Nazarbayev: None of national currencies can be single currency of Eurasian Economic Union
In the mid-2000s the idea, forgotten for more than 10 years, was caught by the Russian government, which needed geopolitical allies. As a result Russia, Kazakhstan and Belarus established the Customs Union, and then moved to full economic integration, which should be completed with creation of the Eurasian Union. N.Nazarbayev gave an interview to RIA Novosti and Interfax after talks in Kremlin.
Mr.Nazarbayev, let us congratulate you on the fact that the idea on Eurasian community, which you have voiced in 1994 on the territory of our states, is under rapid implementation. What is the reason that only now there are developed those conditions that allowed so quickly and so effectively realize your old idea? And what should be done to avoid repeating the mistakes that were made earlier in the formation of supra-national forces on our territories?
As is known, ideas are often ahead of their time. I guess, there was needed some time after the collapse of the Soviet Union for all states to feel their independence, look around and realize what is the interest of each state, and how they will develop further. Secondly, in the globalizing world it is impossible to imagine any state closed within its borders. It is stagnation of any state. At present 240 integration unions function in the world. The largest are the European Union, NAFTA, MERCOSUR, SCO. And now there appeared the most serious, large union of the post-Soviet space - at first, the Customs Union, and then the Single Economic Space. I voiced this idea in the Moscow State University 17 years ago. And elite of our countries and heads of state did not support it. And now it is implemented. The practical launch became possible under active support of President of Russia Dmitry Medvedev. In 2005, when President was Vladimir Putin, we talked about the Customs Union establishment. The European Union spent 40 years for this, and we - only five. And we came to it, adopting and ratifying a huge number of laws. Now we transfer to the second stage of integration: it is the Single Economic Space. We adopted 17 agreements, execution of which will create conditions for establishment of the Eurasian Economic Union.
The Eurasian Economic Union and the European Union are often compared. Can we say that the EU is a flagship to the Eurasian Economic Union?
I will tell my personal opinion. The European Union should always be interested in cooperation with us - both the Single Economic Space and the Eurasian Union, which is under establishment; hence there are markets and resources. Europe receives energy resources from here. All depends on the will of the European leaders, but I am convinced that the future of Europe lies in cooperation with our Eurasian Union.
And what currency can function in the Eurasian Union? The existing or a new one?
We did not talk about it now. An integration union begins by creation of a free-trade zone, then a customs union, then a single economic space. An economic union is built afterwards and a unit of account like ECU in Europe (the European Currency Unit used as the unit of account of the European Community before being replaced by the euro) is introduced. It is necessary to create all this, and then think of a single currency. When we trade with each other, we should use ruble and tenge. It will be the first step. First of all, we should prove for ourselves expediency and parity of our economic space. After that, a question of a single currency will arise. I believe that none of the national currencies, including such a powerful one as the ruble is suitable for this role. It should be a different name and it should be a different currency.
Kazakhstan is on the verge of the parliamentary elections. Why did you support proposal of the deputies to dissolve the Parliament? Are there expected changes in the Government?
This year many things have happened in the country's political life. Firstly, there was proposed a referendum on extending my duties. I thanked all citizens of Kazakhstan, but did not attend the referendum and took part in the early presidential elections. They were held on April 3. At that moment the deputies began to talk about desirable dissolution of the Parliament. Their main argument is that the adopted amendments to the Constitution of the country suggest the presence of at least two parties in the Parliament. The second one - all we read and see that second wave of the crisis is coming. And the parliamentarians said that in 2012 they should not draw efforts to the elections. The third - Kazakhstan implements an Industrialization program. Only in two years 350 enterprises will be launched.
Russia and Kazakhstan did not succeeded in synchronization of the processes of accession to the WTO. Russia joins the first. Will it impact on the relations between Russia and Kazakhstan and on the integration processes in the Eurasian space?
From the beginning, when we started creation of the Customs Union, we talked about this (accession to the WTO). We also practically finished talks with all countries, and by the end of 2012 Kazakhstan will also be ready to the accession. It is important for Kazakhstan that it is Russia that joins the WTO first, because all out transport corridors pass to Europe through Russia. Moscow and Astana had signed an agreement, under which Russia would support Kazakh's application to enter the WTO after it joined the organization itself. It is advantageous for Kazakhstan to enter (the WTO) on the conditions Russia did it, because Russia managed to agree on higher tariffs than we have now. And it will not affect our Customs union and the Single Economic Space.
What is Kazakhstan's attitude towards prospects of expansion of the Shanghai Cooperation Organization, in particular, Iran's accession to it?
At present six states are observers or partners of the Shanghai Cooperation Organization, including Iran. Hence this issue is solved by consensus with participation of all states; there are some questions and problems. I am adherent to accept India, Pakistan and Iran. But you know all political problems, which exist on these directions. I am personally not against the expansion of the SCO, but it is decided collectively by all states.
Last year a wave of actions against the governments of these countries echoed on the territory of many countries, especially Arab ones. How do you think, what conclusions can make the governments of the countries of the post-Soviet space after these events?
We have seen anti-government demonstrations in North Africa, USA, UK, Europe. It is connected with solution of the fairness problem. Now two words are household: freedom and fair. The difference between the very rich and very poor is widening. Deterioration in living standards after the crisis in Western countries and in North Africa was an impetus for these actions. And I consider the issue of social fair, improvement of the living standard of the people the most important.
Your attitude to Western attempts to impose sanctions against Tehran? Iran is not very far region from you.
Touching upon Iran's nuclear program, I am adherer of continuation of the diplomatic work. Pressure - it is probably right. But if we are talking about Iran's nuclear program, why we do not talk about a nuclear program in Pakistan, why we do not talk about Israel, which actually has nuclear weapons? Iran says they are doing peaceful atom. Therefore it is necessary to continue the negotiations, we must demand from Iran access to all facilities to IAEA inspectors in order to prove that they conduct peaceful nuclear work. I believe that no force should be used to resolve the question of Iran.
Kazakhstan is an energy power. How do you consider, Russia and Kazakhstan are allies or rivals in the world energy market?
Russia is an oil and gas country. It mines more than 500 million tones of oil and more than 500 billions of cubic meters of gas per year. 20 years ago Kazakhstan mined 20 million tones of oil, now - 80 million tones. We mine 25 billion of cubic meters of gas, and by 2020 we will mine 100 billions of cubic meters of gas per year. But now I did not feel competitiveness. We use the Russian gas pipelines, sell raw material to Russia, it exports further. Besides, we have routes of transportation of oil and gas to China. We diversify routes.
Your estimation of the political situation in Russia?
Russia is currently undergoing a period of large and complex electoral campaign: at first, elections to the Duma, then the presidential election. I would like to point out that it is choice of the Russian people, and Kazakhstan is adherent to allied relations with Russia. But I was impressed that Putin nominated for president because we remember that when he came to power in 2000, Russia was on the verge of collapse and civil war. Putin has succeeded to take the reins in his hands and set the order for the short term. I believe that Medvedev and Putin showed public attitude to this problem, because stability in Russia today, the stability of policy, which is carried out, is very important. I think that both politicians showed great courage. I wish both great success, health and prosperity of Russia.
