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The Supreme Eurasian Economic Council convenes in the Russian capital Moscow on Tuesday, December 23. The summit will be the final meeting before the formal establishment of the Eurasian Economic Union (EEU) on January 1, 2015 and the expected accession of Armenia and Kyrgyzstan on respectively January 2, and May 15, 2015.  The Council convenes in Moscow to add the finishing touches before the formal establishment of the EEU, which constitutes a customs, trade and consumer potential of more than 170 million people. The EEU is the largest economic union in the post-Soviet era, reports the Russian news agency Tass.

The news agency quoted the spokesman of Russian President Vladimir Putin, Yury Ushakov, as saying that the EEU is guided by the principles of the World Trade Organization (WTO) and that it will afford the free movement of goods, services, capital as well as labor force within the Union. The Supreme Eurasian Economic Council is, thus far, constituted by the heads of State of  Belarus, Kazakhstan and Russia. It is expected that the three heads of State also will make announcements pertaining the finalization of the procedures for the membership of Armenia as constituent of the EEU. Armenia is expected to join the EEU on January 2, 2015. Moreover, Kyrgyzstan is expected to join the Union on May 15, 2015 after the ratification of additional protocols.

A decision on the presidency over the EEU is also expected to be announced after the Council’s meeting on Tuesday. The presidency over the EEU will circulate in alphabetical order, said Ushakov. Another item on the agenda of the Council will be discussions on issues pertaining the cooperation between the EEU, its constituents, and foreign partners. In particular, are mentioned Egypt, India, Israel and Vietnam. Ushakov added that there also exist plans for the signing of cooperation memorandums with the Association of South East Asian Nations (ASEAN) as well as with the Latin American MERCOSUR.

The Eurasian Economic Union (EEU) is considering the launch of a currency union within the 170 million inner market that was launched in January 2015. The Presidents of the EEU member States agreed to continue their work at coordinating the Union’s monetary policy.  After meetings with the Presidents of Belarus and Kazakhstan in Astana, Russian President Vladimir Putin told the press that the EEU member States are discussing the establishment of a currency union and continue coordinating monetary policy, reports the Belarus news agency BelTa. The news agency quotes Putin as saying:

Putin described talks with Belarus President Alexander Lukashenko and Kazakhstan’s President Nursultan Nazarbayev in Astana on March 20 as “very intensive and informative”. President Nursultan Nazarbayev is widely regarded as the intellectual mastermind of a post-Soviet Union political and economic integration. The three heads of State reportedly discussed a wide range of issues about Belarus, Kazakhstan and Russia. The aggregate GDP of the troika amounts, according to BelTa, to 85% of the GDP of the CIS with Russia ranking first, followed by Belarus and Kazakhstan on a shared second place. The establishment of the EEU in January and discussions about the establishment of a currency union come against the backdrop of a series of US, UK, EU, G7 sanctions against Russia over the situation in Ukraine, with Germany, France, Czech Republic, Slovakia and some other European nations being reluctant about obstructing European – Russian relations. Especially strong French and German lobbies would rather see a closer cooperation between the EU and the EEU than a predominantly US/UK dominated policy of tensions that aims at maintaining an US/UK hegemony in Europe and a global dollar-dominated economy.

“We think that the time has come to talk forming a currency union in the future. … It is easier to protect the common financial market when working shoulder by shoulder”.

The Eurasian Economic Union (EAEU or EEU)[note 1] is an economic union of states located primarily in northern Eurasia. A treaty aiming for the establishment of the EEU was signed on 29 May 2014 by the leaders of Belarus, Kazakhstan and Russia, and came into force on 1 January 2015.[7] Treaties aiming for Armenia's and Kyrgyzstan's accession to the Eurasian Economic Union were signed on 9 October 2014 and 23 December, respectively. Armenia's accession treaty came into force on 2 January 2015.[8] Kyrgyzstan's accession treaty came into effect on 6 August 2015.[9][10] It participated in the EEU from the day of its establishment as an acceding state.[11][12] In 1994, the President of Kazakhstan, Nursultan Nazarbayev, first suggested the idea of creating a "Eurasian Union"[13][14] during a speech at Moscow State University. Numerous treaties were subsequently signed to establish the trading bloc gradually. Many politicians, philosophers and political scientists have since called for further integration towards a political, military and cultural union.[15][16] However modern-day Kazakhstan has insisted the union stay purely economic as it seeks to keep its independence and sovereignty intact.[17][18][19] In spite of that, two EAEU member states—Belarus and Russia—form a political union: the Union State; and all EAEU member states participate in the Collective Security Treaty Organization, an intergovernmental mutual defense alliance.

The Eurasian Economic Union has an integrated single market of 183 million people and a gross domestic product of over 4 trillion U.S. dollars (PPP).[20] The EEU introduces the free movement of goods, capital, services and people and provides for common transport, agriculture and energy policies, with provisions for a single currency and greater integration in the future.[21][22][23] The union operates through supranational and intergovernmental institutions. The Supreme Eurasian Economic Council is the "Supreme Body" of the Union, consisting of the Heads of the Member States. The other supranational institutions are the Eurasian Commission (the executive body), the Eurasian Intergovernmental Council (consisting of the Prime Ministers of member states) and the Court of the EEU (the judicial body).

The Syrian Prime Minister Wael Halqi has said joining the Eurasian Economic Union (EEU) will allow Damascus easier economic and trade cooperation with friendly nations. Russia and Belarus are also discussing a new loan to Syria. READ MORE: Thailand to apply for free trade zone with EEU by 2016 - minister "Negotiations with Russia on joining the Eurasian Union and customs-free zone are being held. We see this as a benefit and strengthening the relations with friendly states, which will facilitate economic and trade cooperation with them," said Halqi in an interview with RIA Novosti Tuesday.According to the prime minister, Russia and Syria have signed a number of contracts for the construction of gas processing plants, irrigation facilities and power stations. In 2013, an agreement was signed for Russian companies to develop oil fields on the Syrian coast. The first phase is worth $88 million and will last for five years.The countries are also discussing the expanding of loans to Damascus."Negotiations with Russia and Belarus on the provision of new lines of credit continue. It will help to meet the needs of production, create new opportunities for the development of the internal market and economic process," said the prime minister.

He expressed the hope that Russia would help the Syrian government "to cope with the brutal attacks, including the unjust economic sanctions imposed by the West."Halqi said that credits between Iran and Syria have already been implemented. The two countries have signed and implemented two lines of credit, of which $3.6 billion Tehran has allocated for projects related to oil and $1 billion for the delivery of humanitarian aid, including food, medicines, hospital equipment and components for power plants.The prime minister said that Syria appreciates all the efforts made by the Russian leadership to maintain the policy and economy of Syria during the years of crisis, and specifically thanked Moscow for donating 100,000 tons of wheat as humanitarian aid to the Syrian people.

The Ukrainian Parliament, on Tuesday, December 23, voted for abandoning Ukraine’s neutral status and set the country on course for a NATO membership. The CSTO countered by integrating its constituent armed forces with the Russian Command and Control Center. Russian Foreign Minister Sergey Lavrov described Kiev’s decision as counterproductive while Belarus President Lukashenko asserted his country’s commitment to the collective defense within the CSTO and within the framework of the Eurasian Economic Union. 

Lavrov noted that the decision escalates confrontations and creates the illusion that the profound internal crisis in Ukraine can be resolved through the adoption of such laws. Russian Prime Minister Dmitry Medvedev noted on his Facebook page that Ukraine’s no-aligned status was “in essence an application to enter NATO, turning Ukraine into a potential military opponent of Russia”. Russia’s Ambassador to the OSCE, Andrei Kelin commented on Kiev’s decision, describing it as unfriendly, and as adding trouble and tension to the Russian-Ukrainian relationship.

It is noteworthy that former French Foreign Minister Roland Dumas, who participated in the negotiations about Germany’s reunification, repeatedly stressed that the understanding that NATO wouldn’t station weapons or troops in any of the former Warsaw Pact member States or expand eastwards was “the essence of peace”. In an interview with l’Humanité.fr in September, Dumas said: “This was the essence of peace. Everyone was in agreement… Well, the Americans do not heed. They transported weapons to the Baltic countries and Poland. Hence the controversy when Putin came to power”.

The European Union’s Foreign Policy Chief, Federica Mogherini, argued that the EU should improve its ties to Moscow and re-engage in diplomacy and trade as gradual steps to ease tensions and toward resolving the crisis in and about Ukraine. The EU’s Foreign Ministers will convene on January 19 to discuss the normalization of EU – Russian relations and relations between the EEU and the EU. Mogherini‘s statement followed one week after French President Francois Hollande made a similar statement on France-Inter which was drowned by the media spectacle created due to the attack on the French cartoon magazine Charlie Hebdo and related incident which occurred less than 48 hours after Hollande’s landmark statement.

Hollande stressed that the regime of sanctions against Moscow must end, and be disbanded as progress on Ukraine is being made within the Normandy Framework. That is, without direct participation of the United States and the UK. A meeting of EU foreign ministers on January 19 in Brussels will reportedly focus on a more positive approach toward Moscow and a more proactive approach with regard to solving the crisis in and about Ukraine. Mogherini said that taking into consideration a common aim of a free trade from Lisbon to Vladivosok, the EU should study the possibility of expanding trade with Russia as well as with the Eurasian Economic Union (EEU) which came into effect on January 1, 2015. Mogherini reportedly that: “There are significant interests on both sides, which may be conflicting but could serve as a basis for trade-offs and could imply a give and take approach.”

The EU Foreign Policy Chief also noted that the EU should consider reviewing joint efforts between the EU and Russia to solve problems pertaining Syria, Iraq, Libya, Iran, North Korea (DPRK) and Palestine. The Russian News agency Tass reports that Russian Prime Minister Dmitry Medvedev, for his part, stated at the Gaidar Economic Forum on Wednesday, that he hopes Moscow would be able to return relations with the European Union to normal soon. It is noteworthy that Hollande’s, during his statement on France-Inter, last week, stressed that Russian President Vladimir Putin had personally assured him that Moscow has no plans, whatsoever, to annex any part of Ukraine’s Donbass region. Russia does, however, consider the predominantly Russian-speaking regions in southern and eastern Ukraine as its sphere of interests and perceives NATO’s eastwards expansion as a threat to Russia’s security.

The late January visit to Armenia by Iranian Foreign Minister Javad Zarif got little media attention, but it could have significant ramifications for geopolitics in Eurasia. Specifically, the trip could help Russia gain a trade outlet that softens the blow of Western sanctions.

Most significantly, Zarif said Iran has “no restrictions” in developing ties with Armenia, highlighting two areas in particular – transportation and trade. On both fronts, the role of Russia looms large. First, both Tehran and Yerevan have emphasized the need to make progress on the construction of the Southern Armenia Railway, a project that would better link the two countries. On the issue of trade, Zarif praised Armenia’s accession to the Russia-dominated Eurasian Economic Union (EEU) and pointed to it as a potentially important development for Iran.

a Russian angle to the construction of the Southern Armenia Railway is apparent. As Prime Minister Abrahamyan put it, “Iran and Armenia can jointly produce agricultural products and export them to Eurasia” via the proposed rail project. However, both Moscow and Tehran evidently have much greater ambitions than just providing an outlet to and from the small Armenian market. Iran’s trade with Armenia is only about $300 million per year, a tiny share of its overall trade. The 470-km rail project, which was first proposed in 2010 and has remained largely on the drawing board since then, is seen as a missing link in a North-South Eurasian trade corridor connecting the Persian Gulf to the Black Sea. Its construction would give both Iran and Russia an important alternative outlet for trade. The significance of the project is also reflected in President Vladimir Putin’s announcement back in September 2013 to contribute $429 million in financing for the multi-billion-dollar rail project. Given its current economic woes, there is no longer a guarantee that Russia could follow through on Putin’s pledge. Still, Russian diplomatic and economic interests in Iran are intensifying.

Egyptian President Abdel Fattah al-Sisi has hailed the economic and security relationship between Egypt and Russia, and announced the establishment of a “free trade zone” between Egypt and the Russian-led Eurasian Economic Union (EEU).

Sisi also announced a strengthening of trade relations between the two countries, culminating in a preliminary agreement to create a Russian industrial zone in Egypt, near the Suez Canal. The pair also said that they would set up a nuclear power plant designed to “help Egypt reach its energy needs”. Egypt had taken steps in the early 1980s to launch a nuclear plant to produce electricity in Dabaa but it was shut down after the Chernobyl disaster in 1986. The EEU currently consists of Russia, Armenia, Belarus, Kyrgyzstan and Kazakhstan and has generally been seen as an attempt by Russia to provide a counterweight to the European Union (EU).

The decision by Egypt to increase its bilateral trade with Russia is likely to further increase tensions with the EU and the US, who have placed sanctions on Russia over its alleged interference in the Ukraine conflict. It is possible the meet might also upset wealthy Gulf donors who have clashed with Moscow over its support of Syrian President Bashar al-Assad.

Russia and Iran plan to create a joint account for national currency trade, Iranian Ambassador to Russia Mehdi Sanaei told RIA Novosti in an interview Tuesday. "Both sides plan to create a joint bank, or joint account, so that payments may be made in rubles and rials and there is an agreement to create a working group [for this]," Sanaei said. The Iranian ambassador added that relations between Moscow and Tehran "are actively developing" and that 2014 was "a very fruitful year" for both countries. The Iranian Central Bank deputy governor announced last week that it suspended the use of the US dollar in foreign trade transactions, adding that bilateral currency swap agreements were under consideration.

The ambassador also said that Tehran expects to sign a contract or memorandum of mutual understanding in 2015 with the Eurasian Economic Union to begin exports to Russia. “I think that in 2015 we need to work on this so that Iran has concrete economic contracts with the EEU…Iran plans to use this opportunity for its exports to Russia and other [countries],” Sanaei said.

Speaking about export Iranian ambasaador expressed hope that country's producers will get approval to export dairy and meat products to Russia by March of this year. “The first delivery of shrimp and trout to Russia was announced this week. All that remains is that companies that produce dairy and meat products also receive approval on the export of their goods to Russia,” Sanaei said.