It will be effective starting January 1, 2010
The customs union of Russia, Belarus and Kazakhstan will become effective starting January 1, 2010, Prime Minister Vladimir Putin announced at a meeting of the State Border Commission yesterday.
"There are a lot of threats on the path to the union's creation," Putin said. "But this is real integration in the post-Soviet space."
The union of the three countries should facilitate trade among them and lower the customs barriers. And this is only the first step. Subsequently, Russia, Belarus and Kazakhstan all intend to join the World Trade Organization as a bloc. By doing it that way, it will be easier to uphold the countries' rights in the world market. At the same time, Putin said, control over the external borders of the common customs territory will be intensified.
Efforts will be made to boost economic efficiency inside Russia, as well. For one, oil companies will be fined for burning associated gas (which is extracted along with oil). Yesterday, Putin indicated that at least 95% of associated gas should be used by 2012.
"Any oil companies that fail to comply with this requirement and continue to flare it will pay heavy fines for unauthorised emissions into the atmosphere," Putin asserted.
Associated gas is a valuable raw material for the power and chemical industries. Although the new measure would call for significant investments from oil companies, the economic and environmental effect it would have in the future is huge. Thus, the government has committed itself to the widest possible use of all raw materials produced.
Andrei Zaitsev