Eurasian Regional Integration

2013

| 2History of Eurasian Integration

| 3Universal Stages of Regional Integration

| 4The Customs Union of Russia, Belarus and Kazakhstan

| 5The Single Economic Space between Russia, Belarus and Kazakhstan

| 6Agreements Establishing the Single Economic Space

| 7Governing Bodiesof the Customs Union and the Single Economic Space

Council of the Commission three members of the Council, one Deputy PM representing each Member State

Eurasian Economic Commission

Supreme Eurasian Economic Council(Heads of State and Government of the Member States)

(nine members, three from each Member State)

Member of the Board-Minister in charge of competition

Member of the Board–Minister in charge of economy and

financial policy

Member of the Board-Minister in charge of industry and

agribusiness

Member of the Board-Minister in charge of trade

Member of the Board-Minister in charge of technical

regulation

Member of the Board-Minister in charge of the

customs cooperation

Member of the Board -Minister in charge of energy

and infrastructure

Member of the Board-Minister in charge of the development of

integration and macroeconomics

Departments

Chairman of the Board

Board of the Commission

Departments Departments

Advisory bodies

Advisory bodies

| 8Eurasian Economic Commission

Chairman of the BoardViktor Khristenko

Board of the Commission

Nurlan AldabergenovMember of the Board-Minister in

charge of competition

Timur SuleimenovMember of the Board-Minister in charge of economy and financial

policy

Sergey SidorskyMember of the Board-Minister in

charge of industry and agribusiness

Andrey SlepnevMember of Board-Minister in

charge of trade

Valery KoreshkovMember of the Board-Minister in

charge of technical regulation

Vladimir GoshinMember of Board-Minister in

charge of customs cooperation

Danial AkhmetovMember of the Board-Minister in

charge of energy and infrastructure

Tatiana ValovayaMember of the Board-Minister in

charge of development of integration and macroeconomics

Departments Departments DepartmentsAdvisorybodies

Council of the CommissionBelarus – Sergei Rumas Kazakhstan – Kairat KelimbetovRussia – Igor Shuvalov

| 9Budget of the Eurasian Economic Commission

| 10 Key Competencies of the Eurasian Economic Commission

under the SES Agreements

01.01.201701.2012 01.01.2013

• Outlining possible scenarios in order to make forecasts of socio-economic development for a three-year period

• Taking decisions regarding the expanding of the scope of natural monopolies

• Taking decisions on exemptions from national regime•In case of breach of the treaty commitments, taking decisions binding national bodies to bring their decisions in compliance with the treaty

• Obtaining approval for application of exceptional tariffs• Deciding on suspension/revocation of decisions to change tariffs

• Deciding on sanctions and fines• Deciding on restraints of violations

• Deciding on feasibility of granting specific subsidies

Competition

Industrial subsidies

Rail transport

Public procurement

Natural monopolies

Macroeconomics

•Overruling national bodies’ decisions to impose state price control•Obtaining approval for prolongation of state price control

Competition

| 11 Auxiliary competencies under the SES Agreements

• Defining benchmarks of macroeconomic policies of the Member States• Coordinating implementation of harmonized macroeconomic policies by the Member States• Monitoring economic development of the Parties and steps taken in this field, assessing those measures

• Supervising the implementation of relevant provisions of the Agreements

• Participating in resolution of disputes over the interpretation of the provisions of the Agreements (via negotiations and consultations)

• Monitoring and analysis of national legislation against the Agreements• Drafting annual compliance reports covering implementation of provisions of the Agreements by the Member States• Holding consultations on harmonization of national legislations of the Member States

Agriculture

Rail transport

Rail transportIndustrial subsidies Natural monopolies

Natural monopolies

Macroeconomics

Macroeconomics

•Making up a list of regulatory legal acts and stages of harmonization of legislation of the Member States• Analyzing regulatory framework for natural monopolies in the Member States and its application history• Analyzing and coming up with ways to coordinate decisions of national bodies

Natural monopolies

Industrial subsidies

Industrial subsidies

The EEC will be delegated over 90 competences in pursuance of the SES Agreements

| 12Eurasian Economic Commission and Business Dialogue Russia-Belarus-Kazakhstan

Advisory Board

Development of integration and

macroeconomics

Energy

Agribusiness

IndustryEconomy and financial policy

Customs cooperation

Technical regulation

Trade

Competition and anti-trust regulation

Infrastructure and transport

Bodies of the Eurasian Economic

Commission

| 13International positioning of the Eurasian Economic Commission

| 14The Customs Union and the Single Economic SpaceShare in the Global Export of Goods

| 15Growth rate of Customs Union Economies in 2009-2012

2009 2010 2011 20120.0

100.0200.0300.0400.0500.0600.0700.0800.0900.0

1000.0

36.5 47.1 63.5 68.5

590.5686.3

910.6 939.3

External and mutual trade of the Customs UnionMember-States

Mutual trade with the CU Member-StatesExternal trade of the CU with third countries

bn.

$

| 16Growth Rate of Customs Union Economies in 2009-2011

2009 2010 20110

500

1000

1500

2000

2500

13891672

2087

8241053

1314

Key Macroeconomic Indicators of the Customs Union

GDP Volume of Production

bn

. $

| 17Declarations by the Heads of State of Russia, Belarus and Kazakhstan

December 9, 2010Declaration on the

Establishment of the Single Economic Space of Belarus, Kazakhstan and the Russian

Federation

November 18, 2011Declaration on Eurasian

Economic Integration

March 19, 2012Declaration by the three

Presidents

Reaffirming commitment to establish the Eurasian Economic Union by 2015

Desire to complete by January 1, 2015 codification of international Treaties that make up the regulatory legal framework of the Customs Union and Single economic union, thus laying groundwork for the future Eurasian

Economic Union.

Moving towards the establishment of the Eurasian Economic Union in order to achieve balanced, mutually

reinforcing and beneficial cooperation with other countries, international economic unions and EU with a view to create

a single economic space

| 18Regulatory Legal Framework of the Eurasian Economic Union

| 19Codification of legislation Main principles

Издание нового акта, заменяющего ранее действовавшие акты по соответствующему вопросу. A new treaty to substitute previously existing ones on the subject

OUTCOME OF CODIFICATION

Streamlining of legislation through:• Substantial revision of existing legal norms• Elimination of inconsistencies and contradictions of legal norms• Filling gaps and repealing obsolete norms

| 20Single Economic Space from the Atlantic to the Pacific

| 21Abbreviation

APEC – the Asia-Pacific Economic CooperationCU – the Customs Union CCU – the Customs Union CommissionEurAsEC – the Eurasian Economic CommunityEEC – the Eurasian Economic CommissionEEU – the Eurasian Economic UnionEU – the European UnionIC – the Integration CommitteeIPA – the Inter-parliamentary AssemblyISC – the Intergovernmental Council SEAEC – the Supreme Eurasian Economic CouncilSES – the Single Economic Space