The Baltic Region

Current issue

Politics and Economics

Integration in crisis: towards a new explicative model

Abstract

The goal of this study is to investigate the non-linear impact of crises on integrative structures through theoretical, empirical, and comparative analysis of four cases. This paper proposes a novel explanatory model of how integrative structures respond to various crisis junctures. The authors test the hypothesis that it is not the nature or intensity of the crisis, but rather the maturity and depth of integrative groupings’ institutional arrangements — along with the actual balance of power between governance levels—that ultimately determine whether the organization consolidates further or begins to disintegrate. Based on a survey of 409 specifically selected experts on integration, the study reveals that strongly integrated unions tend to strengthen during crises but often experience disintegrative backlash once the crisis subsides. Conversely, weakly integrated unions tend to loosen their ties during crises but regain their capacity for cooperation shortly thereafter. This model is explored through four case studies that consider how the 2022 and ongoing Ukraine conflict affected the EU (with a special focus on the energy crisis), NATO, BRICS and a quasi-integrated network of world-class universities. The findings show that policy responses to crises should be specifically calibrated to the integration model that the organisation follows.

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Legal aspects of the use of profits from Russian sovereign assets by EU countries

Abstract

The issue of using frozen Russian sovereign assets has remained at the centre of political and expert debate for nearly three years. In 2024, the G7 decided to allocate profits generated from these assets to service a syndicated loan intended to finance military and other forms of assistance to Ukraine. In early 2024, within the framework of its sanctions policy, the European Union adopted a set of legislative instruments designed to establish a Union-level legal mechanism for appropriating the profits derived from the investment of frozen Russian sovereign assets. This decision poses a serious challenge to modern international law and the system of international relations. This article seeks to outline the key characteristics of the EU-agreed mechanism for the utilization of Russian sovereign assets, with a view to evaluating its consistency with international law and the legal framework of the European Union itself. In pursuit of this aim, the author examines the legal dimension of the mechanism for the expropriation of profits from the use of Russian sovereign assets and attempts to model its potential implications, including possible countermeasures by the Russian Federation. The analysis leads to the conclusion that the mechanism as adopted may result in a breach of the Russian Federation’s sovereign property rights, as well as other foundational principles of international law. Moreover, the EU’s decision to channel profits from Russian sovereign assets into the EU’s ownership raises a number of additional legal conflicts under both national and EU law.

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Germany’s approach to security and defence cooperation with Poland by the mid-2020s

Abstract

This article examines the evolution of German-Polish cooperation in the political and military spheres. Methodologically, it draws on comparative analysis and the theoretical framework of armed forces development. Against the backdrop of heightened confrontation between the Euro-Atlantic community and Russia, Poland’s strategic orientation has echoed that of West Germany during the Cold War. Poland has asserted its role as the largest NATO member state on the alliance’s eastern border. It has significantly expanded its armed forces, and has become a key host of the large US military contingent. Poland expects to join the group of ‘Western powers’. Concurrently, Germany has also strengthened its role within NATO. This has resulted in a complex dynamic of both cooperation and strategic rivalry between Germany and Poland. Germany has conceptually and practically emphasized the Weimar Triangle as a platform for representing EU interests, particularly in the post-Soviet space. In the 2010s, however, Poland suspended the activities of the Weimar Triangle and bilateral intergovernmental consultations in an effort to limit German influence. By the mid-2020s, both formats had been reactivated, and Germany had consolidated its position in relation to the Republic of Poland (RP). This shift was driven by Germany’s growing influence in Eastern Europe beyond Poland and shared concerns about the weakening of Western influence in Ukraine and the broader post-Soviet region. Poland rapidly expanded its armed forces, becoming NATO’s third-largest military by personnel in 2024. Germany has been more inert in its response, yet it has employed the Bundeswehr more rationally — particularly in the region considered a ‘domestic’ one — by establishing a ground presence both to its north and south. The article concludes by assessing the future trajectory of German-Polish security cooperation and the implications for the defence strategies of Russia and Belarus.

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Spatial Development

Rural development in the Baltic States: assessment of the current state

Abstract

The article assesses the development level and current state of rural areas in the Baltic States, with a particular focus on Latvia, Lithuania, and Estonia. The primary objective of the study is to identify key aspects of agricultural production, demographic trends in rural areas, and the socio-economic challenges these territories face, as well as to develop recommendations for their sustainable and inclusive growth. The research methodology adopts an interdisciplinary approach, incorporating demographic, economic, social, and environmental dimensions of rural development. The study employs comparative, systemic and statistical data analyses. For a more in-depth examination, methods of economic-geographical analysis and document analysis of European Union policies — particularly the Common Agricultural Policy (CAP) — are utilized. The findings highlight both shared and country-specific issues affecting rural areas in the Baltic States, such as depopulation, aging of the population, high unemployment, low employment rates, and disparities in infrastructure. Special attention is given to agricultural trends, including the impact of EU agricultural policies, structural transformations in the agricultural sector, and the adoption of innovative technologies. The study underscores the importance of enhancing government support for agriculture, implementing sustainable production practices, and improving the overall quality of life in rural areas. This article provides a foundation for future research, including the exploration of the role and significance of integrating rural areas into national and European economic frameworks, enhancing governmental and international support mechanisms, and developing targeted programs aimed at improving rural living standards. These programmes are intended to involve local communities, including parish councils, farmers’ unions, and business associations.

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State of automobile transport development of Latvian territories in the context of spatial inequality

Abstract

This study is dedicated to the analysis of the state of automobile transport development of Latvian territories within the broader context of spatial inequality regarding economic productivity and environmental sustainability. The object of analysis comprises 43 Latvian municipalities, examined using statistical and fiscal data from 2022—2023. Given the country’s pronounced monocentric structure and population density asymmetries, correlation analysis and two-step hierarchical cluster analysis were employed to typologise territories based on characteristics of automobile transport infrastructure, economic indicators, and ecological risks. As a result, five stable territorial types were identified, displaying significant differences in levels of automobile transport provision, integration into the national economic space, and environmental load. Central cities generally benefit from concentrated investment and denser transport networks, while peripheral areas are characterised by limited infrastructure access and less favourable environmental conditions. A notable exception is Ventspils, which — despite its peripheral geographical position — was classified as a central-type territory owing to its infrastructure and economic attributes. The study concludes that a differentiated transport policy is essential — one that accounts for the unique characteristics of different territories and seeks to mitigate the effects of the center-periphery divide. The proposed empirical model provides a basis for formulating territorially sensitive strategies to promote the development of automobile transport, while concurrently aligning with sustainable development goals.

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Adaptation of spatial strategies of the largest developers of residential real estate in St. Petersburg to anti-Russian sanctions

Abstract

Anti-Russian sanctions have had varied and multidirectional impacts across multiple sectors of the national economy, including the housing construction sector — most notably, the development of multi-apartment residential buildings. As a consequence of these sanctions, foreign developers employing advanced management and marketing practices withdrew from the Russian market, while domestic developers were forced to rapidly adapt to both new and intensifying pre-existing factors shaping the primary housing market. This study seeks to identify the adaptation trajectories of major residential developers operating within the St. Petersburg agglomeration under the constraints imposed by anti-Russian economic sanctions. To this end, several research objectives were pursued: compiling and analyzing data on residential projects from the Unified Housing Construction Information System (UHCIS); mapping the territorial distribution of completed and ongoing residential developments; examining changes in the intensity of land development across different territorial zones; and evaluating developers’ spatial strategies using the Herfindahl–Hirschman Index (HHI) and other analytical tools. The empirical foundation of the study is drawn primarily from UHCIS data provided by DOM.RF (including the map of new construction), complemented by information from media sources. Through cartographic analysis, territorial clusters of residential construction were delineated, and the share of housing commissioned in each cluster was assessed for three time periods: 2016—2020, 2020—2024, and 2025—2028. Developer concentration within these clusters was further evaluated using the HHI. The study identifies five major crisis factors induced by sanctions and outlines nine distinct adaptation trajectories among various groups of developers. The most immediate response was the withdrawal of foreign developers from the market. The research further proposes four strategic models adopted by domestic developers, each characterized by specific strengths, limitations, and implications for urban development. Among the most influential factors was the sharp increase in the Central Bank’s key interest rate, which led to a significant decline in suburban development due to reduced mortgage affordability. Conversely, development activity intensified in parts of the so-called ‘grey belt’, targeting segments of higher-income demand. This reorientation has contributed to greater spatial integration within the agglomeration and the ongoing expansion of the urban core.

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Society

Scientific cooperation of Russia (1990—2024): a comparative study of the Baltic and Indian regions

Abstract

The article explores the reorientation and transformation of Russia’s international scientific cooperation across its eastern and western strategic axes. This study is relevant due to the practical emphasis on international scientific cooperation as a necessary condition for the advancement of modern science. The objective of the research is to evaluate the restructuring of Russia’s international scientific ties over the past 30 years at the macroregional level. The methodology employed is based on spatial scientometrics, which enables the geographical analysis of science using extensive bibliometric data. The study focuses on the Baltic and Indian regions and covers the period from 1990 to 2024. The data source is Scopus international database. The results obtained allow for conclusions regarding the position of the macroregions globally, in terms of the growth of scientific knowledge, the contribution of individual countries to the macroregional dynamics of publication activity, and the degree of Russia’s integration into the scientific spaces of the Baltic and Indian regions. It is demonstrated that the Baltic region holds a stable global position in terms of the number of academic publications, exhibiting a slight but steady annual increase alongside high scientific productivity. Conversely, the Indian region is more dynamic scientifically but shows a greater centralisation of scientific activity and comparatively lower productivity. Russia participates in scientific collaboration with both macroregions. Collaboration with Baltic region countries has experienced stagnation, which has intensified since 2022. In contrast, joint publication activity with countries in the Indian region has shown notable growth. This underscores the need for further qualitative research to achieve a more comprehensive understanding of the evolving global geography of science and Russia’s role within it.

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Transformation of the confessional structure of the population of Northwest Russia and the Baltics (late 19th — first quarter of the 21st centuries)

Abstract

The secularization processes that have unfolded since the early 20th century have profoundly transformed the traditional religious structure of populations in many countries and regions. This study aims to trace the shifts in the confessional composition of the population in Northwest Russia, Estonia, Latvia, and Lithuania from the late 19th century to the present. The analysis is based on data from the 1897 and 2021 population censuses, as well as sociological surveys that included questions on religious affiliation. Drawing on the dynamics of confessional change, the study identifies 24 historical-confessional districts across Northwest Russia and the Baltics States. A typology of these districts is developed according to two principal criteria: the degree of complexity in the confessional structure and the changing proportions of the region’s four major religious groups — Protestants, Catholics, Eastern Christians, and Jews. The first type of district is characterized by a homogenization of the religious population in favour of Orthodox and Catholic groups, accompanied by a general heterogenization of the broader confessional structure, including the non-religious population. This type encompasses all districts of Northwest Russia, Ida-Virumaa County in Estonia, Latgale in Latvia, and parts of Lithuania. The second type, most extensively represented in Estonia and Latvia, exhibits heterogenization in both the overall confessional structure and its religious component. The third type is marked by the homogenization of the general confessional structure, with a predominance of Catholics in Lithuania, and of Protestants and the non-religious population in southwestern Estonia.

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