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FOI-R--<strong>3880</strong>--SE<br />
dominate new integration formats. The Russian political leadership has also<br />
carefully avoided setting itself such a task.<br />
ECONOMIC INTEGRATION<br />
The basis of the integration processes is the participating states’ economic<br />
interests. Evaluating the integration of security and social/human issues is<br />
challenging. Financial and economic figures provide a much better indication of<br />
the success of integration. The countries concerned therefore use them to<br />
evaluate the effectiveness and efficiency of participating in various integration<br />
projects. Russia is also interested in the economic efficiency of integration<br />
projects. Only Russia can offer economic attraction potential for new members<br />
such as Kyrgyzstan, Tajikistan and Ukraine. Some figures for 2012 seem to<br />
support optimism. GDP growth in the Customs Union’s members was 3.5 per<br />
cent and their mutual trade grew by 8.7 per cent, higher than the growth in<br />
foreign trade in general, which was 3.2 per cent (Eurasian Economic<br />
Commission, 2013b). Trade within the CU increased 1.3 per cent in the first<br />
quarter of 2013 in comparison to the first quarter of 2012 (without taking into<br />
account oil and gas products) (Eurasian Economic Commission, 2013a).<br />
Despite Kyrgyzstan and Tajikistan having not yet joined the CU, they are quite<br />
well integrated with the CU countries. Much of the working population in these<br />
republics already work in Russia and Kazakhstan and are, in a sense, integrated<br />
into a common professional and cultural space. Many even hold a second<br />
citizenship.<br />
Despite the generally positive image of CU integration between Russia, Belarus<br />
and Kazakhstan, there are signs of problems with the swiftly emerging new<br />
economic realities in certain industries and for some groups. The new customs<br />
rules have brought unexpected costs to which the authorities are turning a blind<br />
eye. First, World Trade Organization (WTO) and CU rules do not seem to be<br />
fully compatible. Kyrgyzstan may have to pay compensation to WTO states to<br />
settle a conflict between the provisions of the CU and those of the WTO<br />
(KNews, 2013). The image of the CU is also suffering. There are allegations that<br />
the CU has led to higher prices in Kazakhstan and that some entrepreneurs have<br />
even gone bankrupt. National authorities have, at least temporarily, lost control<br />
over cross-border financial flows. Opposition parties in some republics have<br />
made CU membership a target for criticism. Finally, serious pressure has been<br />
put on the Central Asian republics by external players, starting with then US<br />
Secretary of State Hillary Clinton saying that the US will try to prevent ‘re-<br />
Sovietisation’ of the post-Soviet space (Radio Free Europe, 2012).<br />
Inspired by the Customs Union’s initial success, its architects want to widen<br />
integration, both regarding members and regarding themes (Laktionova, 2013).<br />
CU members are expected to coordinate their respective activities with the<br />
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