Kazakhstan rules out possibility of single EEU currency

Kazakhstan has once again ruled out the possibility of adopting a single currency for the Eurasian Economic Union (EEU), despite the propositions of the President of Russia Vladimir Putin, Tengrinews reports.

The national currency of Kazakhstan - the Tenge - has been under pressure because of the international sanctions on the neighbouring Russia and plummeting oil prices. Belarusian ruble, too, faces similar problems. Russia continues to suffer amidst international sanctions with the national currency devaluation hitting as low as 40%.

“The time has come to discuss the possibility of creating a future currency union. Working shoulder to shoulder, it is easier to respond to financial and economic threats from outside and protect our common market,” Putin proposed during the EEU meeting in Astana, Kazakhstan, according to Worldfinance.com.

Yet, during the April 22 briefing at the Central Communications Service headquarters, Vice-Minister of Economy of Kazakhstan Timur Zhaksylykov ruled out the possibility of creating a single currency for the EEU countries.

“Kazakhstan’s currency and financial cooperation with EEU member-countries remains one of the highly discussed topics in the media. I wanted to stress the fact that Kazakhstan employs clear and consistent position that rules out the possibility of introducing a single currency in the EEU. We are not even discussing these issues. The provision on the monetary union does not provide for creation of a single EEU currency. We won't be working in this direction,” Zhaksylykov said.

Earlier, Deputy Justice Minister of Kazakhstan Elvira Asimova and Vice-Prime-Minister Bakytzhan Sagintayev also denied a possibility of a single EEU currency.

"There will be no common currency. Such provisions are not in the draft Treaty," Asimova insisted.

According to Zhaksylykov, Kazakhstan only planed to harmonise the financial regulation legislations within the EEU by 2025.

Reporting by Assemgul Khassenova, writing by Gyuzel Kamalova, editing by Tatyana Kuzmina