Thursday, May 21 2020 11:43
David Stepanyan

Expert: EAEU can succeed only if the interests of all participants  coincide 

Expert: EAEU can succeed only if the interests of all participants  coincide 

ArmInfo.Despite the apparent direct link between the creation of a common market and common gas tariffs in the EAEU, there is a mismatch of positions in this issue. 

This is due to differences in gas preferences of the member states of  the union. The head of the Armenian branch of the Institute of CIS  countries, Alexander Markarov, expressed a similar opinion to  ArmInfo. 

"The contradictions between the interests of gas exporters and  importers look quite logical and therefore justified.  And more time  isneeded to resolve them and to develop a common approach to gas  pricing. These contradictions have been discussed for the past two  years and the general model acceptable for all EAEU states has not  been developed yet.In any case, the EAEU partners are trying to move  in this direction, however, they come up against fundamentally  different logics due to conflicting interests, "he said.  

Noting the creation of a common market for goods and services,  capital and labor as a priority, fundamental task of the EAEU,  Markarov noted that economist should be the ones to evaluate the  degree of success in the implementation of this project. At the same  time, the removal of a number of obstacles in the direction of its  achievement will probably create a favorable environment for this.  

Commenting on the prospects of the deepening of Eurasian integration  expected by Moscow in the context of the trend of global  disintegration observed as a result of the coronavirus pandemic, the  political scientist noted that everything depends on the meaning of  integration. He recalled that the same EU did not reach the existing  integration level in one day, it took decades. Accordingly, an  EU-like integration project in the Eurasian space, according to his  forecasts, can take place in the presence of political will, in fact,  integration projects and strategies.  And most importantly - the  logical coincidence of the interests of all participants.  

"In the absence of all of the above mentioned factors, it is quite  natural that the process can remain on paper.  Integration is not an  end in itself and does not depend on good wishes. In essence, it is  designed to facilitate economic relations, simplify trade, and remove  all obstacles along the way. Accordingly, real integration moreover,  its deepening is possible only if it is aimed at achieving these  goals. Another point - specifically for Armenia is that integration  into the EAEU means not only economic, but also political dividends.  In particular, in relations with the EAEU organizer, allied Russia,  "Markarov concluded.   To recall, speaking at the online summit of the EAEU leaders on May  19, Prime Minister of Armenia Nikol Pashinyan stated that global  challenges dictate the EAEU the urgent need to form a common gas  market. "The formation of a unified system of gas tariffs is a  necessity that is felt especially urgently in Armenia. I am convinced  that the common market will contribute to increasing the  competitiveness of goods by increasing the potential of the EAEU many  times. Without this, ensuring equal business conditions for all  states is impossible," he stressed.   In response, Russian President Vladimir Putin pointed out that a  single gas tariff in the EAEU implies a single market, a single  budget, a single taxation system. Meanwhile, a similar level of  integration in the EAEU, according to his estimates, has not yet been  achieved. Accordingly, while prices should be formed on the basis of  market conditions. Taking into account costs, investments, providing  profit for suppliers. "The formula of the EAEU countries for gas  prices proposed by the draft EAEU Development Strategy until 2025 is  supported by Russia, Kazakhstan and Kyrgyzstan. Our Armenian and  Belarusian counterparts have not yet accepted this formula," Putin  said.

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