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Kaliningrad Oblast: Eu
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Along with attempts to define and publicise Russian expectations regarding the Kaliningrad Oblast, Moscow has taken up work on creating a complex strategy for solving the enclave's problems. Such a program was put forward by governor Yegorov and the minister for trade and economic development German Gref at a session of the Russian Federation government on 22 March this year. In this statement, they proposed a transformation of the Oblast's economy from a net import basis, based on duty-free import of raw materials and semi-manufactured articles, to a production export basis. According to this idea, Russian (and especially Western) investors should produce high-quality goods cheaply in the enclave, which would then be sold on in Western Europe. In these authors' opinion, to attract capital to the region all the Special Economic Zone regulations from 1996 must be introduced (currently only 4 out of 21 are in operation). These should be supplemented by clear instructions for conducting economic, investment and banking activity.
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Key materials prepared by experts of the project «Reforming Municipal Finance of the Kaliningrad Oblast through Performance Budgeting» in 2005-2006 are presented in this collection as articles. The works characterize the problems in the management of the budget process at the local government level in the Kaliningrad Oblast and the tendencies of modernization of this process in the context of administrative and budget reforms in the Russian Federation and of the policy of the oblast authorities. The background and contemporary application of the methods of performance budgeting in Swedish municipalities are described as an example for comparison with European practices. The authors devote particular attention to the relationship between performance-based budget management and strategic regional development planning.
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The Kaliningrad Oblast does not only enter into international discussion in the context of the European integration process. Recently several incidents have taken place when the area was exploited in contentions which have nothing to do with either its own situation or EU expansion. One example may be the article published in February this year in the London Sunday Telegraph, which concerned German chancellor Gerhard Schroeder's supposed agreement with President Vladimir Putin on reducing Russian debts in exchange for awarding German companies specific licences to do business in Kaliningrad, which would include giving them ownership of state firms. Such an accord seems entirely impossible, considering the basic foreign policy assumptions of both Russia (including the integrity of the state, of which the case of the Kuril Islands is the most glaringly obvious) and Germany (which is aware that any inclinations to domination, even if only economic in nature, in the former East Prussia would be a breach of the post-war order, and would bring forth strongly negative reaction from both other Western countries and the USA). In this context, the Sunday Telegraph article must be seen as a conscious manipulation of concealed political forces on the 'old continent', which is aimed at disrupting the good intentions and reliability of Berlin's policy towards Moscow, and at the same time at suspending any rapprochement between these two capitals. Such a manipulation is undoubtedly in the interests of both France and England, who wish to prevent Germany and Russia from becoming excessively close.
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The Council emphasises that the Kaliningrad Oblast of the Russian Federation should become an example of fruitful EU-Russia interaction, in solving relevant practical problems and seizing the opportunities offered by EU enlargement. The CBSS will utilise its advantage of encompassing both members and non-members of the EU to prevent divisions and achieve cohesion.
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The aim is to present an intermodal terminal concept for Kaliningrad Oblast by identifying important transport hubs in the area and defining the need for investments in ports/hubs and intermodal infrastructure. The study will include the need of both “hard” and “soft” transport elements such as; terminals for combined transport, rail/road improvements, It-support, management systems, booking and tracking services, interoperability of transport systems, joint public-private activities, harmonizing of administration systems, definition on needs for capacity building and definition of relevant actors and stakeholders. EU policies on co-modality and intermodal promotions centres could act as guidelines for the work. The study shall results in a report outlining ideas for how a intermodal strategy could look like for Kaliningrad Oblast as a whole.
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RED is a bilateral cooperation project between South Sweden and Kaliningrad Oblast in Russia. The project implementation period is 2006 - 2007. The project is being financed by the European Union, BSR Interreg IIIB Nieghbourhood Programme and by Sida.
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