FES International Policy Analysis A Certain Path to an Uncertain Future Kyrgyzstan’s Accession to the Customs Union/ Eurasian Economic Union Medet Tiulegenov March 2015 n Kyrgyzstan is joining the Russian-led Eurasian integration project, which is often viewed as a political rather than economic endeavour. The Kyrgyz government was able to garner broad support for the accession in parliament and among the business sector, and a majority of the population also approves it. Nevertheless, the integration remains vulnerable to criticism, particularly in light of the upcoming parliamentary election campaigns, the deteriorating economic situation in Russia, and many uncertainties still connected with the process. n Being a member of the Customs Union/Eurasian Economic Union(CU/EEU) has both benefits and risks; it is too early to make a final judgment on its efficacy. From the perspective of proponents, membership fosters foreign investments and opens up a market of 175 million people for goods and services from Kyrgyzstan. Accession is considered as the least of two evils at hand, as risks are outweighted by the risks of non-membership. n Opponents highlighted the negative impacts – such as higher inflation and the reduction of re-exports, resulting in a negative effect on employment. Furthermore, there are widespread fears about shrinking sovereignty and negative impacts on the country’s democratic achievements. n The Accession process for Kyrgyzstan has been lacking substantive deliberations about impacts on the country’s overall development. The leadership of Kyrgyzstan, while maintaining close relations with Russia, should constantly reassess risks and readjust the speed and format of its engagement with the integration project. The Kyrgyz-Russian Development Fund should be used in an effective manner to modern­ize the economy and mitigate social impacts.