Trade Tensions Tear at Russia’s Eurasian Economic Union
While the Russian army is on its heels in Ukraine, the Kremlin is engaging in trade wars with fellow members of the Eurasian Economic Union (EAEU). The EAEU is ostensibly supposed to promote free trade among the five member states, not hinder it. But that has never really been the case. Russia has tended to circumvent the spirit of the organization’s intent when politically expedient. The most…
As Russia falters in its fight against Ukraine, Kremlin officials are embroiled in trade conflicts with fellow members of the Eurasian Economic Union (EAEU). The EAEU was designed to foster free trade among its five members, but Moscow has repeatedly undermined this goal. A prime example is Russia's imposition of trade bans and barriers on Armenian goods in 2026, retaliation for Armenia's closer ties to the European Union.
These actions have severely impacted Armenia's economy, including a 10-day cut-off of natural gas supplies from Russia's Gazprom Armenia.
Russian National Security Council Secretary Sergei Shoigu has accused Armenia of attempting to expropriate Russian businesses within its borders, threatening further punitive measures. Recent reports suggest tensions are also brewing between Kazakhstan and Russia over automobiles. Kazakhstan imported Russian vehicles worth $9.8 million in the first half of 2026, but this figure has plummeted to near zero since then.
Kazakhstan attributes this decline to Russia's recent hike in recycling fees for imported autos, a move reportedly intended to bolster Russia's domestic auto industry.
In December, Russia raised the recycling fees on Kazakh auto imports by an estimated 7 percent, citing the funds as essential for technological development. This has prompted Kazakhstan to retaliate, introducing a reciprocal recycling fee structure on imports from Russia and Belarus. More recently, Kazakhstan has banned imports of apples from foreign countries, including EAEU members, invoking Article 29 of the EAEU treaty to justify the ban.
However, critics argue that this ban serves to unjustifiably discriminate against and restrict trade.
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