Eurasian trade deal
World & Business, Economy. Wed, 19 Oct 2011 08:20 EDIT 2011-10-19 14:28 Featured
Source: Public Domain Pictures


A new trade agreement between Russia and seven former Soviet states might herald the advent of Vladimir Putin’s desire to create a new Eurasian Union.

A free-trade deal was signed in late October between the Russian Federation and seven former Soviet republics. The agreement will terminate tariffs on a number of goods in the trade exchange between Russia, Ukraine, Belarus, Kazakhstan, Armenia, Moldova, Kyrgyzstan and Tajikistan. Besides these, Uzbekistan, Turkmenistan and Azerbaijan might also become signatories later during 2011 but the agreement must however be ratified by the parliaments in each different country before it becomes effective next year. The move to strengthen trade relations between the remnant states of the former Soviet Union was labelled by Mr Putin as a measure aimed at making their collective economies “more competitive”.

The free-trade deal comes at a time when Putin recently declared his ambition to create a Eurasian union between Russia and former Soviet republics. Despite his saying that the collapse of the Soviet Union was “the greatest geopolitical disaster of the 20thcentury”, the Prime Minister insists that such a union would not be a Soviet continuation. In an article in Russian media Mr Putin criticized some of Russia’s neighbours for singlehandedly trying to integrate with the EU and pointed out that membership in a future Eurasian union would give its members a stronger position in negotiations with the rest of Europe.

Trade is often considered to be a solid foundation for peace and understanding but there are issues that raise concerns about Russian intentions. The war in Georgia in 2008 demonstrated Russia’s self perspective as an arbiter in the affairs of the former Soviet republics. Also, the trial against Yulia Tymoshenko in Ukraine is viewed by critics as a politically motivated fraud with the purpose of obliging pro-Russian sentiments in the current Ukrainian government. Time will tell whether the eventual establishment of the Eurasian union will enhance the sovereignty of individual member states or solidify Russian hegemony. After all, many historians apply the so called Zollverein or German Customs Union as an important stepping stone in the unification process of Germany in the 19thcentury. It is an example that might or might not be repeated.

 For more information about the trade agreement and Mr Putin’s statements please use the following links:

http://www.bbc.co.uk/news/business-15363770

http://www.dn.se/nyheter/varlden/putin-vill-bilda-ny-eurasisk-union

 Daniel Nykvist

Russia, Putin, Eurasia, free trade http://www.universaldigest.com/media/uploads/20111019_8196256_danielnykvist_ryska dockor.jpg

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