Lukashenko and Putin Propose the Rapid Advancement of Eurasian Economic Union at Bishkek Summit

Dec. 10, 2022 (EIRNS)—Both Belarus President Aleksandr Lukashenko and Russian President Vladimir Putin presented proposals to the Eurasian Economic Union’s Supreme Eurasian Economic Council, which met in Bishkek, Kyrgyzstan Dec. 9. The proposals would fundamentally advance the work of the EAEU, comprised of the five nations of Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia.

Lukashenko advocated prompt implementation of joint projects to develop modern industries—those of the future—for the EAEU nations. “This is an obligatory element of our economic sovereignty. Today we are going to take another step in this direction—we are considering the issue of vesting the EAEU bodies with the authority to provide financial assistance for industrial cooperation from the EAEU budget.” That includes, he indicated, possibly subsidizing interest rates on loans for specific industrial projects.

Lukashenko went on: “We need to improve, at all costs, the blood circulatory system of our union.... It is already clear to everyone that the era of dollar dominance is coming to an end. The future belongs to trade blocs, which will be made in national currencies. Belarus and Russia are no longer using the U.S. dollar in their main settlements. It is important that other partners actively join this process.”

Lukashenko put forth a forward-looking proposal,

“Recent events have shown that not everyone agrees with the future existence of the unipolar world. As a result, the role of such integration associations as the SCO and BRICS is growing. Our union must keep pace with them. Moreover, I believe that the time has come that we hold a summit of the EAEU, SCO, and BRICS. These countries share our position on the need to respect different cultures, views, political systems. Perhaps some ASEAN states will want to take part in such a meeting too.”

These organizations, individually, and in groups have been discussing the building of an alternative credit and development system. Russian economist Sergei Glazyev, the Minister in Charge of Integration and Macroeconomics of the Eurasian Economic Commission (EEC) has discussed this.

Russian President Putin endorsed Lukashenko’s report on the transition to national currencies. Putin reported on the fact that by almost every measure, such as unemployment and inflation, the EAEU, which covers 194 million people, is doing far better than the European Union. Putin stated that “The EAEU is carrying out a number of integration infrastructure projects aimed at creating and effectively using the East-West and North-South international transport corridors. I also want to note that many countries are showing their interest and want to join these projects including investing in this work.” As potential candidates, the China-Kyrgyzstan-Uzbekistan Railway Corridor, and the Trans Afghan Railroad Corridor come to mind.

The EAEU has free trade agreements with Vietnam, Singapore, and Serbia and Iran. Among the countries that have applied for free trade agreements with the EAEU are the United Arab Emirates, Egypt, Mongolia. China and the EAEU signed an FTA in 2018, but it not yet in effect.