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RUSSIA EXPANDS EURASIAN UNION IN COMPETITION WITH EUROPEAN BLOC
LA Times, CA
Dec 23 2014
By Carol J. Williams
Russian President Vladimir Putin expanded his emerging Eurasian
Economic Union with the announcement Tuesday that tiny and impoverished
Kyrgyzstan will join the bloc four months after it comes into force
on New Year's Day.
The alliance of former Soviet republics was designed by the Kremlin
leader to counter the Brussels-based European Union, which has spread
its trade and political assimilation up to Russia's borders, including
the Eastern European states that were members of Moscow-led Comecon
during the Cold War era and the three ex-Soviet Baltic republics.
Russia's conflict with Ukraine, which erupted in violence in April
and continues to roil Moscow's relations with much of Europe, was
ignited by the Feb. 21 overthrow of Kremlin-allied Ukrainian President
Viktor Yanukovich and the new Kiev leadership's decision to seek EU
membership instead of joining Putin's rival alliance.
But the European Union sanctions imposed on Russia after its seizure of
Ukraine's Crimea territory have created friction within the Eurasian
bloc too. Russia's cutoff of EU food imports in retaliation for the
sanctions allowed Belarus, strategically situated between Russia and
the EU states of Eastern Europe, to profit as middle man in importing
European products and reselling them to Russian importers.
That has angered Moscow and driven a wedge between Putin and Belarus
President Alexander Lukashenko, a longtime ally.
After Tuesday's ceremony in Moscow to sign documents among the five
Eurasian Economic Union states, Lukashenko criticized Russian efforts
to punish Belarus for its end run around sanctions. Russia has stopped
importing meat and dairy products from Belarus, purportedly over
concern about food purity, and put barriers in the way of Belarus
exports through Russia to Kazakhstan.
"In violation of all international norms, we are faced with a
transshipment ban," Lukashenko said at a news conference, exposing
a rift in the nascent alliance.
The decision Tuesday to admit Kyrgyzstan, the poorest of the
former Soviet bloc countries, also appeared unlikely to advance the
Eurasian Economic Union's collective prosperity. With a per capita
gross domestic product of $2,500, the tiny, landlocked Central Asian
country of 5.6 million people ranks 185th among the 193 United Nations
member states.
Russia has extended Kyrgyzstan a $200-million grant to help align its
economic institutions with those of the other Eurasian bloc members --
Russia, Belarus, Kazakhstan and Armenia -- the Sputnik news agency
reported Tuesday.
Armenia also brings more economic woe than prospects, with its $6,300
per capita GDP and long-running dispute with neighboring Azerbaijan
over its Armenian-populated Nagorno-Karabakh region.
Oil-rich Azerbaijan has yet to respond to Kremlin overtures to join
the Eurasian trade group, and Tajikistan has also given no indication
of whether it plans to join.
Kazakhstan President Nursultan Nazarbayev first proposed in 1994
a union of former Soviet states to facilitate the free movement of
goods, services, labor and capital.
The five states so far committed to joining the Moscow-led bloc
comprise a market of nearly 180 million people.
http://www.latimes.com/world/europe/la-fg-russia-eurasian-union-versus-europe-20141223-story.html
LA Times, CA
Dec 23 2014
By Carol J. Williams
Russian President Vladimir Putin expanded his emerging Eurasian
Economic Union with the announcement Tuesday that tiny and impoverished
Kyrgyzstan will join the bloc four months after it comes into force
on New Year's Day.
The alliance of former Soviet republics was designed by the Kremlin
leader to counter the Brussels-based European Union, which has spread
its trade and political assimilation up to Russia's borders, including
the Eastern European states that were members of Moscow-led Comecon
during the Cold War era and the three ex-Soviet Baltic republics.
Russia's conflict with Ukraine, which erupted in violence in April
and continues to roil Moscow's relations with much of Europe, was
ignited by the Feb. 21 overthrow of Kremlin-allied Ukrainian President
Viktor Yanukovich and the new Kiev leadership's decision to seek EU
membership instead of joining Putin's rival alliance.
But the European Union sanctions imposed on Russia after its seizure of
Ukraine's Crimea territory have created friction within the Eurasian
bloc too. Russia's cutoff of EU food imports in retaliation for the
sanctions allowed Belarus, strategically situated between Russia and
the EU states of Eastern Europe, to profit as middle man in importing
European products and reselling them to Russian importers.
That has angered Moscow and driven a wedge between Putin and Belarus
President Alexander Lukashenko, a longtime ally.
After Tuesday's ceremony in Moscow to sign documents among the five
Eurasian Economic Union states, Lukashenko criticized Russian efforts
to punish Belarus for its end run around sanctions. Russia has stopped
importing meat and dairy products from Belarus, purportedly over
concern about food purity, and put barriers in the way of Belarus
exports through Russia to Kazakhstan.
"In violation of all international norms, we are faced with a
transshipment ban," Lukashenko said at a news conference, exposing
a rift in the nascent alliance.
The decision Tuesday to admit Kyrgyzstan, the poorest of the
former Soviet bloc countries, also appeared unlikely to advance the
Eurasian Economic Union's collective prosperity. With a per capita
gross domestic product of $2,500, the tiny, landlocked Central Asian
country of 5.6 million people ranks 185th among the 193 United Nations
member states.
Russia has extended Kyrgyzstan a $200-million grant to help align its
economic institutions with those of the other Eurasian bloc members --
Russia, Belarus, Kazakhstan and Armenia -- the Sputnik news agency
reported Tuesday.
Armenia also brings more economic woe than prospects, with its $6,300
per capita GDP and long-running dispute with neighboring Azerbaijan
over its Armenian-populated Nagorno-Karabakh region.
Oil-rich Azerbaijan has yet to respond to Kremlin overtures to join
the Eurasian trade group, and Tajikistan has also given no indication
of whether it plans to join.
Kazakhstan President Nursultan Nazarbayev first proposed in 1994
a union of former Soviet states to facilitate the free movement of
goods, services, labor and capital.
The five states so far committed to joining the Moscow-led bloc
comprise a market of nearly 180 million people.
http://www.latimes.com/world/europe/la-fg-russia-eurasian-union-versus-europe-20141223-story.html