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WORRYING SIGNALS FROM MOSCOW
Hakob Badalyan, Political Commentator
Business - 05 December 2014, 00:11
The Russian Duma is considering stopping use of dollar and euro in
trade among Eurasian Economic Union member states, and this seems to
be getting approval. The discussion in the State Duma is intended to
feel the pulse of the EEU member states. Naturally, Kazakhstan and
Belarus are in the first place because Russia is definitely expecting
a positive response from Armenia.
The EEU agreement mentions a unified currency but the timing of dealing
with this is 2025. However, since the developments are very fast,
with ruble plunging, Russia feels the need to impose its ruble on
the EEU member states, expecting to save the ruble and the financial
situation in general, which is next to disaster.
It is possible that the turbulence on the financial market is organized
to promote the transition to a unified Eurasian currency. Of course,
there are economic factors too, such as the falling oil price which
causes ruble to fall, causing problems in the Armenian financial
market. Besides, however, manipulations are possible, especially when
such closed systems as the EEU member states are concerned.
A few months ago Kazakh tenghe fell, which was determined by domestic
factors. The economic situation of EEU member states considers such
developments possible but it is probable and realistic in the EEU
that closed systems may benefit and use manipulative steps to achieve
a political result.
And there is no doubt that the process of the unified currency is a
political process. The unified currency is equal to a unified state,
a unified Constitution. It is not ruled out that Russia is using this
to cement the EEU politically because Kazakhstan has refused all other
functional intentions and announced that the EEU can be an economic
union only. Of course, it is impossible to have a purely economic
union of such scope without political consequences and purposes but
in functional terms Astana has succeeded in keeping the EEU agreement
possibly free from the key political points.
It is possible that Moscow is trying to get maximum use from the
existing situation, and since the ruble is falling down, and there is
nothing to do about it, the Kremlin has apparently decided to benefit
from this and promote the idea of a unified currency to impart the
EEU with a so-called disguised political function. Obviously, Moscow
has at least started feeling the pulse.
http://www.lragir.am/index/eng/0/economy/view/33291#sthash.3Qx7PdGF.dpuf
From: A. Papazian
Hakob Badalyan, Political Commentator
Business - 05 December 2014, 00:11
The Russian Duma is considering stopping use of dollar and euro in
trade among Eurasian Economic Union member states, and this seems to
be getting approval. The discussion in the State Duma is intended to
feel the pulse of the EEU member states. Naturally, Kazakhstan and
Belarus are in the first place because Russia is definitely expecting
a positive response from Armenia.
The EEU agreement mentions a unified currency but the timing of dealing
with this is 2025. However, since the developments are very fast,
with ruble plunging, Russia feels the need to impose its ruble on
the EEU member states, expecting to save the ruble and the financial
situation in general, which is next to disaster.
It is possible that the turbulence on the financial market is organized
to promote the transition to a unified Eurasian currency. Of course,
there are economic factors too, such as the falling oil price which
causes ruble to fall, causing problems in the Armenian financial
market. Besides, however, manipulations are possible, especially when
such closed systems as the EEU member states are concerned.
A few months ago Kazakh tenghe fell, which was determined by domestic
factors. The economic situation of EEU member states considers such
developments possible but it is probable and realistic in the EEU
that closed systems may benefit and use manipulative steps to achieve
a political result.
And there is no doubt that the process of the unified currency is a
political process. The unified currency is equal to a unified state,
a unified Constitution. It is not ruled out that Russia is using this
to cement the EEU politically because Kazakhstan has refused all other
functional intentions and announced that the EEU can be an economic
union only. Of course, it is impossible to have a purely economic
union of such scope without political consequences and purposes but
in functional terms Astana has succeeded in keeping the EEU agreement
possibly free from the key political points.
It is possible that Moscow is trying to get maximum use from the
existing situation, and since the ruble is falling down, and there is
nothing to do about it, the Kremlin has apparently decided to benefit
from this and promote the idea of a unified currency to impart the
EEU with a so-called disguised political function. Obviously, Moscow
has at least started feeling the pulse.
http://www.lragir.am/index/eng/0/economy/view/33291#sthash.3Qx7PdGF.dpuf
From: A. Papazian