Eurasian Economic Union - The Times Of Central Asia

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Cabotage Transportation in Eurasia: Expanding Connectivity, or Creating Unequal Conditions?

Freight transportation by road is the most popular and versatile type of shipping due to its mobility, flexibility, and accessibility. This sector is expected to undergo significant changes in Kazakhstan and other member states of the Eurasian Economic Union (EAEU) starting in 2025. However, industry experts warn that these changes could lead to domestic market losses for Kazakhstani participants. Starting January 1, 2025, transportation companies from EAEU member states will be allowed to carry out cabotage transportation -- shipment of goods between two places in the same country -- within Kazakhstan. This means that foreign carriers will be permitted to perform up to three domestic deliveries in the country following their international shipment. For example, a Russian truck delivering goods to Almaty may complete up to three cabotage shipments within Kazakhstan between cities over seven days on its return route. However, experts suggest this measure could lead to domestic international road carriers losing their market share to foreign operators from Russia and Belarus, who are currently limited by sanctions. According to Ivan Yanson, director of the representative office of the Union of International Road Carriers of the Republic of Kazakhstan in Astana, currently, Belarus has about 40,000 vehicles engaged in international freight transportation, and Russia has a similar number. Meanwhile, Kazakhstan's fleet consists of approximately 15,000 trucks. This discrepancy in fleet size is a key factor influencing competitiveness. Another critical issue is the average age of Kazakhstan’s fleet, which exceeds 20 years. However, high wear and tear and the need for modernization are hindered by the high cost of tractor-trailers, recycling fees, and registration charges, which are often unaffordable for Kazakhstani entrepreneurs. In light of this, local carriers have repeatedly proposed postponing the decision to open Kazakhstan’s market to cabotage. Meanwhile, the development of cabotage in EAEU countries is part of the Union's Transport Policy for 2024–2026. Lawmakers believe these measures aim to expand trade connections and attract new companies. They argue that cabotage liberalization will help reduce empty mileage for EAEU road carriers, thereby lowering freight transportation costs. Kazakhstan's Ministry of Transport also emphasizes that opening the cabotage market will not cause financial or other negative consequences for domestic businesses. According to Deputy Minister Maksat Kaliakparov, carriers will only be allowed to perform up to three consecutive domestic shipments within another EAEU member state using the same vehicle, ensuring equal access for all. Currently, Kazakhstan is conducting internal procedures to amend its road transport legislation to align with the phased liberalization program for cabotage freight transportation, which began on January 1. “These amendments to national legislation are expected to be adopted in the first half of this year,” stated a government representative. The anticipated outcomes include fostering competition in the road transport services market, modernizing the truck fleet, establishing uniform conditions and rules for freight transport services within the EAEU, improving vehicle efficiency for international freight transport, and reducing environmental impact by using modern vehicles. Nevertheless, the effects of these legislative changes cannot be fully assessed until they are...

Economy Eurasian Economic Union Parliament Diplomacy CIS EAEU

Uzbekistan Rejects Military Alliances and Maintains Observer Role in EAEU

At the opening of the Week of International Partnership Initiatives in Tashkent, the first deputy speaker of the Legislative Chamber of the Oliy Majlis, Akmal Saidov, stated that Uzbekistan will not join any military formations and will remain an observer state in the Eurasian Economic Union (EAEU). Responding to a question on whether Uzbekistan would compromise its sovereignty to cooperate more closely with other countries, Saidov announced: “The first article of our constitution states that Uzbekistan is a sovereign state. If we are talking about joining any paramilitary defense structures and organizations, then no, we will not allow it. We will never send our men [overseas] on military missions, including peacekeeping missions. There will be no foreign military bases in our territory." Saidov also emphasized that Uzbekistan’s current status as an observer in the EAEU is the most appropriate for the country. As head of the parliamentary commission tasked with studying Uzbekistan’s potential accession to the EAEU, Saidov asserted that, after reviewing over a thousand documents, observer status better aligns with Uzbekistan’s interests. He further explained that Kazakhstan had gained minimal benefit from joining the EAEU and that the new Constitution strengthens and strictly follows the main principles of Uzbekistan’s foreign policy. Uzbekistan received observer status in the EAEU on December 11, 2020, during an online summit of the High Eurasian Economic Council, attended by President Shavkat Mirziyoyev.

Sustainable Development International Cooperation Regional Cooperation Eurasian Economic Union Security

Kazakhstan’s President Commends Growing Cooperation Between Central Asian States

On May 16, Kazakhstan's President Kassym-Jomart Tokayev hosted the first meeting in Astana of Security Council secretaries from Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan, and the military attaché of the Embassy of Turkmenistan in Kazakhstan. In his opening address, Tokayev announced that the aim of the meeting was to provide an effective platform for the collaborative prevention of external and internal challenges and threats, and to develop necessary response measures. The Kazakh leader began by noting the steady growth of trade and economic cooperation between the Central Asian countries and stated that over the past five years, intraregional trade had risen by 80 percent to exceed $10 billion. He explained that large regional projects not only bring tangible mutual benefits, but also change the entire configuration of the Central Asian economy. The development of transport and logistics potential is becoming a new reference point for the rapid development of the region. Cultural and humanitarian ties have also intensified, contributing to the further rapprochement of the Central Asian states. Returning to the pressing issue of the need to join forces in countering transboundary challenges and threats, he announced: “First of all, we are talking about the fight against international extremism and terrorism, drug trafficking, and arms trafficking. In this regard, Afghanistan must be the focus of our common attention. Complex multidirectional processes are now evident in this country. Whilst signs point to a stabilization and revival of the economic situation, there remain high risks associated with the activity of international terrorist organizations, as evidenced by the bloody terrorist attack in the Moscow region [in March]. In our opinion, one of the strategic tasks at present is the active involvement of Afghanistan in regional ties. And for this, much depends on the coordinated position of our countries. We consider it urgent to create a UN Regional Center for Sustainable Development Goals for Central Asia and Afghanistan in our country.” Tokayev expressed his satisfaction with the growing regional cooperation and mutual trust and concluded: “Some 10 years ago, there was no such situation in the Central Asian region. Now heads of state, heads of government, secretaries of the Security Councils, heads of law enforcement agencies, not to mention heads of economic departments, closely interact with each other. And this is a very good sign that the situation in the Central Asian region is moving towards sustainable development.”

Finance Eurasian Economic Union

Kyrgyzstan To Receive Customs Duties In The Eurasian Economic Union in Russian Rubles

Kyrgyz MPs have ratified a bill that will allow customs duties between certain member countries of the Eurasian Economic Union (EEU) to be paid in rubles. The new law allows funds to be transferred in rubles between Russia, Belarus and Kyrgyzstan, at the exchange rate of the national banks of the sending countries. "Armenia, Kazakhstan and Kyrgyzstan between themselves will make transfers of mutual obligations on distributed import customs duties, as before, in U.S. dollars," the Kyrgyz parliament emphasized. During the transition period, interest for late transfer of import duties will not be accrued. EEU member countries distribute revenues from import duties according to the size of their own economies. Kyrgyzstan's share is 2%.

Eurasian Economic Union

Kazakhstan Urges EEU Countries To Develop Transport Infrastructure

The Eurasian Economic Union (EEU) is located at the crossroads of east and west, north and south, which has always been a competitive advantage for the region, Kazakhstan’s prime minister Alikhan Smailov commented at a meeting between the heads of government of the EEU member countries in Almaty on February 2nd. The Russian-led economic bloc also includes Armenia, Belarus, Kazakhstan, and Kyrgyzstan. "Kazakhstan attaches special importance to the development of transit and transportation infrastructure. Over the past 15 years our country has allocated more than $35bn for this purpose. A logistics center in Lianyungang, a dry port of Khorgos, a transit highway Western Europe - Western China, a railway corridor from China to Iran have been launched. Modernization of Caspian Sea ports Kuryk and Aktau has been carried out," Smailov said, adding that the construction of Kazakhstan's terminal in Chinese Xi'an had been launched. Together with Russian, Turkmen, Indian and Iranian partners, work is being carried out on the eastern route of the North-South corridor. "We consider it important to further increase the capacity of international corridors, logistics terminals and checkpoints of our countries. I invite all EEU countries to implement joint projects to develop transit and transportation infrastructure," the Kazakh prime minister said. This year marks the 10th anniversary of the signing of the EEU Treaty. Today the EEU has a population of 190 million people, a labor market of over 93 million people and a GDP of $2.7 trillion. Mutual trade between EEU member states doubled from 2015 to 2022 and has now reached $85bn.

Economy Uzbekistan Eurasian Economic Union

History repeats itself: Uzbekistan’s new Eurasian gamble

TASHKENT (TCA) — There are different opinions inside Uzbekistan about the country’s possible accession of the Russia-led Eurasian Economic Union (EEU), as the move would have serious implications for Central Asia’s most populous nation. We are republishing the following article on the issue, written by Farkhod Tolipov*: Continue reading