Experimental laboratory of modern Russia

Baltic Rim Economies

Vitaly Zhdanov
Ph.D., Head
Department of the Western Branch of RANEPA
Kaliningrad, Russia

Post–Soviet Russia, like its predecessor, the Soviet Union, had no experience in supporting its geographically separated regions. Therefore, some actions of the federal Government aimed to sustain and to develop the Kaliningrad exclave were based not on the practice accumulated over years, but were prepared expeditiously as a response to changing conditions and/or emerging problems.

As an eyewitness to the events, I believe that for the Federal Government, the westernmost territory of Russia has in some cases become an experimental laboratory, where individual elements of the state regulatory mechanism were implemented in practice. In a number of cases, regulatory measures were enforced in the Kaliningrad region, and were canceled or significantly detailed later on, which confirmed the experimental (pilot) nature of some introduced measures.

It must be admitted that objectively the Kaliningrad region is a convenient testing ground for conducting full-scale economic experiments: (1) it is geographically separated from the main territory of the country by international borders, (2) relevant indicators of the movement of human, commodity and financial flows are quite correctly and promptly recorded, (3) the population of the region has accustomed to high intensity changes that have been taking place in the western exclave for more than 30 years.

Experimental activities undertaken in the Kaliningrad region can be grouped in three main categories: 

  1. Special legal regimes that differ significantly from the federal mainstream (norms)

This category includes:

  • introduction of the legal regime of the free economic zone/special economic zone in the Kaliningrad Region. This block of legislation has undergone significant changes four times over 30 years;
  • introduction of the legal regime for the special administrative region on the Oktyabrsky Island of Kaliningrad from 2018;
  • inclusion of the Kaliningrad Region in the list of 6 subjects of the Federation in which gambling establishments are allowed to operate;
  • temporary application of the regime for  local cross-border migration with adjacent regions of Poland (June 2012 – July 2016);
  • pilot introduction of a simplified visa regime on the territory of the region;
  • introduction of the seventh degree “freedom of air” regime to the Khrabrovo airport (Kaliningrad) by the Ministry of Transport of Russia of (November 2021). Previously, similar regime with some exceptions was introduced only at the Pulkovo airport (St. Petersburg).
  1. Development of infrastructure of the territory that goes beyond the standard requirements of the subjects (provinces) of modern Russia

In this part, it should be noted:

  • establishing  a unique cultural and educational cluster on the Oktyabrsky Island in Kaliningrad. It the leading cultural institutions of Russia: branches of the world-famous Bolshoi Theater and the Tretyakov Gallery, a branch of the Moscow State Academy of Choreography, a branch of the Central Music School at the Tchaikovsky Moscow State Conservatory, a branch of the Russian State Institute of Performing Arts. A number of cluster components have already been commissioned and are in operation. The completion of the entire complex of cultural and educational institutions is expected in 2024;
  • construction and opening of an international cruise ship terminal in Pionersky;
  • construction (unfinished) of the Baltic nuclear power station (NPP).
  1. Support to initiatives to exploit local/endogenous advantages and potential
  • support to  cross-border and international cooperation. This activity had developed most intensively in 2000 – 2006. The region took part in a number of cross–border cooperation programs between Russia and the EU, as well as in the activities of 5 Euroregions: Baltika (since 1998), Saule (1999), Neman (2002), Lyna-Lava (2003). and “Sheshupe” (2005);
  • rapid (and successful!) development of the I. Kant Baltic Federal University and the World Ocean Museum in Kaliningrad;
  • organization of the international youth tent camp “Baltic Artek” (since 2010);
  • inclusion of the region into the pilot rebate mechanism (since 2016). Filmmakers can return 20% of expenses if they choose the territory of the region for filming purposes.

Due to the ongoing changes proposed to the special legal regime of the SEZ, the frequency/ intensity of the evolution of the legislation regulating economic activity in the Kaliningrad region is significantly higher than in other subjects of the all-Russian legal space.

Expert article 3250

>Back to Baltic Rim Economies 3/2022

To receive the Baltic Rim Economies review free of charge, you may register to the mailing list.
The review is published 4-6 times a year.