Friday, 19 September 2003

FOUR FORMER SOVIET REPUBLICS SIGN ECONOMIC ZONE ACCORD

Published in News Digest

By empty (9/19/2003 issue of the CACI Analyst)

The four largest former Soviet republics signed an accord to create a single economic zone on much of the territory of the former Soviet Union. The pact between Belarus, Kazakhstan, Russia and Ukraine is aimed at being a first step toward creating a common market and is one of the most concrete accomplishments in the 12-year history of the Commonwealth of Independent States (CIS). But comments by some of the signatories suggested that implementation of the pact, which must still be ratified by the signatories\' parliaments, could stall.
The four largest former Soviet republics signed an accord to create a single economic zone on much of the territory of the former Soviet Union. The pact between Belarus, Kazakhstan, Russia and Ukraine is aimed at being a first step toward creating a common market and is one of the most concrete accomplishments in the 12-year history of the Commonwealth of Independent States (CIS). But comments by some of the signatories suggested that implementation of the pact, which must still be ratified by the signatories\' parliaments, could stall. Russian President Vladimir Putin said the four-way pact would lead to \"an increase in the competitiveness of our goods in international markets, ease contacts between manufacturers within CIS and will create good conditions for the development of our economies.\" But other signatories were less enthusiastic. Belarus President Alexander Lukashenko said he signed the pact \"with the gravest of doubts.\" The authoritarian leader is currently embroiled in difficult negotiations with Russia on a separate Russo-Belarus monetary union. Ukrainian President Leonid Kuchma had faced both domestic and international pressure not to sign the pact, with critics saying it could hurt Kiev\'s hopes of someday joining the European Union and the World Trade Organization (WTO). Kuchma said he signed the agreement because the European markets \"are closed for us.\" (AFP)
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