It’s official…Putin forms ex-Soviet trade bloc to challenge EU, USA- Financial regulation on the way?

Mikhail Klimentyev / Reuters

Mikhail Klimentyev / Reuters

Bloomberg wrote an article stating the deal is done. The formal creation of the Eurasian Economic Union in the Kazakh capital of Astana marks the culmination of two decades of talks between former Soviet republics Kazakhstan and Belarus. The union, effective from the start of 2015, is intended to yield a free flow of goods, capital and workers, and will level tariff and non-tariff regulations.

“The Eurasian Union is a realization of Putin’s geopolitical dream,” said Nikolay Petrov, a scholar at the Carnegie Moscow Center research group. “The Eurasian Union is a demonstration that Russia is not alone.”

Russia has been slow to adopt new regulations within their Forex sector, a lot of it along with other regulations probably due to the fact the new Eurasian Union deal has been imminent for awhile, and it was only a matter of making it official.

It was revealed this week 74% of surveyed traders believe Russian retail Forex brokers should be state regulated, this survey was conducted by Russian self-regulatory organization TSRFIN, this could be a tell that new state regulation is indeed on the way… but it will come under the supranational Eurasian Economic Union and not a sovereign Russian only bill.

Will the new ‘EU’ or ‘EAU’ be good place to be regulated in and run a business from, especially in the financial sector? Time will tell on that as all the parts have to come to fruition and in working order first. Putin will try to lead more countries into the pact such as the fight over which direction the Ukraine will go, as well as Turkey and other major nations in the Eurasian sphere of influence who are looking at the benefits to joining an economic union that is not the European Union.

Current counterparts from Kazakhstan and Belarus creates a trading bloc of more than 170 million people

– Putin, facing sanctions from the U.S. and EU for his annexation of Crimea from Ukraine, said the three countries will “gradually align” their currency and monetary policies to facilitate trade and minimize risks.

– Kyrgyzstan and Armenia are seeking to join the union by the end of the year, the countries’ leaders said at the signing ceremony today. Georgia has also been a rumored member country as well, and of course Ukraine.

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