Eurasian Economic Commission Treaty – New Integration Stage for Russia, Belarus and Kazakhstan.

09.12.2011

Legal Update No. 297

Goltsblat BLP advises that Federal Law No. 374-FZ dated 01 December 2011 has ratified the Eurasian Economic Commission Treaty signed by Russia, Belarus, and Kazakhstan on 18 November 2011. The Treaty applies provisionally starting from the signing date and will come into effect once the depositary is notified by the parties that they have fulfilled the relevant domestic procedures.

According to the Treaty, from the signing date onwards, the key integration authority will be the Supreme Eurasian Economic Council.

The Treaty establishes the Eurasian Economic Commission (hereinafter the "Commission") as the standing, integrated, regulatory authority of the Customs Union (the CU) and the Common Economic Space (the CES), with a number of supranational powers. The main goal of the Commission is to provide for operation and evolution of the CU and the CES, and to develop CU and CES integration initiatives.

The Commission enjoys the rights of a legal entity and may be vested by the Supreme Eurasian Economic Council with the right to sign international treaties that fall within its terms of reference. 
The scope of the Commission's activities includes

  • customs tariff/non-tariff regulation;
  • customs administration;
  • technical regulation;
  • sanitary, veterinary and phytosanitary measures;
  • collection and distribution of import duties;
  • establishment of trade regimes with third countries;
  • foreign and mutual trade statistics;
  • macroeconomic policy;
  • competition policy;
  • industrial and agricultural subsidies;
  • energy policy;
  • natural monopolies;
  • public and (or) municipal procurements;
  • mutual trade in services and investment;
  • transport and shipments;
  • monetary policy;
  • protection of intellectual products and means of identification of goods, works, and services;
  • labour migration;
  • financial markets (banking, insurance, foreign exchange and securities market);
  • other areas.

While resolutions adopted by the Commission within its powers are binding on the parties, the Commission's recommendations are not binding. The Commission's resolutions form part of the CU and CES contractual legal framework and are directly applicable on the territories of the parties.

The Commission consists of the Commission Council (3 persons, 1 from each country), which regulates CU and CES integration processes overall and approves resolutions unanimously, and the Commission Board (9 members, 3 from each country) acting as the executive body of the Commission and approving resolutions and recommendations unanimously or a two-thirds majority of the Board members’ votes. The Treaty determines how the Council and Board are to be established and approve resolutions, their functions and powers, and provides for establishment and operating guidelines for the Commission’s departments managed by the Board and enabling the Commission to operate in the relevant spheres.
The working language of the Commission is Russian and it is located in Moscow.

On the Treaty enactment date, the Customs Union Commission will be abolished and replaced by a fully operational Eurasian Economic Commission.

For additional information, please contact:

to Vladimir Tchikine
Partner, Customs and International Trade,
Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com

to Alexander Kirilchenko
Associate, Customs and International Trade,
Goltsblat BLP
T: +7 (495) 287 44 44,
E: info@gblplaw.com

 

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