Uzhakhov Adam, Master’s Student of the faculty of Law

Kazakh National university named after Al - Farabi

CIS is a platform for integration processes

Almost twenty years have passed from the collapse of the USSR and establishment of inter-state integration at the former USSR space, i.e. Commonwealth of Independent States (CIS), formed for the purpose of provision of retaining and development in new conditions of the multiple existing communications in economics. Politics, humanistic and other fields between former Soviet Republics

Initially the composition of CIS included Belarus, Russia and Ukraine, the heads of which signed the Agreement about CIS Establishment on December 8, 1991 in Bialowieza forest. On December 21, 1991 Azerbaijan, Armenia, Kazakhstan, Kyrgyzstan, Moldavia, Tajikistan, Turkmenistan, Uzbekistan joined CIS. In 1993 Georgia also entered into CIS, however in 2009 after the armed conflict with Russia in South Ossetia, this state left the commonwealth.

In January 1993 the Articles of Association of the Commonwealth has been approved and signed by 9 member-states. Turkmenistan did not sign the CIS Articles of Association and declared about its participation in CIS as associate member. Ukraine also has not signed the Articles of Association, in law shall not be considered as the CIS member.

During creation of CIS it was assumed, that the formed common economic, humanitarian, informational space shall be retained without even one state; based on plans, after release from the union center, the cooperation between the former USSR republics had to be more close and efficient. Nevertheless, for the years of CIS existence, it was discovered that there is a sharp contradiction between the potential opportunities of the Commonwealth (firstly economical one) and actual mutual cooperation. On one hand, the inter-dependence formed in USSR times between the national economies of CIS countries, their production and technological unity and rich experience in interaction in the framework of the one state objectively prevents close cooperation of these countries and development of integration processes of the Commonwealth. CIS has quite significant natural and economic potential which may provide the Commonwealth (if it is fully used) with strong position in the world arena and make it to be one of the most powerful international economic unions.

Basedonavailableestimates, theCIScountrieshavearound 16.3% of the world territory, almost 5% of population, 25% of the explored natural resources (including 7% of the world oil reserves and 40% of natural gas reserves), 10% of the world industrial potential[1]. Relativecheapnessofthelaborforceandenergyresourcesobjectivelysupportsoccupation of beneficial competitive positions at the world arena by the CIS countries[1].

For the last 20 years while we have been searching forms of establishment of the common economic space (CES), the number of member-countries of EC grew up from 15 to 27. It is obvious that foundation with population exceeding half of billion reached limits of its possible expansion.

Europe now lives and works mainly on imported raw materials, including wood, gas, coal, oil, hydro and products of nuclear energy[2].Even a 2%growth of the European economy will require huge volume of additional resources. Therefore, the last five to seven years there has been increased interest in the EU and some other leading economies of the countries with extensive sources of raw materials.

Today, we see that the post-Soviet space presents a multi-layered and multi-vector integration process. Five of the CIS countries, for example, are already members of the World Trade Organization(WTO).Unfortunately, entry into this union one by one, did not give any significant preferences, as the proportion of the economies of these countries in the global economy is minimal. Same Moldova felt that WTO membership does not facilitate, for example, the path of Moldovan wine to European markets, where as the Customs Union (CU) of Russia, Kazakhstan and Belarus in just nine months showed a real increase in turn over by 40%[3].

Today, there are five areas in which cross-border cooperation across the CIS is the most real and does not cause political opposition at the national level. These lines will determine the face of the CIS integration in the near future. What are they?

The first direction is energy. Today there is real money and the real economy. [3] If we take, for example, recent statements by the German government's intention to abandon the use of nuclear energy in the country(despite the fact that Germany needs more than great), it becomes obvious that this failure should be offset by higher energy imports.

The second is innovation and high technology. If implemented correctly, this area can provide a significant break through in the economy.

The third is agricultural and industrial complex. It is ahuge resource interested for Kazakhstan, Russia, Belarus and Ukraine.

The fourth is a labor migration. It is obvious that if in Russia today, the average salary is ten times bigger than the average wage in Kyrgyzstan, Uzbekistan, Tajikistan, there is nothing surprising in the fact that it looks attractive to migrant workers. Note that most of them do not come to a permanent place of residence, namely in order to make money and be able to support his family, which often remains in the country where the migrant arrived. It is impossible to constrain this process.

The fifth is a transport, including creation of transport corridors, and a brand new modern transit infrastructure. It is obvious that the transport Road running or under construction in the territory of the CIS countries, not only serve as a link to the intra-regional level, but present a bridge that connects the transport and communication system of European and Asian countries, making our highways a part of intercontinental transport infrastructure[4].

All of these strategic directions, development of which in the next few years should be given the highest priority. It seems that sensible politicians and economists of the CIS countries are well aware of these objective factors and will take them into account in determining the degree and extent of their participation in the development tof the agreed positions on deepening economic cooperation within the Common wealth. Constructive role in this matte ris to play the Treaty on the free trade zone, adopted at the summit of CIS Heads of Government October 18, 2011in St. Petersburg, and to lay a solid foundation for the promotion of integration processes in the post-Soviet space.

Therefore there is a strong need in a deep modernization and increase of competitiveness of our economies at a new technological basis oriented to recovery of economic relationship of a new format:

- Restructuring and modernization of the economy;
-Recovery of cooperative ties between industries and enterprises;
-Formation of joint industrial structures;
-Access to international commodity markets;
- Attracting foreign direct investment;
- The development of scientific and technical potential;
- The achievement of the internal socio-economic and political stability, overcoming the tendency of impoverishment

Necessary and sufficient conditions of integration are: Interdependence of there source and technological base and developed network of comprehensive economic communications. Mutually beneficial cooperation formed within many decades due to the general industrial and territorial system of labor division and production cooperation; territorial neighborhood; significant length of borders; availability if multiple and close economic and scientific inter-communications; existing of the resource and technological inter-dependence of the separate branches and production; sole transportation system.

Market of good sand technologies; territory with rich mineral and energy resources. CIScountrieshavepowerfulenergyandraw stocks sufficient labor and high intellectual potential. The community of nations, the unity of the historical past and culture, centuries-old cultural ties.

In the process of joint legislative work in the framework of Inter-Parliament Assembly of Eurasian Economic Union, taking into account WTO rules and standards, it is extremely necessary today to work out or newly establish the following:
- The basis of customs, antitrust, tax, investment, transport, land law, law on trade in services;
- Typical draft legal acts of foreign trade activities, export control, standardization, general capital market, a common payment system, innovation, licensing, basic principles of protection of foreign investments, the basic sof ensuring economic and information security, order the implementation of international legal instruments in the national legal system.

Coordination of the energy policy, rational use of resources of the CIS countries is one of the key conditions for the growth of competitiveness of economies of these states-members of EurAsEC. It will allow optimize costs related to upgrading of energetics, extraction industry, transportation infrastructure, provide the economies with energy sources and investments. Forcreationofthecommonenergyspaceitisrequiredtosolvethefollowingchallenges:

- Creation of the electricity market on the basis of the Protocol on the conditions of movement of electric energy, defining the rules of cross-border trade and convergence of levels of reforms;
-Harmonization of policies in respect of transit of electricity and hydrocarbons, the formation of a common energy and transport infrastructure in the neighboring regions of Europe and Asia;
- Modernization and optimization of energy transport systems;
- Development of joint energy balance states- members of EurAsEC;
- Implementation of measures in the field of energy efficiency and conservation[5]

There have been incorporated several regional unions on the base of CIS, such as:

Eurasian economic Union (EEC)

EEC establishment was signed in October 2000 between Belarus, Kazakhstan, Kyrgyzstan, Russia and Tajikistan. In January 25, 2006Uzbekistan also entered into a membership at the EurAsEC summit held in St. Petersburg. The objectives of the union are:
-Completion formalization of a full free trade regime,
-Formation unified customs tariff and a unified system of non-tariff regulation,
-Establishing general rules of trading goods and services and their access to domestic markets,
-Development of the agreed position of CIS states relations with the WTO(World Trade Organization) and other international economic organizations,
-Create a unified system of customs regulation.

The main objective of the Eurasian Economic Community is the creation of a single economic space in six of these states. The supreme body of the EurAsECis Interstate Council, which shall have sessions at least once a year at the level of Heads of State and at least twice a year -at the level of Heads of Government. Permanent bodies of the Eurasian Economic Community are: Integration Committee, the Inter-Parliamentary Assembly, the Court community. By decision of the Interstate Council in the countries-members of the Community can be opened representative offices of the Integration Committee.

Union of Belarus and Russia

This Union represents the most advanced form of integration between the CIS countries. Agreement on establishment of the union was signed in December 1999, prior to which the following treaties have been concluded:
- Customs Union Agreement signed in 1995. Kazakhstan, Kyrgyzstan and Tajikistan have entered into this union in 1995-1999;
- Union Agreement signed in April 1997 between Belarus and Russia.

Eurasian Economic Union

Eurasian Economic Union (EEU, in Belarusian- Еўразійскіэканамічнысаюз, in Kazakh -ЕуразиялықЭкономикалықОдақ, in Armenian -Եվրասիականտնտեսականմիություն) is an international integration economic union, the establishment treaty on which was signed in May 29, 2014 based on the Customs Union EurAsEC (it shall cone into force on 1^st of January 2015). The composition of the union includes Russia, Kazakhstan, Belarus and Armenia. EEU is created for strengthening of the economy of the countries-members and establishment of close interrelationship, upgrading and increase of competitiveness of these countries on a world market. Till the end of 2014 Kyrgyzstan plans enter into EEU. Also Tajikistan considers the issues on entering into this union.

For the purposes of creation the common economic space in the framework of EEU, it is proposed to establish the supranational structures:

· Economics commission;

· Primaryresourcescommission (establishment of prices and quota for the primary resources goods and sources, coordinates policy in extraction, sale of gold and other precious metals, etc.);

· Fund on economical and scientific & technical cooperation formed due to contributions of EEU countries (financing of the potential scientifically volumetric economic and R&D programs, support solution of challenges, including legal, tax, finance and environmental fields, etc.);

· Commissiononinterstatefinancialandindustrialgroupsandjointventures;

· EEU international investment bank;

· International arbitrage of EEU;

· Commission on implementation of the UA;

· Environment commission.

The Eurasian Economic Commission controlling about 170 functions of the economic union was established after signing of Declaration of Eurasian Integration made by the leaders of Russia, Belarus and Kazakhstan on 18^th of November 2011.[6]

Finally it should be noted that integration of states at the former USSR space is surely a positive and financially rational process. The key point lies in the speed of efficient development of the states and efficiency of integration regulatory system. The bright future is imagined in the frames of successful integration strategy of the neighborhood and partnership between Kazakhstan and CIS countries, strengthening of social and economic interaction at all level of cooperation.

List of used literature:

[1] Report of the National economic board “Economic cooperation as a factor of CIS integration” Yekaterinburg, 2004.  p. 9; Independent Newspaper, 2007, 22 January.

[2] Е. Vinokurov, А. Libman. Eurasian Continental Integration. St. Petersburg: EDB, 2012.

[3] Mansurov Т. Eurasianintegration: experience, problems and tendencies of development / Economy strategy. - 2012. - N 1. - p.6-11.

[4] Zevin L.Z. Specifics of consolidated and integrated processes in Eurasia // Russia. Modern world - 2012. - N 2. - p.71-86.

[5]  Yazev V.А. EurAsEC countries are at the threshold of a new stage of cooperation. Eurasian integration: economics, law, politics.. 2010. N 8. P. 19

[6]https://ru.wikipedia.org/wiki/Евразийский_экономический_союз