Central Asian Qualms About Eurasian Union Mounting

By Stephen Blank (the 05/02/2014 issue of the CACI Analyst)

The current Ukrainian crisis has focused attention on Russia’s drive to construct a Eurasian Economic Union (EEU) and a customs Union as part of it. But Ukraine is by no means the whole story, as reservations if not resistance to the project mount in Central Asia. Both Kazakhstan and Kyrgyzstan have taken steps to resist Russian encroachments and to raise the price of their admission into this union. In January 2014, Kazakhstan's government launched a plan to re-privatize the crucial Kazakh banking sector, partly in order to shield it from the tactics used by Russian banks to buy up equity in distressed banks under EEU guidelines. Kyrgyzstan also displays an increased desire to force Russia to bargain for Kyrgyzstan’s adhesion to the Customs Union and EEU.