"Greater Eurasia will integrate"
The Great Eurasian Partnership is an economic and civilizational project capable of bringing the geo—economic centers of the continent closer together. This was stated to Izvestia by Russian Deputy Prime Minister Alexei Overchuk. In his opinion, the strengthening of economic ties and the reduction of barriers in Eurasia will take place against the background of the dismantling of the international trade system. And the strengthening of new tariff and non-tariff measures will contribute to the deepening of integration processes. The Deputy Prime Minister considers the introduction of trade duties by the United States in the context of the deglobalization process. About the formation of new common markets in the EAEU and the immediate prospects for the development of the BEP — in an exclusive interview with Alexey Overchuk "Izvestia".
"The Russian Federation has a vision of cooperation within the framework of the Greater Eurasian Partnership"
— In recent years, integration associations such as the Union State, the Eurasian Economic Union (EAEU), and the Commonwealth of Independent States (CIS) have significantly strengthened their importance in the post-Soviet space. At the same time, Russia has become more active in talking about the Greater Eurasian Partnership (BEP), an initiative launched by Vladimir Putin back in 2015. What is the significance of BEP and our integration associations from a practical point of view?
— BEP is an economic and civilizational project initiated by our country, which provides realistic answers to the challenges of our time. The formation of a multipolar world with new geo-economic centers, a significant part of which are located in Eurasia, has become a determining factor influencing the development of international economic relations.
Deputy Prime Minister of the Russian Federation Alexey Overchuk (third from left) participates in the general photographing of the heads of delegations of the participating countries of the Asia-Pacific Economic Cooperation (APEC) summit in Lima
In our region, such centers of integration development are the Union State of Russia and Belarus, the Eurasian Economic Union, and the Commonwealth of Independent States. At the same time, similar processes are taking place in Eurasia. China is implementing the Belt and Road initiative, the SCO, ASEAN, the Cooperation Council for the Arab States of the Persian Gulf, the Dialogue on Cooperation in Asia and other organizations are functioning. APEC will play a special role as a dialogue platform that ensures the interconnectedness of Asia and America. It is in the Asia-Pacific region, which includes all four of the world's largest economies in terms of purchasing power parity, that a new powerful economic center is being formed. Everyone here is trying to find answers to the problems of transition to a new socio-economic order, climate, or deglobalization, including dismantling the world trade system, severing economic ties, and containment, and they find them in the development of integration cooperation across Eurasia.
In practical terms, BEP is cooperation to create a network of international trade and investment agreements, connected transport infrastructure that ensures seamless logistics, the formation of a network of economic corridors, including free trade zones, the creation of a single digital space based on the interoperability of national information systems, mutual support in ensuring energy and food security, the development of an independent and secure payment infrastructure, as well as integration in the field of scientific and technical research. The countries of our region already have significant experience in integration building in all these areas.
The Union State of Russia and Belarus embodies the "two countries, one economy" approach. We are talking about creating a single economic space with unhindered mutual access to each other's markets. For example, the creation of more convenient conditions for the use of electronic digital signatures with the participation of our countries' economic operators in public procurement or direct interaction at the B2B level. The establishment of more comfortable mobile tariffs, close to those that operate in the home region. Improvement of the cross-border suburban passenger railway service. Increasing the capacity of our railways. Expansion of the aviation route network. Or more global things, such as a common industrial policy, a common agricultural policy, and a common policy in the social and humanitarian fields. All this is done to make our people and companies feel at home on the territory of either of the two countries.
Much of what we are doing together with Belarus is then implemented in the Eurasian Economic Union, which includes five countries that have agreed on a common customs border, within which the free movement of goods, services, capital and labor should be ensured. The consequence of this is the need to build common markets and appropriate requirements for them. At the same time, the EAEU is a purely economic association, where decisions are made on the basis of consensus.
The CIS is the oldest association, which was created in 1991 to reduce the negative consequences of the collapse of a single state, primarily in the humanitarian sphere. Today, processes are intensifying within the CIS, which indicate that this format is beginning to play a more important role in the economy. For example, in 2023, the CIS agreement on free trade in services and investments was signed and comes into force.
Significant growth rates in the economies of the CIS countries have largely resulted from the practical implementation of the Russian vision of the model of integration interaction. These developments are of growing interest to other Eurasian countries and beyond, which opens up good prospects for BEP.
— By the way, one of the significant achievements of Russia and Belarus is the abolition of roaming charges. Starting from March 1, 2025, residents of the two countries can use mobile communications and the Internet on the territory of the Union State at comfortable home rates. Is Russia currently discussing the transition to more comfortable tariffs with other countries?
— We are talking about the introduction of comfortable tariffs by mobile operators, close to the conditions of the home region. Negotiations with Belarus took more than four years before the first tangible results appeared. But now, when coming to Belarus, it's nice to see a noticeable difference in the cost of calls and mobile Internet compared to other countries.
Of course, we would like to have similar conditions throughout the EAEU. Therefore, we initiated a discussion on the site of the Eurasian Economic Commission. We are currently going through a stage where not everyone is ready to support us. Mobile operators are concerned that the introduction of tariffs close to their home region will negatively affect their incomes, and are trying to delay the resolution of this issue. We will have to convince our colleagues that reducing fees for services will lead to an increase in mobile traffic between our countries, which will generate more revenue for operators than they have today. We will conduct negotiations, conduct pilot projects, find technical solutions, develop and accept documents. The process is lengthy, requiring patience and constant unflagging attention. In principle, this is how decisions are made, but in the end there is a consensus.
"We expect to hold the first test auctions this year"
— At the end of last year, it was recorded that the gas market in the EAEU has already developed in the form in which it actually exists. Earlier, you stated that the EAEU has made significant progress in terms of the electric power market. Do I understand correctly that this market has already developed in the EEA?
— In order to form a common electric power market, last year we completed the preparation of the basic documents forming its architecture. The rules of mutual trade in electricity, the rules of information interaction between market participants and the rules for determining and distributing the capacity of interstate sections of power grids have been approved. The preparation of technical and regulatory documents that detail the processes of interaction between market participants is at the final stage. In fact, the regulatory framework for launching the market is already ready. The main task now is to debug the practical interaction of trade participants. We expect to hold the first test auctions this year.
The electric energy market is the most complex in terms of the structure of the trade organization. We are forming a unique electricity trading mechanism that allows us to conclude contracts and balance energy flows between five countries at once. The full-scale launch of the market is scheduled from January 1, 2027.
As for the gas market, this discussion began back in 2011, when the vision of market processes was different. Then we looked at the experience of the European Union, how they are developing a gas trading system. However, time has shown that for the EAEU member states, the best conditions are those defined by long-term contracts for the supply of gas to these countries. In other words, the relations that have been formed in the EAEU between sellers and buyers are our common market.
Natural gas from Russia plays a key role in the energy mix of most of the Union's countries. At the same time, the cost of natural gas for EAEU partners is significantly lower than on the European market. This gives the economies of our allies tangible competitive advantages. The heads of the EAEU member states confirmed this in December last year.
— What are the prospects for agreements on the common market of oil and petroleum products within the EAEU?
— We proceed from the fact that the price of oil is formed on world markets. We have almost agreed on the draft of the basic international agreement and trade rules. We look forward to the practical launch of trading in 2027, but the main thing is not timing, but respect for interests.
— There are countries in the CIS with which Russia has strained relations, in particular, Moldova. So, at the end of March, the Ministry of Foreign Affairs of the Republic ordered three employees of the Russian Embassy to leave Moldova. The Russian Federation responded in a mirror manner. Does Moscow see an opportunity for further cooperation with Chisinau?
— I would like to have normal relations with this country. Moreover, Moldova remains a member of the CIS and an observer state at the Eurasian Economic Union. However, they found some legal clues in Chisinau and stopped considering themselves an observer state, although they were completely wrong. The observer status at the EAEU does not impose obligations, but it provides an opportunity to immerse oneself in its internal cuisine and participate in expert discussions, not to mention regular meetings of heads of state and government. If they thought in terms of expanding sales markets and increasing the incomes of their people at home, then such work would be useful to them.
— At the same time, are we open to Moldova returning as an observer country to the EAEU?
— The ties between Russia and Moldova are deep and will prove themselves. It takes time.
— At the same time, the growth of economic cooperation between Russia and Georgia is being recorded. Thus, according to Georgian statistics, the trade turnover of our countries in 2024 amounted to $2.53 billion, an increase of 5.4%. Although Russia and Georgia have not had diplomatic relations since 2008, is Moscow ready to involve Tbilisi in cooperation within the framework of the BEP?
— Georgia is our closest southern neighbor. We lived together for many years, but then events happened that separated us. Today, Russian tourists are returning there, flights have resumed, the visa regime has been simplified, representatives of the business community are cooperating, trade is growing, and human ties are being restored. Georgia refused to participate in the anti-Russian sanctions and, as is now known, did not sacrifice itself for the sake of other people's interests. Georgia's independence and geographical position in Eurasia provide good opportunities for development.
"The integration of the EAEU with the Belt and Road is an example of the formation of new relationships"
— Since 2015, Russia has been talking about the concept of combining the EAEU and the Chinese initiative "One Belt, One Road". What successes have been achieved so far and what is planned to be done in the coming year?
— The idea of combining the EAEU and the Chinese Belt and Road Initiative was formulated in 2015. It is being implemented on the basis of the agreement on trade and economic cooperation between the EAEU and China signed in 2019, as well as a dialogue mechanism for its integration.
A Joint commission is working within the framework of the agreement. For example, she considered customs cooperation, trade facilitation, technical regulation, the application of sanitary and phytosanitary measures, sectoral cooperation, and e-commerce.
In 2023, a roadmap for the development of trade and economic cooperation between the EAEU and China was adopted. It is dedicated to solving the problems of transport and logistics transit potential and improving cargo handling procedures at international checkpoints, which includes digitalization of rail freight transportation. It also concerns trade policy issues that have a significant impact on international trade, and conducting joint research on various scenarios for deepening trade and economic cooperation, including trade facilitation.
Against the background of the dismantling of the international trade system, Eurasia will seek opportunities to strengthen economic ties and reduce barriers to the movement of goods, services and capital. These integration processes will grow stronger as new tariff and non-tariff measures strengthen, as well as a growing understanding that things will not be the same as before. Therefore, Greater Eurasia will integrate around the idea of forming a macroregional, barrier-free market. The integration of the EAEU with the Belt and Road is an example of the formation of new relationships.
"Europe's current rhetoric is not conducive to a healthy dialogue"
— The United States has announced the imposition of trade duties of up to 50% not only on China, but also on over 180 countries. At the same time, the new restrictions did not affect, in particular, Russia. Does the government of the Russian Federation expect that duties may also be imposed against the Russian Federation, but just later?
— The introduction of these duties is not accidental. It should be considered in the context of the deglobalization process. To do this, let's recall why globalization arose and what tasks it solved.
Globalization appeared in the late 40s of the last century. At that time, the USSR, as a victorious country, enjoyed great prestige in the world, many Western intellectuals were supporters of communist ideology, and the planned economy based on public ownership of the means of production showed the highest growth rates. It seemed that just a little more and the Soviet model would win all over the world.
In the United States, this was perceived as a threat to a society based on democracy and private property. And they thought about forming a global system that would allow them to win this ideological race in the economic field.
As a result, globalization has emerged. Countries that agreed to participate in curbing the development of the USSR, develop a market economy, and avoid conflicts among themselves received protection from the United States, access to financial resources, technology, education, safe shipping lanes, and the American market. The leading role in this system was given to trust in the dollar, which became the world currency. The beneficiary countries of globalization had the opportunity to invest the released funds in their own development and demonstrate the advantages of a market economy. It is enough to compare modern views of the capitals of Southeast Asian countries with postcards from the 50s and 60s of the last century.
However, anyone who has visited the United States over the past few decades cannot help but feel that this country is increasingly lagging behind Europe, China, and the countries of Southeast Asia, the main beneficiaries of globalization. Obviously, President Trump, a developer who has built a number of iconic architectural sites, paid great attention to the details of his investment projects and spent a lot of effort on improving the urban environment in New York City, saw this too.
The United States shouldered the lion's share of the costs necessary to maintain this huge system, and did not seem to notice the damage from this policy. In December 1991, the USSR ceased to exist, and the root cause of globalization disappeared. Why the United States continued to endure accumulating public debt, budget deficits, and a negative foreign trade balance for another three decades requires a separate study. Today, in fact, the bill is for the prosperity achieved due to the fact that the United States has been bearing the corresponding costs for almost 80 years.
Raising tariff barriers is not only the Trump administration's implementation of a rational approach to its country's budget, but also the creation of incentives for the formation of a new economy in the United States. Obviously, the timing is perfect. The world is changing technological eras, the introduction of advanced technologies requires new investments, and President Trump is creating conditions for these investments to be directed to his country, while the rest remain with old technologies and uncompetitive industries. At the same time, he takes global control and provides his country with access to the mineral resources necessary for the energy transition and digital transformation. In this way, he seeks to maintain the leadership position of the United States in the world, as he promised his voters. Naturally, it all takes time.
As for our country, on the one hand, it has already been subjected to a record number of sanctions aimed at curbing our development, but on the other hand, Russia still does not have significant trade with this country.
— Amid the intensification of contacts between Moscow and Washington, are the Russian government working on specific proposals for building and restoring trade and economic cooperation with the United States?
— Our countries have not spoken for too long and too many problems have accumulated. For example, humanity is facing acute food security problems. Food security issues in individual countries of the Global South could be addressed more effectively by removing a number of trade barriers that hinder the flow of goods. Acting in concert, each of our countries could contribute to their solution. There may be other topics where we could make the world around us a better place to live. The result of such work, to some extent, may be the restoration of trade and economic cooperation.
— In conditions when the United States imposes duties on its European allies, is there an opportunity to strengthen cooperation between Russia and the European Union within the framework of the Greater Eurasian Partnership?
— The Europeans should be asked if they are ready for any constructive cooperation with Russia. Europe's current rhetoric is not conducive to a sound dialogue, nor is it conducive to the growth of its investment attractiveness.
You can talk about this for a long time, but Europe's main problem is that it has almost no resources of its own. Its modern wealth is based on external sources. For centuries, Europe has been colonizing, exporting resources from Asia, Africa and Latin America, and conducting the slave trade. Having exhausted the possibilities of colonial expansion, in the twentieth century Europe initiated global conflicts, which were based on the desire to redistribute resources in the colonial possessions, as well as to gain control over the resources of the USSR.
The reconstruction of the post-war world, among other things, should be seen as an attempt to pacify Europe. By the way, the United States, apart from the existing deterrence factor of communist ideology, as well as Russophobia, has always been concerned about the behavior of Europe, the possibility of a new war on the continent and the potential threat of the need to lose American lives in a new European conflict.
Even in 2013, when providing for the creation of a free trade area in the Association Agreement with Ukraine, the EU, seeking to expand its sales markets and gain access to Ukrainian resources, ignored the existence of a free trade regime within the CIS, which hurt the economic interests of our country. What happened is, among other things, a direct consequence of these contradictions. Now, while promoting its interests in Transcaucasia and Central Asia, the European Union continues to ignore the economic agreements in force within the framework of the CIS and the EAEU and does not want to recognize that it is necessary to negotiate in the modern world.
We should be talking about substantive economic agreements, as was the case, for example, when the USSR and Europe agreed on a mutually beneficial supply of energy resources to the western tip of the great Eurasian continent. Those decisions in the 60s and 70s of the twentieth century were made by leaders who survived the horrors of the Great Patriotic War and understood that by providing Europe with cheap energy, the USSR was buying itself the opportunity for peaceful development.
Russia has a vision of cooperation within the framework of the Greater Eurasian Partnership. This is a vision of peaceful, mutually beneficial development, where Europe also has a place.
"We will always be interested in new ways leading to new markets"
— In February, the Eurasian Economic Commission announced its readiness to sign a free trade agreement (FTA) with the UAE this year. It is possible that similar agreements may soon be concluded with India, Indonesia, Mongolia and other states. What does this give us?
— The free trade agreements concluded by the EAEU are part of the movement towards a Greater Eurasian Partnership. They provide the best competitive conditions for exports, create opportunities to earn in foreign markets and expand our economies.
— How will end-users benefit from the creation of new free trade zones?
— The participants of the FTA are mutually open for the import of a specified range of goods. The product range is expanding in the domestic market, and the supply is increasing. Competition stimulates the improvement of the quality of goods, and also helps to reduce prices for end consumers. Accordingly, factors that reduce the cost of the consumer basket and inflation are becoming more active, which, in turn, affects the cost of lending. If at the same time we maintain a balance that takes into account the interests of our own producers of goods and services, and create better conditions for promoting our exports, then together all this can positively affect both the level of consumption and the development of the country's economy.
— Does Russia record attempts by Western countries to disrupt negotiations on the creation of free trade zones?
— Creating conditions for free trade is integration, strengthening of various economies, ties and alliances, and, of course, not everyone always likes it.
— In December 2024, an agreement was signed on the unified customs transit system of the EAEU. Earlier, you stated that States that are not members of the union can also join it. Which countries exactly can do this?
— This agreement is also part of the BEP promotion. It allows you to realize the competitive advantage resulting from the advantageous geo-economic position of the Eurasian Economic Union. All countries interested in ensuring that their goods pass through the territory of the EAEU faster and at the lowest cost can be parties to the agreement. First of all, it may be interesting for states that border the EAEU or are located in Eurasia.
— Russia is discussing the implementation of the MTK North—South project. Last year, the Russian delegation negotiated with Iran on the construction of the Rasht–Astara railway section. Is there any progress on this issue now?
— Specialists are working. As a result, there will be the shortest land route between our northwestern ports and the Iranian ports of the Persian Gulf and the Indian Ocean. This will provide access to India, Southeast Asia and Africa, i.e. to the main growing markets.
— Are any meetings on this topic expected in the near future?
— The necessary contacts are supported. By the way, we expect that an agreement on a free trade zone between the EAEU and Iran will enter into force in mid-May. Ties with the Global South will grow, and the new road will be in demand.
— At the end of March, you announced that the first freight train would be sent from Russia to Pakistan in April. When should we expect the expansion of freight shipments to Pakistan by rail?
— Our cooperation with Pakistan lays a systematic foundation for increasing mutual trade, as well as creates conditions for the development of transport and logistics connectivity between the economies of the north and south of Eurasia, and the integration of markets in countries that have become new centers of global economic growth. These are long-term projects.
The opening of a direct freight railway link between Russia and Pakistan is taking place for the first time in modern history. While the potential cargo base in export and import traffic is being assessed, interaction with potential shippers is underway, and transportation rates are being negotiated. The pilot flight will help identify the "bottlenecks" that need to be worked on further.
— The other day, the Prosecutor General's Office appealed to the Supreme Court with a request to suspend the ban on the activities of the Taliban in Russia (the organization is under UN sanctions). How is Russia ready to develop a trade and investment partnership with Afghanistan if the movement is excluded from the terrorist list?
— Afghanistan has many problems, but there is potential and they are waiting for us there. We had contacts with the Afghans. They want to develop and live in peace. We have a positive attitude towards Russia and are very interested in developing economic ties.
The Russian Prosecutor General's Office has appealed to the Supreme Court with a proposal to suspend the ban on the activities of the Taliban movement in Russia. This is a legal process. If such a decision is made, better opportunities for relations with this country will open up. Preparatory work for this interaction is underway in parallel.
— Why is Russia interested in strengthening economic cooperation with Afghanistan? Does the Russian Federation see this country as a transport hub?
— Today, peace is coming to this land and opportunities are opening up that did not exist before. This is also related to the realization of transport and logistics potential. After the Taliban movement established control over the entire territory of the country, it became possible to freely transit goods by road. It's there today.
The construction of trans-Afghan railways from Uzbekistan and Turkmenistan to Pakistan and further to India has been discussed for quite a long time. Afghanistan has adopted the Russian 1520 gauge standard. It all fits in with our vision of BEP. We will always be interested in new ways leading to new markets.
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