Grayling Blog

Customs Union: the next great trading bloc?

Posted on 5.07.2011 by Pavel Melnikov

Only time will tell whether the Customs Union of Russia, Belarus and Kazakhstan is capable of fulfilling its political goals, but its economic impact will be felt almost immediately by both domestic and international companies operating in those countries.

July 1 marked the day when Russia, Belarus and Kazakhstan officially became parts of a single Customs Union. As a result of the difficult, but somewhat speedy (even hasty) process, goods between these three countries are now able to move freely. It does not, however, guarantee smooth sailing from now on.

While we believe that the Union has the potential to become a transformational process, in the short term we expect business disruption and complication.

Grayling Russia has summarised the state of the Union and provided some predictions and recommendations for companies to consider following to successfully navigate this new terrain.

Pavel Melnikov, explains: “The Customs Union essentially offers more opportunities for companies and it is slated to extend further in 2012, with common labor and capital markets and further integration. However, one should also be aware of the pitfalls that inevitably appear when something this large is carried out in such a short period of time”.

For a copy of the full report please click here.