Kazakhstan Assume the Rotating Chair of the Eurasian Economic Union: Digital and Logistics Transformation Leads a New Direction for Regional Integration

On January 1, 2026, Kazakhstan officially assumed the rotating chair of the Eurasian Economic Union (EAEU). In his New Year's address on December 31, 2025, President Tokayev of Kazakhstan clearly outlined key priorities including artificial intelligence, digital transformation, and unimpeded logistics.

This handover coincides with the crucial tenth anniversary of the EAEU's founding. Facing profound changes in the global economy, this regional economic organization comprised of five countries is attempting to consolidate its internal market and expand economic ties with the Global South through technological advancements and institutional innovation.

01 Strategic Transition and the Union's Ten-Year Journey

The transfer of power within the EAEU occurred at a critical turning point in its development. On December 21, 2025, at the meeting of the EAEU's highest governing body in St. Petersburg, Belarusian President Lukashenko officially announced that Kazakhstan would assume the rotating chair in 2026.

Lukashenko has high hopes for this, stating, "I believe that Astana's chairmanship will inject new and strong momentum into the Eurasian economic integration process."

The Eurasian Economic Union (EAEU) was established on January 1, 2015, jointly founded by Russia, Belarus, and Kazakhstan under the Eurasian Economic Union Treaty, with Armenia and Kyrgyzstan subsequently joining. After ten years of development, the union has established a unified economic space covering 20.2603 million square kilometers, accounting for 14% of the world's total area.

The union has achieved remarkable results in the past decade. Most notably, the use of national currencies in internal settlements has increased to 93%.

This achievement has significantly reduced the financial risks associated with dollar dependence and enhanced regional economic autonomy. The union has also established a unified services market covering 53 economic sectors and systematically eliminated 51 internal barriers.

02 Digital Transformation and Artificial Intelligence Empowerment

President Tokayev has positioned artificial intelligence as a core tool for deepening integration within the Eurasian Economic Union. He pointed out that the world has entered the era of artificial intelligence, and this technology has been used to predict trade flows within the Union and assess the impact of tariffs and trade agreements on member economies.

At the application level, Tokayev proposed establishing an integrated cargo flow management system based on artificial intelligence within the Eurasian Economic Union, aiming to shorten delivery times, reduce logistics costs, and enhance the Union's competitiveness in the global logistics network.

Kazakhstan has made building a digital nation a national goal and expressed its willingness to share its expertise in areas such as artificial intelligence, digital regulation, and economic transformation with other member states. Tokayev also proposed adopting a joint statement on the responsible development of artificial intelligence at the 2026 Astana Eurasian Economic Forum, establishing a new framework for digital cooperation within the Union.

In the industrial and agricultural sectors, Tokayev emphasized the need to establish demonstration centers, automation startups, and capacity centers to drive digital transformation at the enterprise and farm levels. These initiatives reflect Kazakhstan's strategic approach of combining digital technology innovation with the modernization of traditional economic sectors.

03 Logistics Integration and Trade Facilitation

Tokayev emphasized the Eurasian Economic Union's geographical advantage as a natural bridge connecting East and West, calling for its transformation into a leading logistics hub in Eurasia. He pointed out the need to modernize transportation, customs, and logistics infrastructure, and to develop international transport corridors and multimodal transport solutions.

This strategic direction aligns with the growing demand for connectivity in Central Asia. Central Asia is projected to experience strong economic growth by 2025, with the transportation sector playing a significant role. For example, Kazakhstan's transportation sector grew by 20.3% in the first 11 months.

Regarding the elimination of trade barriers, Tokayev prioritized removing administrative and regulatory barriers within the Union. He specifically criticized artificially imposed trade restrictions, restrictions on the movement of citizens, and long border freight queues.

To address this, he proposed deploying artificial intelligence technology to monitor the legislative initiatives of member states and identify potential internal trade barriers early.

Customs cooperation is a core element of trade facilitation. Tokayev emphasized that technical measures such as customs should serve the goal of facilitation and should not be used as tools to exert pressure on member states. He called on member states to strictly fulfill their mutual obligations, reduce unnecessary administrative barriers, and enhance the resilience of regional supply chains.

04 Internal Challenges and Structural Contradictions

Despite the significant achievements of the Eurasian Economic Union, a series of deep-seated challenges remain. Lukashenko acknowledged in his statement regarding the handover of the presidency: "Difficulties are always an objective reality."

The construction of a common energy market is one of the biggest challenges facing the Union. Russia, as a major energy exporter, tends to maintain its pricing power, while energy importers such as Belarus and Kazakhstan expect more stable supply guarantees. This fundamental contradiction has delayed the construction of the common energy market.

Regarding the integration of the pharmaceutical and medical device markets, differences in regulatory standards and industry protection policies among countries make the progress of a unified market extremely difficult. For example, a new drug approved in Kazakhstan may need to undergo a new phase III clinical trial, which can take up to two years, to enter the Belarusian market.

The construction of a single financial market faces even greater resistance. Lukashenko pointed out, "All member states remain reserved about joining the single financial market." This cautious attitude reflects the sensitivity of member states to the relinquishment of financial sovereignty, as well as deep-seated differences in core areas such as monetary policy coordination and financial regulatory standards.

The asymmetrical distribution of economic power within the Union also increases the difficulty of coordination. Russia holds an absolute dominant position in the Eurasian Economic Union, accounting for 84.39% of the Union's land area, 79.93% of its population, and 86.42% of its GDP. Among other member states, Kazakhstan's GDP share is 9.24%, Belarus's is 3.21%, and Kyrgyzstan and Armenia's are only 0.43% and 0.70%, respectively.

05 External Cooperation and the Global South Strategy

Expanding external economic ties is another key focus during Kazakhstan's chairmanship. In 2025, the Eurasian Economic Union signed a provisional free trade arrangement with Mongolia and economic partnership agreements with the UAE and Indonesia, demonstrating its positive willingness to expand openness and deepen South-South cooperation.

Tokayev called on the Union to further expand its ties with the Global South, Arab countries, Southeast Asia, and Africa, strengthen dialogue with regional organizations, and promote a more equitable, inclusive, and diversified international cooperation framework.

Kazakhstan is quietly reshaping its logic of "third-party cooperation." In the first half of this year, Kazakhstan sent a delegation to Jakarta for a closed-door meeting with the ASEAN Secretariat; in September, it co-hosted the "Central Asia-ASEAN Supply Chain Resilience Seminar" with Uzbekistan. Unlike traditional "trade promotion," Kazakhstan focuses on "supply chain resilience," attempting to establish a new cooperation model with complementary nodes.

This strategic adjustment reflects the Eurasian Economic Union's adaptive choices in the changing landscape of globalization. As Kazakh political analyst Targat Kaliev pointed out: "The entire global economic paradigm is shifting; the global trade system based on market division of labor and labor specialization is changing and about to undergo transformation."

06 Macroeconomic Background and Geoeconomic Significance

The overall macroeconomic performance of the Eurasian Economic Union provides a favorable background for its further integration. According to Alexei Vedev, Director of the Macroeconomic Policy Department of the Eurasian Economic Commission, the GDP of the Eurasian Economic Union (EAEU) is projected to grow by 17.8% between 2015 and 2024, approaching $1 trillion. The EAEU's share of the global economy will rise from 3.7% to 4.1%.

In recent years, member states' economic growth rates have all exceeded the global average. In 2025, Central Asia is showing strong economic growth, with Kazakhstan's economy growing at 6.4% in the first 11 months, and its real economy growing at a remarkable 8.3%.

The power structure within the union is also undergoing subtle changes. Russia's economic weight has relatively decreased due to sanctions, while Kazakhstan, Belarus, and other member states are gradually gaining more influence in decision-making. In 2024, Kazakhstan, along with Armenia, directly voted against a proposal on a "digital cross-border service tax," and Russia ultimately withdrew the draft for reconsideration—a first in the union's history.

This trend towards multipolarity may increase coordination costs in the short term, but in the long term, it will help establish a more equitable and sustainable cooperation model. Kazakhstan's assumption of the chairmanship reflects this trend and gives it the opportunity to play a greater role in promoting reforms within the Eurasian Economic Union.

Analysts at the Eurasian Development Bank point out that there is a shared industrial export potential of $67 billion within the Eurasian Economic Union. The integration of digital technologies and logistics networks may further unlock this potential, reshaping the supply chain from Southeast Asia to Europe.