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Will Karabakh "Join" Russia's Customs Union?

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  • Will Karabakh "Join" Russia's Customs Union?

    WILL KARABAKH "JOIN" RUSSIA'S CUSTOMS UNION?

    EurasiaNet.org
    dec 10 2013

    December 10, 2013 - 7:28am, by Giorgi Lomsadze

    Armenia has made its choice between the two EUs -- the European Union
    and the Eurasian Union-- but will it bring its de-facto addendum,
    the breakaway territory of Nagorno Karabakh along with it into the
    Russia-plus trade space? Some analysts believe that Karabakh will
    indirectly end up enjoying the benefits of the Kremlin's economic
    promised land.

    Bent on taking the territory back, Azerbaijan poses a stumbling block
    for the predominantly ethnic Armenian territory to reach out to the
    outside world; meaning that Armenia is essentially the only friend
    and trade partner Karabakh has.

    In turn, since Russia is the main economic partner for semi-boycotted
    Armenia, Karabakh by default is expected to gain access to the economic
    zone coalesced around Moscow, some Armenians believe.

    "Armenia and Nagorno-Karabakh form one economic space," Alexander
    Iskanderian, director of the Yerevan-based Caucasus Institute, told
    Russia's Gazeta.ru. "Armenian money works in Stepanakert, the banking
    system and laws are closely integrated."

    Officially, of course, it will not be a union of Russia, Belarus
    Kazakhstan, Armenia and Nagorno Karabakh. Not even Armenia has
    recognized Karabakh as an independent state.

    Nor, with all members of the union, Russia included, wary of angering
    Azerbaijan, the formation of the Eurasian Union is not going to change
    the diplomatic status quo for Karabakh.

    But, as often happens in the Caucasus, it's what happens apart from
    what's written that counts. Some observers expect that Karabakh's
    produce, be it mulberry brandy or construction materials, could be
    sold customs-free within the union as products of Armenia.

    "Nobody is going to put customs checkpoints between Karabakh and
    Armenia," said Viktor Yadukha, a Russian commentator. "Karabakh
    will de-facto join the customs union," he told Azerbaijan's Vesti.az
    news site.

    http://www.eurasianet.org/node/67852

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