Transformation of Electricity Markets in the Eurasian Economic Union Member States: Problems and Prospects of Liberalization

This paper explores the basic problems of energy integration in the Eurasian Economic Union (EAEU). It identifies the prospects and opportunities for the formation of a common electricity market within the Union, as well as the main challenges in the liberalization of the national electricity markets of the EAEU member states. The study reveals that a key obstacle to the formation of a common electricity market of the EAEU is the lack of a common vision of national markets liberalization among the member states, as well as the desire to use protectionist instruments to promote their energy interests, which fundamentally contradicts the basic principles of liberalization. In particular, this circumstance is explained by the excess generation capacities in the EAEU member states, which affects the export orientation of their energy strategies. The paper further reveals that the liberalization of the electricity market in Armenia is aimed at easing tariffs for the population and business, but at the same time it brings forth a number of strategic risks. The aim of the study is to identify the specifics of energy integration in the EAEU, in particular, to assess the problems of reforming the electricity markets of the member countries of the Union. The methods of system-functional and comparative analysis are used in the paper. The research is of interdisciplinary nature, it uses the categorical apparatus of economic, technical and political sciences. The results of the research can be useful for improving the energy integration policy in the EAEU, as well as assessing the problems of the energy complexes of the member states of the Union.