Eurasian Economic Union (EEU)

DEFINITION of 'Eurasian Economic Union (EEU)'

An economic union created in 2014 by a treaty signed by Russia, Kazakhstan and Belarus. The union is set to go into effect in 2015. The Eurasian Economic Union treaty allows citizens of EEU member countries the right to work in any other member country without having to obtain special work permits and is expected to reduce trade barriers among members.

BREAKING DOWN 'Eurasian Economic Union (EEU)'

The three founding members of the Eurasian Economic Union had been part of a customs union since 2010. Unlike the treaty forming the Eurozone, the treaty forming the EEU did not create a single currency for use by its members.

The EEU was created in part to counter the economic and political influence of the European Union and other Western countries. The idea of the economic union was announced by Vladimir Putin in 2011. Observers have noted that the countries expressing interest in joining the EEU were once part of the Soviet Union, and that the economic union may lead to a political union.