The heads of state of the Eurasian Economic Union pose for a photo at the Minsk Economic Forum (TASS)

The Eurasian region is a crucial area that has long been a fertile ground for economic projects and investments. Its rich natural resources and wealth have made it a stage for competition between East and West, paving the way for the emergence of the Eurasian Union.

The emergence of the Eurasian Union is part of the efforts by its member states to establish a union in response to economic downturns and to create new balance opportunities, within the context of addressing common challenges posed by the West and its sanctions.

In this report, we focus on the challenges faced by the countries of the Eurasian Union amid the current geopolitical conflicts, as well as how its member states balance their relationships with each other and with Western countries.

Putin presides over the meeting of the Supreme Council of the Eurasian Economic Commission in the Kremlin in 2023 (AFP)

Eurasian Union: An Economic Alternative to Sanctions

Most countries subjected to Western sanctions seek alternative ways to mitigate the impact of sanctions on their economy and growth, forming economic groups to protect themselves from hostile foreign policies.

For over a decade, relations between some Eurasian countries and the West have not gone smoothly, especially after the Western sanctions against Russia in 2014.

In this context, the Eurasian Economic Union (EAEU) was established on May 29, 2014, when Russia, Belarus, and Kazakhstan signed a treaty to form a regional economic organization aimed at creating cooperation opportunities, achieving economic stability, and promoting the circulation of goods and products.

The agreement came into effect on January 1, 2015. Armenia joined on January 2, 2015, and Kyrgyzstan joined on August 12, 2015.

According to a report by "Izvestia" on May 8, 2024, ten years after the establishment of the Eurasian Union, by the end of 2024, the GDP of its member states increased by 4.2%, exceeding $2.5 trillion. Trade reached $90 billion, with trade with third parties outside the region increasing by 60%, rising from $57.9 billion to $92.3 billion.

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Geographical Significance

The unique geographical environment of the member states of the Eurasian Economic Union lies in its special natural conditions and distance from the sea:

Russia is the largest country in terms of territory, with the longest land border in the Eurasian continent;

Kazakhstan is the largest landlocked country in the world;

Belarus is the largest landlocked country in Europe, with the longest land border;

Kyrgyzstan and Tajikistan rank third and fourth among the highest-altitude landlocked countries;

Armenia is also the only country in West Asia without direct access to the sea, while Azerbaijan has access to the Caspian Sea;

Four of the members of the Eurasian Union have no access to the sea and need to build transport corridors and strengthen regional connections.

According to "Izvestia", economic studies show that the transportation costs for landlocked countries to transport their products to global markets are nearly 50% higher than those for coastal areas.

The transportation costs for most landlocked developing countries account for 10%-20% of their total imports, while the ratio for landlocked countries and the United States is approximately 5% and 2%, respectively.

Economists point out that it has become very important to coordinate economic policy among the landlocked countries in the Eurasian region, and such coordination can be significantly strengthened through regional integration processes, eliminating geographical limitations.

Its main positive aspects include overcoming continental isolation:

First, reducing tariffs and other barriers between countries;

Second, unifying and simplifying transport regulations, reducing the cost of transporting goods to coastal areas;

Third, concentrating resources to build and fund shared coastal transport corridors.

Accomplishments and Challenges

The alliance has shown an open attitude towards economic cooperation with other countries, signing free trade agreements with Vietnam, Iran, Singapore, Serbia, and China. During the 2025 Eurasian Economic Cooperation Development Forum, the alliance is preparing to reach new agreements with the UAE and Mongolia, which are expected to be signed by the end of this year. Currently, the alliance is also in discussions with Egypt, Tunisia, Indonesia, Morocco, and India.

Although the numbers and data indicate achievements by the member states of the Eurasian Economic Union, experts believe that the Eurasian Economic Union faces internal challenges that hinder its development.

The most significant achievement of the Eurasian Economic Union may be the establishment of a single market for goods, services, capital, and labor, and the simplification of trade by abolishing tariffs, streamlining freight procedures, and reducing costs.

Coordination of economic, educational, and cultural policies has also contributed to strengthening and developing cooperation. In addition, digital financial tools have been developed and payments have been settled in local currencies, thus reducing dependence on the global financial system and the US dollar.

On June 26-27, 2025, at a forum held in Minsk, the capital of Belarus, President of Russia Vladimir Putin stated that the Eurasian Economic Union has created space for partnership and economic growth and is a successful integration alliance.

Regarding the challenges faced by the Eurasian Economic Union, Ahamed Mustafa, Director of the Center for Asian Research and Translation, told Al Jazeera: "It must be acknowledged that the internal challenges faced by the Eurasian Economic Union existed before the sanctions."

He added: "Structural issues such as limited economic diversification, inefficient bureaucracy, and excessive reliance on commodity exports have long hindered the region's growth."

Armenia joined the Eurasian Union on January 2, 2015, after the formation of the union (Reuters)

Why is the Eurasian Continent a Concern for the West?

On January 9, 2025, The Washington Post published an article by writer Hal Brands titled "The Imminent Eurasian Threat," exploring America's adversaries in the Eurasian region and how the modern world shapes post-Cold War and post-hot war scenarios.

The report points out that the most dangerous geopolitical phenomenon today is not crises, conflicts, or inter-state competition, but rather the network of relationships that connect America's Eurasian adversaries, weakening Washington's influence in the region and thereby enhancing geopolitical and economic independence. This prompts Washington to seek other ways to pressure its adversaries, such as imposing sanctions on Russian and Iranian oil exports and Chinese banks.

Although Western sanctions have affected the economies of Eurasian countries, Ahamed Mustafa, director of the Asian Research Center, downplays their impact. He told Al Jazeera: "The claim that the Eurasian economy is on the brink of collapse due to sanctions is exaggerated."

Mustafa added that although GDP growth and industrial output have declined sharply, trade flows have been disrupted, and access to capital markets has been restricted, many countries have already made adjustments to mitigate the impact.

For example, Russia successfully redirected its energy exports to the Asian market, while China has expanded the "Belt and Road" initiative to strengthen economic ties with the Eurasian continent.

Wealth, Conflict, and American Interests

Considering the rare minerals and natural resources possessed by some Eurasian countries, their importance in the global balance of power becomes evident.

For example, Russia has one of the largest mineral resource bases in the world, with gas reserves of 63.5 trillion cubic meters, ranking first in the world, along with diamonds, nickel, and gold.

According to the official website of the Russian Ministry of Natural Resources, Russia ranks second in the world in reserves of cobalt, tungsten, titanium, silver, and platinum group metals, third in copper, coal, and lead, and fifth in oil, with total reserves amounting to 31.4 billion tons.

Belarus has abundant natural resource reserves, including oil, building materials, and peat (used for fuel, agriculture, feed production, and other industrial purposes). According to the Belarusian website "Official Life," by 2024, industrial oil reserves are expected to exceed 327.95 million barrels.

According to a report by "Kommersant," in February 2020, the U.S. Department of State proposed a five-year strategy for Central Asia, expecting Washington to invest about $15 billion in the region.

In recent years, due to changes in the global balance of power, the escalation of conflicts such as the Ukraine war, and the deterioration of relations between Russia and the West, as well as between China and the United States, the situation in the Eurasian region has become tense. This may affect the countries and economies of the region.

Sources: Al Jazeera

Original: https://www.toutiao.com/article/7524407500364415527/

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