2018 Vol. 10 №1

The authors employ geopolitical analysis to identify the core characteristics of NATO’s current policy towards the Baltic Sea region. After the demise of the Soviet Union, the region was considered as one of the safest in terms of military security. However, in the aftermath of the Ukraine crisis, the region has witnessed a growing tension in relations between NATO and the Russian Federation. A comparative analysis of NATO’s official documents on the Baltics shows that the chief pretext for increased military presence in the region is the alleged need to defend the Baltic states from the Russian threat. Special attention is paid to the attempts of Western military strategists to encourage the neutral Nordic states — Sweden and Finland — to accede to NATO. This would lead to the organisation’s northern enlargement. The current situation suggests that to ease tension in the Baltic Sea region Russia has not only to respond adequately to emerging military threats but also to launch an awareness campaign to explain its position and dispel the myth about Russia preparing to start a hybrid war against the Baltic States.

This article considers military security in the Eastern Baltic. The research focuses on the economic sustainability of Estonia, Latvia, and Lithuania in the context of military spending. The authors maintain that an increase in military spending can either strengthen or weaken national economic and technological potential. In Germany or Sweden, military spending accounts for a smaller proportion of the GDP or budget revenues, but it is integrated into the general model of innovative and technological development. In the case of the Baltics, it is advisable to estimate military spending as a proportion of budget revenues rather than that of GDP — this recommendation applies to all smaller states. The authors stress that the central component of any national military and economic development is a focus on general national objectives rather than solely military ones. Economically advanced countries integrate defence spending into their investment and innovation strategies and industrial policies. Smaller countries — and the Baltics are no exception — do not apply this principle. Their military spending does not contribute to the technological and economic agenda. The article shows that the military spending of Lithuania, Latvia and Estonia undermines their investment potential and serves as a critical factor in their national and governmental development. The authors suggest estimating military spending as a proportion of budget revenues rather than that of GDP.