President signed the Law on EEU ratification

Oct 14. Kazpravda

President signed the Law on EEU ratificationThe Treaty on Eurasian Economic Union was signed by leaders of Kazakhstan, Belarus and Russia in Astana on May 29, 2014.

President Nursultan Nazarbayev signed the Law of the Republic of Kazakhstan “On Ratification of the Treaty on the Eurasian Economic Union,” the President’s press service informed.

The EEU Treaty comes into force on 1 January 2015. It consists of two parts. The first part lays down the goals and tasks of the Eurasian integration and fixes the status of the union as a full-fledged international organization. The second part is functional, regulating the mechanisms of economic interaction and specifying obligations in branch integration. The seat of the Eurasian Commission will be in Moscow, of the EEU Court- in Minsk, and the financial regulator is to be in Almaty. According to the document, the union is open to membership of any state that shares its aims and principles, on the terms agreed upon by the member-states.

As the Minister of National Economy Erbolat Dossaev said, the Eurasian Economic Union opens up significant opportunities for the economic development of our country, unlocking the existing potential in energy, transport, industry and agriculture. In particular, by the year 2025 a common market of oil and oil products will be formed, which provides for non-application in the mutual trade of export customs duties and restrictions.

“Equal access to the gas transmission infrastructure of the partner countries, Russia in the first place, will be provided by 2025. Kazakhstan annually exports more than 8 billion cubic meters of gas. In the long term, with the development of Kashagan and Karachaganak, the export potential of the country will grow significantly,” – the Minister continued.

Ratification of the treaty will further deepen the economic integration and cooperation among the members of the Eurasian Economic Union and will allow Kazakhstan to develop processing productions by expanding sales markets and increasing the investment attractiveness.

The document also provides access to the gas transportation, railway and  road infrastructure; barriers will be eliminated to the movement of domestic goods to the EEU states’ markets. This will facilitate the access of exporters to the transport infrastructure of the partner countries, which will reduce transport costs and improve the competitiveness of Kazakh products in the markets of third countries.

Another important cooperation area is the electricity sector. The plan is to form in 2019 a common electric energy market through integration of national electricity markets of Belarus, Kazakhstan and Russia. This will enable implementation of the export potential of the electric power industry of Kazakhstan.

The treaty envisions a gradual liberalization by 2025 of the construction, financial and transport services.

As known, the Russian President Vladimir Putin signed the Law “On Ratification of the Agreement between Russia, Belarus and Kazakhstan on the establishment of the Eurasian Economic Union (EEU)” on 3 October, and the President of the Republic of Belarus Alexander Lukashenko – on 9 October.