20 years after the collapse of the Soviet Union, Russian Prime Minister Vladimir Putin is trying to revive it. But this time the purpose is different – he wants to compete with the European Union and create an “economic union” of former Soviet states, writes the Financial Times (FT). The new structure would have a single currency, on the euro model.
The start was done last year when Russia, Belarus and Kazakhstan gathered in a kind of “Schengen space”, the three countries abolishing customs controls, therefore eliminating the boundaries between them.
The three countries will make a step toward an “economic union” in January next year, when a free movement of goods, services and capital will be created for a single market with 165 million inhabitants, 60% of the population of the former Soviet Union.
At a summit that took place this month, the prime ministers of the three countries have set a target even more daring – to form a group called “Eurasian Economic Union” by 2013. There were talks about a common currency.
“It is an event of major significance in relations between states. For the first time after the fall of the Soviet Union, this is an important step toward restoring economic and commercial ties in the former Soviet space”, said Prime Minister Vladimir Putin.
And unlike previous attempts, this time they are even making progress. Putin also said that once the common economic space is created, its members should set out the conditions for a free trade agreement within the bloc. But given that Putin has negotiated without success so far for 18 years the entry into the World Trade Organization, the fulfillment of his desire seems distant.
But if this happens, Putin will see the dream come true, a thing that he spoke about last year in Germany, namely the creation of a “harmonizing savings community, from Lisbon to Vladivostok”.