On the economic security of Russia's Kaliningrad exclave

Abstract

An exclave position makes the economic security problems of the Kaliningrad region more complex as compared with other Russian territories. Deteriorating relations between Russia and the West compound the situation. This has been especially so since 2014 when economic sanctions were imposed against Russia, and the country retaliated. Global geopolitical instability adds to the conundrum. This study aims to assess the economic security of the Kaliningrad region. Its objectives include defining the concept of regional economic security and measuring its level in the Russian Baltic exclave. Possible ways to improve the economic security of the region are considered as well. Official statistics on the dynamics of industrial production and GRP and 28 other socio-economic indicators are used to assess the level of economic security. The region performs well on nine indicators and much worse on 19. Proposals for economic restructuring aimed at more intensive exploitation of regional natural and labour resources are examined along with the region’s prospects as part of the Great Eurasia (Bolshaya Eurasia) project and as an ‘international development corridor’.