The Common Gas Market of the Eurasian Economic Union: Progress and Prospects for Institutionalization

Abstract:This paper addresses the evolution of the Eurasian Economic Union (EAEU), focusing in particular on newly endorsed institutional provisions for the common gas market (CGM) of the EAEU. The article is organized as follows. First, it outlines a conceptual framework informed by institutional theory. Second, it incorporates necessary insight into manifold developments related to integration among those post-Soviet economies which up to this point have been less definite in setting their agenda for formal economic association with the EU and examines the determinants for Eurasian integration. Third, it explains the principal institutions and model for the proposed CGM. Fourth, the paper discusses institutional complementarity and institutional change as they relate to the process of the CGM's formation. The study demonstrates that institutionally homogeneous EAEU economies display their intention to model the CGM by exploiting their existing complementarity in the gas sector, but assume the necessity of some institutional changes. The article concludes that institutional conversion and institutional drift (as they relate to market structure and pricing, respectively) will be the types of changes required to enforce complementarity in the process of materialization of the proposed CGM.