...

Eurasian Economic Cooperation to Form Energy Market

Oil&Gas Materials 8 September 2007 13:11 (UTC +04:00)

Kazakhstan, Astana / Trend corr V. Sharifov / Priority directions in development of Eurasian Economic Cooperation (EEC) is formation and joint development of energy market, as well as transport alliance and use of transit potential, the Deputy Secretary General of EEC, Serik Primbetov, said at the second Eurasian energy forum organized by KazEnergy in Astana.

On 10 October, 2000 the Presidents of Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan signed an agreement on establishment of EEC. In January, 2006 Uzbekistan joined the organization.

According to Primbetov, expedient actions regarding joint development of energy market and establishment of unified energy system, provision of equal access to main electric electrical networks and equal tariffs for transit of electric energy should be continued for formation and joint development of energy market.

"Cooperation in joint development of hydro-energetic resources of Central Asia should be also continued in order to resolve water consumption problem in the region and to liven up the work on unification of national energy legislation," he said.

Primbetov considers formation of customs alliance, pursuing of coordinated economic policy, interaction in economics' real sector, interaction in agro-industrial field, formation of joint service and financial markets, and development of currency integration also to be the priority directions in development of Eurasian Economic Cooperation.

Among the purposes of formation of a unified energy area Primbetov indicated establishment of a unified energy market of the EEC member-countries, attraction of internal and foreign investments for development of fuel and generative energy bases, establishment of reliable energy resources sale markets, implementation of coordinated policy in international energy carrier markets.

Water consumption problem will acute in Central Asia, he said. According to expert estimations, demographic growth will increase water demand by 40% in the following 20 years. Water consumption will increase in Afghanistan.

According to the estimations of the WB experts, Uzbekistan and Kazakhstan's joint profits from using water resources for irrigation make up $67.3bln, what is much more than the losses of Kyrgyzstan which make up $32.2bln per year.

"So, creation of compensating mechanism within the framework of cooperation in water-energy consumption in the region is much more favourable than the all-sufficient provision of each country with energy and water. It would be expedient to create such a mechanism within the framework of EEC with invitation of Turkmenistan which is not a member of the organization," Primbetov said.

Latest

Latest