ANALYSIS AND PROSPECTS FOR THE DEVELOPMENT OF REGIONAL ENERGY INTEGRATION OF THE EURASIAN ECONOMIC UNION COUNTRIES

Natalya Yuryevna Sopilko,Tatyana Evgenyevna Migaleva,Nataliya Vital’Evna Bondarchuk,Natalia Anatolyevna Navrotskaia,Olga Yuryevna Myasnikova

doi:10.32479/ijeep.9806

Abstract

In the presented paper, it is proved that a new objective trend appears in the current conditions of Eurasian region development. It will strengthen mutual cooperation between the countries of Eurasia and it will enrich regionalization process in the context of world energy markets restructuring, intensification of competition, deglobalization tendencies and other challenges of the world economy. At the same time, fuel and energy complex (FEC) is becoming the main driving force for the countries of Eurasian region and their further development. The concept of regional energy integration of the Eurasian Economic Union (EAEU) countries is offered in the paper. It's based on the strategic advantages of economic integration in relation to the fuel and energy complex. Energy potential analysis of the EAEU member countries is performed. The issues of common energy markets formation in the region are considered. The main problems and a number of uncoordinated tasks between the countries participating in integrational process in this area are highlighted in terms of common gas, oil and oil products market formation, although it is noted that development and approval stage of the Programs for such formation is mostly completed. It is expected that these markets will be fully formed by 2025. It was emphasized that energy integration is one of the most important areas for the EAEU countries development, which is expected to bring significant economic benefits in the long-term period.Keywords: regional energy integration, common energy markets, energy potential, the Eurasian Economic Union (the EAEU).JEL Classifications: F02, F63, O13DOI: https://doi.org/10.32479/ijeep.9806

Highlights

The current stage in the development of international economic relations is characterized by uncertainty and structural changes
That give impetus to cooperation in related economy sectors, and such effects will be obtained in other spheres
The share of fuel and energy complex in GDP structure of the Eurasian Economic Union (EAEU) countries is about 17%, and in total industrial production, the share reaches one third – 33% (Eurasian Economic Commission, 2019)

Summary

Introduction

The current stage in the development of international economic relations is characterized by uncertainty and structural changes. The period of 2008-2019 and the beginning of 2020 was marked by series of events of various scales: The global economic crisis, fall and partial restoration of energy prices, the shale revolution, the development of military and political conflicts, and the slowdown in global economic growth. That leads to the world markets restructuring, changes in the relationship between consumers and sellers of goods, services, and, in particular, energy resources, and contributes to integration development. In that context the priority is international cooperation between the countries and common markets formation. Partnership initially develops in specific economic spheres of strategic significance for countries, and it is assumed that in case of successful convergence some certain integration effects appear. That give impetus to cooperation in related economy sectors, and such effects will be obtained in other spheres

Methods

Results

Discussion

Conclusion