Former Soviet countries sign free trade agreement

[News_Editor]

Former Soviet countries sign free trade agreement

2011-10-20 10:18:50 GMT+7 (ICT)

MOSCOW, RUSSIA (BNO NEWS) -- Russia, along with several members of the regional organization known as the Commonwealth of Independent States (CIS), have agreed to create a free trade zone, local media reported on Wednesday.

The agreement was reached on Tuesday during a CIS meeting in St. Petersburg in which Russia, Ukraine, Belarus, Kazakhstan, Armenia, Kyrgyzstan, Moldova and Tajikistan signed for membership, which is targeting the reduction of all trade fees on a number of goods between the countries, RT Television reported.

The agreement is expected to enter into force as early as next year, the report said. Out of the eleven CIS members, only Azerbaijan, Uzbekistan and Turkmenistan decided not to enter, but they will be able to enter the new trade zone if they decide to do so before the end of the year.

Russian Prime Minister Vladimir Putin, meanwhile, praised the agreement which was 10 years in the making. "The document which marks out essential conditions and rules for free trade has been a long time awaited and neatly prepared," Putin said as quoted by the media outlet. "It has been discussed and examined, at some point corrected with the heads of Commonwealth countries and finally agreed and approved."

In addition, Putin noted that goods will arrive at lower prices, making it attractive for all parties. He also underlined that the agreement improves the conditions for innovative enterprises, creating new opportunities of exchange of technologies and materials.

The CIS was created in late 1991 and consists of former Soviet Republics including Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine.

In the first half of this year, trade between CIS countries increased by 48 percent and exceeded $134 billion. The new agreement is expected to further increase trade numbers in the region.

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