On 27 of November 2009, Belarus, Kazakhstan and Russia agreed to create a Customs Union.  The union establishes a common customs space in July 2010, but hopes to pave the way for deeper economic integration, namely a single economic space, by January 2012. 

Analyzing the potential implications of the agreement on the Belarusian economy, CASE Fellow Irina Tochitskaya reveals that while the newly introduced union may benefit the Belarusian budget due to increases in custom duties and charges, it is unlikely to increase foreign direct investment flows into the country.  Instead, Russia followed by Kazakhstan will become the main beneficiaries of foreign direct investment under the agreement. 

Read full CASE Network Studies and Analyses Report No. 405: The Customs Union between Belarus, Kazakhstan and Russia: and Overview of Economic Implications for Belarus