Lost in Simultaneity
The Single Economic Space (SES) of Russia, Ukraine, Belarus, and Kazakhstan may be born today if the parliaments of these countries ratify the agreement signed. All four are expected to endure the birth pangs simultaneously.
“This is another success on the way to integration of the four states,” says Sergei Mironov, Speaker of Russia’s Council of the Federation (the upper house of parliament — Ed.). As always happens in post-Soviet integration affairs, problems lurk in details. Even if the four parliaments manage to do their job simultaneously, there still will be a host of things to do and a long way to go to reach true success. As participants in the international workshop, The Single Economic Space: The Legal Groundwork of Formation, noted in the address to the governments of the SES states, “massive efforts must be made to review the national legislation of Belarus, Kazakhstan, Russia, and Ukraine in order to form the SES and work out priorities for establishing a harmonized legal field.” According to the participants, this field should provide for a free trade area without exceptions and limitations; free movement of goods, services, capital, and labor; and promote early admission of the member states to the World Trade Organization; while the SES itself must be “the nucleus of economic integration on the post-Soviet territory.”
Ukraine has some other special features of its own. The SES agreement is supposed to be ratified simultaneously with those on the state border with Russian and on cooperation in the Azov-Kerch water area. It is good that the package includes no new agreements on Russian Black Sea Fleet bases in the Crimea. As Russian State Duma Speaker Boris Gryzlov announced, “we had a long and unpleasant conversation, we discussed in detail the way the Black Sea Fleet agreements are being fulfilled, and concluded that we must draw up and sign another 26 documents.” What also seems to irk many in Moscow is the fact that Ukraine is close to joining the WTO. For instance, Vadim Gustov, chairman of the Council of the Federation’s committee for CIS affairs, noted after the forth session of the Interparliamentary Commission for Cooperation between the Federal Assembly of Russia and Verkhovna Rada of Ukraine, “We think Ukraine is making a strategic mistake in this matter.” Incidentally, the same session decided that the two sides would raise no obstacles if one of them joins the WTO earlier than the other. This in fact means that Ukraine undertakes to automatically promote Russia’s WTO membership, which, to put it mildly, does not quite tally with our national interest.
Yet, the Ukrainian parliament’s leadership, while confirming the intention of simultaneous ratification, assumes an air of independence. Speaking in Saint Petersburg after the conference, Verkhovna Rada Speaker Volodymyr Lytvyn called for “giving legal and international analysis” to the SES founding document. “We view the SES not as a self-sufficient element but as an instrument for achieving economic goals,” Mr. Lytvyn stressed. He recalled that Ukraine still favors establishing a free trade area without exceptions and limitations. He also emphasized that Ukraine’s readiness to form the SES “tallies with our strategic goals” if this association is of economic nature. Moreover, Mr. Lytvyn asked the audience not to consider the idea of forming a supranational body to govern the Single Economic Space.
Meanwhile, the attitude of Ukraine’s Cabinet seems to have some other special features. For example, Prime Minister Viktor Yanukovych said on the same day in faraway Cholpon-Ata (Kyrgyzstan), “We have come every close — from all sides — to solving this problem. Ukraine is ready and everything depends on Russia. The problem is in energy resources, oil and gas. This is a matter of principle for us.” The “matter of principle” is to be discussed in Kyiv later in April by the prime ministers of the countries that signed the SES agreement. It is not ruled out that the Ukrainian parliamentary-presidential coalition will be allowed to “sniff” not only the Azov-Black- Sea stick but also the oil-and-gas carrot — just to produce a better simultaneous effect.
