Izvestia: “An alliance for two”
Russia and Kazakhstan will form a common customs territory without Belarus.
The fate of the tripartite Customs Union has seen an abrupt change. Russia and Kazakhstan have signed the documents on the creation of a common customs space... without Belarus.
A week ago when the three heads of government – Russia, Belarus and Kazakhstan – tried to agree on common rules for the common customs space, negotiations stalled. Russia was adamant about protecting its automobile industry and would not budge on the issue of import duties for foreign cars. Kazakhstan was covering its "shuttle merchants" and was bargaining for a larger volume of duty-free import of cheap Chinese goods. And Belarus was still pressing for discounts on oil and petroleum products. The fiercest arguments were naturally over the latter. Astana was even prepared to rescind all its demands if Moscow and Minsk could managed to come to terms. Alas, this was not to be. Negotiations resumed a week later.
Belarus immediately surprised its partners when its Prime Minister Sergey Sidorsky refused to fly to St Petersburg.
"Our Belarusian colleagues told us they would come to sign these documents. The visit was canceled at the last minute," Vladimir Putin announced. "I talked with my counterpart over the phone today and he told me, citing the president of Belarus, that Belarus was ready to sign the documents. It remained for the Belarusian economic agencies to work out technical details among themselves. That is what I have been told."
However, Vladimir Putin chose not to cancel the meeting with his Kazakhstan counterpart. The two governments decided to fall back on plan B and go ahead and sign the agreement anyway. Especially since many of the differences between the negotiators disappeared over the previous week. In fact, after Belarus pulled out, there were no differences left.
"In fact, there is only one remaining issue and it's not connected with the Customs Union," the Russian prime minister admitted, "it is about export duties on oil and petroleum products. I would like to reaffirm the Russian position that from the moment the agreement on a common economic space is ratified such duties will not be used between our states." If you recall, Belarus wants duty-free oil from us at domestic Russian prices not only for its own needs, but also for re-export after being processed. Moscow decided against letting Minsk pocket the profits of our oilmen which at present go to replenish the Russian budget.
Another major stumbling block – car import duties – was successfully pushed aside. The two parties decided to make an exception for cars for the time being, i.e. until the introduction of a single customs tariff, long since agreed, a "transitional" arrangement will be in force for motorists. The period is likely to last until January 1, 2011. Until that time every citizen of Kazakhstan will have the right to bring into the country one car a year at reduced tariff rates. The owner may freely drive into Russian territory. However, the owner will not be allowed to sell his car or provide a power of attorney allowing somebody else to use it without paying the full duty.
So, the single customs code and the common customs space will come into force July 1, if only for Russia and Kazakhstan. Putin and Masimov, of course, said with one voice that they are ready to welcome Belarus with open arms. But both of them said that if Minsk did not change its mind nothing would prevent our two countries from seeking accession to the World Trade Organization (WTO) together.
Anastasia Savinykh
