Economic Relations between Kazakhstan and Russia

manuals.

— To achieve a deeper coordination and effectiveness of the activities of

the EAU countries, it is deemed advisable to set up in each of them a State

Committee (or Ministry) for EAU Affairs.

— Regular meetings and consultations on health services, education, labor,

employment, culture, combating crime, and so on, by ministers of EAU

countries.

. Encouraging the activities of non-governmental organizations in

various areas of cooperation in accordance with EAU member

countries' national legislation.

— The Russian language is the official EAU language, functioning side

by side with the languages of legislation in the member nations.

— Citizenship. Free movement of citizens within EAU borders requires

coordination of external visa policy with regard to third nations. On

changing the country of residence within the EAU, an individual

automatically receives the other country's membership.

— One of the cities at the juncture of Europe and Asia, such as Kazan or

Samara, might be proposed as the capital of the EAU.

In order to create a unified economic space within the EAU framework, it is

proposed to establish a number of supranational coordinating structures:

— A commission on the economy under the Council of EAU Heads of State

to work out the main directions of economic reform within the EAU

framework; the commission takes into consideration the interests of the

national states and offers its proposals for endorsement by the Council of

the EAU Heads of State;

— A commission on the raw materials of the EAU exporter countries to

coordinate and endorse the prices and quotas for exported raw materials and

fuel and energy resources, an appropriate inter-state agreement to be

signed by the member countries; coordination of policy in the mining and

sale of gold and other precious metals is to be envisaged;

— A fund for economic and technological cooperation formed with EAU

members' contributions. The fund will finance promising science-intensive

economic, scientific, and technological programs and render assistance in

the solution of a wide range of problems, including legal, tax, financial,

and ecological issues;

— A commission on inter-state financial-industrial groups and joint

ventures; — an EAU international investment bank;

— An inter-state EAU court of arbitration on economic problems, to resolve

conflicts on a legal basis and to impose sanctions;

— A commission on the introduction of a clearance monetary unit (transfer

ruble).

It is proposed to implement a number of measures to preserve the potential

achieved in the previous decades and to enhance integration in the field of

science, culture, and education:

— The setting up of common EAU research centers to carry out fundamental

research in contemporary knowledge;

— The setting up of an EAU fund for the development of scientific research

to unite the scientific collectives from various countries;

— The setting up of a committee on links in the field of culture, science,

and education under the Council of the Heads of EAU Governments;

— Encouragement of the formation of non-governmental associations in the

sphere of culture, education, and science;

— The setting up of a grants fund under the EAU Executive Committee.

It is proposed to conclude the following accords on defense within the EAU

framework:

— A treaty on joint actions to strengthen the national Armed Forces of the

EAU member countries and to protect EAU external borders.

The EAU will establish a unified defense space to coordinate defense

activities:

. The formation of joint peace-making EAU forces to maintain

stability and eliminate conflicts within the member countries

and between them. The sending of peace-making forces to conflict

areas on EAU territory - with the agreement of EAU member states

and in accordance with international legal norms;

. The tabling of joint proposals by EAU member countries at

international organizations, including the United Nations

Security Council, on lending EAU joint contingents the status of

a peace-making force;

— The setting up of an inter-state center on problems of nuclear

disarmament attended by representatives of international organizations.

— All EAU states except Russia maintain their nuclear-free status.

In the area of ecology, the following mechanisms must be formed in the

nearest future, according to the EAU project:

— An ecological fund under the EAU Council of Heads of State, to realize

ecological programs within the EAU framework, to be financed by all member

states;

— Coordination of actions with international organizations to reduce the

extent of environmental pollution;

— Endorsement of short- and long-term programs for major problems of

restoration of the environment and liquidation of the consequences of

ecological disasters (the Aral Sea, Chernobyl, the Semipalatinsk nuclear

testing ground);

— The endorsement of an inter-state EAU agreement on storing nuclear waste.

The Eurasian Union of States is thus based on three principal provisions:

— Joint supranational coordinating organs for the management of the

economy, defense, and foreign policy;

— A unified economic space;

— A common defense complex.

The supranational institutions include the highest organ of political

leadership of the Union - the council of heads of state and heads of

government; the highest consultative organ, the parliament; the councils of

foreign and defense ministers;

And the interstate executive committee - a permanently functioning

executive and controlling body whose head is appointed by the heads of

government for a term which they themselves define.

As for the unified economic space, it may be built, e.g., on such a basis

as coordinating economic policies and mandatory programs; a common

legislative basis regulating relations between economic agents; a

supranational currency on the European ECU model; coordination of direct

links between enterprises; the setting up of joint and mixed industrial-

financial groups, transport firms, trade houses, and exchanges. The defense

and foreign trade complexes may be just as effective. The EAU as

represented by its executive committee must receive the status of an

authorized representative in all the leading interstate organizations of

the world.

The practical realization of the provisions of the EAU project in the

bilateral Kazakhstan!-Russian relations is excellent proof of the viability

of this program.

On January 20, 1995, a package of extremely important integration

documents was signed during the working meeting between presidents

Nazarbayev and Yeltsin. This package included a declaration on expanding

and deepening Kazakh-stani-Russian cooperation and an agreement on the

Customs Union, which was also signed by Belorussia. Both of these were

discussed in detail before. This last agreement opens the way to the

establishment of a unified customs space to be followed by a unified

economic space, as envisioned in the EAU project.

With the setting up of the Customs Union, the economic cooperation of

the three countries is built on the principles of free, non-discriminatory

trade; a common market of commodities, services, capital, and labor; and

close interaction in the production, investment, and financial spheres.

At present, the first stage in the formation of the Customs Union is

largely completed. The work done by the three sides is generally recognized

to be an important element of the realization of the foundations of the

Economic Union and the formation of the common market of CIS countries.

The legal acts on tariff and non-tariff regulation of foreign trade have

been unified. Kazakhstan and Russia have signed an agreement on unified

control of customs services. An agreement has also been reached on the

identity of trade procedures in both countries in relation to third

nations, and unified procedures have been introduced on the customs

statistics on foreign trade and customs registration of commodities subject

to excise. Customs controls on railroads and passenger air traffic between

the two countries are lifted step by step.

A treaty has been signed between the Republic of Kazakhstan and the

Russian Federation on joint efforts on the protection of outer borders, the

term “outer borders” taken to mean the sectors of the border between our

countries and the states that are not part of the CIS. The edict of the

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