Connecting with Russia and Kazakh
7 March 2013 4:30 AM IST
Belarus currently shares a close relationship with Russia and Kazakhstan. On January 1, 2012, the Single Economic Space (SES) of Belarus, Russia and Kazakhstan was launched, opening the door to a new period of integration which means commodities, services, capital and labour are able to move freely. A declaration on Eurasian economic integration was signed in November 2011 by the Presidents of Belarus, Russia and Kazakstan, while agreeing to establish a supranational regulating body: the Eurasian Economic Commission.
The major goal is to establish a Single Economic Space (SES). The three states also need to become more mutually dependant. The declaration mentions a ‘co-ordinated economic policy’, ‘co-ordinated parameters of major macroeconomic figures’ and ‘strengthening of co-operation in the foreign currency sphere’.
The three states are co-ordinating actions, agreeing on important aspects such as foreign debt, budget deficit and the volume of agricultural subsidies. Post SES, the turnover between the three states is expected to grow. This should lead to stronger Belarusian, Russian and Kazakh economies.
The SES is creating equal conditions for all three countries’ companies. Raw materials, oil and gas play a huge role in Russia and Kazakhstan, while Belarus lacks such natural wealth.
However, Belarus boasts powerful industrial potential — primarily, its machine building complex. Belarus is interested in supplying reasonably priced hydrocarbons while Kazakhstan needs Belarus-made machines and equipment.
The GDP of the three states totals almost $2 trillion, while the industrial potential is estimated at $600bn. The joint agricultural produce is worth around $112bn per year, and the combined consumer markets exceed 165 million people. The Single Economic Space shares macro-economic policies, ensuring equal terms for competition, technical regulations and agricultural subsidies, as well as transport and natural monopoly tariffs. The three states also plan to considerably raise the volume of goods which can be imported duty-free for personal consumption.
Businesses are to enjoy wider opportunities, with single standards for goods and services (unified with Europe in most cases).
A possible transition to a single currency — following the EU’s example — could be a topical issue for Eurasian integration in coming years. Kyrgyzstan and Tajikistan could also join the Eurasian Union in the near future.
The major goal is to establish a Single Economic Space (SES). The three states also need to become more mutually dependant. The declaration mentions a ‘co-ordinated economic policy’, ‘co-ordinated parameters of major macroeconomic figures’ and ‘strengthening of co-operation in the foreign currency sphere’.
The three states are co-ordinating actions, agreeing on important aspects such as foreign debt, budget deficit and the volume of agricultural subsidies. Post SES, the turnover between the three states is expected to grow. This should lead to stronger Belarusian, Russian and Kazakh economies.
The SES is creating equal conditions for all three countries’ companies. Raw materials, oil and gas play a huge role in Russia and Kazakhstan, while Belarus lacks such natural wealth.
However, Belarus boasts powerful industrial potential — primarily, its machine building complex. Belarus is interested in supplying reasonably priced hydrocarbons while Kazakhstan needs Belarus-made machines and equipment.
The GDP of the three states totals almost $2 trillion, while the industrial potential is estimated at $600bn. The joint agricultural produce is worth around $112bn per year, and the combined consumer markets exceed 165 million people. The Single Economic Space shares macro-economic policies, ensuring equal terms for competition, technical regulations and agricultural subsidies, as well as transport and natural monopoly tariffs. The three states also plan to considerably raise the volume of goods which can be imported duty-free for personal consumption.
Businesses are to enjoy wider opportunities, with single standards for goods and services (unified with Europe in most cases).
A possible transition to a single currency — following the EU’s example — could be a topical issue for Eurasian integration in coming years. Kyrgyzstan and Tajikistan could also join the Eurasian Union in the near future.
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