After starting the EU integration process, beginning of political and military conflict between Ukraine and Russia provoke the huge range of issues and challenges for Ukrainian economy. For overcoming these issues and problems Ukraine should change and reorient policy and prioritise of cooperation. In addition, Ukraine should try to safe own balance among all spheres in the world. In 2018 (19 of May), Ukrainian Government decided to get out from the Commonwealth of Independent States.
According to the information at Wikipedia (Union State,2018) the Commonwealth of Independent States (CIS) also sometimes called the Russian Commonwealth in order to distinguish it from the Commonwealth of Nations, is a regional intergovernmental organisation of 10 post-Soviet republics in Eurasia formed following the dissolution of the Soviet Union.
Table 1 Structures of CIS on 2018
Country |
Agreement/Protocol ratified |
Charter ratified |
Notes |
---|---|---|---|
Azerbaijan |
24 September 1993 |
24 September 1993 |
|
Belarus |
10 December 1991 |
18 January 1994 |
Founding state |
Kazakhstan |
23 December 1991 |
20 April 1994 |
Founding state |
Kyrgyzstan |
6 March 1992 |
12 April 1994 |
Founding state |
Armenia |
18 February 1992 |
16 March 1994 |
Founding state |
Moldova |
8 April 1994 |
15 April 1994 |
|
Russia |
12 December 1991 |
20 July 1993 |
Founding state |
Tajikistan |
26 June 1993 |
4 August 1993 |
|
Uzbekistan |
4 January 1992 |
9 February 1994 |
Founding state |
Union State, 2018
The CIS encourages cooperation over economic, political and military aspects and has certain powers possessing coordinating in trade, finance, law making and security. It has also promoted cooperation on cross-border crime prevention.
The CIS has its origins in the Soviet Union (USSR), which was established by the 1922 Treaty and Declaration of the Creation of the USSR by the Russian SFSR, Byelorussian SSR and Ukrainian SSR. When the USSR began to fall in 1991, the founding republics signed the Belavezha Accords on 8 December 1991, declaring the Soviet Union would cease to exist and proclaimed the CIS in its place. A few days later the Alma-Ata Protocol was signed, which declared that Soviet Union was dissolved and that the Russian Federation was to be its successor state. The Baltic states (Estonia, Latvia and Lithuania), which regard their membership in the Soviet Union as an illegal occupation, chose not to participate. Georgia withdrew its membership in 2008. Ukraine, which participated without being a member, ended its participation in CIS statutory bodies on 19 May 2018.
Eight of the nine CIS member states participate in the CIS Free Trade Area. Three organizations are under the overview of the CIS, namely the Collective Security Treaty Organization, the Eurasian Economic Union (alongside subdivisions, the Eurasian Customs Union and the Eurasian Economic Space, which comprises territory inhabited by over 180 million people); and the Union State. While the first and the second are military and economic alliances, the third aims to reach a supranational union of Russia and Belarus with a common government, flag, currency and so on (Union State, 2018).
Unfortunately, the political and military instability influence on Ukrainian trade indicators. Thus, figure 6 presented the dynamic of trade between Ukraine and Russia.
Figure 6 Dynamic of trade between Ukraine and Russia (State, 2018)
The findings showed that after 2014 the volume of trade has the decreasing trend (figure 7).
Figure 7 Export-Import Ukraine 2010-2011
Sources: State, 2018
In addition, among other partner of CIS the trade-relations with Russia had more than 70% in the total volume of trade with CIS countries (table 2). In table 2 the dataset of trade with CIS countries was presented.
Table 2 The dynamic of trade between Ukraine and CIS countries
Year |
2010 |
2011 |
2012 |
2013 |
||||
---|---|---|---|---|---|---|---|---|
Countries |
Export |
Import |
Export |
Import |
Export |
Import |
Export |
Import |
TOTAL |
50744291,2 |
60351954,4 |
67594103 |
81040530,9 |
67779842,2 |
83135362 |
62305927,3 |
75834614,1 |
CIS |
18482943,2 |
26607200,1 |
25835779 |
37080132,3 |
24911253,3 |
34317904,3 |
21672111,1 |
27741527,4 |
Azerbaijan |
606510,9 |
948581 |
698285,7 |
641810,3 |
757260,5 |
76222,4 |
858863,1 |
74860,6 |
Belorussia |
1868232,8 |
2563652,2 |
1877090 |
4204461,8 |
2227506,7 |
5055456,7 |
1940239,1 |
3586639,4 |
Armenia |
199609,1 |
17093,9 |
224541,6 |
17499,2 |
176709,7 |
22601,4 |
178393,9 |
19409,3 |
Kazakhstan |
1283862,5 |
753380 |
1828329 |
1651380,8 |
2432711,1 |
1463582,3 |
2084101,5 |
663798 |
Kyrgyzstan |
74241 |
6171,4 |
110679,7 |
7493,3 |
126362,8 |
6509,7 |
132556,9 |
11779,1 |
Moldova |
706011,1 |
70257,1 |
864651,8 |
125932,4 |
812385,6 |
114723,6 |
895713,5 |
92398,6 |
Russia |
13241990,6 |
22133252,7 |
19588508 |
29045674,6 |
17326621,8 |
27340493,8 |
14786701 |
23097569,5 |
Tajikistan |
74189,5 |
3491,1 |
59032,8 |
13025,4 |
99936,4 |
7199,9 |
60152 |
5045,9 |
Turkmenistan |
207172,1 |
29591,1 |
240662,3 |
729523,9 |
527086,9 |
123018,1 |
393394,3 |
99397,6 |
Uzbekistan |
221123,5 |
81729,7 |
343997,5 |
643330,4 |
424671,9 |
108096,4 |
341995,7 |
90629,4 |
Other countries |
32261348 |
33744754,3 |
41758324 |
43960398,6 |
42868588,9 |
48817457,7 |
40633816,2 |
48093086,7 |
|
2014 |
2015 |
2016 |
2017 |
||||
TOTAL |
53901689,1 |
54428716,9 |
38127149,7 |
37516443 |
36361711,2 |
39249797,2 |
43264736,0 |
49607173,9 |
CIS |
14882294 |
12976129,4 |
7806147,2 |
10485576,9 |
6031505,8 |
8565389,1 |
6916460,3 |
11477924,8 |
Azerbaijan |
591532,8 |
45308,1 |
318824,8 |
30288,1 |
247979,6 |
39736,9 |
354657,8 |
417316,1 |
Belorussia |
1617084 |
1329,2 |
870696,4 |
2449145,5 |
903197,5 |
2777793,6 |
1142896,9 |
3205313,2 |
Armenia |
173359,3 |
19288,4 |
101561,9 |
7376,7 |
88924,5 |
8216,1 |
105109,7 |
10865,0 |
Kazakhstan |
1069434,3 |
11,1 |
712744,5 |
377578,4 |
400107,6 |
434290,0 |
372085,3 |
317953,7 |
Kyrgyzstan |
102545,8 |
72085,1 |
75501,8 |
5801,7 |
40430,8 |
1773,6 |
34315,4 |
3001,1 |
Moldova |
743630,1 |
61859,5 |
524294 |
41242,4 |
481145,4 |
47623,2 |
707583,5 |
106719,5 |
Russia |
9798226,2 |
12699989,1 |
4827717,9 |
7492724,5 |
3592917,9 |
5149313,5 |
3936464,3 |
7204013,0 |
Tajikistan |
46685,2 |
3233,2 |
29982,9 |
2771,7 |
25427,9 |
1245,9 |
34091,8 |
676,3 |
Turkmenistan |
431232,6 |
109,6 |
170325,7 |
16318,4 |
108981,9 |
34336,1 |
62142,3 |
89345,8 |
Uzbekistan |
308563,7 |
72916,1 |
174497,3 |
62329,5 |
142392,7 |
71060,2 |
167113,3 |
122721,1 |
Other countries |
39019395,1 |
41452587,5 |
30321002,5 |
27030866,1 |
30330205,4 |
30684408,1 |
36348275,7 |
38129249,1 |
Sources: State, 2018
The dataset in figure 7 showed that after Russia, Belorussia and Kazakhstan were the largest partners among CIS countries. But as with Russia, the dynamic of trade has the negative tendency.
Figure 8 Export between Ukraine and CIS countries (excluding Russia)
Sources: State, 2018
Also, should underlined, that as export as import started to decrease after 2014 (figure 8 and 9). But in 2014 the trade relations started to close with Belorussia. Thus, in 2014 import to Belorussia from Ukraine had the lowest level – 1,32 bln USD. So, after 2015, the situation with Belorussia has started to recover.
Figure 9 Import between Ukraine and CIS countries (excluding Russia)
Sources: State, 2018
From the other side, as indicated in the previous chapter Ukraine the positive dynamic on trade relation with EU countries.