The leaders of Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan and Belarus met in this resort city in southern Russia to discuss the establishment of a Customs Union, a common energy market, and a hydropower consortium, which are no second-rate issues.
The idea of a customs union was suggested long ago, but its establishment has been hindered by the fact that EurAsEC members are in different stages of accession to the World Trade Organization (WTO). As of now, their leaders have agreed, although informally, that integration in EurAsEC and the accession of its members to the WTO should be harmonized until the establishment of the Customs Union.
Kyrgyzstan is a WTO member, Russia's accession outlook is uncertain, and Belarus may not be admitted. Therefore, it may be assumed that the Customs Union will be assigned the role of an alternative WTO. The presidents decided to complete the writing of the relevant legislation by the end of 2006.
But it may take longer to form the union. Belarusian President Alexander Lukashenko said the process might take 18 months, "if we work really hard."
The six leaders also approved the idea of a common energy market and a hydropower consortium, which are crucial for Central Asia, especially the latter.
EurAsEC inherited the water supply problem of Central Asia from the Soviet Union. Tajikistan and Kyrgyzstan account for about 80% of the region's water resources, whereas Kazakhstan and Uzbekistan are the main users.
In the Soviet period, major outlays on the maintenance and use of water reservoirs did not weigh heavily on Kyrgyzstan and Tajikistan because they were part of a common economic system. This was buried in the ruins of the Soviet Union, leaving the states face-to-face with their water problems.
This issue is especially acute in spring, when Kyrgyzstan and Tajikistan need to get rid of excess water to save their dams, and in summer, when farms need more water and reserves must be stored for the normal operation of power plants in winter.
A technologically and economically powerful system is needed to tackle these problems. It will address water distribution and the development of the hydropower infrastructure in the region.
The Kremlin suggests financing the creation of a hydropower consortium through the Eurasian Bank of Russia and Kazakhstan. The latter supports the idea.
A common energy market is to be formed as part of Russian President Vladimir Putin's initiative put forth at the January 25 EurAsEC summit in St. Petersburg. It provides for creating a system of international centers to provide nuclear fuel-cycle services according to the principle of non-discrimination.
Russia is also energetically contributing to the development of the water and energy resources of Central Asia, notably in Tajikistan. Inter RAO UES, a subsidiary of Russian electricity monopoly Unified Energy System of Russia, is involved in the construction of the Sangutdin Hydro-1, while Russian aluminum giant RusAl is financing the Ragun Hydro.
Russia is the key link in joint economic projects, along with EurAsEC. This is logical, Kazakhstan's President Nurstulan Nazarbayev said at a recent summit of the Commonwealth of Independent States (CIS) in Moscow. Russia, which has strategic and other interests in all CIS countries, should bring the former Soviet states together in a common economic zone, initially within EurAsEC.
In doing so, it faces tough competition with Western Europe and the Untied States, especially in Central Asia.
Steven Mann, the U.S. State Department's principal deputy assistant secretary for South and Central Asian affairs, said during his talks with Turkmenistan's President Saparmurat Niyazov in Ashgabat the other day that the country's intention to diversify gas export routes was commendable.
So far, nearly all Turkmen gas (with the exception of 5-8 billion cu m delivered to Iran) is supplied through Russian pipes.
Steven Mann knows what he is talking about, having done his best as U.S. Ambassador to Azerbaijan at the turn of the 21st century to promote the Baku-Tbilisi-Ceyhan project. Therefore, his visit to Turkmenistan was not a coincidence, since Mann consistently lobbies for anti-Russian projects.
Russia does not want to cede ground to the United States in Central Asia, especially since it claims leadership in global energy deliveries. The Kremlin does not want to lose control of regional processes, which means that it will have to offer major privileges to EurAsEC members. But not everything depends on major players.
The Sochi meeting was the first informal EurAsEC summit. Grigory Rapota, the organization's secretary general, said that it was extremely useful despite its unusual format. The next such meeting will show if the Kremlin succeeds in forming a group that wholeheartedly supports the idea of accelerating integration.
When his colleagues complained about the August heat, Putin said that he would think about holding the next summit off-season, in autumn.
The opinions expressed in this article are those of the author and may not necessarily represent those of RIA Novosti.
