Eurasian Economic Union’s effect on global politics and the world economic system

Abstract

The new Eurasian Economic Union (EEU) has now become a reality coming into effect today allowing free movement of trade, services and capital. Its treaty was signed on 29 May 2014 by the leaders of Belarus, Kazakhstan and Russia. EEU has an integrated single market of 176 million people and a gross domestic product (GDP) of over four trillion US Dollars. From the point view of Nye and Keohane’s interdepence theory, this trade block formed under Moscow’s leadership also begs the question, if the Soviet Union will also reunite and be re-established. Russia seems to look at it not just in economic terms, but as a way to expand Russian influence in the region. The biggest criticism of the union seems to be re-establishment of the crumbled Soviet Union. On the other hand Russia has wanted to launch talks with the newly born EEU despite the Ukraine Crisis. German Chancellor Angele Merkel has supported to establish a common economic space in the Eurasian Region including the focus countries of Eastern Partnership (an EU policy on closer ties with Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine). A new Russia-led blocs as a better partner for the EU than the US could cause to deemphasize new Trans-Atlantic Treaty. Another point, the union is actively seeking to increase trade with East Asia. It commenced talks for official trade cooperation with Association of Southeast Asian Nations (ASEAN). Therefore we can say that EEU includes strategic interests as well as economic interests for its members, especially for Russia. In order to link both Europe and East Asia, Russia seeks to develop its eastern regions to increase its access to Asian markets. Far East markets have become so important for Russia since the European Union and the United States imposed sanctions on Russia following crisis in Ukraine. In this article my aim is to analyze EEU effects on global politics and the World Economic System.