Announcement

Collapse
No announcement yet.

Putin proposes setting up ‘Eurasian Union’ of former Soviet nations

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Putin proposes setting up ‘Eurasian Union’ of former Soviet nations

    Putin proposes setting up ‘Eurasian Union’ of former Soviet nations

    Putin proposes setting up ‘Eurasian Union’ of former Soviet nations - The Washington Post
    By Associated Press, Published: October 4

    MOSCOW — Prime Minister Vladimir Putin has proposed forming a “Eurasian Union” of former Soviet nations, saying the bloc could become a major global player competing for influence with the United States, the European Union and Asia.

    Putin, who has lamented the 1991 collapse of the Soviet Union as the “greatest geopolitical catastrophe of the 20th century,” denied that his proposal represents an attempt to rebuild the Soviet empire.

    4

    Comments

    Weigh In
    Corrections?

    inShare

    But he said in an article published Tuesday in the daily Izvestia that the new alliance should emerge as “one of the poles of the modern world, serving as an efficient link between Europe and the dynamic Asia-Pacific region.”

    Putin, who is all but certain to reclaim the presidency in March’s election, has been accused of rolling back Russia’s post-Soviet democratic achievements during his two terms as president in 2000-2008. He has remained Russia’s de-facto leader after shifting into the premier’s job due to a term limit, and his protege and successor Dmitry Medvedev proposed last month that Putin run for president.

    “There is no talk about rebuilding the USSR in one way or another,” Putin said. “It would be naive to try to restore or copy something that belongs to the past, but a close integration based on new values and economic and political foundation is a demand of the present time.”

    Russia, Belarus and Kazakhstan already have formed an economic alliance that has removed customs barriers in mutual trade during the past summer. They are to introduce unified market rules and regulations starting Jan. 1. Putin said that Kyrgyzstan and Tajikistan are expected to join the grouping.

    “We aren’t going to stop at that and are putting forward an ambitious task of reaching a new, higher level of integration with the Eurasian Union,” Putin said. “Along with other key players and regional structures, such as the European Union, the United States, China and the Asia Pacific Economic Community, it should ensure stability of global development.”

    Russia has long called for stronger cooperation between ex-Soviet nations, but earlier attempts at forging closer ties between them have failed due to sharp economic differences. Many former Soviet nations have looked westward and remain suspicious of Moscow’s intentions, setting a rocky path to Putin’s “Eurasian Union.”

    Ukrainian President Viktor Yanukovych, considered more Russia-friendly than his pro-Western predecessor, has continued to focus on closer relations with the European Union, shattering Moscow’s hopes for luring Ukraine into its orbit. Yanukovych complained last month that the Kremlin was trying to coerce Ukraine into joining the customs union of Russia, Belarus and Kazakhstan, and said that he wouldn’t yield to pressure.

    Even Russia’s ties with its closest ally, Belarus, has been marred by tensions. Belarusian President Alexander Lukashenko, whose government is struggling with a spiraling financial crisis, has staunchly resisted Moscow’s push for controlling stake in Belarus’ top state-controlled industrial assets.

    Putin’s plan also comes in potential competition with the Eastern Partnership, an initiative launched two years ago by Poland and Sweden, which aims to deepen European Union integration with six ex-Soviet nations: Georgia, Ukraine, Belarus, Moldova, Armenia and Azerbaijan.

    Putin argued that deeper integration between ex-Soviet nations shouldn’t contradict their aspirations to forge closer ties with the EU.

    Some observers said that Putin’s article heralds what could become a top policy goal after his return to presidency. “From the geopolitical viewpoint it represents an attempt to revive the USSR,” Alexander Dugin, a political scholar and a longtime proponent of Russian expansionism, said in comments in online news agency Nakanune.

    Others were skeptical. Dmitry Oreshkin, an independent political expert, said on Ekho Moskvy radio that Putin’s proposal was merely a campaign trick aimed at voters nostalgic about the Soviet past.

    Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
    “the misery of being exploited by capitalists is nothing compared to the misery of not being exploited at all” -- Joan Robinson

  • #2
    Elections are coming, elections are coming...
    No such thing as a good tax - Churchill

    To make mistakes is human. To blame someone else for your mistake, is strategic.

    Comment


    • #3
      Leverage for trade bargaining. If you have a combined market of 2-3 trillion dollars with 200-225+ million people your leverage increases in both bilateral/multilateral trade treaties. You could effectively skirt the WTO and simply bargain from a position of strengh or stay clear altogether.

      This could be more effective simply due to the speed with which action/reaction could be taken due to trade disputes. Also while the arbitrage court is binding on WTO it wouldn't be on this type of association.

      The other part of leverage resides in landmass tarriffs. Ergo the railroad tarriff tradeoff would not exist and all routes through Russia/Kazakhstan/Belarus etc... could have similar tarriffs per kilometer or mile. (easier re-exporting guidelines as well since passage through multiple states you would deal with one customs hypothetically)

      Political leverage would be very large after a few years say 5-10 if the above is successful in easing bargaining positions, leaving the customs union would be catastrophic for any country economically speaking. The neat thing is that the countries would be hypothetically competing in a confederation setting with each state trying to maximize investment into it by undercutting barriers within it since the market would be united with a few other states and one with best governance/cheapest levies wins. Hypothetically speaking ofcourse...
      Originally from Sochi, Russia.

      Comment


      • #4
        lol, back to ussr
        "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote!" B. Franklin

        Comment


        • #5
          :slap:
          Fortitude.....The strength to persist...The courage to endure.

          Comment


          • #6
            Does this mean he's going manhandle other poeples antiquities as well? I can't see this as more than posturing.

            I noticed that just before he went to China they released the news that caught an alleged spy trying to steal military plans... 'Putin Posturing' again. Of course he wants better terms from Chinese and in the same way he'll promise a rosy future... he's straight stick and carrot and someone should face him down. I used to think he was amusing but hoiking about ancient vases like that... he's just a media image and has no respect.

            Comment


            • #7
              Originally posted by snapper View Post
              Does this mean he's going manhandle other poeples antiquities as well? I can't see this as more than posturing.

              I noticed that just before he went to China they released the news that caught an alleged spy trying to steal military plans... 'Putin Posturing' again. Of course he wants better terms from Chinese and in the same way he'll promise a rosy future... he's straight stick and carrot and someone should face him down. I used to think he was amusing but hoiking about ancient vases like that... he's just a media image and has no respect.
              If they keep it as a trade/customs union it will be competitive, the problem is the amount of leverage this has.

              No idea what you mean by antiquities but the progression of this was a common currency with everyone using the Ruble. Its not about the Chinese. Its about market efficiency and overall ability to leverage it globally.

              The stick is leaving the union, it would be catastrophic economically for anyone (similar to leaving Eu more or less). I definitely could see this leading to a gradual re-absorption of all four states into a pre-revolutionary Russia.

              Chinese are mercantilist, they only do what benefits them the agreements they agree to always have 'administrative' barriers on trying to export stuff to their country. Which is reasonable from their point of view.
              Kyrgyzstan: The Customs Union Cometh | EurasiaNet.org
              Notice the 're-export' angle being closed off.
              Joining the Customs Union “is highly important to us. Or rather, you could say that they are pulling us in, because everything produced in Kyrgyzstan is aimed at the markets of Kazakhstan and Russia. Moreover, our labor and capital is oriented in exactly that direction.”

              Kyrgyzstan has until now thrived on being a transit nation through which cheap Chinese goods could be re-exported. Since both Kyrgyzstan and China are members of the World Trade Organization, the former benefitted to an extent, according to Otunbayeva.
              They had free-or-low barrier trade so they benefited by funneling Chinese products for re-export, similar to what Ukraine was/is doing now. The tarriff barriers going up for those not in the currency union not only limit re-exports of 3rd party but detonate the home market since the amount of trade dependency is usually 50%+ or higher. Loosing access = country economy implodes.

              Earlier this year, Esengul Omuraliyev, who negotiated Kyrgyzstan’s entry to the WTO under former President Askar Akayev in 1998, said Customs Union membership could lead to a worrisome spike in food prices. While under Customs Union regulations, a 10 percent levy is slapped on food imports, Kyrgyzstan currently imports food at zero percent. For a country that imports up to 70 percent of food, that would be disastrous, Omuraliyev said.
              Most of the wheat in the region comes from Kazakhstan and Russia, other products as well. That 10% levy would most likely impact Uzbek food and Chinese to a large extent on non-food items etc...
              "If Kyrgyzstan enters the CU, it will become a gate for the Chinese goods to enter the Russian-Kazakh market … [The] CU was created in order to close this gate."

              True. Though the Customs Union may be as much about creating a barrier as a way to extend Russian influence in the region.
              China will not be allowed into the Customs Union — RT
              “Moreover, Russian border guards will appear on the external borders of Kazakhstan, who will control the import flows,” says Dmitry Nekrasov, head of the Main Directorate for Customs Registration and Customs Control of the FCS (this is already happening on the Belarusian border). The Kazakhs in turn can also delegate their representatives to monitor any sector of the outside perimeter: whether or not they need this is another issue.
              It does look the import will be highly controlled from outside the customs union.
              Originally from Sochi, Russia.

              Comment


              • #8
                That's assuming the Kazakhs in particular will be willing to join such a union. I'm sure they're pretty aware of the consequences of signing over their economic independence to Moscow.

                Comment


                • #9
                  Originally posted by omon View Post
                  lol, back to ussr
                  And there was much rejoicing across American college campuses...
                  "Only Nixon can go to China." -- Old Vulcan proverb.

                  Comment


                  • #10
                    There is movement in Ukraine on the issue it seems.
                    Google Translate
                    Litvyn is the Chairman of the Rada (Parliament) basically the translation is a bit murky.
                    If the association agreement with Europe falls through they will start negotiations on entry into the customs union with Russia.
                    [I think the customs union happens either way, unless Europe basically gives Ukraine free trade with low barriers for Ukranian products which is unlikely.]
                    The negotiations leverage is gone since the association agreement is frozen and Russia is closing its' market gradually as time is passing.

                    added thought
                    Since Ukraine is in WTO either it jacks up tarriff rates to those within the customs union and 'compensates' damages to countries within WTO or leaves WTO and starts from scratch.
                    If it jacks up rates and compensates then essentially the customs union through Ukraine would have WTO outlet...
                    The benefit to Ukraine would be increased transit flows and re-exporting. In some sense everyone in the customs union would benefit from being an anciliary member of WTO while not actually being within it.
                    Last edited by cyppok; 14 Oct 11,, 18:25. Reason: added thought
                    Originally from Sochi, Russia.

                    Comment

                    Working...
                    X