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Eurasian Economic Commission 2013

Eurasian Economic Commission 2013

Eurasian Economic Integration: Facts and Figures

section 1 History of Eurasian integration

section 2 Member states of the Customs Union and the Single Economic Space and their global standing

section 3 The Customs Union: what it is and how it works

section 4 An overview of the Single Economic Space

section 5 Structure and activities of the Eurasian Economic Commission

section 6 The Customs Union and the Single Economic Space as integral parts of the global economy

section 7 Towards the

section 8 Contact information

2 3 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

Foreword by Viktor Khristenko

Dear Colleagues, It was in order to forge ahead with this mean not only public officials and businessmen immense project that an executive body, the in our own countries, but also members of the Eurasian Economic Commission (EEC), was expert community, journalists and the citizens We live in a time of major change. A new global created. The Commission was mandated to co- of Belarus, and , who may economic architecture is emerging that is set to ordinate implementation efforts at the execu- look forward to new opportunities and a better define development trends for decades to come. tive level, following best international practices quality of life thanks to our joint efforts. The recent crises prompted a global quest for and working in the interests of all CU and SES new patterns of strategic development, and to- We are opened to dialog and are commit- member states. day a number of countries are looking to form ted to ensuring that this series of publications and consolidate regional unions. We are determined to work openly and by the Eurasian Economic Commission is a rel- transparently, and to establish a practice of di- evant and useful source of information for all The Eurasian space is becoming such an alogue between interested parties concerning interested parties. of consolidation. We are witnessing and processes in the Eurasian space and our day- participating in events that are destined to to-day activities. transform the economic landscape. A Customs Union (CU) has been set up that unites The present booklet is the first of a se- Russia, Belarus and Kazakhstan, a Single Eco- ries of publications by the Eurasian Economic nomic Space (SES) is in the process of creation, Commission entitled The Library of Eurasian and we are moving towards formation of the Integration. Evidently, such a booklet cannot Eurasian Economic Union by 2015. Suprana- claim to provide full and exhaustive informa- Viktor Khristenko tional executive and judicial bodies are also be- tion on every detail of the Eurasian project. Its Chairman of the Board ing put in place. These actions represent a new aim, rather, is to give our partners some idea Eurasian Economic Commission approach to economic development. of our work and our objectives. By partners we

4 5 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

SECTION 1.

Tajikistan signed the Treaty on the Customs underlying goal of integration was to create an History Union and the Single Economic Space. By sign- environment conducive to cooperation with ing this treaty all parties agreed to complete the other countries and other economic unions. formation of the Custom Unions and the Single In particular, there was an aspiration to create of Eurasian Economic Space. a common economic space with the . In 2000 Belarus, Kazakhstan, Russia, Kyr- Integration gyzstan and established the Eurasian On 18, 2011 the presidents Economic Community (EurAsEC). of Belarus, Kazakhstan and Russia signed a joined this community in 2006. The priorities of Declaration on Eurasian Economic Integra- the new organization were to improve coopera- tion, predicated on recognition of the success of The process of Eurasian tion and promote integration. the Customs Union. International agreements setting out the legal framework of the Single In 2003 the Presidents of Belarus, Ka- integration dates back Economic Space, now came into effect, and on zakhstan, Russia and decided to estab- 1, 2012 the SES became operational. than 20 years lish the Single Economic Space (SES). Although Ukraine was subsequently to withdraw from the On the same day – November 18, 2011 project, the groundwork had now been laid for – the presidents of Belarus, Kazakhstan and moving ahead with the integration process. Russia worked out an agreement on the Eur- asian Economic Commission. Based on this In August 2006 at an informal EurAsEC agreement on 2, 2012 the Eurasian summit meeting in Sochi it was decided that Be- Economic Commission began work as the per- larus, Kazakhstan and Russia would step up ef- The process of Eurasian integration dates back common economic space and set up principles manent supranational regulatory body of the forts aimed at the establishment of the Customs more than 20 years. Efforts to salvage the eco- of cooperation through coordinated institu- Customs Union and the Single Economic Space. Union, while and Tajikistan would nomic and business ties built over many decades tions. join the organization as soon as they were ready. A deadline of January 1, 2015 was set for in the began immediately after the The goals were to create a common eco- Based on these arrangements the Treaty on the the codification of international agreements, break-up of the USSR. nomic space based on a free trade area, and to Establishment of the Common Customs Ter- which would constitute the legal and regulatory The integration process was driven by the sustain and develop economic and humanitar- ritory and Formation of the Customs Union framework of the Customs Union and the Single extensive ties between the new independent ian cooperation. However, the objectives of the between Belarus, Kazakhstan and Russia was Economic Space, on the basis of which the Eur- states in a range of economic sectors (industry, Commonwealth leaders did not and still do not signed in 2007. asian Economic Union would be founded. agriculture, transport and energy). The exis - envisage the creation of any integration group The global financial crisis, which began in tence of a largely shared social and humanitar- other than a free-trade zone. 2008, prompted countries worldwide to search ian space was also an important factor. On this basis, the countries that were pre- for new ways of minimizing economic risks While the main priority for all the newly pared for closer economic cooperation began and achieving sustainable development. This established states was to achieve full economic to consider new forms of integration. In 1995 proved a major factor in revitalizing regional and political , it was understood Belarus, Kazakhstan and Russia set about es- integration processes. that economic development and improving liv- tablishing a customs union. In June 2009 integration stages and ing standards would be much more difficult to In 1996 Belarus, Kazakhstan, Russia and timeline of creation single custom area were achieve unless ties were preserved. Kyrgyzstan signed the Treaty on Increased In- defined. The Supreme Body of the Customs On , 1991 the presidents of tegration in the Economic and Humanitarian Union resolved that the Union would be enacted Belarus, Russia and Ukraine met at Belovezhs- Fields. The treaty set up basic goals in integra- as of January 1, 2010. The “troika” of countries kaya Pushcha in Belarus and signed an agree- tion including creation of common markets for then moved to establish of the Single Economic ment establishing the Commonwealth of In- goods, services, capitals, labour and develop- Space on the basis of the Customs Union. dependent States (CIS). The agreement was ing single transport, energy and information The three leaders declared that develop- endorsed by other former Soviet in systems. ment of the Customs Union and the Single Alma-Ata on December 21, 1991. In this treaty These agreements developed in 1999 when Economic Space should in the future lead to countries agreed to collaborate in developing Belarus, Kazakhstan, Russia, Kyrgyzstan and creation of the Eurasian Economic Union. The

6 7 Eurasian Economic Integration: Facts and Figures TIMELINE SCHEME

Establishment of the Eurasian Economic Union

The agreement on the Treaty on the Commission Treaty on the Eurasian Economic of the CU - Belarus, Commission - Belarus, Eurasian Economic Kazakhstan, Russia Kazakhstan, Russia Union

Treaty on the Establishment Decision of the Supreme Eurasian of the Common Customs Economic Council that enabled Territory and Formation of a package of international the Customs Union - Belarus, agreements setting out the legal Kazakhstan, Russia framework of the Single Economic Agreement on Increased Treaty on the establishment Space to come into effect - integration in the Economic the Eurasian Economic Belarus, Kazakhstan, Russia and Humanitarian Fields - Community (EurAsEC) - Belarus, Kazakhstan, Russia Belarus, Kazakhstan, Russia, Declaration and Kyrgyzstan Kyrgyzstan, Tajikistan. on Eurasian Economic Integration - Belarus, Kazakhstan, Russia Establishment of Establishment the CU - Belarus, of the Single Kazakhstan, Economic Russia. Space - Belarus, Kazakhstan, Russia Treaty on the CU Treaty on the Treaty on Eurasian – Belarus, Customs Union forming the Economic Russia and the Single Single Economic Commission starts Economic Space – Belarus, Treaty on the CU operation Space – Belarus, Kazakhstan, – Kazakhstan, Kazakhstan, Russia, Ukraine Russia Russia, Kyrgyzstan, Tajikistan

1995 1996 1999 2000 2003 2007 2010 2011 2012 2015

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SECTION 2.

Member states of the ➤➤ Over 20 mln. sq. km Union and the Single Economic ➤➤ 15 % of the world land surface Space and their global standing POPULATION ➤➤ 170 mln.

15%world land surface over20 mln. sq. km POPULATION170 mln

10 11 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

#3 #3 #4 #4 in the world in the world in the world in the world Cement 14 (mln tons) International rankings of member 13,1

states of the Customs Union and 12 Cast iron the Single Economic Space by goods (mln tons) output indicators in 2011 10 (in percentage points) 8 Steel (mln tons)

6 5,5 5,7

2,0 Mineral fertilizers (100% 4 nutrients, mln tons)

2

0

Production (the CU and the SES share of global total)

#1 #1 #4 #5 #1 #1 #2 #3 #3 #3 #4 in the world in the world in the world in the world in the in the in the in the in the in the in the world world world world world world world  (bn cubic meters) Sunflower 25 25 22,1 21,1 Sugar beet 20 Oil and gas condensate 20 (mln tons) Potatoes 15,0 14,5 15 15 12,7  Coal 11,3 (mln tons) 10 10 7,5 6,5 7,1 Meat 5,1 (livestock and poultry) 5 5 Iron ore 1,8 Grain and grain legumes (ore weight, mln tons) 0 0 Vegetables Production (the CU and the SES share of global total) Agricultural production (mln tons) (the CU and the SES share of global total)

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SECTION 3.

UNIVERSAL STAGES The Customs Union: OF ECONOMIC INTEGRATION what it is and how it works

STAGE ➤➤ Economic Union IV

The process of economic STAGE integration takes several ➤➤ Single Economic Space successive stages III Supranational Regulatory Body

STAGE ➤➤ Customs Union II

At the first stage of integration a Free Trade Area clature on their territories from the same date. (FTA) is formed, enabling the free movement of Authority to regulate foreign trade was goods manufactured in the member states. STAGE delegated to the Commission of the Customs ➤➤ Free trade Area The FTA in the Eurasian space was created Union1. I under the umbrella of the Commonwealth of In- Based on signed international agreements dependent States. In October 2011 a new FTA the Commission has been authorized to: Agreement was signed. The main objective of ❙❙change import duty rates; the agreement was to set conditions for the free ❙❙introduce the commodity nomenclature of the movement of goods. The agreement also shows Customs Union; paying customs duty. Common customs proce- of import customs duties (and other similar du- common need for all parties to integrate into ❙❙establish tariff preferences and tariff quotas; dures were introduced and unified methods for ties, taxes and fees). Import customs duties are world economic and trade system. ❙❙define the system of tariff preferences; valuing imported goods and determining their deposited in an account held by a designated Establishment of the Customs Union is ❙❙introduce non-tariff regulatory measures. country of origin were adopted. agency of the CU member state where they are the second stage of economic integration. A payable. Duties paid are allocated to the budgets As of July 1, 2010 the Commission was au- A system for gathering statistics on foreign common customs area is created. No customs of the three states in the following ratio: Belarus thorized to conduct investigations and under- trade and reciprocal trade between the mem- duties or economic restrictions apply to recipro- 4.7%, Kazakhstan 7.33%, Russia 87.97%. take other steps necessary for the application ber states of the Customs Union was also put cal trade within the territory. The Treaty on the of anti-dumping, countervailing and safeguard in place. As of July 1, 2011 all customs checks at Establishment of the Customs Union was signed measures by the Customs Union with respect to internal borders between Belarus, Kazakhstan by the Presidents of Belarus, Kazakhstan and Procedures operate for the collection of in- goods originating from third countries. and Russia were abolished. Customs control Russia in October 2007. direct taxes from reciprocal trade within the CU and clearance were transferred to the external In July 2010 the Unified Customs Code area, and tax authorities in the three countries The Customs Union was established in borders of the Customs Union. The establish- came into effect. A unified system of customs exchange information in electronic form on the compliance with an approved action plan. By ment of the unified customs area2 was therefore regulation was introduced in the customs area amounts of indirect taxes that are paid. January 1, 2010 the necessary legal framework complete. of the three countries. A number of regulations for functioning of the Union was in place. Rus- An agreement operates governing the es- on customs administration were adopted, in- Goods and vehicles originating from the sia, Belarus and Kazakhstan implemented a tablishment and application of a procedure for cluding unified rules on declaring goods and CU member states, as well as goods and vehicles single customs tariff and commodity nomen- payment and distribution in the Customs Union

1 / The Eurasian Economic Commission has functioned since February 1, 2012 2 / However as of July 1, 2011 the of Kazakhstan adopted a package of regulations on customs administration of goods 14 in respect of which special rates will apply during a transitional 15 period. Transitional rates will differ from those specified in the unified customs tariff of the CU. The list consists of 88 types of goods, including: pharmaceuticals, medical equipment, railway cars, green houses, polyethylene plastics, foil. Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

from third countries cleared for domestic con- WHAT THE CUSTOMS UNION sumption in any CU member state, move freely HAS ACHIEVED within the common customs area. The legal and regulatory framework of the CU, comprising more than 70 international In 2011 ➤➤ In 2011 the total volume of foreign trade between CU member states treaties and more than 900 regulations is- and third countries was USD 913 bn. sued by the Commission was fully in place ➤➤ In 2011 reciprocal trade (the value of goods exports in reciprocal by the end of 2011. trade between CU member states) was USD 63.5 bn, or 34.6% more Drafting and adopting technical regula- than in 2010. tions of the CU is among key tasks of the Com- ➤➤ Reciprocal trade grew almost 3% faster than trade with third mission. Technical regulations are essential for countries in 2011. Reciprocal trade grew almost 3% faster than trade creating a common market, which is free from with third countries in 2011. technical barriers and where unified standards ➤➤ Commodity patterns in reciprocal trade have proved to be more and product safety requirements apply. efficient than in trade with third countries. Coordinated policy in this field will stan- dardize safety requirements for consumer goods entering the CU common market and will also support technological development of producers based in the three countries. The Eurasian Economic Commission has In ➤➤ Foreign trade with third countries in goods produced by CU member states reached USD 939.3 bn. already been delegated full authority in this January- field. By the beginning of October 2012, 31 CU ➤➤ Exports grew by 2.6% in current prices or by USD 15.5 bn in technical regulations governing safety require- December comparison with January-December 2011. ments for goods circulating within the common 2012 ➤ customs area had been adopted. These regula- ➤ Reciprocal trade between CU member states in January-December 2012 was USD 68.6 bn, which is 108.7% more than in the same tions cover rail transportation and infrastruc- period of the previous year. ture, machinery and equipment, fuel, pyrotech- nic products, perfume and cosmetics, textile products and foodstuffs, etc. As of July 16, 2012 the Council of the Eur- asian Economic Commission adopted a revised version of the commodity nomenclature and In ➤➤ Foreign trade with third countries in goods produced by CU member of the CU unified customs tariff with a view to states reached USD 279.1 bn. Russia’s accession to the World Trade Organi- January- ➤➤ Exports reached USD 189.9 bn., while import - USD 107.2 bn. zation. Preliminary estimates suggest that as 2013 a request, the average weighted rate of import customs duties decreased from 9.6% to 7.8%. The establishment of the Customs Union has created a single market of 170 million con- sumers, a unified customs code, a unified cus- toms tariff, unified foreign trade and customs regulations, and a unified legal framework of technical regulations. The benefits of the Cus- toms Union are already being felt.

16 17 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

Framework agreements on the Single Economic Space

1. ➤➤ Establishes an integrated approach to anti-trust regulation, and in- Agreement on Unified troduces special regulations limiting permissible state intervention in Principles and Rules of the economy. SECTION 4. Competition

2. ➤➤ Sets out the terms and conditions of state support for producers of Agreement on Unified agricultural products. The maximum level of support is not to exceed Rules for State Support 10% of the gross value of agricultural products. Overview to Agriculture 3. ➤➤ Establishes unified rules for granting subsidies for industrial goods. of the Single Economic Agreement on Unified Rules for Granting Indus- Space trial Subsidies 4. ➤➤ Determines the conditions governing access to infrastructure for Agreement on Access to freight forwarders in CU member states, introduces standard require- Rail Transport ments for freight forwarders and a common tariff policy. Exceptional The next stage of integration tariff rates for rail services may be used to subsidize a specific pro- will be the creation of a Single ducer only if support cannot be rendered in any other form. Economic Space 5. ➤➤ Introduces national treatment and most-favored-nation treatment in Agreement on Trade in reciprocal trade in services, although certain exemptions remain. Services and Investments in SES Member States

The next stage of integration will be the On December 19, 2009 the Supreme Body of 6. ➤➤ Provides for the introduction of a national system safeguarding IP creation of a Single Economic Space (SES). This the Customs Union approved a plan of action to Agreement on Unified rights in SES member states, and establishment of an international means achieving the so-called “four freedoms”, create the Single Economic Space (SES) of Belar- Principles of Regulation legal framework based on international intellectual property agree- i.e. the free movement of goods, capital, services us, Kazakhstan and Russia. Pursuant to the plan for Protecting Intellectual ments to which Russia is a signatory. and people within the SES. Proper functioning a package of 17 basic SES agreements were signed Property Rights of the SES requires that member states should and came into effect as of January 1, 2012. pursue coordinated policies in key areas of 7. ➤➤ Envisages a coordinated policy on the circulation of goods confor- the economy’s sectors: macroeconomics, the Agreement on Unified mant with CU technical regulations. Coordinated policy in this area financial sector, transportation, energy, trade, Principles and Rules of is to be achieved, inter alia, by introducing a single list of products industry, agribusiness etc. Technical Regulation in covered by the technical regulations. However, the national legisla- the Republic of Belarus, tions of SES member states should not contain mandatory require- the Republic of Kazakhstan ments for products not included on the list. The right to approve and the Russian Federation technical regulations is vested with the Commission.

18 19 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

8. ➤➤ Introduces national treatment and most-favored-nation treatment 16. ➤➤ Envisages mutual access to the gas transportation systems of SES Agreement on State (Mu- for suppliers in CU member states engaged in state and municipal Agreement on Rules of member states once steps have been taken to, inter alia, achieve nicipal) Procurement procurement activities, and establishes transparent procurement pro- Access to the Services gas prices that offer equal margins. Access to gas transportation cedures. of Natural Monopolies systems is granted pursuant to existing technical restrictions and in Pipeline Gas to the indicative balance agreed upon by the parties under gas transportation contracts signed by market participants. Conditions of ➤➤ Lifts restrictions on access to the labor markets of EURASEC member Transportation 9. access for market participants, including tariffs for gas transport, will states for individuals, abolishes quota systems and mandatory work Agreement on the Legal be equal to those for market participants who are not owners of the permits for labor migrants, and liberalizes migrant registration pro- Status of Migrant Work- gas transportation system. ers and Members of their cedures. Families 17. ➤➤ Stipulates that the parties shall not apply qualitative restrictions ➤ 10. ➤ Outlines main actions to counter illegal labor migration. Agreement on in mutual trade or impose export customs duties on oil and oil Agreement on Cooperation Administration, Operation products. Procedures for paying customs duties on oil and oil to Counter Illegal Labor and Development of products exported from the CU area are defined by separate bilateral Migration from Third Unified Oil and Oil Product agreements between the member states. The Agreement establishes Countries Markets the conditions governing access to oil transportation services. It also envisages unified oil-related norms and standards, and the creation of information exchange mechanisms pertaining to the production, ➤➤ Envisages the introduction by SES members from January 1, 2013 of 11. import, export, and domestic consumption of oil. Agreement on Coordinated quantitative macroeconomic parameters, including ceilings for the Macroeconomic Policy annual public budget deficit, public debt, and the rate of inflation.

12. ➤➤ Serves as a road map for the further alignment of currency legisla- Agreement on Coordinated tion. Envisages the gradual lifting of restrictions on currency opera- Principles of Currency tions and on opening and maintaining accounts with SES banks, uni- Policy fied procedures for the import and export of cash assets to and from the SES, and the synchronization of requirements for repatriating All of the agreements must be implemented by (several having direct effect) have to be ap - currency earnings. 2015, by which time several dozen documents proved.

13. ➤➤ Provides for information exchange between authorized agencies Agreement on Free Flow in the banking sector, foreign exchange market, securities market of Capital on Financial and insurance sector and, as of December 31, 2013, the alignment Markets of legislation governing the banking sector, foreign exchange market, securities market and insurance sector in compliance with international rules and standards.

14. ➤➤ Defines unified legislative procedures for regulating the activities of Agreement on Uniform natural monopoly entities. Principles and Rules Regulating the Activities of Natural Monopolies

15. ➤➤ Allows access to the energy grids of adjacent SES member states. Agreement on Access to Access is granted on the proviso that priority is accorded to meeting the Services of Natural domestic energy requirements. The Agreement also formulates other Monopolies in the Power principles regulating energy transmission between SES member Industry states, including pricing and tariff policies.

20 21 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

SECTION 5.

Structure and activities of the Eurasian Economic Commission

Structure

The institutional structure of the Customs the Presidents of Belarus, Kazakhstan and Rus- Union and the SES need to be improved in order sia on November 18, 2011, the SES governance to ensure that the Customs Union functions ef- structure is as follows: ficiently and to press ahead with establishment of the SES. Pursuant to the Treaty signed by

22 23 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013 Governing Bodies of the Customs Union and the Single Economic Space

Supreme Eurasian Economic Council (Heads of State and Government of the Member States)

Eurasian Economic Commission

Council of the Commission Prime Minister of the Republic of Belarus – Sergei Roumas Three members of the Council, one Deputy PM representing each Member State Deputy Prime Minister of the Republic of Kazakhstan – Kairat Kelimbetov First Deputy Prime Minister of Russian Federation – Igor Shuvalov

Board of the Commission

Chairman of the Board Viktor Khristenko

Member of the Board – Minister Member of the Board – Minister in Member of the Board – Minister in Member of the Board – Minister in in charge of the Development of charge of Economics and Financial charge of Industry and Agro-industrial Charge of Trade Integration and Macroeconomics Policies Complex Tatiana Valovaya Timur Suleimenov Sergey Sidorsky Andrey Slepnev

Member of the Board – Minister in Member of the Board – Minister in Member of the Board – Minister in Member of the Board – Minister in charge of Technical Regulation charge of the Customs Cooperation charge of Energy and Infrastructure charge of Competition and Anti-trust Regulation Valery Koreshkov Vladimir Goshin Danial Akhmetov Nurlan Aldabergenov

Departments

Advisory Bodies 24 25 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

The primary task of the Eurasian Economic from each party), one of whom acts as chairman Commission is to create an environment con- of the Board. ducive to the smooth operation of the Customs The Chairman and members of the Board Union and the Single Economic Space and to are appointed by the Supreme Eurasian Eco- submit proposals that contribute to accelerating nomic Council for a four-year renewable term. the integration process. Besides their Board duties, all members take an The EEC Board is an executive body whose active part in the day-to-day work of the Com- decisions are designed to promote integration mission. The resolutions of the Commission are within the Customs Union and the Single Eco- passed by vote, each member of the Board hav- nomic Space. It consists of nine members (three ing one vote.

Areas of activity

The work of the EEC is divided into separate ❙❙Industrial and agricultural subsidies; of the business community are invited to help in functions, each supervised by a Board member ❙❙Energy policy; consideration of specific cases. (minister) and each encompassing a number of ❙❙Natural monopolies; industries and areas of economic activity. The ❙❙State and/or municipal procurement; The second point of contact is direct col- members of the Board and EEC Departments ❙❙Reciprocal trade in goods and invest- laboration with members of the business com- work in partnership with the relevant govern- ments; munity. ment agencies in Belarus, Kazakhstan and Rus- ❙❙Transportation and haulage; A Memorandum of Cooperation between sia within their respective fields of expertise. ❙❙Currency policy; the Eurasian Economic Commission and the ❙❙Protection of intellectual property rights The EEC carries out its activities in compli- Belarus-Kazakhstan-Russia Business Dialog and means of individualization of products, ance with its Terms of Reference, as formulated was signed on June 15, 2012. The Dialog brings works and services; in the Treaty on Eurasian Economic Commis- together the Confederation of Industrialists and ❙❙Labor migration; sion, the international agreements that consti- Entrepreneurs of Belarus (a union of non-profit ❙❙Financial markets (banking sector, insur- tute the legal and regulatory framework of the organizations), the Atameken National Eco- ance, foreign exchange market, securities Customs Union and the Single Economic Space, nomic Chamber of Kazakhstan, and the Rus- market). and resolutions passed by the Supreme Eurasian sian Union of Industrialists and Entrepreneurs. Economic Council in areas that include: The Commission works in close and The parties will use the EEC Advisory Board as ongoing collaboration with its main partners. a platform for cooperation. ❙❙Tariff and non-tariff customs regulation; The Commission’s first point of contact is ❙❙Customs administration; with the public bodies and agencies of member ❙❙Technical regulation; states with a view to enhancing interaction with ❙❙Sanitary, phyto-sanitary and veterinary national authorities in the decision-making pro- measures; cess. With this objective the Commission sets up ❙❙Payment and distribution of import cus- Sectorial Advisory Committees (on trade, tech- toms duties; nical regulation, taxation policy, transporta- ❙❙Establishing trade regimes in respect of tion, etc.). These committees have already been third countries; established and are operating. They are mostly ❙❙Statistics of foreign and reciprocal trade; composed of EEC officials and representatives ❙❙Macroeconomic policy; of the national governments of the SES member ❙❙Competition policy; states. When deemed necessary, representatives

26 27 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

Members of the Board and areas of activities of the Eurasian Economic Commission

Chairman of the Board Viktor Khristenko Born on August 28, 1957. Graduated from Chelyabinsk Poly- technic Institute in 1979. Holds a PhD in Economics.

❙❙Since 1999 held a number of posts in the G overnment of the Russian Federation, serving as Deputy Prime Minister, First Deputy Prime Minister. ❙❙2004 – 2008 – Minister of Industry and Energy. ❙❙2008 – 2011 – Minister of Industry and Trade. ❙❙On February 1, 2012 was appointed Chairman of the Board of the Eurasian Economic Commission.

28 29 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

Member of the Board (Minister) in charge of Development Member of the Board (Minister) in charge of Industry of Integration and Macroeconomics and the Agro-industrial Complex Tatiana Valovaya Sergey Sidorsky Born on April 11, 1958. Doctor of economics. Born on March 13, 1954. Graduated from Finance Institute, international eco- In 1976 graduated from Belarusian Institute of Railway Trans- nomic relations faculty, in 1980. port Engineers. Holds a PhD in Technical Science.

❙❙2001 – 2002 – Deputy Prime M inster of the Republic of Be- larus. ❙❙1999 – 2012 – Has worked in the Executive Office of the Gov- ❙❙2002 – 2003 – First deputy Prime-Minister of the Republic of ernment of the Russian Federation as Deputy Director and sub- Belarus, acting prime Minister. sequently Director of the International Cooperation Department. ❙❙2003 – 2010 – Prime Minister of the Republic of Belarus ❙❙On February 1, 2012 was appointed Member of the Eurasian ❙❙On February 1, 2012 was appointed Member of the Eurasian Economic Commission Board (Minister) in charge of Develop- Economic Commission Board (Minister) in charge of Industry ment of Integration and Macroeconomics. and the Agro-industrial Complex.

Member of the Board (Minister) in charge of Economics Member of the Board (Minister) in Charge of Trade and Financial Policy Andrey Slepnev Timur Suleimenov Born on September 13, 1969. Born on April 5, 1978. In 2000 graduated from Pavlodar State In 1992 graduated from State University of Nizhny Novgorod. University. Holds an MBA from Maryland University, specialty In 1998 graduated from Specialized Institute of jurisprudence – magister of business administration (2002). of Moscow State University.

❙❙2009 – Deputy Minister of Economics and Budget Planning of ❙❙2005 – 2007 – Head of department of Experts Directorate in the Republic of Kazakhstan. administration of the President of the Russian Federation. ❙❙2010 – 2012 – Deputy Minister of Economic Development and ❙❙ 2007 – 2009 – Deputy Minister of Agriculture of the Russian Trade of the Republic of Kazakhstan. Federation, he was in charge of realization a State program of ❙❙On February 1, 2012 was appointed Member of the Eurasian developing the Agriculture. Economic Commission Board (Minister) in charge of Economics ❙❙2009 – 2011 – Deputy Minister of Economic Development of and Financial Policy. the Russian Federation. ❙❙On February 1, 2012 was appointed Minister for Trade, Mem- ber of the Board of the Eurasian Economic Commission.

30 31 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

Member of the Board (Minister) in charge of Technical Regu- Member of the Board (Minister) in charge of Energy lation and Infrastructure Valery Koreshkov Danial Akhmetov Born on January 3, 1953. Born on June 15, 1954. In 1975 graduated from High Engineer anti-aircraft In 1976 graduated from Pavlodar Industry Institute. rocket college. Holds a PhD in Economics, . In 1991 finished program for experts in quality systems (Eng- land). Holds a PhD in Technical Sciences. ❙❙2001 – 2003 – Governor of the Pavlodar region. ❙❙2003 – 2007 – Prime Minister of the Republic of Kazakhstan. ❙❙1992 – 2006 – chairman of the Committee for standardization, ❙❙2007 – 2009 – Minister of Defense of the Republic of Kazakh- metrology, and certification under the Council of Ministers of the stan. Republic of Belarus. ❙❙In December 2010 became CEO of a private company dealing ❙❙1997 – Deputy Chairman of Work group for standardization with green power generation. in EEC UN. ❙❙On February 1, 2012 was appointed Member of the Eurasian ❙❙2006 – 2011 – Chairman of the State Committee for Standard- Economic Commission Board (Minister) in charge of Energy and ization of the Republic of Belarus. Infrastructure. ❙❙During 10 years was chairman of intergovernmental Council for standardization, metrology and certification of CIS countries. ❙❙On February 1, 2012 was appointed Member of the Eurasian Economic Commission Board (Minister) in charge of Technical Regulation.

Member of the Board (Minister) in charge Member of the Board (Minister) in charge of competition of Customs Cooperation and anti-trust regulation Vladimir Goshin Nurlan Aldabergenov Born on August 31, 1962. Born on , 1962. In 1984 graduated from Minsk State Pedagogical Institute of In 1984 graduated from Almaty Architecture and Civil Engi- foreign languages. neering Institute. In 1999 graduated from Customs Academy of Russia. Holds In 1987 graduated Moscow Institute of Civil Engineering master’s degree in juridical science. (postgraduate course). In 2005 graduated from the University named after ❙❙Since 1998 – Deputy Chairman of the State Customs Commit- Kunaev D.A. Holds a PhD in Economics. tee of the Republic of Belarus. ❙❙Since 2008 – First Deputy Chairman of the State Customs ❙❙Since 1991 – Director of Department in Agency of the Republic Committee of the Republic of Belarus. of Kazakhstan for regulation natural monopolies and competi- ❙❙Since 2011 – Ambassador Extraordinary and Plenipotentiary tion protection in the city of Alma-Ata. of the Republic of Belarus in . ❙❙Since 2004 – First Deputy Chairman of Agency of the Republic ❙❙On February 1, 2012 was appointed Member of the Eurasian of Kazakhstan for natural monopoly regulation. Economic Commission Board (Minister) in charge of Customs ❙❙Since 2007 – Chairman Agency of the Republic of Kazakhstan Cooperation. for natural monopoly regulation. ❙❙On February 1, 2012 was appointed Member of the Eurasian Economic Commission Board (Minister) in charge of Competi- tion and antimonopoly regulation.

32 33 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

SECTION 6.

The Customs Union and the Single Economic Space as integral parts of the global economy

The Customs Union and the Single Economic Space in the global landscape

The Customs Union and the Single Economic The Customs Union and the Single Eco- Space in the global landscape nomic Space are open to membership of other countries that share goals (targets) of the union Regional integration has become the and are prepared to take over the commitments world’s response to the global financial crisis. deriving from that membership. The Kyrgyz Elimination of barriers and restrictions, and Republic filed a request to start negotiations to the creation of single market are the only driv- join the CU, and in 2012 the negotiations be- ers that can make an impulse for new life of the gan. Other members of the Commonwealth of world economy. Independent States have also expressed interest All over the world countries are faced with a in cooperation with the CU and the SES. pragmatic choice on the basis of economic mo- The new CIS Free Trade Agreement, signed tivation: whether to try and minimize economic on October 18, 2011, is currently the institu - risks on their own or within the framework of tional basis for economic cooperation between a union. the Customs Union and CIS Member States. The CU member states (Belarus, Kazakh- Non-CIS countries generate 80% of CU stan and Russia) chose to establish an economic and SES foreign trade. As such, the economic union. The decision to do so was based on the interests of the CU and SES are not limited to understanding that, once united, the three the CIS. countries would be able not only to reduce the negative effects of global turbulence, but also to In their trade relations with third countries strengthen their positions on external markets. and international organizations the CU adhere

34 35 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

The CU and the SES as part of a multilateral trading system. Russia’s accession to the WTO to a multidimensional policy. Meanwhile both tariffs, but also aims to simplify application of The CU and the SES as part of a multilateral Certain Russia’s commitments on the acces- eastern and western directions of economic co- technical regulations, sanitary and phytosani- trading system. Russia’s accession to the WTO. sion to the WTO can be executed only through operation are of equal importance. tary controls, and facilitate access to infrastruc- the Commission’s decision-making mechanism, The date when The Treaty on the ture, construction and technology projects. thus ensuring that WTO requirements will de- A partnership between the CU member Functioning of the Customs Union within the facto be met in full throughout the common CU states and European countries seems to natu- As of mid-2012 about 35 countries and re- Framework of the Multilateral Trading System and SES territory. rally complement each other. The European gional associations had expressed their interest would come into effect was synchronized with Union is a strategic trading partner for the CU in establishing free trade areas with the Cus- the date when the first CU and SES member In particular, the Commission was vested and SES member states, generating about half toms Union member states. The Commission is state accedes to the WTO. with the the authority to conduct anti-dumping, of CU and SES foreign trade. currently developing a system of criteria to help countervailing and safeguard investigations, Terms and conditions of the Treaty stipulates set priorities in negotiations of this kind. and to take appropriate steps to adequately de- Today the potential of the Asia-Pacific Re- that from the moment when the first CU and fend the interests of industries in CU member gion (APR) as a trading partner is also increas- SES member state accedes to the WTO the legal states. All investigations and related procedures ing. The development of trade relationship be- framework of the CU will incorporate the WTO will be carried out in compliance with WTO re- tween the CU and SES and the APR in future Agreements, the commitments specified in the quirements. previews the establishment of free trade regime. protocol of accession governing legal relations within the CU (in view of which regulatory The Commission does all the necessary Free trade area agreements are becom- powers was delegated powers to the bodies of work to meet Russia’s WTO commitments in ing an important component of the interna- the Commission), and legal relations regulated the areas where CU member states have dele- tional trading system and their number has by the international agreements that form the gated their competence at a supranational level, been growing steadily over the past years. FTA contractual and legal framework of the CU. namely the areas of tariff and non-tariff regula- agreements are becoming a new and an efficient tion, customs administration, trade remedies, tool for activization of bilateral trade, economic Russia recently became the first of CU and technical regulation (drafting and adopting and investment cooperation. SES member states to accede to the WTO. Rus- CU technical regulations), sanitary and phyto- sia’s membership creates certain advantages for The CU and the SES approach to free trade sanitary measures, etc. the CU and the SES, but also leads to additional is not limited to the elimination of customs obligations.

36 37 Eurasian Economic Integration: Facts and Figures Eurasian Economic Commission 2013

SECTION 7.

Towards Eurasian Economic Union

The next stage of Eurasian integration is the establishment of the Eurasian Economic Union

The next stage of Eurasian integration is the vestment, transportation and energy, industry establishment of the Eurasian Economic Union. and agro-industry, and make them more sys- tematic. This will also help to define the path to This objective was set by the Presidents of further Eurasian integration and the nature of Belarus, Kazakhstan and Russia and is con - future eurasian integration. tained in the Declaration on Eurasian Economic Integration of November 18, 2011. Achieve- ment of the objective will require the creation of a new type of legislative framework. At present the regulatory-legal framework of the Customs Union and the Single Economic Space consists of over a hundred international treaties signed between 1995 and 2012. In order to produce a synchronized legal framework, the leaders of the three states have set a task to codify CU and SES laws and regu- lations to lay the groundwork for the Treaty on the Eurasian Economic Union. Codification will improve applicability of the agreements between member states in areas such as macroeconomics, finance, trade and in-

38 39 Eurasian Economic Integration: Facts and Figures

SECTION 8.

Contact information

Board of the Eurasian Economic Commission

Chairman of the Board Member of the Board (Minister) in charge Viktor Khristenko of Technical Regulation Office: +7 (495) 662-56-95 Valery Koreshkov Office: +7 (495) 604-40-38 Member of the Board (Minister) ext. 1077 in Charge of Integration and Macroeconomics Member of the Board (Minister) in charge Tatiana Valovaya of Customs Cooperation Office: +7 (495) 669-24-06 Vladimir Goshin Office: +7 (495) 604-40-38 Member of the Board (Minister) in charge ext. 3023 of Economics and Financial Policy Timur Suleimenov Member of the Board (Minister) in charge Office: +7 (495) 604-40-38 of Energy and Infrastructure ext. 2001 Danial Akhmetov Office: +7 (495) 669-24-13 Member of the Board (Minister) in charge of Industry and the Agro-industrial Member of the Board (Minister) in charge Complex of Competition and Anti-trust Regulation Sergey Sidorsky Nurlan Aldabergenov Office: +7 (495) 669-24-08 Office: +7 (495) 604-40-38 ext. 3015 Member of the Board (Minister) in charge of Trade Andrey Slepnev Office: +7 (495) 669-24-09

Press-service of the Eurasian Economic Commission

e-mail: [email protected] Tel: +7 (495) 669-24-00 ext. 4117

Web site of the Eurasian Economic Commission

www.eurasiancommission.org

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