THE ISSUES OF ECONOMIC INTERACTION BETWEEN KAZAKHSTAN AND RUSSIA WITHIN THE EURASIAN ECONOMIC UNION
Zh.A. Kulekeev1,2, Ye.A. Pak3,2
1KMG Engineering LLP, Nur-Sultan, Kazakhstan
2Applied Economics Research Centre LLP, Nur-Sultan, Kazakhstan
3National Research University Higher School of Economics, Moscow, Russia
Keywords: Eurasian integration, economic integration association, EAEU, Eurasian Customs Union, Common Economic Space, international cooperation, the COVID-19 pandemic
Abstract
The article identifies and analyzes in detail the root problems that hinder the strengthening of EAEU integration, particularly between Russia and Kazakhstan. It also considers the challenges of 2020, which have directly affected cooperation within the EAEU, exacerbating Eurasian integration’s previously existing limitations. Inconsistent macroeconomic policies, highly volatile EAEU member states’ currencies, and the EAEU economy being dominated by extractive industries are all recognized as major constraints to successful cooperation. The latter leads to weak intra-regional ties between member states and exposes the association to external shocks. As for macroeconomic policy discrepancies, the article explains them by showing how different EAEU countries are in their social and economic development. Given that the COVID-19 pandemic exerts additional negative pressure on integration processes within the EAEU, we conclude that Russia and Kazakhstan, the largest EAEU members, should take the initiative in enhancing cross-country cooperation by systematically addressing the challenges faced by the union.
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