EEU Сountries Сoordinate Efforts on Development of Their Economies

24 september 2015

Experts of the Analytical Center participated in the IV Kirgiz-Russian Inter-regional Conference “Eurasian Economic Union. New prospects of inter-regional cooperation”.

The Head of the Analytical Center's International Cooperation Department Denis Yershov was the moderator of the round table “Mutual Kirgiz-Russian projects in the sphere of transport in conditions of Eurasian integration processes". While opening the event Mr. Yershov defined the cut-out of the situation that nowadays is basic for development of the EEU unified transport system.

Unbalanced development of the EEU unified transport system is one of the most important issues, the expert emphasized. It includes disproportions in the pace and scale of development of different kinds of transport, insufficient and geographically uneven development of the transport infrastructure.

"In the nearest future EEU member countries will need to agree on basic directions and stages of realization of a coordinated transport policy that should be reflected directly on the delivery date of goods, the reduction of the share of transport costs in the price of goods, the mobility of the population and on the creation of the unified transport infrastructure of the world level," said the expert.

While making a report on "Promising directions of energy cooperation of the EEU countries", the expert of the Analytical Center Alexander Amiraghyan said that Russia, Belarus, Kazakhstan, Kyrgyzstan and Armenia have agreed on the formation of common energy markets for electricity - by 2019, oil, oil products and natural gas - by 2025. At the moment a stage of formation of the concepts of common markets takes place.

"The EEU countries have significant energy potential - they account for about 15% of world oil production and exports, 15-20% of global gas production and more than 20% of its export. At the same time inside the EEU only Russia and Kazakhstan are major exporters of energy," said the expert. "The presence in the EEU both exporters and importers complicates the development of a balanced concept of common markets, which should take into account the interests of all countries. Formation of the common energy market foresees non-application of import and export duties in the mutual trade, therefore there is risk of loss of revenues for exporting countries due to the emergence of incentives for export growth beyond the EEU from the territory of the country with the most favorable conditions."

According to Mr. Amiraghyan, the Russian-Kirgiz cooperation in the energy sector is gaining momentum in recent years and is carried out by means of energy supply and implementation of projects on the territory of Kirgizstan. Russia is the main supplier of oil products, also there is one of the potentially important areas of cooperation - hydropower. The Russian company "Inter RAO" is implementing the project of construction of the hydropower plant Kambarata-1, the Russian company "RusHydro" raises the Upper Naryn cascade of the hydropower plant.