The customs-free wonderland that Russia is busy building around itself to counterbalance the European Union will come with still more unrecognized or half-recognized lands. On December 10, the Russian Duma approved a 2012 agreement to drop customs duties between Russia and the twin breakaway territories of Abkhazia and South Ossetia.
“Ratification of the agreements will become an important step toward intensifying trade turnover between Abkhazia and South Ossetia, and Russia and members of the Customs Union,” pledged Eurasian Integration Parliamentary Committee Chairman Leonid Slutskiy, ITAR-TASS reported.
The two tiny enclaves -- in Moscow’s view, perfectly sovereign lands -- are tied to Russia’s apron both by their economies and their claims to independent statehood. Now, they can export customs-free to Russia anything but sugar, tobacco and alcohol. Russia also cancelled export duties on set volumes of petroleum exported to Abkhazia and South Ossetia.
Of course, there is more in this for the territories than for Russia, which periodically injects aid into both breakaway territories. The Kremlin is pouring so much money into Abkhazia and South Ossetia that it will not even notice a revenue-drop from the removal of duties on imports from and petroleum exports into the regions, said Slutskiy.
In 2014-2015, Moscow plans to invest over 3 billion rubles (about $92 million) in Abkhazia alone, according to the region's de-facto official news agency, Apsnypress.
But for Moscow, any addition to the Customs Union -- currently expected to contain, aside from Russia, Kazakhstan, Belarus and Armenia -- is a plus. Pulling heavyweights like Ukraine into this Soviet-retro group is not proving easy, while Georgia, which claims sovereignty over Abkhazia and South Ossetia, and Moldova are determined to go full-speed ahead toward integration with the EU.
With breakaways like Nagorno Karabakh, Abkhazia and South Ossetia already expected to become de-facto members of the Customs Union, perhaps Transdniester will be next? After all, the club membership rules seem to be fairly flexible.