Russia Interests & the Effect of the Eurasian Economic Union (EAEU) on Global Economic Integration, 2015 – 2016

The study attempts to describe and analyze the effect of the Eurasian Economic Union (EAEU) on global economic integration in Southeast Asia region using qualitative research method. The Eurasian Economic Union (EAEU) was establish on 1 January 2015, and launched a new period of economic integration in the Eurasian region. A Union formed among Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan is not simply a reincarnation of the U.S.S.R. as some politicians would claim. And it is not an attempt to create a certain one-sided economic club. The way the Union is developing is a sign of its potential power, which is quite the opposite the Union is strong due of a full and free dialogue with everyone. Before the establishment of the Union, the Eurasian integration process yielded obvious economic dividends for all its participants. For example, the total trade of Russia with Armenia grew by 64 percent during the last three business years, with Belarus 15 percent, with Kazakhstan 39 percent, and with Kyrgyzstan 31 percent. Even those states that joined the EAEU not long ago have already felt the positive effect. For instance, the inflow of foreign direct investment to the economy of Kyrgyzstan increased 2.3 times from January to June 2015 and amounted to US$498.5 million. Moreover, the volume of investment coming from the Commonwealth of Independent States (CIS) countries and Russia to Kyrgyzstan grew 2.8 times and 7.4 times, respectively. Without a doubt, the effect from being a member of the Union is different in each country, keeping in mind that positive changes are not visible straight away since the level of integration of each economy is different. And this is in line with one of the key principles of the EAEU. It is the principle of multispeed integration, which allows the states to gradually adapt to common laws and regulations as well as find their respective specialization areas