EURASIAN ECONOMIC UNION: PROSPECTS AND OBSTACLES

Abstract

The Eurasian Economic Union (EAEU), a flagship project of Russian President Vladimir Putin, to build a common market for 180 million people for sustainable economic growth. For participating states, EAEU presents economic and regional integration and advances the idea of common desired goals fulfilling common economic objectives. Having initially failed, Russia established a Customs Union with Belarus and Kazakhstan in 2010, which led to the establishment of EAEU in 2015. Ever since its launch, growing differences among member states on policies have plagued the idea of regional integration resulting in trade wars. Keeping in view historic affiliation of the member states, it is understood that these states predominantly have served Russia’s strategic interests. However, empirical findings on the EAEU’s external context reveal that a significant boost in economic cooperation and trade among member states is unlikely due to their divergent political aspirations and even their power asymmetries. Moreover, some member states view EAEU as one of Russian’s tools to secure its global strategic objectives. This paper ascertains how EAEU can bring an economic integration in Eurasia and provide opportunities to participating states in a diversified manner to achieve sustainable economic prosperity in the region. In addition, the paper also examines the strategic and economic interests of all participating states to determine success or failure of EAEU because their long-term commitment and profound cooperation is entirely based on their perception of prioritizing political and strategic preferences over regional economic integration or vice versa.