lost my cool, i'll make sure not to take things so personally.

[Mher]

Re: Eurasian Customs Union

Vietnam Signs Free Trade Agreement With Russian-Led Economic Union


BURABAI, Kazakhstan — The Eurasian Economic Union (EEU) signed a free trade agreement (FTA) with Vietnam on Friday, the first such deal struck by the Moscow-led body with a third party as it seeks to boost its presence on Asian markets.

The EEU, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, was launched in January to promote trade and economic integration. It has a combined population of 181 million and gross domestic product of around $2 trillion.

Some see the Moscow-dominated grouping as a regional counterbalance to the European Union. Critics say this is Russian President Vladimir Putin's attempt to restore as much as possible of the former Soviet Union.

"A historic act took place today," Viktor Khristenko, chairman of the Eurasian Economic Commission's board, said after the prime ministers of the five EEU member states signed the FTA with their Vietnamese counterpart Nguyen Tan Dung.

"The Socialist Republic of Vietnam is an old good partner of all the nations taking part in the Eurasian Economic Union," he told journalists after the signing ceremony in a lakeside resort area in northern Kazakhstan.

The free trade deal covers more than 90 percent of all goods traded between the EEU and Vietnam, Khristenko said.

By signing the FTA, the EEU aims to increase its foreign trade turnover with Vietnam to at least $10 billion in five years to $4 billion in 2014, he said.

More than 40 countries and international bodies have officially expressed willingness to establish trade relations at various levels with the EEU, Russian Prime Minister Dmitry Medvedev said before the signing. He did not elaborate.

It was the second FTA that communist Vietnam, a major agriculture, seafood, textiles and electronics exporter, signed this month.

On May 5, Vietnam entered an FTA with South Korea that is expected to boost its exports to the Korean market and more than double bilateral trade over the next five years. That deal is also expected to boost investment in Vietnam's $184 billion economy.

http://www.themoscowtimes.com/business/article/vietnam-signs-free-trade-agreement-with-russian-led-economic-union/522691.html

[Mher]

Re: Eurasian Customs Union

New agreement on labeling cigarette packs to enter into force in EEU Common Economic Space in 2016

http://armenpress.am/eng/news/807264/new-agreement-on-labeling-cigarette-packs-to-enter-into-force-in-eeu-common-economic-space-in-2016.html

[Mher]

Re: Eurasian Customs Union

Will Former Soviet Republics Adopt A Single Currency?

Given the eurozone’s many woes, it’s hard to imagine why another region would want to embark on a unified currency project. But the world is full of surprises.

On May 29, at a summit in Kazakhstan, Russian Prime Minister and former President Dmitry Medvedev announced that the Eurasian Economic Union (EEU) would “consider the possibility and conditions of launching a monetary union in the long term.” RT and Sputnik, both owned by the Russian state and widely decried as Kremlin propaganda outlets, reported the story in broadly the same terms.

This is not the first time the idea of a single currency has been floated. According to Business New Europe, Putin called for member states to work towards a single EEU currency twice in March. In the second statement, delivered March 20, Putin said, “Working shoulder to shoulder, it is easier to react to external financial and economic threats and defend our joint market.”

Putin was probably referring to the EU, which a day earlier had extended sanctions against Russia over its meddling in Ukraine. Sanctions by the EU, the US and other western powers, along with the drop in oil prices, have sent Russia into an economic spiral.

The currency has been particularly affected. On March 20 the exchange rate was 64.18 rubles per euro, a depreciation of 28% in one year. The ruble bottomed out at 85.66 per euro on December 16, 2014, and traded at 62.95 rubles per euro at the time of writing (6/5/15, 10:57am EDT).

Set against this backdrop of economic turmoil, diplomatic friction and war in Ukraine, what are the chances that an EEU common currency will come to fruition? And if it does, what might it look like? First, what is the EEU, and what are the dynamics between its members?

The Eurasian Economic Union

Whatever spell check might say, the EEU is more than just a typo for EU. It is difficult, however, to say exactly how much more. Russian, Belarus and Kazakhstan signed the treaty establishing the EEU on May 29, 2014 in Astana (Medvedev’s single currency announcement came on the one-year anniversary), and its provisions went into effect on January 1, 2015.

These provisions were not published ahead of time, angering protesters outside of Astana’s Palace of Independence, who suspected their autocratic president Nursultan Nazarbayev of signing Kazakhstan’s sovereignty away.

EEU framers hoped Ukraine would join, but popular “Euromaidan” protests had driven pro-Russian president Viktor Yanukovych out of power in February and replaced his administration with one more inclined to join the EU. Russia’s reaction, annexing Crimea in the first European territory-grab since WWII and fomenting separatist violence in the country’s east, did nothing to reassure the EEU’s Kazakh opponents.

Nazarbayev put on a brave face, however, and insisted that Kazakhstan would not give up “one iota” of sovereignty. The EEU, he stressed, was an economic, not political, union. Many observers, however, have called the EEU a step towards a neo-USSR.

Armenia is also ambivalent towards the union. Until September 2013, it was flirting with EU membership, but in an abrupt “strategic U-turn,” it signed on to join the EEU. The decision does not appear to have been an easy one, and the government is hedging its bets by presenting itself as a “bridge” between the EU and EEU, allowing it—hopefully—to associate with both.

Some see the choice to side with Russia as an attempt to outmaneuver Azerbaijan over the ethnic-Armenian breakaway republic of Nagorno-Karabakh. If Azerbaijan wanted to join the union, it would have to negotiate with its members, including Armenia. Russia is Armenia’s main arms supplier, but now sells weapons to both sides.

For Kyrgyzstan, the issue was more clear-cut. As former Prime Minister Djoomart Otorbaev put it, “There is no alternative.” Due to Kyrgyzstan’s dependence on trade with Russia, leaders want to do everything possible to keep trade flowing. After a series of delays, Kyrgyzstan acceded the EEU in May and is awaiting other members’ ratification to join officially.

Kyrgyzstan’s drawing closer to Russia has earned it the ire of Uzbekistan, which shut off gas supply to southern Kyrgyzstan in April. The immediate provocation was Kyrgyzstan’s sale of its dysfunctional gas utility to Russia’s Gazprom for $1. Uzbekistan opposes what it considers Russian overreach in the region.

Tajikistan has expressed interest in joining the EEU, largely under pressure from Russia. New rules have made it harder for non-EEU members’ citizens to work in Russia, and remittances make up half of Tajikistan’s GDP. This dependence means the ruble’s depreciation has taken a huge toll on the country.

Will there be an EEU single currency?

Of the EEU member states, only Russia has expressed any enthusiasm for a single EEU currency. As with so much of the communication coming from the Kremlin, the reasoning is a bizarre inversion of the truth.

Officials have cited the US economy’s potential collapse—perhaps they meant the Russian economy?—and proposed banning euros and dollars in EEU members’ transactions. In reality Russia’s central bank has gutted its foreign exchange reserves in order to prop up the ruble and now hopes to replenish them to pre-crisis levels.

Meanwhile Kazakhstan is vocally defending its sovereignty, Belarusian president Alexander Lukashenko has said the single currency should be the “last [issue] on the agenda” and Armenia is probably still pining for EU membership. None of these countries seems to want a common currency.

But when push comes to shove, Russia does not concern itself with what other countries want. If the Kremlin sees a unified currency as being in its interest, it will use energy, remittances and propaganda as leverage to force its neighbors’ hands.

Russia’s considerable leverage is no guarantee of success, of course. The fact that RT and Sputnik are reporting calls for economic integration may mean that the Kremlin is seriously pursuing a single currency. On the other hand, Russia is obscuring its true motives behind dubious claims that the world’s benchmark currencies will collapse (note the timing of that piece: one day before the EEU accords were signed).

So long as the Kremlin communicates in conspiracy theories, it is difficult to assess how important the single currency really is to Russia’s leaders.

What would an EEU currency look like?

In October 2014, Pravda reported that the EEU single currency would likely be called the altyn, a name that has been applied to different currencies going back to the 15th century. The report gave a timeframe for the altyn’s introduction: 2025, all things being equal, but perhaps as soon as 2017 due to the impact of sanctions.

Judging by the relative sizes of the economies involved, the altyn would in essence be the ruble. Using the World Bank’s 2013 GDP figures—keeping in mind that Russia’s economy is set to shrink this year—Russia makes up 87% of the proposed altyn-zone.

By contrast, the eurozone’s two largest economies, France and Germany, together made up just under 50% of the whole. All told, the eurozone’s collective GDP of $13.2 trillion is around 5.5 times greater than the proposed altyn-zone’s $2.4 trillion.

The altyn would be inextricably tied to oil prices, which are unlikely to recover to pre-crash levels in the next few years.

Conclusion

Russia’s partners in the newly formed EEU are nervous about Putin’s ambitions and, at least when it comes to their domestic audiences, wish to be seen opposing the single currency. On the other hand, Russia has extensive leverage over these governments, whose economies are tied to Russian gas and remittances sent by migrants working in Russian cities. Whether the altyn becomes a reality mainly depends on how committed the Kremlin is to the idea. As for its potential to replace the dollar or euro as a reserve currency, don’t count on it—or anything else RT says.

http://www.nasdaq.com/article/will-former-soviet-republics-adopt-a-single-currency-cm484344#ixzz3cip2XKrM

[Artashes]

Re: Eurasian Customs Union

Will Former Soviet Republics Adopt A Single Currency?

Given the eurozone’s many woes, it’s hard to imagine why another region would want to embark on a unified currency project. But the world is full of surprises.

On May 29, at a summit in Kazakhstan, Russian Prime Minister and former President Dmitry Medvedev announced that the Eurasian Economic Union (EEU) would “consider the possibility and conditions of launching a monetary union in the long term.” RT and Sputnik, both owned by the Russian state and widely decried as Kremlin propaganda outlets, reported the story in broadly the same terms.

This is not the first time the idea of a single currency has been floated. According to Business New Europe, Putin called for member states to work towards a single EEU currency twice in March. In the second statement, delivered March 20, Putin said, “Working shoulder to shoulder, it is easier to react to external financial and economic threats and defend our joint market.”

Putin was probably referring to the EU, which a day earlier had extended sanctions against Russia over its meddling in Ukraine. Sanctions by the EU, the US and other western powers, along with the drop in oil prices, have sent Russia into an economic spiral.

The currency has been particularly affected. On March 20 the exchange rate was 64.18 rubles per euro, a depreciation of 28% in one year. The ruble bottomed out at 85.66 per euro on December 16, 2014, and traded at 62.95 rubles per euro at the time of writing (6/5/15, 10:57am EDT).

Set against this backdrop of economic turmoil, diplomatic friction and war in Ukraine, what are the chances that an EEU common currency will come to fruition? And if it does, what might it look like? First, what is the EEU, and what are the dynamics between its members?

The Eurasian Economic Union

Whatever spell check might say, the EEU is more than just a typo for EU. It is difficult, however, to say exactly how much more. Russian, Belarus and Kazakhstan signed the treaty establishing the EEU on May 29, 2014 in Astana (Medvedev’s single currency announcement came on the one-year anniversary), and its provisions went into effect on January 1, 2015.

These provisions were not published ahead of time, angering protesters outside of Astana’s Palace of Independence, who suspected their autocratic president Nursultan Nazarbayev of signing Kazakhstan’s sovereignty away.

EEU framers hoped Ukraine would join, but popular “Euromaidan” protests had driven pro-Russian president Viktor Yanukovych out of power in February and replaced his administration with one more inclined to join the EU. Russia’s reaction, annexing Crimea in the first European territory-grab since WWII and fomenting separatist violence in the country’s east, did nothing to reassure the EEU’s Kazakh opponents.

Nazarbayev put on a brave face, however, and insisted that Kazakhstan would not give up “one iota” of sovereignty. The EEU, he stressed, was an economic, not political, union. Many observers, however, have called the EEU a step towards a neo-USSR.

Armenia is also ambivalent towards the union. Until September 2013, it was flirting with EU membership, but in an abrupt “strategic U-turn,” it signed on to join the EEU. The decision does not appear to have been an easy one, and the government is hedging its bets by presenting itself as a “bridge” between the EU and EEU, allowing it—hopefully—to associate with both.

Some see the choice to side with Russia as an attempt to outmaneuver Azerbaijan over the ethnic-Armenian breakaway republic of Nagorno-Karabakh. If Azerbaijan wanted to join the union, it would have to negotiate with its members, including Armenia. Russia is Armenia’s main arms supplier, but now sells weapons to both sides.

For Kyrgyzstan, the issue was more clear-cut. As former Prime Minister Djoomart Otorbaev put it, “There is no alternative.” Due to Kyrgyzstan’s dependence on trade with Russia, leaders want to do everything possible to keep trade flowing. After a series of delays, Kyrgyzstan acceded the EEU in May and is awaiting other members’ ratification to join officially.

Kyrgyzstan’s drawing closer to Russia has earned it the ire of Uzbekistan, which shut off gas supply to southern Kyrgyzstan in April. The immediate provocation was Kyrgyzstan’s sale of its dysfunctional gas utility to Russia’s Gazprom for $1. Uzbekistan opposes what it considers Russian overreach in the region.

Tajikistan has expressed interest in joining the EEU, largely under pressure from Russia. New rules have made it harder for non-EEU members’ citizens to work in Russia, and remittances make up half of Tajikistan’s GDP. This dependence means the ruble’s depreciation has taken a huge toll on the country.

Will there be an EEU single currency?

Of the EEU member states, only Russia has expressed any enthusiasm for a single EEU currency. As with so much of the communication coming from the Kremlin, the reasoning is a bizarre inversion of the truth.

Officials have cited the US economy’s potential collapse—perhaps they meant the Russian economy?—and proposed banning euros and dollars in EEU members’ transactions. In reality Russia’s central bank has gutted its foreign exchange reserves in order to prop up the ruble and now hopes to replenish them to pre-crisis levels.

Meanwhile Kazakhstan is vocally defending its sovereignty, Belarusian president Alexander Lukashenko has said the single currency should be the “last [issue] on the agenda” and Armenia is probably still pining for EU membership. None of these countries seems to want a common currency.

But when push comes to shove, Russia does not concern itself with what other countries want. If the Kremlin sees a unified currency as being in its interest, it will use energy, remittances and propaganda as leverage to force its neighbors’ hands.

Russia’s considerable leverage is no guarantee of success, of course. The fact that RT and Sputnik are reporting calls for economic integration may mean that the Kremlin is seriously pursuing a single currency. On the other hand, Russia is obscuring its true motives behind dubious claims that the world’s benchmark currencies will collapse (note the timing of that piece: one day before the EEU accords were signed).

So long as the Kremlin communicates in conspiracy theories, it is difficult to assess how important the single currency really is to Russia’s leaders.

What would an EEU currency look like?

In October 2014, Pravda reported that the EEU single currency would likely be called the altyn, a name that has been applied to different currencies going back to the 15th century. The report gave a timeframe for the altyn’s introduction: 2025, all things being equal, but perhaps as soon as 2017 due to the impact of sanctions.

Judging by the relative sizes of the economies involved, the altyn would in essence be the ruble. Using the World Bank’s 2013 GDP figures—keeping in mind that Russia’s economy is set to shrink this year—Russia makes up 87% of the proposed altyn-zone.

By contrast, the eurozone’s two largest economies, France and Germany, together made up just under 50% of the whole. All told, the eurozone’s collective GDP of $13.2 trillion is around 5.5 times greater than the proposed altyn-zone’s $2.4 trillion.

The altyn would be inextricably tied to oil prices, which are unlikely to recover to pre-crash levels in the next few years.

Conclusion

Russia’s partners in the newly formed EEU are nervous about Putin’s ambitions and, at least when it comes to their domestic audiences, wish to be seen opposing the single currency. On the other hand, Russia has extensive leverage over these governments, whose economies are tied to Russian gas and remittances sent by migrants working in Russian cities. Whether the altyn becomes a reality mainly depends on how committed the Kremlin is to the idea. As for its potential to replace the dollar or euro as a reserve currency, don’t count on it—or anything else RT says.

http://www.nasdaq.com/article/will-f...#ixzz3cip2XKrM

My comment on this article is not about which union or currency is right or wrong.
The author of this article accuses RT news of only presenting what the kremlin's view is, and they dismiss them for that.
This article is a blatant propaganda piece no less than RT is.
Notice there was no mention of the west's agitation in Ukraine but only Russia was to fault.
Funny to see one propagandist call another propagandist a propagandist.

[Hakob]

Re: Eurasian Customs Union

My comment on this article is not about which union or currency is right or wrong.
The author of this article accuses RT news of only presenting what the kremlin's view is, and they dismiss them for that.
This article is a blatant propaganda piece no less than RT is.
Notice there was no mention of the west's agitation in Ukraine but only Russia was to fault.
Funny to see one propagandist call another propagandist a propagandist.

Look who's the publisher of this article. NASDAQ!!!
Representative of US corporate monetary hegemony that has lead so many small countries into Poverty.
The only motive for this is an attack to any emerging would be competition

[Haykakan]

Re: Eurasian Customs Union

Look who's the publisher of this article. NASDAQ!!!
Representative of US corporate monetary hegemony that has lead so many small countries into Poverty.
The only motive for this is an attack to any emerging would be competition

You are spot on! Should a common currency be established in the EEUnow, it will gain in value as oil prices start to rebound. The demand for oil and gas is already going up and will go way up soon as economies recover and developing nations develop. Competition in the currency markets is badly needed. Armenia stands to gain from this for she has no gas nor oil yet will benefit from the appreciation of these resources via the currency value which will be based mainly on oil and gas.

[Armynia]

Re: Eurasian Customs Union

Why Russia is not inviting China to its Eurasian Customs Union? Because Russians know if China be member of Eurasian Union Russia will become Chinas Canada. Therefore, Russians designed the Eurasian Union to have Vassal states not to become one!