The Geopolitical Importance of Kaliningrad to Russia - Report Example

THE GEOPOLITICAL IMPORTANCE OF KALININGRAD TO RUSSIA Geopolitical Case Study Report: The Geopolitical Importance of Kaliningrad to Russia The Kaliningrad region is a semi-autonomous region of Russia at the westernmost part of the Russian Federation that resides within EU (European Union 2014). The Kaliningrad region became part of the Russian Federation after the 2004 enlargement (European Union 2014). Since then, the Kaliningrad region has strategic importance for both Russia and the EU where it derives the capacity to increase the territories of EU and other unique opportunities (European Union 2014). The Kaliningrad region situates 200 miles from the actual Russian border where it forms the smallest Russian region. The region formed because of the World War II where the Soviet Union inherited it from Germany (Krickus 2014). Indeed, the Germans left the Kaliningrad region to Soviet citizens after 1945. Indeed, of the 1 million people that reside in Kaliningrad region, 78 % are Russians, which use Russian as the main language (BBC NEWS 2008). Moreover, residents eat Russian food and practice the Russian culture. The history of the Kaliningrad region includes the invasion of the region by the Russians in World War II and the annexation of the region to Russia from Germany as a federal state after the war (BBC NEWS 2008). The Kaliningrad region became an important region of Russia during the Cold War for various reasons. The history of the region also includes the 1990 economic decline that led to near poverty in the region as Kaliningrad depicted sharp economic disparities with its neighboring regions like Polish and Lithuanian (European Union 2014). This emanated from the fall of the market for Kaliningrads produce, rising unemployment, increased organized crime, and the collapse of USSR (BBC NEWS 2008). However, subject to the significance of the region to Russia and EU, the Russian authorities granted Kaliningrad special economic status and tax advantages intended to attract investors in 1996 (European Union 2014). This enhanced economic growth in the region where its growth rate has been faster than the Russian average (European Union 2014). The Kaliningrad region is a significant tourist destination that generates foreign capital to Russia. The most popular and interesting tourist destinations in the region include the resort of Svetlogorsk, by the Baltic Sea, Kaliningrad museums like the Immanuel Kant museum on the Kneiphof island, the Regional Museum of History and Arts, monuments like the statue of Immanuel Kant, and the Kaliningrad Zoo. Moreover, the region has significant and exciting wildlife that include still bears. The region has two spits that include Curonian and Baltic, 90% of The World’s Amber Supplies, and various mysteries that promote the cultural, natural, geographic, economic, and tourist value for the Russians. Indeed, the Kaliningrad region is the closest Russian destination. The region has great economic value for Russia since it enjoys special economic status and tax advantages intended to attract investors that enhance the regions economy and the Russian economy by extension (BBC NEWS 2008). The building of the new $45m airport terminal in 2007 at the region promoted its economic growth that flows to Russia (BBC NEWS 2008). Moreover, the region enjoys increasing industrial output and rising trade with the countries of the EU (BBC NEWS 2008). Indeed, the region has been recording higher economic growth compared to the Russian average. The implementation of the road maps in the region, especially the Common Economic Space enhances the movement of factors of productions between the EU and Russia thus deriving the economic significance of the region to Russia’s domestic policies and EU-Russian relations (Liuhto 2005, p. 1). Moreover, the region hosts main industries that include manufacturing, shipping, fishing, and amber industries that have great economic potential for Russia (Kramer 1997, p. 2). The region enjoys Special Economic Zone status that incorporates reduced customs duties that promote the establishment of plants for the assembly of goods for the Russian market based on imported parts (European Union 2014). Indeed, the region implements new rules that give tax incentives for large investments thus encouraging foreign investments (European Union 2014). The region supports the export of Russian raw materials, such as wood and the importation of manufactured goods from the EU (European Union 2014). With over 1 million inhabitants, the region offers great market for Russian products. The presence of an unfrozen port all year round in the region encourages economic growth in Russian since it defines a unique Russian port in the Baltic. Furthermore, the production of the 90% of the world’s amber supply supports the region’s economy. The presence of various shipping routes heading into Russia in Kaliningrad ports offers efficient transport and access to the region. The Russian military offers employment opportunities to the residents in the region thus reducing the levels of unemployment. Moreover, the Russian military offers higher average incomes compared to other parts of the Russian Federation. The economic contacts between Kaliningrad and surrounding states like Lithuania which has a nuclear power plant that supplies 80 percent of the electricity in the region fosters foreign investment which boost the Russian economy (Kramer 1997, p. 3). Indeed, the signing of various business deals with other foreign investors from Germany and France promote foreign investments and economic growth (Kramer 1997, p. 2). This capacity makes the Kaliningrad region a very important trade and economic part of Russia and the EU. The region is equally fundamental for Russia, which uses it for strategic military placement. Indeed, the region hosted most Russian soldiers and was close to the Soviet Union during the World War 11 and Cold War. The Russian military stationed at the Kaliningrad region formed the foundation for the region’s economy (Krickus 2014). Currently, the region hosts the only European ice-free port and hosts the Russian Baltic Fleet at the port of Baltiysk since the Cold War, which derives great strategic significance for the Russian Navy (BBC NEWS 2008). Indeed, the ice-free port on the Baltic Sea housed the Soviet Baltic fleet that included 200,000 to 500,000 soldiers during the Cold War (Kramer 1997, p. 4). The Russian military base at the region has strategic significance for Russia in case it decides to restore the Russian empire and get the entire Baltic States. There are also military equipment like main battle tanks, fighter aircraft, nuclear weapons, armored combat vehicles, and missiles at the region that enhance Russian military capacity (Kramer 1997, p. 1). The region acts as the headquarters of the Russian Navys Baltic Fleet under the name "Kaliningrad Special Region" (Kramer 1997, p. 3). However, it is worth noting that the region is significant to the Russian military and the military is equally important to Kaliningrad since it offers better employment opportunities to its residents (Kramer 1997, p. 3). Indeed, the Russian military offers more than 10 percent of the labor force in the region thus guaranteeing a steady source of income for the residents (Kramer 1997, p. 3). As such, the Russian military has economic and strategic factors that influence the economic, military, and strategic position of the Kaliningrad region (Kramer 1997, p. 3). The region depicts a free economic zone and foreign investments for Russia. European Union-member states surround the Kaliningrad region that fosters foreign trade on the wider market. The railway connection of Kaliningrad to Russia though Lithuania and Belarus fosters the movement of goods in different countries thus promoting foreign investments for Russia. Moreover, the Kaliningrads Khrabrovo Airport that connects Kaliningrad to Russian cities and other European cities enhances the movement of goods and people in the EU and hence the significance of Kaliningrad. The funds provided by the European Commission for business projects in Kaliningrad are significant for Russian economy since promote foreign trade. Furthermore, the region offers additional borders with European countries, which is significant for Russia since it can interact with Germany with ease. This allows Russia to enjoy the Free Economic Zone and trade with European states. .  Works Cited BBC NEWS 2011, Regions and territories: Kaliningrad, retrieved 26 June 2014, < http://news.bbc.co.uk/2/hi/europe/country_profiles/6177003.stm> European Union 2014, Kaliningrad, retrieved 26 June 2014, < http://eeas.europa.eu/delegations/russia/eu_russia/fields_cooperation/regional_issues/kaliningrad/index_en.htm> European Union 2014, Kaliningrad, retrieved 26 June 2014, < http://eeas.europa.eu/russia/kaliningrad_en.htm> Kramer, K 1997, Kaliningrad Oblast, Russia, and Baltic Security Kaliningrad Oblast, Russia, and Baltic Security, retrieved 26 June 2014, < http://www.ponarseurasia.org/sites/default/files/policy-memos-pdf/pm_0010.pdf> Krickus, D 2014, Kaliningrad: Russias Own Breakaway Region? retrieved 26 June 2014, < http://nationalinterest.org/commentary/kaliningrad-russias-own-breakaway-region-10094> Liuhto, K 2005, Kaliningrad 2020: Its future competitiveness and role in the Baltic Sea economic region, retrieved 26 June 2014, < http://www.utu.fi/fi/yksikot/tse/yksikot/PEI/raportit-ja-tietopaketit/Documents/Liuhto_72005.pdf> Read More