VLADIMIR PUTIN
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OF THE 2008-2012 PRIME MINISTER
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VLADIMIR PUTIN

International Visits

15 march, 2011 17:22

The Eurasian Economic Community

On February 26, 1999 Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan signed the Treaty on the Customs Union and the Common Economic Space, which set the stage for integration over an indefinite period.

The first stage involved the completion and formalisation of free trade among member states, including the annulment of tariffs and quantitative restrictions to mutual trade, the introduction of a unified customs tariff, and the elimination of administrative, fiscal, and other obstacles to free trade.

The second stage was the creation of a Customs Union and a Common Customs Space, along with a unified customs tariff, the elimination of independent customs regulation among member states, and economic and trade integration;

The third stage culminated in the creation of the Common Economic Space, which established a unified economic policy and a common market of services, labor, and capital, as well as a joint legislature and integrated social and scientific-technical policies.

The agreement on the establishment of the Eurasian Economic Community (EurAsEC) was signed by the presidents of Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan on October 10, 2000 in Astana. The treaty went into effect on May 30, 2001 after being ratified by all five member states.

The following EurAsEC bodies currently operate under the agreement:

The Interstate Council – the supreme body of the EurAsEC, which is composed of the presidents and prime ministers of member states. It considers issues of fundamental importance to the common interests of member states, determines integration strategies, and makes decisions on the programmes and goals of the organisation.

The Integration Committee- a permanent body of the EurAsEC that ensures interaction between the governing bodies of member states, drafts proposals and other documents for the agenda of the Interstate Council, controls the implementation of its decisions, and manages the EurAsEC budget. The IC presents an annual report on its work and EurAsEC affairs to the Interstate Council.

The Permanent Representatives Commission of the EurAsEC is intended to oversee the work of the Community. Heads of the state appoint their permanent representatives to the EurAsEC.

The Interparliamentary Assembly is a parliamentary body of the EurAsEC that considers issues related to the coordination of national legislation among member states and bringing it into line with agreements concluded within the EurAsEC. The Interparliamentary Assembly is composed of parliamentarians delegated by the parliaments of member states.

The Court of Justice of the Community is intended to ensure the uniform application of agreements and decisions adopted by the EurAsEC among member states. The Court of Justice of the Community also settles economic disputes arising over the agreements concluded by the EurAsEC and provides decisions and conclusions on the application of such documents. The Court is formed by no more than two representatives from each member state.

The system for planning the EurAsEC budget and the proportion of votes in the Integration Committee and the Permanent Representatives Commission are directly proportional to the economic contributions of member states. The size of each member state’s payments to the budget and the number of votes are as follows: 40% (40 votes) from Russia, 20% (20 votes) from Belarus, 20% (20 votes) from Kazakhstan, 10% (10 votes) from –Kyrgyzstan, and 10% (10 votes) from Tajikistan. The EurAsEC Interstate Council makes decisions by consensus.

Armenia, Moldavia, Ukraine, the Interstate Aviation Committee, and the Eurasian Development Bank have been granted observer status in the EurAsEC.

In December 2003, the Eurasian Economic Community was granted observer status in the UN General Assembly. 

Protocols were signed on January 25, 2006 in St Petersburg on Uzbekistan’s accession to the EurAsEC and on introducing amendments and additions to the treaty to allow Uzbekistan's accession.

On October 15, 2008, President of Uzbekistan Islam Karimov notified the EurAsEC Integration Committee that Uzbekistan was suspending its membership, which led to the drafting and signing of documents allowing the EurAsEC to function as a five-state organisation.

On October 6, 2007, the 19th meeting of the heads of state of the EurAsEC Interstate Council in Dushanbe resulted in the adoption of a resolution on the establishment of a legal framework for the Customs Union within the Eurasian Economic Community, which approved the 'Protocol on Introducing Amendments to the Treaty on the Establishment of the Eurasian Economic Community' of October 10, 2000. Russia, Belarus, and Kazakhstan signed the 'Treaty on the Establishment of the Common Customs Territory and the Formation of the Customs Union' and the 'Protocol on the Procedure for Bringing into Force International Treaties', which were aimed at the formation of a contractual basis for the Customs Union and for the withdrawal from or accession to its treaties. They also adopted a list of international treaties constituting the legal framework of the Customs Union and an action plan for the formation of the Customs Union within the Eurasian Economic Community. Kyrgyzstan and Tajikistan were designated as free to join the Union at any time.

A meeting among heads of state of the EurAsEC Interstate Council on February 4, 2009 established the EurAsEC Anti-Crisis Fund to minimise the negative affects of the world financial and economic crisis on the economies of EurAsEC states. 

The EurAsEC Anti-Crisis Fund controls assets in freely convertible currencies equivalent to $10 billion. Russia is to contribute $7.5 billion, Kazakhstan is to contribute $1 billion, Belarus is to contribute $10 million, and Kyrgyzstan, Tajikistan, and Armenia are each to contribute $1 million to the fund. The Anti-Crisis Fund will be used for granting loans, stabilising credit, maintaining the economies of the low-income member states, and realising interstate investment projects on a basis of reward, maturity, and repayment.

In response to Kyrgyzstan’s desire to participate in establishing the legal framework of the Customs Union, a working group was formed during the fifth meeting of the Customs Union Commission, on May 29, 2009 in Minsk, to discuss Kyrgyzstan’s potential membership in the Customs Union. Thereafter, at the sixth meeting of the Union, on June 25, 2009 in Moscow, the chair and structure of the working group were defined.

The June 9, 2009 meeting among the prime ministers of the Interstate Council  in Moscow was vital for the establishment of the three-state Customs Union. A unified customs tariff was agreed upon at the meeting, and on November 27, 2009, it was submitted to the EurAsEC Interstate Council in Minsk. The tariff was to be enacted on January 1, 2010.

On December 19, 2009 during an informal meeting in Alma Ata among Customs Union heads of state, an action plan was adopted for the creation of the Common Economic Space of Belarus, Kazakhstan and Russia,. Meanwhile, another agreement was signed marking the official inception of the three-state Customs Union as of January 1, 2010, which heralded the next stage of integration – that of the Common Economic Space (CES).

On July 5, 2010, a meeting of the EurAsEC Interstate Council was held in Astana, Kazakhstan among heads of state. The meeting was attended by presidents of Belarus, Kazakhstan, Russia, Tajikistan, and Kyrgyzstan. As usual, the president of Armenia, an observer state, was also present at the meeting. The Russian delegation was headed by Dmitry Medvedev. 

A set of international documents comprising the legal framework for the CES was to be signed by January 1, 2011.

The key result of the meeting in Astana was the adoption of the Customs Code of the Customs Union, which was scheduled to come into force on July 6, 2010 (in Russia and Kazakhstan, the Customs Code came into force on July 1, 2010).

The first stage of the creation of the Customs Union within the EurAsEC was completed.

On December 9, 2010 a regular meeting among the heads of five states of the EurAsEC Interstate Council was held in Moscow. Those present discussed drafts  on the implementation of projects in priority areas of EurAsEC development over 2011-2013 and subsequent years.

Russia will preside in the EurAsEC and the Customs Union for the remainder of the current year (2011). A regular meeting of the EurAsEC Interstate Council will be held in the second half of 2011 in Russia.