The Eurasian economic community

On February 26, 1999, Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed the Agreement on the Customs Union and Common Economic Space that laid out, though without indicating any specific deadlines, the following stages of their integration:

- Stage One: Implementing a free trade regime in its entirety, which stipulates, among other things, that the parties shall refrain from using tariff and quantitative restrictions in reciprocal trade, introduce a single system for levying indirect taxes, and remove administrative, fiscal and other obstacles impeding the free movement of goods;

- Stage Two: Establishing the Customs Union, which stipulates that the parties shall have a single customs territory and a common customs tariff, abolish customs control, and standardise economic and trade regulation mechanisms;

- Stage Three: Forming a common economic space, which stipulates that the parties shall pursue a common economic policy, establish a common market for goods, services, labour and capital, unify their legislations, and conduct coordinated social and scientific policies.

At a meeting in Astana, Kazakhstan, on October 10, 2000, the presidents of Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan signed a treaty on establishing the Eurasian Economic Community (EurAsEC), which was ratified by all member-states and went into effect May 30, 2001.

The following EurAsEC bodies are responsible for carrying out the aims and goals set forth in the Treaty:

The Inter-State Council (ISC) is the supreme EurAsEC body comprising heads of state and heads of government of the member-states. The ISC considers fundamental issues related to the countries' common interests; determines the strategy, direction, and prospects of integration; and approves decisions aimed at implementing the organisation's aims and goals. The ISC provides instructions to the Integration Committee (IC), addresses requests and recommendations to the Inter-Parliamentary Assembly, and submits requests to the EurAsEC Court of Justice. The ISC meets at the level of heads of state not less than once a year, and at the level of heads of government, not less than twice a year. The meetings are chaired by a representative of the member-state currently holding ISC chairmanship. The member-states take turns chairing the ISC and the IC for one year at a time in Russian alphabetical order.

The Integration Committee (IC) is a standing body that secures interaction between EurAsEC component structures, prepares proposals on ISC agendas, draft resolutions, and other documents, and supervises the implementation of decisions and the execution of the EurAsEC budget. The IC submits its annual state-of-the-union report to the ICS as well as a report on its own activities. The IC includes deputy heads of government of the member states. The IC Chairman takes part in ISC meetings. IC meetings are held not less than once every three months.

The Commission of Permanent Representatives under EurAsEC is in charge of current work between IC meetings. IC members are appointed by the heads of state of the member-states. The IC Secretariat coordinates operations of and provides information support to the ISC and IC. The Secretariat is headed by the Secretary General (currently Tayir Mansurov of Kazakhstan, who assumed office on October 6, 2007), appointed by the ISC upon the recommendation of the IC for three years. The Secretary General is the top administrative officer of EurAsEC and participates in ISC and IC meetings. The IC has its seat in Alma-Ata (the Republic of Kazakhstan) and Moscow (the Russian Federation).

The Inter-Parliamentary Assembly of EurAsEC (IPA EurAsEC) is a body for parliamentary cooperation within EurAsEC, which serves to harmonise (approximate and standardise) the national legislations of the member-states and bring them into conformity with the agreements signed by the member-states. The IPA EurAsEC is made up of legislators delegated by the parliaments of the member-states. Within its terms of reference, the IPA EurAsEC draws up foundations of legislation in the basic areas of legal relations and accepts standard models for national legislations; it can address recommendations to the ISC, requests and recommendations to the IC and parliaments of the member-states, as well as requests to the EurASEC Court of Justice. The IPA EurAsEC has its seat in St. Petersburg (the Russian Federation).

The EurAsEC Court of Justice (Court) secures uniform application by the member-states of agreements in effect within the organisation, and of decisions accepted by the EurAsEC bodies. It also settles economic disputes arising from EurAsEC decisions and agreements, and issues clarifications and conclusions with regard to EurAsEC documents. The Court is staffed by two representatives from each member-state (the Russian judges are Tatyana Neshatayeva and Konstantin Chaika, appointed in December 2011). The judges are appointed by the IPA EurAsEC upon the recommendation of the ISC for six years. The Court has its seat in Minsk (the Republic of Belarus).

The Statute of the EurAsEC Court of Justice defines the structure and composition of the EurAsEC Court, the staff appointment and dismissal procedures, as well as powers, privileges and immunities of judges, officials and employees of the Secretariat of the EurAsEC Court. It also registers terms of allocations for the activities and dislocation of the EurAsEC Court, and formalises the jurisdiction and procedure of the EurAsEC Court. The Statute entitles businesses from the member-states of the Customs Union to legal protection of their rights in court.

"The Five" signed an agreement authorising businesses to apply to the EurAsEC Court of Justice regarding disputes arising within the Customs Union and the regulation of the appropriate legal proceedings. The document also provides for expanding the Court's jurisdiction. The said agreement contains an important provision enabling third-country businesses to resolve disputes they are involved in by the EurAsEC Court of Justice on the same level as businesses from the member-states of the Customs Union. This provides the necessary guarantees for the defence of the legitimate interests of all economic operators in the territory of the Customs Union.

EurAsEC is open to accession by all states that share its aims and principles and are prepared to undertake the appropriate commitments.

The system for forming the EurAsEC budget and the ratio of votes during decision-making in the Integration Committee and the Commission of Permanent Representatives takes into account the economic weight of the member-states. The amount of budget contributions and the number of votes are as follows: Russia, 40% (40 votes), Belarus and Kazakhstan, 20% (20 votes) each, Kyrgyzstan and Tajikistan, 10% (10 votes) each. ISC decisions are accepted by consensus.

EurAsEC observer status is held by Armenia, Moldova, Ukraine, the Interstate Aviation Committee and the Eurasian Development Bank.

In December 2003, EurAsEC was granted observer status by the UN General Assembly.

On January 25, 2006 in St Petersburg, the signing took place of the protocols on the accession of Uzbekistan to the EurAsEC Founding Treaty and on introducing changes and amendments to the Treaty, whereby Uzbekistan's membership was formalised. At the same time, EurAsEC merged with the Central Asian Cooperation (CAC) under its own aegis, with the CAC ceasing to exist.

On October 15, 2008, President of the Republic of Uzbekistan Islam Karimov notified the Integration Committee that Uzbekistan was suspending its EurAsEC membership. This required the other members draw up and sign a number of resolutions enabling the Community to function as Five. Specifically, the heads of state of the member-countries approved Resolution No. 414 of December 24, 2008, which officially formalised the suspension of Uzbekistan from the EurAsEc bodies and restored the member-states' shares of votes and budget contributions that existed before Uzbekistan's accession.

Held on February 4, 2009, in Moscow, the Interstate Council's extraordinary meeting of heads of state established the Anti-Crisis Fund as part of a set of joint measures designed to minimise the negative impact of the global crisis on the member-economies. The Fund is endowed with an equivalent of $10 billion in a number of hard currencies. Russia contributed $7.5 billion; Kazakhstan, $1 billion; Belarus, $10 million; Kyrgyzstan, Tajikistan, and Armenia, $1 million each. Funds will be forthcoming on a reward and repayment basis and for a definite period of time. They are intended to be used as anti-crisis sovereign loans to member-states, stabilisation credits to low-income member-countries, and for funding interstate investment projects. Under the Agreement on the Establishment of the EurAsEC Anti-Crisis Fund of June 9, 2009 (art. 5), the Fund is open to accession by other states and international organisations.

To facilitate introduction of innovations, the EurAsEC heads of state endorsed the establishment of the Center for High Technologies within the Community, which presumably will operate as an international venture fund. The Center is using the instruments and development institutions that exist in the member-countries, including non-public ones.

Meeting in Moscow at the level of heads of government on June 9, 2009, the EurAsEC Inter-State Council (the top body of the Customs Union), proceeding from the commencement of the Customs Union's (CU) operation on January 1, 2010, and the accomplishment of all the necessary procedures before July 1, 2011, approved proposals on the stages of and timeframes for forming a common customs area of the CU of Belarus, Kazakhstan and the Russian Federation:

- Preliminary Stage: before January 1, 2010;

- First Stage: before July 1, 2010;

- Second Stage: before July 1, 2011.

On November 27, 2009, the participants in the CU Three Summit signed an agreement on the CU Customs Code and coordinated a plan of steps to put the Customs Code into effect. They also approved the Unified Customs Tariff of the CU (put into effect on January 1, 2010), the Unified Product Range of Foreign Economic Activity, and other international documents aimed at integrated customs and tariff regulation. A decision was approved on the common customs territory of the CU that was scheduled to begin functioning on July 1, 2010.

On July 5, 2010, a decision was approved on the entering into effect, on July 6, 2010, of the Customs Code of Russia, Belarus and Kazakhstan (in Russia and Kazakhstan, the Customs Code has been in effect since July 1, 2010). The CU has been fully operational since July 1, 2011.

Meeting in an informal setting in Alma-Ata on December 19, 2009, the heads of state of the member-states of the Customs Union approved a plan of action for forming a common economic space of Belarus, Kazakhstan and Russia (CES), the next stage in their integration after the CU. On January 1, 2012, a package of 17 CES-forming agreements entered into force.

On February 1, 2012 an agreement entered into effect on the Eurasian Economic Commission (EEC), which was signed by the presidents of Russia, Belarus and Kazakhstan in Moscow on November 18, 2011. The EEC was established as an integrated standing regulatory body of the CU and the CES.

Launched on February 1, 2012, the EEC will replace the Customs Union Commission (CUC) following a transition period that is set to expire on July 1, 2012, with its powers set for gradual expansion.

The EEC Board has been formed with the following members (ministers): Viktor Khristenko (Russia), Chairman; Tatyana Valovaya (Russia), main trends in integration and macroeconomics; Timur Suleimenov (Kazakhstan), economics and financial policy; Sergei Sidorsky (Belarus), industry and agro-industrial complex; Andrei Slepnyov (Russia), trade; Valery Koreshkov (Belarus), technical regulation; Vladimir Goshin (Belarus), customs cooperation; Danial Akhmetov (Kazakhstan), power industry and infrastructure; Nurlan Aldabergenov (Kazakhstan), competition and antimonopoly regulation. The EEC Board includes either former ministers or former heads of government, a fact that reflects a very serious attitude regarding its composition on the part of the Three.

On November 18, 2011, a summit of the Supreme Eurasian Economic Council (SC) accepted the Declaration on Eurasian Economic Integration, a roadmap of sorts for further integration cooperation of the Three within the CU and CES. The Declaration names the aims of prospective Eurasian economic integration, including the task of establishing Eurasian Economic Union by January 1, 2015.

On March 19, 2012, Moscow hosted a meeting of the EurAsEC Interstate Council/Supreme Eurasian Economic Council at the level of heads of state. The meeting confirmed their awareness of the need to reform EurAsEC, optimise its executive structures responsible for Eurasian integration, and strengthen the Eurasian Economic Commission, which began operating on February 1, 2012. The results of the summit will be used in further practical work directed at implementing the aims laid out in the Declaration on Eurasian Economic Integration -- aims coordinated by Russia, Belarus and Kazakhstan. Above all, they will be important during the work on forming the Eurasian Economic Union (EAEU).