THE SIGNIFICANCE OF ESTABLISHING COMMON EAEU GAS, OIL AND PETROLEUM PRODUCT MARKETS FOR THE REPUBLIC OF KAZAKHSTAN

Abstract

As the migration processes gain momentum in the Central Asian region, cooperation within the Eurasian Economic Union (EAEU, established in 2014) is becoming increasingly more poignant. CurА rently comprising five states (Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia), this regional organization has become a platform for cooperation in virtually all the economy sectors, including the power sector. Common oil, petroleum product and gas markets are being established in order for the integrative association to ensure the “free movement of goods, services, capital and labor.” Since the Republic of Kazakhstan is currently one of the world leaders in the hydrocarbon resources, the key issue is for its energy resources to gain access to external markets. Meanwhile, with regard to the country’s geographical location and the historically determined transportation routes, the principal oil pipeline systems traverse the territory of Russian Federation. After the disintegration of the U.S.S.R., the independent countries of Central Asia, in particular, their natural resources, have attracted the attention of world powers, simultaneously becoming a place of conflict of interests. In order to preserve stability in the region, and, as a consequence, to ensure the status of a Eurasian transit traffic channel, the Central Asian republics are not only modernizing the existing communications, but are also implementing alternative infrastructure projects. Despite the foreign political interest in the Central Asian region and the Central Asian countries’ interest in cooperation with leading powers, Russia considers the independent republics to be within its influence sphere, preserving strong economic and political connections with them. Numerous attempts at integration of post-Soviet countries have been made since the early 1990s in the framework of establishing the Commonwealth of Independent States, the Eurasian Economic Community, and the Customs Union. However, the EAEU is currently the most efficient organization, furnished with the required regulatory framework and articulated strategic goals. The paper describes the stages and premises of the establishment of transportation routes in the Central Asian region, including Kazakhstan, their impact on gaining guaranteed access to the operating systems and route diversification, as well as the significance that cooperation in the energy sphere in the EAEU framework holds for Kazakhstan. The legal foundation being created is aimed at ensuring guaranteed access to infrastructure systems, non-discriminatory trade and access to the common energy resource market, and tariff transparency. Time will tell how the concluded agreements will be implemented, but Kazakhstan currently possesses a tangible chance of realizing its energy potential within the EAEU framework.