A New Economic Community, New Ambitions and a New Currency?

Russia, Belarus and Kazakhstan signed in Astana on 29th May 2014 Agreement on the establishment of the Eurasian Economic Union (EEU), which must first be ratified by the parliaments of the three respective countries before it will take effect on 1th January 2015. Document was signed on a meeting of the Eurasian economic Council of presidents Vladimir Putin , Alexander Lukashenko and Nursultan Nazarbayev.
It took several years before the document on the establishment of EEU was signed in Kazakhstan’s capital. For the first time the idea of ​​creating such a union was launched by President Nazarbayev in his speech at Moscow State University in 1994.
EEU is a continuation of the integration of the member countries of the Customs Union (RuBeKa) which was established on 6th July 2010. Headquarters of the Eurasian Commission will hold in Moscow, court (EEU) will be in Minsk and financial regulator – in  Almaty.
As member states themselves believe will new economic community ensuring a higher degree of integration. Union provides for closer economic integration and coordination of single market and free movement of goods, services, capital and persons between Member States, and the implementation of coordinated policies in key sectors: energy, industry, agriculture and transport. Thus they formed a huge single market with 170 million people, which would be a powerful new center of economic development. The total GDP of the participants – $ 2.7 trillion. Total revenue for the three countries has increased over the last three years from $ 23 billion to $ 66 billion. Leaders of the Customs Union is now planning to expand the boundaries of the Union by the accession of Armenia and Kyrgyzstan. Armenia has already said that they would like to sign the agreement in the summer, while Kyrgyzstan will spend more time, nevertheless no later than by the end of 2014, this country become a member of the new financial community.
A week before the agreement on the establishment of EEU was signed took place two other major events – Astana Economic Forum (AEF, 21-23 May) and the International Economic Forum in St. Petersburg ( SPIEF, 22-24 May) . And if SPIEF got more or less coverage in the Norwegian media, was not the forum in Astana (AEF) mentioned with a single word.
Meanwhile on the international forum in Astana, which took approx. 10,000 people from around 150 countries – among these were the top leaders of the international economic and energy organizations, current and former heads of governments, politicians, public figures and Nobel laureates, – was declared the need to change the global financial system.
The global financial system needs to be changed, – said the President of Kazakhstan Nursultan Nazarbayev at the VII International Economic Forum in Astana, which was held in the capital of Kazakhstan 21-23 May 2014. Nazarbayev believes that the world is dependent on the dollar, and this is the cause of most problems in the world economy.
The only economy that certainly makes a profit from the dominance of the U.S. dollar is of course the U.S. economy. USA feeds with dollar bills. All transactions in the world go through New York, reminded Nazarbayev.
The President of Kazakhstan believes that “the U.S. itself should take care to think about this problem, make suggestions for giving the world an entirely new approach to the defective condition of the financial system in the world”. The Kazakh leader said that neither the G8 or G20 should take responsibility for tackling this challenge, but that all states should be in it together. That problem must be solved within the framework of the UN.
The fact that the root of the problems in the world economy is in the exclusive role of the U.S. dollar plays , and that it is only the U.S. that take advantages of it, many experts and economists talked about in recent years. They also discussed the possibility of settlement in a currency: euro, yuan and Russian ruble. But opposition from the U.S. plays an important role here, so no changes in this regard is yet in sight.
Some analysts believe that the yuan may well be an alternative to the dollar in Asia. However, there may come into sight a new currency. For example, economic experts from the member states of the newly formed Eurasian economic union does not exclude that the union can introduce its own currency in the future.

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