EURASIAN ECONOMIC UNION (Syllabus: GS Paper 3 – Economy)

Context: India plans to begin negotiations for a free trade agreement (FTA) with the Russian-led Eurasian Economic Union (EEU), which is expected to significantly increase trade between the regions.

Eurasian Economic Union (EEU)

• About: It is an ambitious project for economic integration in the former Soviet region. Its formal objectives are to create a common market much like the European Union (EU).
• Evolution: Original proposal in 1994èEconomic community in 2000èEurasian customs union in 2010èEurasian Economic space in 2012èEAEU treaty signed in 2014 which was established in 2015.
• Members: Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia.
• Administrative centre: Moscow, Russia.
• Benefits for India after FTA with EEU: The trade deal between the EEU and India is also likely to improve Indian exports into Russia.

India-Russia Trade:

• Economic Trade: At present, trade is skewed in favor of Russia. During FY24, India’s exports to Russia stood at $4.26 billion, while imports stood at $61.42 billion.
• India’s imports: Crude oil and petroleum products, coal, fertilizers, vegetable oil, pearl, iron & steel and newsprint.
• India’s exports: Pharma & drugs, iron & steel, processed minerals, marine products, telecom instruments and electronic machinery.
• India’s FTA Targets: India targets of having an FTA with all major world economies in 2024-25. Beginning 2024, it is in the advanced stages of negotiating FTAs with the UK, Oman, USA, the EU, Switzerland, Norway, Russia, Sri Lanka and Peru