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Putin Develops Plan For Economic Union Of Former Soviet States

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  • Putin Develops Plan For Economic Union Of Former Soviet States

    PUTIN DEVELOPS PLAN FOR ECONOMIC UNION OF FORMER SOVIET STATES

    ABIGAIL HAUSLOHNER
    MOSCOW

    Friday 30 May 2014

    Vladimir Putin has moved to further bolster Russia's ties to former
    Soviet republics, as his nation's relationships with the US and Europe
    continue to fray.

    The President met his counterparts from Kazakhstan and Belarus in the
    Kazakh capital, Astana, to initiate the formation of the Eurasian
    Economic Union. He has long sought to form the bloc in hopes that
    it would provide an eastern counterweight to economic and political
    powerhouses such as the EU and the US.

    The codes of the union, set for launch on 1 January 2015, will
    give the citizens of member states equal employment and education
    opportunities across all three nations. The three presidents also
    said that the deal would involve collaborative policies on energy,
    technology, industry, agriculture and transportation.

    "A new geo-economic reality of the 21st century is being born today,"
    said the Kazakh President, Nursultan Nazarbayev, The deal, 20 years
    in the making, was "a hard-won achievement," he said.

    The Kazakh First Deputy Prime Minister, Bakytzhan Sagintayev, told
    reporters the three countries had not discussed the possibility of
    instituting a single currency.

    Meanwhile, regional moves by Russia continue to spur anxiety.

    Poland's ambassador to the US, Ryszard Schnepf, told reporters in
    Washington that his country was looking for a clear commitment of
    support from President Barack Obama during his visit next week. Mr
    Schnepf said Poland would welcome a greater US military presence
    in the region as a check against potential Russian aggression. He
    said Europe and the US "need to take the steps to prevent the future
    possible aggressions."

    Some analysts quickly dismissed the Eurasian Economic Union, saying
    it was likely to have little practical impact. "I don't believe
    that the Eurasian union is [going to be] able to open the door for
    modernisation," said Alexey Malashenko, an analyst at the Carnegie
    Endowment's Moscow Centre. "That's a big deal, because without
    modernisation and real economic reforms, what does it mean?"

    But the idea of a Eurasian union has become particularly attractive
    to the Kremlin because the Ukraine crisis has sent US-Russian ties
    tumbling to their lowest point since the Cold War. Western powers have
    levelled sanctions against key Russian figures linked to Moscow's
    annexation of Ukraine's autonomous Crimea region two months ago,
    and broader sanctions may be on the way. In March, the former US
    Secretary of State, Hillary Clinton, accused Mr Putin of seeking to
    revive the Soviet Union, which collapsed in 1991. The Soviet Union
    included Kazakhstan, Belarus, Ukraine and 11 other states, most of
    which remain under Russia's influence.

    Mr Putin has denied any intention to annex former Soviet republics,
    even though Moscow has backed pro-Russian separatists in Ukraine and
    other former Soviet lands. On Thursday, he said other countries were
    scrambling to join the Eurasian Union. The participants discussed
    Armenia's potential membership during their meeting. It was unclear
    which other countries Mr Putin thinks will join.

    It also remained unclear whether the union would constitute an economic
    arrangement or something more political, Mr Malashenko said.

    The Ukraine crisis has made it "clear" that the Eurasian union is
    "a tool for Russia to realise its political goals," he said.

    Inside Russia, many people are frustrated with what they see as
    domineering US foreign policy and economic might, and they are angry
    at Russia's flagging economy and endemic corruption. The combination
    makes the idea of a Russian revival - and commanding new attention on
    the world stage - increasingly popular. And thus, so is the concept
    underpinning the Eurasian Economic Union.

    http://www.independent.co.uk/news/world/europe/putin-develops-plan-for-economic-union-of-former-soviet-states-9462359.html

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