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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 />

98

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