Eurasian Union Fails a Critical Test: Displaying Irrelevance in the Time Of

MAY 2020 12 Arkady Moshes, Programme Director, FIIA Ryhor Nizhnikau, Senior Research Fellow, FIIA Kristiina Silvan, Research Fellow, FIIA EURASIAN UNION FAILS A CRITICAL TEST DISPLAYING IRRELEVANCE IN THE TIME OF THE CORONA CRISIS The pandemic is testing the effectiveness of the Eurasian Economic Union. However, its actions demonstrate the fundamental flaws of this integration project instead. The Covid-19 pandemic has sub- unconvincing at best, and has is that some of these individual jected the Eurasian Economic served instead to turn the spotlight actions impeded the functioning Union (EAEU) to a double ordeal. on the existing internal contradic- of the common market and thus On the one hand, the question is tions and structural deficiencies. contradicted the whole purpose of whether the EAEU has the insti- The reliance on national solu- creating the Union. tutional capacity to make its five tions was hardly surprising tak- Due to unilateral and uncoordi- member states – Armenia, Belarus, ing into account the differences nated border closures, by Russia in Kazakhstan, Kyrgyzstan and Russia in approaches to the corona crisis, particular, labour migrants return- – act in a coherent and coordinat- when Armenia and Kazakhstan ing home were stuck at airports and ed manner. On the other hand, the introduced early and strict quar- border checkpoints. Even though challenge is to make a practical dif- antine measures, while Belarusian borders remained open to road ference and add value to the states’ President Alexander Lukashenko freight traffic, the movement of actions. Mikhail Myasnikovich, a chose to simply deny the danger goods was periodically interrupt- Belarusian national who is cur- and imposed none. Moreover, the ed. Kyrgyzstan, which is dependent rently the head of the Eurasian Eco- preference for sovereign instru- on grain imports, raised concerns nomic Commission (EEC), admitted ments over Union mechanisms about Kazakhstan’s and Russia’s that the coronavirus would pose a may simply be an instinctive – and limitations on exports of foodstuffs “durability test” for the Union. easier – choice and is not necessar- and proposed that the EAEU should However, thus far, the EAEU’s ily indicative of ignoring the EAEU compile a list of goods, the flow of response to the challenge has been as such. Nevertheless, the problem which between the member states MAY 2020 12 could not be restricted under any weakened in the EAEU’s institu- EAEU strategy for economic inte- conditions. Belarus, in turn, ex- tional set-up, once again found it- gration. pressed fears that Russia’s protec- self in an observer’s position and In the face of the EAEU’s and tive measures would hit its agricul- offered no initiatives of its own. Russia’s inaction, Belarus, Arme- tural exporters. The Eurasian Union is clearly nia and Kyrgyzstan sought aid from Several EAEU high-level en- suffering from a lack of leadership. other actors – such as the IMF, EU, counters looked as if they were con- While the institutions are unable to Asian Development Bank, Euro- ducted pro forma. On 10 April, the play this role by default and small pean Bank for Reconstruction and Eurasian Intergovernmental Coun- member states – like Belarus, which Development, and China. More- cil (EIC, prime ministerial level) currently has the presidency of the over, in contrast to Russia’s role, agreed to coordinate sanitary and Union – do not have the resources, China’s role was strongly praised epidemiological activities, to ban Moscow does not show any appetite by the Belarusian, Kazakhstani and exports and to improve the supply for behaving as a benign hegemon Kyrgyzstani authorities. of essential goods by removing im- and significantly supporting its By and large, the pandemic has port duties and simplifying proce- Eurasian partners. At the outset, demonstrated the weakness and dures. It also promised to focus on when Russia was sending humani- limited relevance of the EAEU in ensuring macroeconomic stability, tarian assistance to Serbia, Italy and terms of its ability to help Russia’s but no substantial concrete meas- even the US, it was reluctant to re- partners withstand the most urgent ures were put on the table. spond to immediate requests from challenges of the day, be they of ep- Extraordinary sessions of the within the EAEU. Later on, when idemiological or economic origin. Supreme Eurasian Economic Russia finally sent Covid-19 tests Furthermore, the corona crisis has Council (SEEC, heads of state) on to fellow Union members, Belarus exacerbated a number of old prob- 25 March and 14 April, instead of declined them, which was a clear lems between the member states concentrating on Covid-19, turned démarche, followed by harsh criti- and has shown that “Eurasian sol- into an exercise in pursuing well- cism of Russia by Belarusian foreign idarity” was certainly not at the known national agendas. Belarus minister Vladimir Makei. level required to make a claim that used the opportunity to demand a At the April summit of the Su- the EAEU is functioning any better gas price discount from Moscow. preme Eurasian Economic Coun- than previous Russia-led attempts Kyrgyzstan suggested review- cil, Russian President Vladimir at regional reintegration. This is ing the rules of the EAEU finan- Putin only agreed that the re- something that European policy- cial institutions to re-direct their sources of the Eurasian Develop- makers and particularly advocates resources into grants and direct ment Bank and the Eurasian Sta- of direct engagement between the budget support, while Kazakhstan bilization Fund could potentially EU and the EAEU may be advised raised the problem of the volatility be used. Instead, he suggested to bear in mind when considering of commodities markets. strengthening provisions on co- the future. The Eurasian Economic Commis- operation in fighting future health sion, which has been intentionally emergencies in the forthcoming The Finnish Institute of International Affairs is an independent research institute that produces high-level research to support political decisionmaking and public debate both nationally and internationally. 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