The new customs union between Kazakhstan, Russia and Belarus is attracting the attention of Kyrgyzstan and could hold benefits for Tajikistan. But the union could also have negative effects on regional cohesion as a whole.
In particular, the stronger the customs union (CU) gets, the more it may provoke energy-rich Uzbekistan and Turkmenistan to forge closer relations with China for the Uzbeks, and with Iran and the Gulf Arab nations for the Turkmens.
Starting July 1, 2011 customs clearance on the borders of Russia, Belarus, and Kazakhstan will be abolished for citizens of the member states of the Customs Union. This announcement was made by a government spokesman of Kazakhstan.
There are not enough railroad cars in the Sverdlovsk region to transport freight. The government has suggested that the business community create a regional transportation company, take out loans, and buy some rolling stock. Experts think that officials are pressuring entrepreneurs into a risky venture. The transportation problems aren't limited to just the lack of railroad cars - a weak dispatch system and outdated rail infrastructure are also major issues. As this columnist for "RusBusinessNews" explains, the slowdown in the average speed of rail cargo transportation is already affecting Russia's economic growth.
Although container shipping remains the dominant form of ocean transport, breakbulk shipping, in which heavyweight freight is transported without being packed in containers, has seen significant growth. Non-container cargo covers a variety of shipments, ranging from oversized tires for earth-moving equipment to complete electrical power plants.