From the Customs Union to the Common Economic Space

Formation of the Common Economic Space (CES) of Russia, Belarus, and Kazakhstan is the most ambitious integration project within the Commonwealth of Independent States. This article reviews the functional, political, and economic factors that will determine the success of this project. It is demonstrated that an increase in the benefits of economic integration is primarily associated with liberalization of the investment regime in the CES, harmonization of the regulatory systems and technical standards of member countries, and development of trade and investment cooperation with the European Union as the main foreign-economic partner of CES countries.