The Kyrgyz Republic and the EAEC: Prospects

641
DOI: 10.20542/0131-2227-2017-61-8-78-84

V. Degusarova, (wdegusarowa@gmail.com),
Herzen State Pedagogical University of Russia, 48, Moika Emb., St. Petersburg, 191186, Russian Federation;
V. Martynov, (martin-vas@yandex.ru),
Herzen State Pedagogical University of Russia, 48, Moika Emb., St. Petersburg, 191186, Russian Federation;
I. Sazonova (iesazonova@mail.ru),
Herzen State Pedagogical University of Russia, 48, Moika Emb., St. Petersburg, 191186, Russian Federation 

Abstract. The Kyrgyz Republic is former Soviet republic where power shift happened twice as a result of revolutions in the XXI century. Joining the Eurasian Economic Union (EEU) has great significance for the Republic as it cannot exist without external support. Integration of the Kyrgyz Republic into the EEU inevitably affects China’s interests. Cooperation between the Kyrgystan and China began after establishment of diplomatic relations in 1992. Initially, emphasis was made on import and re-export of Chinese goods. “Dordoi Bazaar”, the largest wholesale and retail market in the post-Soviet area, was founded in Bishkek. It flourished due to low excise taxes and import duties. After entering the EEU Kyrgyzstan will have to change its customs policy. In this case, official transit trade with China will drop. This is likely to further invigorate smuggling. Chinese companies show increasing interest to projects involving infrastructure development or natural resources’ extraction followed by exporting to China. The oil refinery “Zhongda”, a project of China Petrol Company in Kara-Balta (Chuy Region), was recently completed. All raw materials for the refinery are imported from Kazakhstan and Russia by railroad. China’s interest in cooperation with Kyrgyz Republic is not exhausted after its accession to the EEU. Renewal of idle Kyrgyz plants such as cotton recycling plant in Jalal-Abad is considered. Kyrgyz Ministry of Economic Affairs prepared a list of enterprises to be offered to the Chinese companies for transferring manufacturing operations from China/ Chinese penetration leis reflected by the increasing the number of Chinese citizens coming to the Kyrgyz Republic and residing in it. Chinese citizens, often prisoners or soldiers, are brought for implementation of construction projects invested by China. After putting into operation these objects are served mainly by Chinese staff. Chinese investors have good knowledge of local corrupt practices and skillfully manipulate Kyrgyz government officials who are interested in personal profit. In the late XX–early XXI centuries the Kyrgyz Republic sought support from the Western countries as well as from Russia. The today’s ruling group of Kyrgyz society made more definite choice toward Russia. However, only time will show how much Kyrgyzstan accession to the EEU may benefit Russian Federation. Significant investments from other members of the EEU are required for real integration of degraded Kyrgyz economy in the EEU. Also, one should expect a conflict of interests among major economic and geopolitical actors in the region such as Russia, Kazakhstan and China. This will require formulation and use of new principles and forms of Eurasian integration. 

Keywords: Kyrgyz Republic, Eurasian Economic Union, Russia, population, labor migration, remittances, “Tulip Revolution”, ethnocracy 


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Registered in System SCIENCE INDEX

For citation:
Degusarova V., Martynov V., Sazonova I. The Kyrgyz Republic and the EAEC: Prospects. World Eonomy and International Relations, 2017, vol. 61, No 8, pp. 78-84. https://doi.org/10.20542/0131-2227-2017-61-8-78-84



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