RUSSIAN President Vladimir Putin joined his Kazakhstani and Belarusian counterparts Nursultan Nazarbayev and Alexander Lukashenko in the Kazakhstani capital Astana today to unveil the Eurasian Economic Union.

Mr Putin said that the union would take the countries’ co-operation to a new level while respecting their sovereignty.

“We are creating a powerful and attractive centre of economic development, a major regional market bringing together over 170 million people,” he said.

He added that the pact would allow members to exploit their economic potential and strengthen their positions in global markets.

The union builds on the already existing Customs Union, which Moscow wanted Ukraine to join rather than throw its lot in with the European Union.

In addition to free trade, it coordinates member states’ financial systems and regulates industrial and agricultural policies along with labour markets and transport systems.

It does not have a single currency and will not create a common energy market.

Moscow will host the top executive body of the new alliance, its high court will be based in Belarus and the top financial regulator will be located in Kazakhstan.

Mr Lukashenko hailed the agreement as reflecting a mutually acceptable compromise, while Mr Nazarbayev hoped that the new body would “become a powerful incentive for modernising our economies and helping making them global leaders.”

Armenia could also join the pact as early as next month after completing final preparations, according to President Serge Sarkisian.

And Kyrgyzstan confirmed that it hopes to join the Customs Union before the end of 2014.