Nezavisimaya Gazeta: "Customs Union: Will it last?"

Nezavisimaya Gazeta: "Customs Union: Will it last?"

The Customs Union that has united Russia, Belarus, and Kazakhstan since January 1, 2010, must be transformed into a unified economic space in two years. Prime Minister Vladimir Putin believes that the new union has the potential to turn into a global centre attracting capital and high technology. However, experts believe that this is just wishful thinking.
Prior to yesterday’s government meeting on customs regulation, Putin visited Central Energy Customs. This is a focal point for the prime minister. It is here that the bulk of federal budget revenues is formed from customs duties on Russia’s main exports – oil and gas.
Andrei Belyaninov, head of the Federal Customs Service, explained to the prime minister how the documents are being compiled and what has been done for establishing a vertically integrated structure – a tandem of customs and exporters of energy resources.
At the meeting, Putin dwelled on measures to improve the Customs Union of Russia, Belarus, and Kazakhstan established on January 1, 2010. The prime minister said that what had been achieved so far – the introduction of a uniform customs tariff and a system of non-tariff regulation – was a “real integration breakthrough”. By July, the member countries must make another step towards strengthening the Union – to put a Uniform Customs Code into effect. For this purpose, Putin demanded that proper control be ensured at the external borders of the common customs territory, ruling out the emergence of “grey zones”. Bona fide exporters, not just any unscrupulous dealers, must enjoy the Customs Union’s full benefits.
At present, Moscow, Minsk, and Astana are facing an even more ambitious task: by January 1, 2012, the three countries must go on to a qualitatively new stage of integration – a unified economic space of Russia, Belarus, and Kazakhstan, the prime minister said. According to him, the territory with a population of 170 million can become a new global economic development centre, attracting capital and high technology. The implementation of these plans largely depends on the success of the countries’ efforts this year to further coordinate customs documents and procedures, Putin said. He also said that “we must move cautiously, stage-by-stage” towards a unified economic space and adapt our domestic legislation accordingly.
Independent experts positively assess the plans of Moscow, Minsk, and Astana to transform the Customs Union into an economic union, but they do not believe in the emergence of a new global centre attracting capital. Russia will have to put up with oil supplies to Belarus at domestic prices and the appearance of Belarusian goods on its market.
Igor Naumov