Common Economic Space of the Commonwealth of Independent States


The Common Economic Space is the goal and the result of the process of economic integration of post-Soviet states envisaged by Article 7 of the Agreement on the creation the Commonwealth of Independent States signed on 8 December 1991. According to Article 7, the High Contracting Parties indicate that through common coordinating institutions, their joint activities will consist in coordinating foreign policy activities, cooperation in the formation and development of a common economic space, common European and Eurasian markets, in the field of customs policy, in the development of transport and communication systems, cooperation in the field of environmental protection, migration policy and the fight against organized crime.
The former Soviet republics that became independent states were part of the economy of the Soviet Union with its common technical standards, common infrastructure, territorial proximity, chains of cooperation, and common legal heritage. Through the signing of international agreements on trade, economic cooperation and integration, countries can achieve an increase in the efficiency of their economies, which suffered due to the disintegration of the Soviet Union. At the same time, all post-Soviet countries have moved to a market economy, implemented reforms and expanded trade and cooperation with the global economy. Over the past three decades, several negotiations have taken place and not all proposed integration projects have been successful.

Background

In 1989, the European-Asian Union was proposed by the co-chairman of the Interregional Deputy Group Andrei Sakharov and with the participation of members of the group Galina Starovoitova, Anatoly Sobchak and others. Sakharov presented Gorbachev with his draft Constitution of the Union of Soviet Republics of Europe and Asia on 27 November 1989.
The New Union Treaty was a draft treaty that would have replaced the 1922 Treaty on the Creation of the USSR to salvage and reform the Soviet Union as a renewed federation. A ceremony of the signing the treaty was scheduled for 20 August 1991, but was prevented by the August Coup a day earlier. By September 1991, support for continuing the Soviet system had transitioned into reforming the Soviet Union into a confederation of sovereign states. However, this also did not succeed.

Transition period and the Treaty on the Economic Community

The Committee for Operational Management of the National Economy of the USSR was established by the Decree of the President of the USSR “On the Cabinet of Ministers of the USSR” of 24 August 1991. Ivan Silayev, Chairman of the Council of Ministers of the RSFSR, was appointed to head the Committee. On 5 September 1991 the Law of the USSR “On the bodies of state power and administration of the Union of Soviet Socialist Republics in the transition period” was signed. According to it, the coordination of management of the national economy, economic reforms and social policy were entrusted to the Inter-Republican Economic Committee, which was being created by the Union Republics on a parity basis. According to the decree of the President of the USSR of 6 September, the Committee was to cease its activity from the moment the IEC began its work. On 20 September, Ivan Silayev was appointed Chairman of the IEC.
On 18 October 1991, in the St. George Hall of the Grand Kremlin Palace Mikhail Gorbachev and the leaders of eight Union republics signed the Treaty on the Economic Community. According to the text, even before the disintegration of the Soviet Union, regardless of declarations of independence of the separate Union Republics and regardless of the fate of the Soviet Union, an economic community is being created by independent states in order to form a single market and conduct a coordinated economic policy as an essential condition for overcoming the crisis, preserving a single currency and free movement of goods and services. The treaty was signed by the heads of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, Turkmenistan, Uzbekistan and the president of the Union of Soviet Socialist Republics
Mikhail Gorbachev, but was not ratified and implemented.
According to the Treaty, the IEC became the supreme union executive body and was renamed the Interstate Economic Committee. On 19 December the Committee for Operational Management of the National Economy and the Interstate Economic Committee were dissolved by a presidential Russian SFSR decree.

Belovezha Accords

The Commonwealth of Independent States was founded by an Agreement on the creation the Commonwealth of Independent States signed on 8 December 1991 by Russia, Belarus and Ukraine. According to Article 7, the High Contracting Parties indicate that through common coordinating institutions, their joint activities will consist in coordinating foreign policy activities, cooperation in the formation and development of a common economic space, common European and Eurasian markets, in the field of customs policy, in the field of customs policy, in the development of transport and communication systems, cooperation in the field of environmental protection, migration policy and the fight against organized crime. The heads of 5 Central Asian republics met in Ashgabat on 12-13 December. The inspirer of the Ashgabat statement, Nursultan Nazarbayev, informed his colleagues about the meeting with Yeltsin, during which the Russian president said that the creation of the commonwealth was not an accomplished fact, but only a proposal sent to the republics for consideration. Further prospects of the inter-republican commonwealth will be discussed on 21 December in Alma-Ata, where Nursultan Nazarbayev invited the leaders of all 12 republics. 5 republics confirmed that the integration of the former Soviet republics has come to an impasse, and stated that all five are ready to become equal co-founders of the Commonwealth, they called for special attention to economic cooperation, as well as the previously concluded Treaty on the Economic Community, which is necessary to confirm and finalize. Nazarbayev later recalled that the heads of state were satisfied with "Ukraine's return to the integration process". In Alma-Ata, on 21 December, 11 Republics became co-founders of the Commonwealth. In 2019, CIS Executive Secretary Sergei Lebedev recalled that it was in Ashgabat on 13 December 1991 that the historic meeting of the leaders of Turkmenistan, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan took place, which prepared the conditions for signing the Alma-Ata Declaration, which became the basis for the formation of the CIS in its current form.
At a press conference in Almaty on 21 December 1991, Leonid Kravchuk answered the journalist's question “Question to all. Why did you refuse the name Commonwealth of Euro-Asian and Independent States?” as follows: “The fact is that the beginning of the Commonwealth and the foundation of the Commonwealth was laid in Minsk and the corresponding name was given to the Commonwealth there. After that three states - Belarus, Russia, Ukraine - have already ratified these documents. Therefore, it would be unreasonable to change the name both legally and politically.” Nursultan Nazarbayev immediately added: “But in the Declaration, which you will read tomorrow, the economic area is called Eurasian.”
The Soviet Union officially self-dissolved on 26 December 1991, and this date is considered the date of the final recognition of independence by the Soviet Union. The Commonwealth countries agreed to cancel price limits in a coordinated manner and switch to market prices on 2 January 1992.

Commonwealth of Independent States

1992 Council for Standardization, Metrology and Certification

On 13 March 1992, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan and Ukraine signed an Agreement on the Coordinated Policy in the Field of Standardization, Metrology and Certification, which entered into force for all these countries. Georgia's accession entered into force on 22 May 1995. Azerbaijan's accession entered into force on 31 May 1995. Ukraine withdrew on 2 June 2023. Moldova withdrew on 4 September 2024. The Euro-Asian Council for Standardization, Metrology, and Certification was created by this Agreement. Whereas in the past GOST meant "state standard", now GOST has come to mean "interstate standard". GOST standards were originally developed by the government of the Soviet Union as part of its national standardization strategy. After the disintegration of the USSR, the GOST standards acquired a new status of the regional standards. They are now administered by the Euro-Asian Council for Standardization, Metrology and Certification, a standards organization chartered by the Commonwealth of Independent States. The International Organization for Standardization recognized the Council as a Regional Organization for Standardization in 1996. On 7 June 2013, the EASC and the Eurasian Economic Commission signed a memorandum on the harmonization of standards so that standards within the Commonwealth of Independent States and the Eurasian Economic Union do not conflict. In practice, thanks to the activities of the UN Economic Commission for Europe, the International Telecommunication Union, the International Electrotechnical Commission and the International Organization for Standardization, many technical standards used, for example, in the European Union and in the CIS countries are the same or very similar. In particular, in 2014 in order to switch from 220 volts to 230 volts in electrical power lines, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia and Ukraine voted to adopt the interstate standard GOST 29322-2014.

1993 Interstate Bank

The Agreement on Establishment of the Interstate Bank was signed on 22 January 1993 by Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, Ukraine and ratified by all countries except Ukraine, which revoked its signature in 1997. In particular, the Interstate Bank is serving as the Secretariat of the Eurasian Council of Central Banks, coordinating the exchange of information on the most relevant economic and financial issues, including the development of national banking systems of the Commonwealth, the organization of banking supervision, the state of balance of payments and foreign exchange markets and macroeconomic development of the countries of the Commonwealth of Independent States and the Eurasian Economic Union.