Euro-Asian Euro-Asian Economic Co-operation and Economic Co-operation and

Integration: Myths or Reality?Integration: Myths or Reality?

Yelena KalyuzhnovaYelena Kalyuzhnova Director, TheDirector, The Centre for Euro-Asian Studies, Centre for Euro-Asian Studies,

The University of Reading, UK The University of Reading, UK

UNECE WorkshopUNECE Workshop 8 November 2003 8 November 2003, , AthensAthens

ContentsContents

OObjectives of Regulatory Convergence bjectives of Regulatory Convergence

TThe Common Economic Zone within the he Common Economic Zone within the

CISCIS

EEnergy and Economies nergy and Economies

IInterregional Trade: Example of Gasnterregional Trade: Example of Gas

CCentral Asia's Emerging Energy Marketentral Asia's Emerging Energy Market

Objectives of Regulatory Objectives of Regulatory Convergence Convergence

Foster cooperation between countries with developed and developing regulatory systems

Ensuring safe and effective products Promoting technological innovation Facilitating international trade Information exchange for countries with developing

regulatory systems

The Common Economic The Common Economic Zone within the CIS Zone within the CIS

On 19 September 2003 the presidents of Russia, the Ukraine, Kazakhstan and Belarus signed the founding document to establish a "Common Economic Zone" (CEZ).

Glossary: Glossary: Economic zoneEconomic zone

Grouping of countries with some common economic features.

Examples of such economic zones are:

· EU15 (Member States of the European Union)· Euro-zone (Member States who have adopted the Euro: sometimes referred to as EUR 11 or, from 1 January 2001, EUR 12)· EFTA (Countries of the European Free Trade Association)· OPEC (Member States of the Organisation of Petroleum Exporting Countries)· NAFTA (Countries of the North American Free Trade Agreement)· CEZ ????

The Common Economic The Common Economic Zone within the CISZone within the CIS

The desire to “have a co-ordinated economic policy on several fronts, to harmonies the relevant legislations, and to create a single, independent, regulatory commission on trade and tariffs”.

The Common Economic The Common Economic Zone within the CISZone within the CIS

The agreement envisage free movements of

Goods and servicesCapitalLabour

The Common Economic Zone The Common Economic Zone within the CISwithin the CIS

CIS

Eurasian Economic Union GUUAM [Georgia-

Ukraine-Uzbekistan-Azerbaijan-Moldova]

CEZ ???

Example of turbulent Example of turbulent integration in the past:integration in the past:

Energy SectorEnergy Sector

The interested partiesTransit routesHydrocarbon in Euro-AsiaEmerging energy market of Central

Asia: lessons to be learnt

Transit RoutesTransit Routes

FragileFragile

Security remains a substantial problem Security remains a substantial problem

Finding alternate land-sea routes is a Finding alternate land-sea routes is a

difficult venturedifficult venture

Euro-Asia – Oil PipelinesEuro-Asia – Oil Pipelines

The Ukraine – Oil PipelinesThe Ukraine – Oil Pipelines

Source: Centre for Global Energy Studies

EuroEuro-Asia – Gas PipelinesAsia – Gas Pipelines

Energy and Water Issues in Energy and Water Issues in Central AsiaCentral Asia

Upstream countries

Kyrgyzstan Tajikistan

POSSESSING: -Water

-Hydropower resources

LACKING:

-Oil and Gas resources

Downstream countries

Kazakhstan Uzbekistan TurkmenistanPOSSESSING: -Oil, Gas, CoalLACKING:-Water resources

CONFLICT OF

INTERESTS

ConclusionConclusion The early years of independence saw a sharp decline in most

sectors of these economies and increasing disintegration of the economic links between them, which highlighted their interdependence.

Control over the economic integration and co-operation is connected to the desire for power in the region.

The success of any further economic integration will be highly dependent on the policies adopted by the governments.