Showing posts with label Kazakhstan. Show all posts
Showing posts with label Kazakhstan. Show all posts

Thursday, January 8, 2015

Eurasian Economic Union comes into force at beginning of 2015

On January 1, the Eurasian Economic Union(EEU) came into force, linking Russia, Belarus, Kazakhstan and now Armenia as well.


In part the Eurasian Economic Union is meant as a counterbalance to the European Union. So far members consist of Russia and some former members of the USSR who are now independent. Armenia officially joined on Friday. However, in a deal signed back in October, Armenia will have limited representation in the EEU until the end of 2015. Another former Soviet republic, Kyrgyzstan, will join on May 1 this year.
 Unlike Ukraine, the Armenian government decided against closer ties to the EU back in 2013 and opted instead to join the Customs Union created by Russia which was a precursor to the EEU. The Customs Union was formed on January 1 2010 and consisted of Russia, Belarus, and Kazakhstan. Trade economist Alexander Knobel claims that Armenia chose to join the Union after Russia offered a bargain price of $170 to $180 per thousand cubic meters of natural gas. 
Russia has the largest foreign investment in Armenia and is the largest trading partner as well. Since Ukraine has turned to the west, Putin is looking to use the EEU to create a larger economic unit that will see Russia as the dominant member. Analyst, Lilit Gevorgyan of IHS Global Insight said: "Having lost Ukraine, Central Asia will be much more sought after by Moscow in striking its integration plans" 
The Kazakhstan president, Nazarbayev, has been a big supporter of the increased economic integration involving Russia although he has also been clear that Kazakhstan will remain independent politically. Aidos Sarym, a political analyst based in Almaty, Kazakhstan said: "In our region, we have Kazakhstan, we have China and we have 7,000 kilometers of common border with Russia, so naturally you will not find a single sober-minded person in this country saying that he will not cooperate with Russia. The question is — how to do it and on what terms." The Kazakhstan president has pursued what he terms a "multi-vector foreign policy" that attempts to develop positive economic relations with Russia, China, and the West as well. He does not see the EEU as Russia extending its empire but as being similar to the EU.

Thursday, October 9, 2014

Russia ratifies Eurasian Economic Union with Kazakhstan and Belarus

Vladimir Putin, the Russian president, signed a law that commits the country to the Eurasian Economic Union. The agreement comes into force on the first of January 2015 creating an economic union among Russia, Kazakhstan and Belarus.



Belarus and Kazakhstan are expected to ratify the treaty within a few days. The process of forming the union has been going on for some time with a customs union already being in place. The union will create a common market serving 170 million people. Although each country will keep its own currency, the ruble will be the union's de facto currency. The three countries will cooperate in the areas of energy, transport,, industry, and also agriculture. Union headquarters will be in Moscow with courts in Minsk, the capital of Belarus. Almaty, Kazakhstan will be the site of the financial regulatory agency. Citizens of the three countries will be able to work in any of the member states without a work permit.
In just the last three years trade within the three countries, who had a customs union, increased by nearly 50 percent to $66.2 billion at the end of 2013. Only the EU and China have greater trade with Russia than the Customs Union members. Presidents of all three countries are scheduled to meet in Minsk to exchange ratification documents on October 10. Armenia is also planning to join the union soon. Negotiations and agreements for closer economic ties between a number of ex-Soviet republics have been ongoing since at least 1995.
The Customs union between Russia, Kazakhstan and Belarus came into effect back in January 1, 2010. The agreement eliminated any tariffs between the three countries, created a common external tariff policy and also did away with non-tariff barriers to trade. The Eurasian Economic Union agreement was negotiated on May 29 this year. The presidents of Armenia, and Kyrgyzstan were also present at the original signing. At the time President Putin said: "Today we are creating a powerful, attractive center of economic development, a big regional market that unites more than 170 million people." Both Armenia and Kyrgyzstan plan to join by signing an accession treaty by the end of this year. Tajikistan has also expressed interest in joining.

Tuesday, June 5, 2012

NATO negotiates new supply route through Central Asia to Afghanistan



The NATO head Anders Rasmussen reports that the three central Asian states of Kazakhstan, Uzbekistan, and Kyrgyzstan have agreed to allow NATO supplies through a new land supply route to Afghanistan. The new deal will allow European nations who are withdrawing from Afghanistan over the next few years to return troops and equipment by land through Russia to Europe. It will also provide a temporary alternative for NATO supplies since the Pakistani routes are not still not reopened.

However, the U.S. is intending to stay in Afghanistan until 2024 and the Central Asian route is much more expensive than the sea route with transhipment through Pakistan. Pakistan closed the border to NATO supplies last November and negotiations have still not been completed to reopen the routes. Pakistan has demanded an apology for the incident that provoked the closing. Numbers of Pakistani soldiers were killed in an attack on the a border base. An end to drone attacks was also a requirement but drone attacks are actually increasing. For more see this article.

Tuesday, March 13, 2012

Bahrain added to list of internet censoring countries



The organization Reporters Without Border has added Bahrain together with Belarus to the "Enemies of the Internet" blacklist. China, North Korea, and Saudi Arabia were already on the list. The group maintained that Internet users were"at the heart of the political changes in the Arab world and elsewhere".

The group said that Bahrain ramped up censorship efforts after protests began back on Feb. 14th last year. The report said:"Bahrain offers a perfect example of successful crackdowns, with an information blackout achieved through an impressive arsenal of repressive measures: exclusion of the foreign media, harassment of human rights defenders, arrests of bloggers and netizens (one of whom died behind bars), prosecutions and defamation campaigns against free expression activists, disruption of communications,"

In Belarus as well the government initiated a brutal crackdown that included the interrogation of 100 journalists. Almost a third were given prison terms.

Libya was praised and was removed from the list of countries which RWB had under surveillance. Venezuela was also removed from the list. However, India and Kazakhstan have been added. For more see this article.

US will bank Tik Tok unless it sells off its US operations

  US Treasury Secretary Steven Mnuchin said during a CNBC interview that the Trump administration has decided that the Chinese internet app ...