Russian-Estonian Economic and Investment Cooperation During the Crisis: Dynamics and Possibilities :: IKBFU's united scientific journal editorial office

×

Login
Password
Forgot your password?
Login As
You can log in if you are registered at one of these services:
   
There are no complicated sciences, there are only complicated interpretations
Alexader Herzen

DOI-generator Search by DOI on Crossref.org

Russian-Estonian Economic and Investment Cooperation During the Crisis: Dynamics and Possibilities

Author Nevskaya A.
DOI 10.5922/2079-8555-2015-2-4
Pages 36-49
Article Download
Keywords Russia, Estonia, economic cooperation, trade balance, foreign direct investments, sanctions, competition among jurisdictions
Abstract (summary) The article deals with the development in Russian-Estonian relations during the crises of 2007 and 2014, taking into consideration the balance between political and economic factors in the decision-making by Estonian government. A number of special aspects, trends and problems in trade and investment ties are detected. The aim of the study is to uncover key motivation behind the actions of both Russia and Estonia, to identify the drivers for economic and political development in the region, and to work out recommendations to adjust them. The questions put forward by the authors of this article could not be more topical at the time, when Russian economic situation is obviously getting worse and capital flight (to the neighboring EU Member States) is likely to increase. The method of the study is comparative analysis of the impact on economic ties made by Russian-Estonian crisis of 2007 and the current international tension around Ukraine. The regional fossil fuel market and the possibilities of Gazprom involvement in its development are also analyzed. It is concluded that political motives are still important for Estonian decisionmaking, though they are balanced out by measures of business support (despite some of these measures being taken by the EU bodies). The role of political factor for the Russian side is increasing. It is acknowledged that there is a growing number of missed economic opportunities in the Russian Northwest.
References 1. Statistics Estonia, available at: http://pub.stat.ee/px-web.2001/Dialog/Saveshow.asp (accessed 21.01.2015).
2. Kazhdoe tret'e predprijatie oshhushhaet vlijanie rossijsko-ukrainskogo krizisa [Every third company to feel the impact of the Russian-Ukrainian crisis], 2014, Delfi, 6 October, available at: http://rus.delfi.ee/daily/business/kazhdoe-tretepredpriyatie-oschuschaet-vliyanie-rossijsko-ukrainskogo-krizisa?id=69890851 (accessed 15.12.2014).
3. Krupnyj rossijskij investor prismatrivaetsja k Sillamjajeskomu portu [A major Russian investor eyeing Sillamae port], 2014, Postimees, 4 September.
4. Kuznetsov, A. V. 2008, Evroregiony: polveka «maloj» integracii [Euroregions: half a century of "small" integration], Sovremennaja Evropa [Modern Europe], no. 2, p. 48—59.
5. Kuznetsov, A. V. Chetverikova, A. S. 2009, Problemy rossijsko-pribaltijskih jekonomicheskih svjazej [Problems of Russian-Baltic economic relations], Mirovaja jekonomika i mezhdunarodnye otnoshenija [World Economy and International Relations], no. 7, p. 73—81.
6. Lanko, D. A. 2014, Russian-Estonian relations: a medium-term forecast, Balt. Reg., no. 1, p. 34—40. DOI: 10.5922/2079-8555-2014-1-3.
7. Matsalu, E. 2014, Rossijskij kapital stuchitsja v Jestoniju [The Russian capital is knocking Estonia], Delovye Vedomosti [Business Bulletin], 26 June, available at: http://dv.ee/novosti/2014/06/26/rossijskij-kapital-stuchitsja-v-estoniju (accessed 01.11.2014).
8. Mezhevich, N. М. 2007, Rossijsko-jestonskaja granica: istorija formirovanija i sovremennoe znachenie dlja razvitija Severo-Zapada Rossii [Russian-Estonian border: history of formation and development of contemporary significance for the North-West Russia], Pskovskij regionologicheskij zhurnal [Pskov regionologichesky Journal], no. 4, p. 134—145.
9. Mosyukov, D. V. 2014. Chem grozjat stranam Pribaltiki rossijskie kontrsankcii [What threatens the Baltic countries, Russian kontrsanktsii], Vneshnjaja politika [Foreign policy], 14 October, available at: http://www.foreignpolicy.ru/analyses/chem-grozyat-stranam-pribaltiki-rossiyskie-kontrsanktsii/ (accessed 01.02.2015).
10. Prezident Jestonii: chrez 10 let my otkljuchimsja ot rossijskih jenergosistem [The President of Estonia: through 10 years, we are disconnected from the Russian power system], 2014, REGNUM, 30 September, available at: http://www.regnum.ru/news/polit/1852448.html (accessed 10.12.2014).
11. Prodovol'stvennoe jembargo RF oboshlos' Jestonii v 150 mln evro [Food Russian embargo cost of Estonia 150 million euros], 2014, RIA Novosti, 9 September, available at: http://ria.ru/world/20140909/1023445906.html (accessed 01.11.2014).
12. Reimer, А. 2014, I u nas budet Natura Siberica [And we will Natura Siberica], Postimees, 15 April, available at: http://rus.postimees.ee/2762766/i-u-nasbudet-natura-siberica (accessed 01.11.2014).
13. Smirnov, I. 2014, V Narve idet stroitel'stvo zavoda lakov i krasok [Narva is the construction of the plant of varnishes and paints], Severnoe Poberezh'e [North Coast], 26 April, no. 79 (15554), p. 1.
14. Tere, J. 2008, Obemy gruzooborota EestiRaudtee snizilis' v janvare-marte 2008 na 41 % [The turnover decreased EestiRaudtee in January-March 2008 by 41 %], The Baltic course, 18 April, available at: http://www.baltic-course.com/rus/_analytics/?doc=1004 (accessed 01.11.2014).
15. Jekspert: poka v Latvii sporjat o vidah na zhitel'stvo, jestoncy peremanivajut investorov [The expert: while in Latvia arguing about residence permits, Estonians are luring investors], 2014, IA REGNUM, 12 September, available at: http://pda.regnum.ru/news/1846663.html (accessed 01.11.2014).
16. Estonian company to launch battery processing plant in Russia, 2014, Estonian Investment Agency, 07 April, available at: http://www.investinestonia.com/en/about-estonia/news/article/884-estonian-company-ecomet-invest-to-launch-batteryprocessing-plant-in-russia (accessed 01.11.2014).
17. George, A. Adapting to Constraints on Rational Decisionmaking. In: R. Art & P. Education (Eds.) International Politics: Enduring Concepts and Contemporary Issues, New York, 1992.
18. Levy, J. S. 2003, Political Psychology and Foreign Policy. In D. Sears, L. Huddy & R. Jervis (Eds.), Oxford Handbook of Political Psychology, New York, p. 820.
19. Partowazar, B., Jawan, J. A., Soltani, F. 2011, Decision-Making in Foreign Policy, Pensee Journal, Vol. 76, no. 4, p. 344—353.
20. Siim, S. 2014, Tiit Vähi: Pronkssõduri hind oli Eestile 8 miljardit krooni aastas, Ohtuleht, 14 May, available at: http://www.ohtuleht.ee/579642/tiit-vahipronkssoduri-hind-oli-eestile-8-miljardit-krooni-aastas (accessed 23.11.2014).
21. Tüür, K. 2012, Russia and Estonia, In: K. Tüür, V. Morozov (eds.) Russian Federation 2013: Short-Term Prognosis, p. 123—126.

Back to the section