The consequences of NATO and EU enlargement have discouraged Eurasian political elites from using the EEU as a stepping-stone to the neo-liberal world economic system. Their economic and geopolitical interests have been infringed by Western policies as illustrated by the conflict in Ukraine. The EEU has reacted by turning inward and eastward and an alternative geo-political bloc is in formation. It is likely to form a nationally based administratively coordinated form of capitalism, which in turn might lead to greater international conflict. The West should practise democracy between states to secure international stability rather than promoting democracy within states. A more pluralistic multi-speed EU, with less ambitious goals and taking into account external interests, could become a complimentary partner to the EEU and enhance peace and well-being.