NNA – Marking the anniversary of the signing of the Eurasian Economic Union (EAEU) Treaty on May 29, 2023, Russian Ambassador to Lebanon, Alexander Rudakov, shared the following article: ‘To a Lebanese reader, the Eurasian Economic Union (EAEU) might sound like a distant and hardly relevant entity, but it is most certainly something worth knowing about. Why is that, one might wonder. Because it is one of the formations that stand at the forefront of paradigm shifts in world economy, even if those shifts are not particularly eye-catching. The roots of these shifts are buried deep in the dominant ideology of our time – the neoliberal idea. Among other things, neoliberalism implied the expansion of a rather specific economic model across the globe. The entirety of this model was (and to some degree still is) centered around the domination of the Anglo-Saxon economic and financial architecture in the very fabric of economics. The pillars of this architecture are the Western financial institutions and the US dollar. These factors, among others, are responsible for the unfair advantage that the so-called Collective West was able to obtain over the rest of the world. In fact, it allowed Western States to continue enriching themselves, essentially putting the rest of the world in neocolonial chains. The US in particular was able to project its power pretty much everywhere, reaping the benefits of unjust trade agreements, non-transparent US-centric financial institutions, USD-denominated transnational settlements and debt traps. Needless to say, quite a few sovereign nations are fed up with this set up. However, when a nation decides to follow a course that does not align with the Western view, it is suddenly excluded from this globalist financial network. This is precisely what happened to Russia when it began its Special military operation. Consequently, a couple dozen Western nations launched an all-out economic war against Moscow. Central Bank assets were illegally seized, Russian banks were disconnected from global payment mechanisms. Trade suddenly became an instrument of warfare, and Russia became its number one target. In an attempt to isolate the national economy, the West – perhaps unknowingly – incentivized quite the opposite. What is more, it showed the true face of American hegemony: do as we say, or else… So, how exactly does the EAEU tie into all of this global turmoil? This drastic rearrangement in reality only accelerates the growth and development of new economic and political centers around the globe. To name just a few: BRICS, GCC, SCO, ASEAN, and, of course, the EAEU. Five core members – Russia, Belarus, Kazakhstan, Kyrgyzstan, and Armenia – launched the Eurasian Economic Union as an international organization with the primary goal of regional economic integration back in 2014. Today, it is an industrial and agricultural powerhouse with abundant natural resources holding some of the top ranks in gas and oil production, metallurgy, electricity generation, and a dozen other domains. With a population of over 180 million people, a collective GDP of over 2 trillion USD, and a functioning single market policy in place, it is definitely a noticeable player in global affairs. EAEU’s geography is not limited to its five founding members. A variety of cooperation mechanisms allows for flexibility when it comes to establishing trade and economic dialogue with other States. For instance, some States chose to obtain an observer status at the EAEU (Moldova, Uzbekistan, Cuba). Many others went further – at least 27 MoU’s/declarations regarding cooperation with the Union are currently active with governments or government agencies from all over the world. Moreover, free trade agreements have been signed with Vietnam, Iran, and Serbia. Negotiations are being conducted on various tracks with several other partner countries from the Middle East and Asia. This vast partnership network proves one simple truth: the EAEU is a reliable and predictable partner. While these numbers do provide a decent overview of what the Union is, there is another crucial element to be noted. Two of EAEU’s members, Russia and Belarus, collectively have well over 3000 economic sanctions in place against them. Counterintuitively, these external shocks resulted in a positive effect in terms of integration within the Union. Last year, intra-EAEU trade turnover grew by 15 %, up to 80 billion USD. The financial and currency restrictions also lead to some peculiar changes. In 2022, over 75% of payment settlements within the EAEU were conducted in national currencies, and experts are estimating that it could be very well over 80% this year. At the same time, the share of settlements in the US dollar almost halved. Evidently, the EAEU has come a long way, and it continues to adapt and evolve. Shortly, on May 29, we will mark the anniversary of the EAEU Treaty being signed. Over these years, the Union proved to be a powerful tool of economic cooperation fostering growth and development not only for its members but also for all interested parties. In the face of tremendous exogenous pressure, not only did it withstand all the sanctions, but it continues to thrive and prosper against the backdrop of the unravelling global economic downturn. Clearly, projecting the entirety of this economic experience on Lebanon is an exercise in futility. But it goes to show at least one thing – EAEU is a trustworthy trade partner that provides growth incentives and shelters against even the most severe external shocks. Can Lebanon benefit from this? No reason not to. Given the turbulent history of Lebanon, its delicate political system of checks and balances, and the lasting economic troubles it seems that road to recovery will not be simple. Furthermore, it appears that the US dollar is also not entirely beneficial to the Lebanese economy. A recent report by the World Bank even stated that the informal dollarization is curtailing its recovery, hinting at the fact that the American currency is essentially a toxic asset in the current macro environment. Whatever the case may be, I am confident that Lebanon will get back on its feet. Russia (and I’m sure the rest of the EAEU member States, too) sees Lebanon as a constructive partner, and wishes for all its crises to be resolved as soon as possible. In the meantime, EAEU’s positive economic and trade potential, as well as its enormous expertise in overcoming unprecedented contemporary challenges are always at Beirut’s disposal.’
Source: National News Agency – Lebanon
