VLADIMIR PUTIN
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VLADIMIR PUTIN

Media Review

20 october, 2011 12:18

Izvestia: "Eurasian Economic Union could start by 2015"

The prime ministers of Russia, Kazakhstan and Belarus talk to Izvestia about their efforts to establish a new economic association.

The prime ministers of Russia, Kazakhstan and Belarus talk to Izvestia about their efforts to establish a new economic association

The presidents of Russia, Kazakhstan and Belarus have made their intention to establish a Eurasian Economic Union official by signing the relevant declaration in Moscow.

Replying to Izvestia's question, Prime Minister Vladimir Putin said the union could be launched by 2015 if the effort to create it is as intensive as it was for the Customs Union (CU).

"We will have to adopt many standardised documents and introduce amendments to current legislation," Putin told Izvestia.

He said the three parties will deepen their integration in the new association. In particular, they will ease visa procedures. However, they don't want to repeat the mistakes of their predecessors who have integrated too closely.

The prime ministers draw parallels with the European Union (EU) that is now undergoing hard times. Kazakh Prime Minister Karim Massimov told Izvestia the EU experience shows it's wrong to rush ahead and assume unrealistic commitments.

"If we are unable to fulfill part of an agreement, we honestly admit it," he said. "Therefore, the issue of common currency is not on today's agenda. We must work thoroughly on this issue to avoid any mistakes."

Putin is confident in the rouble's future. He said cashless transfers with Belarus are made in roubles. Now Ukraine has also suggested broader use of the rouble in mutual settlements.

"A common currency must grow on a settled economic seedbed to avoid what is happening in the Eurozone," Putin told Izvestia.

He explained that some countries may have to quit the Eurozone and he considers this unacceptable for the would-be Eurasian Economic Union.

Kyrgyzstan's admission to the CU was another subject discussed by the prime ministers in St Petersburg. Tajikistan may join later as well. It does not have a common border with the CU members and will have to wait for Kyrgyzstan to join.

Massimov said that for Kazakhstan, Kyrgyzstan's accession to the CU is a very sensitive issue.

"As a CU country, we had to build a full border with Kyrgyzstan where we had none before. Now Kyrgyz companies are unhappy and are laying claims against us," he told Izvestia.

Ukraine was also part of the discussion. Putin emphasized that "this is the sovereign choice of the Ukrainian people," but pragmatically Kiev will stand to gain from joining the CU.

"If at some point Ukraine takes a pencil and erases its political phobias and concludes that this is worth it, we are ready to launch a direct dialogue," Putin said.

Belarusian Prime Minister Mikhail Myasnikovich emphasized that any country interested in joining the CU or the Common Economic Space must abide by common rules, as Belarusian President Alexander Lukashenko wrote in Izvestia.

Participants in the summit repeatedly mentioned Lukashenko's response to Putin's programme article about integration in the post-Soviet space. Putin said he read Lukashenko's response and agreed with his ideas and proposals. Putin noted the change in the religious views of his long-standing partner.

"I was glad to note some transformation in Lukashenko's world outlook. I know him as a diehard atheist but he makes references to the Bible in this article. This means that our rapprochement is not only economic but also spiritual," Putin said.

He reported that Gazprom management had completed its gas talks. Starting next year, Minsk will receive Russian gas at a new price that will take into account the integration discount.

However, this discount apparently cannot continue indefinitely. Putin explained that the concerned parties want the prices to yield the same revenue, and for this reason the cost of gas for this partner will be gradually increased. The presidents of the two countries will resolve this issue at their meeting.

Anastasia Novikova