Foreign economic relations of the Kaliningrad region.
Authored by Vitaliy Zhdanov, Vladimir Kuzin and Mikhail Pliukhin.
The Kaliningrad region is one of Russia’s smallest regions in terms of its area and population. It is the westernmost territory of Russia. The region is separated from the mainland of the Russian Federation by at least two independent states. Due to its geographical location and special features, this region receives special attention from the federal center. The main mechanisms for the development of the territory are the special tax regime of the Kaliningrad
special economic zone and the Federal State Development Program of the Kaliningrad region.
In the period 1993-2010, due to its convenient geographical location, the economy of the Kaliningrad region was largely oriented towards close foreign economic interaction with nearby European states. However, later, as political tensions between Russia and the EU have increased, the Kaliningrad region began to transform its foreign economic relations. As shown in this report, this process has received a great deal of intensity after 2014.
At the moment, the economic and social development of the Kaliningrad region is entirely determined by the processes and trends typical for the Russian Federation as a whole. On the other hand, the region’s proximity to the EU and previously developed multilateral ties are very significant. The report considers possible scenarios for the foreign economic relations of the Kaliningrad region in the medium-term. In the rapidly changing external environment, new opportunities and new threats are constantly arising for the Kaliningrad region, including tensions in the relations between Russia and the West. Obviously, the Kaliningrad region can in the current difficult situation become both a region of successful good-neighborly cooperation and a kind of ‘besieged fortress’ with all the attendant unpleasant consequences.
Undoubtedly, the federal administration of Russia will provide significant and unconditional assistance to its westernmost territory in resolving the newly emerging acute socio-economic problems.
BSR Policy Briefing is written by Senior Researcher Vitaliy Zhdanov, Associate Professor Vladimir Kuzin and a former Vice-Governor of the Kaliningrad region Mikhail Pliukhin.
Download the BSR Policy Briefing here.
