EEU Member States Research Articles

De-dollarization Process in the EAEU Member States as an Element of the Monetary Policy

Economic integration in the EEU region naturally captures the area of cooperation in the monetary sphere, which is a more high-level stage of integration in its classical understanding. The imbalances in macroeconomic development and a number of problems in the monetary systems of the EEU member-countries are an obstacle to the intensification of cooperation in the monetary sphere. One of the significant problems, common to all the EEU member-states is the dollarization of their economies, which imposes restrictions on the ability of monetary bodies to regulate macroeconomic processes in the country. Replacing national currencies in settlements, payments and savings with «hard currencies» reduces the efficiency of transmission channels, worsens volatility indicators of national currencies and strengthens the spiral of formation of negative expectations regarding inflation levels. An increase in the debt load denominated in foreign currency, in particular for individuals, creates additional risks to the monetary systems of countries. This article is devoted to the study of the problems of dollarization of the economies of the EEU member-states, of the required de-dollarization measures, as well as to the analysis of the prospects for the de-dollarization process spreading at the regional grouping level.

The Russian Rouble in the Regional and Global Dynamics

The article deals with the issues of Eurasian monetary integration. The topic is especially time-relevant today, for the deepening of the integration in Eurasia is really dependent upon the development of European Economic Union regarding a potential currency union. These regional economic relations require a common monetary market. The prospects of the future regional monetary market of the EEU member states have been proven in the article by an identified link between the mutual trade flows and the currency pair trading at the Moscow Exchange. The author strongly believes that the Eurasian monetary market is going to be an additional and transitional step on the path to achieving the integration in banking, financial and monetary spheres of the EEU member states in the unified economic environment. The author founded his conclusions on the hypothesis that this integration stage can be accomplished through the trading of the national currencies of the EEU member states at the Moscow Exchange.

Anti-Dumping Investigation: Calculation of the Dumping Margin

Background/Objectives: The research of product dumped import practices is of current importance as it is vital to defend the Eurasian Economic Union common market from unfair competition on behalf of the companies of an exporting foreign state (union of foreign states). Method: The main research method of the aforementioned problem is a system analysis method, which enables to study in an integrated manner such significant component of a dumping triad as the dumping margin and particularly, to develop a certain method of comparison of normal value of a product with its export price, as well to offer different ways of calculation of the absolute amount and relative value (rate) of the margin assisted by the introduced business practices, such as breakeven model, etc. Findings: Main results of the research enable to make a conclusion that three main ways of calculating the dumping margin are possible in regard to the supply of goods: 1. Based on export prices formed in purchase and sale conditions in a domestic market of an exporting foreign state (union of foreign states) at a normal course of trade; 2. Based on current prices at which goods are supplied from an exporting country to the third countries; 3. Based on export prices formed in the countries with a transition (or non-market) economy in which an absolute (or partial) state foreign trade monopoly takes place. Another conclusion is that the use of asymmetrical comparison method of normal value of goods and their export prices in the course of exercising the so-called targeted dumping makes it possible for the antidumping authorities, to zero out those foreign trade operations in which dumped import practices are not present, which purposely increases both the rate and the abovementioned relative value of the margin, thus raising the total value of the duty. Improvements: Materials of the article can be of a practical value for the manufacturers (or a pool of manufacturing companies) in the markets of the EEU member-states when preparing the declaration regarding the use of Anti-Dumping measures against importation of the like product into the Eurasian single customs territory at dumping prices, which causes a financial damage to a certain industry in the EEU.

Risk Analysis of National Insurance Markets in EEU Countries

Abstract: In the context of the Customs Union and the Eurasian Economic Union functions, a common insurance market is being formed. Common approaches to regulations in the insurance sector are observed in the five EEU member states, though the insurance legislation in each state has its own specific features that, in fact, hinder the process of integrating the insurance markets followed by failure to unify the norms and rules. Rapprochement in the EEU insurance market legislation should begin with identifying the paramount objectives of creating the common market. One of the first steps to operate the common market is stipulated by the necessity to harmonize legislation within the framework of the established insurance space. Harmonizing legal relations would not be a simple task, inasmuch as the level of each national insurance market is not the same; in particular, statutory instruments, conditions of regulation, market operating factors differ considerably. Methods/Statistical Analysis: In the course of this study, the methodology of alternative forecast scenarios has been applied. Findings: Insurance markets of Russia, Kazakhstan and Belarus are underdeveloped. The factors and the prerequisites for competition in the context of the insurance market Eurasian integration differ in many parameters. General level of insurance coverage in Belarus, Kazakhstan and Russia has been low for many years. The insurance companies with foreign capital occupy only a negligible share on the market. There are certain risks in the structure of the investment portfolio of the insurance market assets. Insurance as an element of social protection has not gained any considerable social and economic importance in the countries of the Eurasian Economic Union. Applications/Improvements: An important prerequisite for normal operation of the common insurance market in the Eurasian economic area implies eradicating different forms and methods of supporting national, industry-specific and regional monopoly.

Межрегиональное сотрудничество как фактор интенсификации сотрудничества современных государств (на примере отношений между Российской Федерацией и Казахстаном)

<p>Характерной особенностью системы международных отношений современных государств является многообразие ее факторов, а также форм их взаимодействия. Регионы все активнее становятся субъектами международной деятельности в условиях глобализации мирового хозяйства. Вместе с тем этот процесс не свободен от противоречий. Очень показательны современное состояние и перспективы развития регионального сотрудничества Российской Федерации и Республики Казахстан — нашего главного партнера в Евразии.</p><p>К настоящему времени сложились два типа международных связей регионов: приграничное и межтерриториальное сотрудничество. Основными отраслями приграничного сотрудничества являются инфраструктура, связь, промышленная, сельскохозяйственная и логистическая кооперация, охрана окружающей среды, приграничный туризм, борьба с преступностью и т. п. Формы приграничного сотрудничества различаются в зависимости от отношений между странами. Существует три модели приграничного сотрудничества: преференциальная (предоставление преференций приграничным регионам, в том числе особый налоговой и таможенный приграничный режим), партнерская (основана на принципах экономической и политической децентрализации, т. е. более высокая степень самостоятельности регионов), традиционная (ограничивается обслуживание внешнеэкономических связей и внешней торговли).</p><p>Приграничное сотрудничество России и Казахстана осуществляется в рамках традиционной модели. Межтерриториальное сотрудничество (между территориями, не имеющими общих границ) развивается в рамках побратимских связей городов России и Казахстана.</p><p>Создание Таможенного союза и ЕЭП России, Казахстана и Белоруссии заставляет по-новому взглянуть на вопросы приграничного сотрудничества. Приграничные регионы как бы сдвигаются к периметру Единого экономического пространства. Наряду с потенциальным позитивным экономическим эффектом это открывает возможности для различных злоупотреблений, а также требует оперативной гармонизации налоговых режимов стран-участниц.</p><p>Таким образом, межрегиональные отношения являются производными как от типа и характера социально-экономических режимов соседних стран, так и от уровня их взаимодействия.</p>

Migrants are Losing Interest in Russia

According to the split year data, in 2015 positive migration balance in Russia will be below 2013-2014 indicators. Herewith, mobility of the Russian population does not remain at a low level: the scale of internal migration captured by statistics will exceed four million persons. It will be higher than in the 2000s and will reach the 1980–1990s level. The number of foreign labor migrants starts to fall. This data can already be treated as a loss of interest in the Russian labor market emanating from a small part of labor migrants. Looking forward, the number of foreign citi zens from EEU member states will remain high in Russia and migration from other CIS member states will be falling. In the meantime, the procedure for foreign workers’ legalization on the Russian labor market is getting worse in 2015.

Tax Maneuver in Russia's Oil Sector

In 2015, the oil sector was subject to the so called “tax maneuver”, a system of measures aimed at significant reduction of economic component of the export duties and increasing the base rate of the mineral extraction tax. Tax maneuver will result in a more efficient structure of the tax system, reduction of subsidizing scale of crude oil refining sector and other EEU member states, provision of more incentives for energy efficient growth. Data released for H1 2015, demonstrates significant changes in a number of trends taking place in the oil sector under the effect of the maneuver including reduction of fuel oil production which took place for the first time over the last years and increase of the crude oil exports which is more efficient for the state budget in comparison with fuel oil exports.