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Eurasian Economic Union to form single oil market

The heads of the Eurasian Economic Union (EEU) member states have approved the concept of the formation of common markets of oil and petroleum products. In accordance with the document, the energy companies of the EEU member states get non-discriminatory access to the oil infrastructure of partners, will be able to buy oil and oil products without quantitative restrictions at market price.

At the summit of the Supreme Eurasian Economic Council, which was held on May 31 in Astana, the five heads of state discussed 14 issues. Among them is the deepening of EEU's relations with third countries and international organizations. In particular, the sides touched upon the cooperation with the European Union and China. They also talked about Singapore and Cambodia. The economic potential of this interaction will be analyzed by the working groups.

Internal issues of the integration association were also touched upon. Quite a lot of problematic issues were voiced. During the talks, Alexander Lukashenko drew attention of the summit participants to the fact that equal economic conditions in the EEU and barrier-free environment have not yet been established.

Alexander Lukashenko, President of Belarus:
Unfortunately, not everything is unfolding as we planned. Problems still remain. We have discussed today the sharpest of them. First of all, it is necessary to transform the theoretical achievements into practical ones. 
Firstly, we should get rid of internal exemptions and restrictions in mutual trade. Our association has evolved from a customs union and the single economic space to the Eurasian Economic Union, but the number of these exceptions and limitations has not changed and remained at about 600. A level playing field for the EEU member states and a barrier-free environment have not yet been established. Moreover, after signing of the agreement, our internal turnover has been falling. In 2012-2013, it was at $65 billion and ended up at only $45 billion in 2015.

Secondly, we have not yet implemented the initiative to develop mechanisms of the EEU's functioning in conditions when one of the members applies unilateral market protection measures against third countries.
Third, in September 2015, the meeting of the Eurasian Intergovernmental Council adopted the guidelines of industrial cooperation. We decided on the parameters of agreed measures to support domestic producers; we set interaction targets aiming at the development of industrial exports. Now we have to actively proceed with the practical realization of these tasks.
Fourth, we have made the first steps towards integration in the energy sector. We have developed and approved the concept of building a common energy market. Today, we looked at the same plans for gas, oil and oil products. But the path from concepts to their implementation is sometimes very long. And it is we who are the reason for that. Therefore, the Eurasian Economic Commission needs to intensify efforts in this direction and take comprehensive measures to implement these projects.
In addition, we have long been discussing the creation of a single market of pharmaceuticals and medical products. But here, there was only talk and no action again.
In today's agenda, many issues are related to the definition of the place of our union in the world economic system. And we need everything I've said in order to confidently engage in dialogue with external partners. To do this, we need to generate our own highly developed single market. We need to be strong ourselves and in every way strengthen the alliance. Then it will be easier for us to conduct a dialogue with the European Union, with China, and with others. Then we will be strong and will speak with one voice.

Just a few minutes ago, it became known that the heads of state approved the concept of the formation of common oil and petroleum products markets. 

In accordance with it, energy companies of the EEU member states will get non-discriminatory access to the oil infrastructure of partners, will be able to buy oil and oil products without quantitative restrictions and on market value. 

At the moment, the negotiations at the summit continue in an expanded format. Following the meeting, the parties plan to sign a number of international documents, which will reflect decisions on the matters on the agenda.

Eurasian Economic Union to form single oil market