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The article explores the challenges encountered during the formation of the Baltic macro-region comprising Russia and eight EU countries (Germany, Poland, Sweden, Denmark, Finland, Lithuania, Latvia and Estonia) in the context of the ongoing geopolitical and geo-economic changes. The article aims to assess the dynamics, level, structure and pace of economic development of three Russian regions located on the Baltic Sea (St. Petersburg, Leningrad and Kaliningrad regions) and analyse the intensity of their trade relations with countries of the macro-region. Russian Baltic regions have higher development rates compared to the national average. However, they experience difficulties in their economic development resulting from negative external factors. The article describes possible ways of overcoming these difficulties by improving the sectoral structure of the economy and diversifying international ties. In this context, the development of inter-regional cooperation and the formation of a spatially distributed territorial socio-economic system, including the three Russian Baltic regions, will be particularly beneficial. The period covered by the article is 1996-2021, with a special focus on 2014-2021. The study is based on the economic and statistical analysis of official data of Rosstat and the Federal Customs Service on the sectoral structure and dynamics of the gross regional product (GRP), volume and changes in foreign trade, and its commodity and geographical structure.

Another round of the Soviet 'monument fall' in the Baltics, which began in the early 2000s, continued into 2022. This process, however, has not affected Soviet memorials at the sites of mass violence perpetrated during the German occupation of the Baltics. This article aims to investigate major trends in the Baltics' politics of memory regarding Soviet monuments erected at sites of mass violence. The official policy of the Baltics towards these memorial sites has been largely shaped by the international agenda and the perception of the commemorated events. During the Euroatlantic drift, the concept of the Baltic States' past incorporated the Holocaust narrative, recoding the symbolic space of Soviet sites remembering Nazi crimes against Jews and integrating them into the national culture of remembrance. Soviet memorials at sites commemorating the tragedy of local peoples were incorporated as is into the national memorial landscape. Yet, Lithuanian authorities viewed these memorials with greater suspicion because of the Soviet countermemory, which the sites preserved. Memorials to Soviet POWs, albeit perceived as 'alien', are protected by law in the Baltics. Nevertheless, it did not save the places of remembrance from acts of vandalism. Moreover, there are trends in the Baltics towards a revision of the laws protecting the monuments.

The article analyses migration from border countries (the so-called overlapping area) of two migration subsystems - Eurasian (centred in the Russian Federation) and European (the European Union) from 1991 to 2021 (before the recent events in Ukraine). A step-by-step analysis of the migration situation in the countries of the former USSR - Belarus, Latvia, Lithuania, Moldova, Ukraine and Estonia was conducted. The article examines bilateral and multilateral migration processes, analyses the main factors influencing their development and explores migration policy measures and their impact on the regulation of migration processes in the countries of the overlapping area. These countries, located between the two centres of major migration subsystems in Eurasia (Eurasian and European, or, in other words, between the Russian Federation and the core of the EU), are subject to their strong influence and 'competitive gravitation'. The strength of this gravitation depends not only on pull and push factors but also on the attractiveness and non-attractiveness of the migration policies prevailing in these migration subsystems at a given point in time.

Russia and the Baltic States have a long-standing relationship of industrial specialisation, cooperation, division of labour and trade exchange, all dating back to the Soviet Union. Today, this relationship is facing a tough test amid political and ideological challenges and risks. The last two years have seen a profound and large-­scale crisis caused by the global COVID-19 pandemic. Overall, the production linkages between Russia and the Baltic States have adapted in response to the existing problems, remaining resistant to the geopolitical and pandemic shocks. This article examines the production linkages between Russia and the Baltic countries, investigating the export-­import flows of consumer and intermediate goods in 2003-2020. A comparative study of the Baltic States' production linkages with Russia and their main partners in the EU - Germany and Finland - is carried out. It is concluded that, before the introduction of sanctions in 2014 and the world trade crisis of 2015-2016, Russia was a more promising market than Germany and Finland for the Baltic States' companies trading in intermediate goods.

This article is a conceptual theoretical-­­empirical study of the geopolitical risks the Baltic Russian regions have faced amid the deteriorating geopolitical situation observed since 2014. The Baltic Russian regions are in a vulnerable position because of their geographical vicinity to EU countries, with which they share common borders, and the dramatically worsening military and political situation. To analyse geoeconomic risks, the author employed an earlier proposed methodology, which has been tested in Russia and abroad. Four types of geoeconomics risks are examined: spatial, economic, socio-­­demographic, national geopolitical and regional geopolitical. Overall, five levels of geopolitical risks can be distinguished. The contribution sets out to provide a conceptual picture of the geoeconomic risks which the Baltic Russian territories - St. Petersburg, the Republic of Karelia and the Leningrad, Kaliningrad, Novgorod, Pskov and Murmansk regions faced in 2014-2021 as the geopolitical situation changed for the worse in the wake of the Ukraine political crisis (2013-2014). The objectives of the study included selecting economic, social and international trade indicators and analytics matching each type of the geoeconomic risks. To identify the geo-economic risks of the selected regions, three basic indicators are considered - population, GRP, foreign trade turnover, and changes in other indicators for 2014-2021 were tracked. Eighteen risks divided into four types were explored for the Baltic Russian regions. The geoeconomic risks were grouped into two categories: spatial/geopolitical and economic/socio-­­demographic. A preliminary assessment of the regional risks was obtained using a methodology proposed by the author. The risks in the spatial/geopolitical category are substantial for the Kaliningrad region, whilst the Pskov region and Karelia proved to be most susceptible to the economic/socio­demographic risks.

Currently, more than 20 million Russians permanently reside outside Russia. As migration trends show, their number will be increasing in the future. The Russian-speaking diaspora in the Baltic States is an essential part of the Russian community abroad. Latvia, Lithuania, and Estonia used to be a single state with Russia for a long time. It could not but affect the formation of these countries as subjects of international politics. Since May 2004, the Baltic States have been members of the European Union. Together with Finland, they constitute the EU's border space with Russia. To a large extent, it determines their geopolitical role in Europe. The article examines the Russian-speaking diaspora in the Baltic States. It substantiates the factors facilitating its stability and the preservation of the Russian cultural space, analyses the socio-economic and legal status of different groups of Russian-speaking residents, and identifies the peculiarities of various groups of the Russian-speaking population as well as prospects for the development of the diaspora.

The issue of international positioning is crucial to all exclaves, and the Kaliningrad region surrounded by the Baltic region countries is no exception. This contribution aims to describe a general strategic path for positioning the Russian territory in question. To produce recommendations on a positioning concept, it looks at the ties between the Kaliningrad region and the neighbouring Baltic States and how the former is perceived by the latter. Publication monitoring and media content analysis were carried out to explore the image created in the Latvian, Lithuanian and Estonian media in recent years. Avenues for positioning are proposed in line with the principles of place branding, and the interests common to the region and the Baltic States are considered through the lens of international cooperation projects. The emphasis is on the prospects for trade relations development. The main advantages of the region are identified, and the risks to be reckoned with when forming a positioning concept are determined. The findings suggest that strategic positioning is feasible in the case of the Kaliningrad region; its focal points may be investment, logistics, tourism and infrastructure. The authors also stress the possibility of developing international cooperation platforms and indicate regional problems of international concern.

This article aims to analyse migration from the post-Soviet space to the north-eastern periphery of the EU (Poland, Lithuania, Latvia, Estonia) and examines the hypothesis about these states, once countries of origin, turning into destinations for migrants. A change in the socio-economic paradigm and accession to the EU sped up economic development in the Baltics and Poland. Despite growing welfare and income levels and a decline in the unemployment rate, further economic growth was hampered by the outflow of skilled workforce and resulting labour shortages. In response, the governments of the Baltics and Poland drew up programmes to attract international labour. Soon these countries transformed from exporters of labour into importers. Unlike Western European countries, Poland and, to a lesser extent, the Baltic States are trying to attract migrants from neighbouring nations with similar cultural and linguistic backgrounds. In the long run, this strategy will facilitate migrant integration into the recipient society. The Polish and Lithuanian governments are devising measures to encourage ethnic Poles and Lithuanians to repatriate from post-Soviet republics. To achieve the aim of the study, we investigate the features of migration flows, trends in migration, migration policies of recipient countries, and the evolution of diaspora policies.

The first publications on the spatial diffusion of foreign direct investment (FDI) appeared in the 1970s-1990s. Since then, many of their provisions have been repeatedly criticised as outdated and inconsistent with empirical evidence of the current stage of globalisation. Previously, only examples of 'newcomers' to internationalisation were used to illustrate distinct phases in the expansion of transnational companies and their effort to first establish themselves in major economic centres, as the factor of gradually growing awareness of potential investors began to play an important role. This article aims to show the persistent character of FDI spatial diffusion patterns and their correlation with the existing hierarchy of cities. In our research, we used the example of Asian companies working in the Baltic states, Finland, Sweden and Denmark, newcomers to internationalisation, not affected by the 'neighbourhood effect', and contrasted them with Western European investors. We confirmed the validity of the hierarchical wavelike model of the FDI spatial diffusion with the dominance of metropolitan urban agglomerations. It was also found that mergers and acquisitions are dominant forms of FDI in developed countries. Their ascendancy leads both to a distortion of the geographical pattern of subsidiaries networks of investor companies and to the intention of investors to sell their assets in provinces and move their head offices closer to capital cities. Consequently, there is a simplification of the structure of businesses, which is typical of the earlier stages of the FDI spatial diffusion.

Throughout the history of humankind, people have settled along seashores. The gradual accumulation of population and industrial activity in coastal areas has created preconditions for coastalisation - the movement of people and socio-economic activity to marine coasts. To date, coastal areas have a higher rate of economic development, fostering migration and an influx of capital across the globe. Scholars and policymakers voice concerns about the asymmetry of regional development and the increasing anthropogenic impact on the coastal ecosystem. It reinforces the importance of coastal zone management. In this study, we use an example of the Baltic region to identify the coastalisation patterns in the Baltic region and answer the question, whether there can be a single definition of the coastal zone of the Baltic region. According to a broad definition, the Baltic macro-region is nearly all coastal and, consequently, all settlements are influenced by the coastalisation effect. We have studied urban population dynamics in 128 cities of 45 coastal regions through the lens of various characteristics of a coastal city - the distance from the sea (10, 50, 100, and 150 km), location in a coastal region (NUTS 2), availability of a port and its primary maritime activity (tankers, cargo, fishing, passenger, recreational vessels and others). The research results suggest that despite the strong coherence of the Baltic region countries, there should not be a single delimitation approach to defining the coastal zone. Overall, the most active marine economic processes occur in the zone up to 10 km from the seacoast and 30 km from ports and port infrastructure. However, in the case of Sweden, Poland, and Latvia, the coastal zone can be extended to 50 km, and in Germany - up to 150 km inland.

In the literature, the impact of integration processes on language learning and usage is traditionally evaluated either through the prism of sociolinguistics or soft power. This article proposes a new conceptual approach based on measuring various aspects of competition between languages by the language integration and monopolization indices, on the one hand, and the polylingualism coefficient, on the other. The approach is applied to the situation in the Baltic Sea region of the EU. The article uses data from Eurostat, Eurobarometer, and the Baltic statistical offices to analyze the performance of Baltic language markets by assessing the impact of the EU integration on the use of languages in the region. The findings show a growing tendency towards polylingualism in countries participating in integration associations. Integration bodies, however, do not give one language precedence over others but encourage convergence of the languages of their leading economies. The main factor behind a language’s popularity is the strength of commodity and labor markets in the country where it is spoken. The authors conclude that close economic and political integration stimulates heterochronous processes in supranational associations. The first is increasing monopolization in the language market of the association and the language markets of its sub-regions. The second is the decrease in monopolization in national language markets.

The article explores opportunities for the sustainable economic development of coastal territories in the Baltic Sea region (BSR) arising in blue economy sectors in the framework of digital transformation. The study argues that a more active commercialisation of territorial resources can facilitate the sustainable economic development of the BSR coastal territories, following digitally-driven innovations. The paper provides an overview of methodological approaches to territorial sustainability. It also assesses the 2009-2018 level of the socio-economic development of the BSR coastal territories, underpins the importance of the blue economy and highlights the role of digital transformation in reaching the UN Sustainable Development Goals (SDGs) in the BSR through digitally-driven innovations. A comparative and problem-targeted statistics analyses show significant differences in the level and dynamics of socio-economic development in the BSR coastal territories with their GRP per capita being generally lower than the national or macroregional average. A review of literature on sustainable development in the BSR has shown that a more active use of unique resources of the coastal territories along with a technology-driven growth of blue economy sectors can counterbalance the negative impact of the territories’ uneven development on the progress towards the SDGs in the BSR. Increasing the competitiveness of the BSR coastal territories requires investment in digital solutions in the blue economy sectors and the creation of a communication infrastructure. The review of key innovations in the blue economy sectors shows that their implementation gives impetus to other industries by reducing costs, creating new jobs, and improving the quality of products and services.

The concept of green growth and sustainable development is turning into a global ideology guiding the transformation of national economies. The focus is shifting from quantitative assessments of performance to rational choice conditions. Rationality is becoming the decisive factor behind sustainable green growth, and a change in the financial model that supports such growth may be needed. Therefore, the most urgent problems relating to sustainable growth are the transformation of the finance system, on the one hand, and the creation of a new financial paradigm based on the principles of responsible investment and corporate social responsibility, on the other. This study aims to consider the theoretical and practical aspects of creating a national green finance model ensuring sustainable growth in the Russian Federation. The development of a green finance mechanism and a green bond market in the Baltic Sea countries is analysed to determine national features and explore the possibility of translating the Baltic experience into practices usable in Russia. The research uses economic observations, economic description, structural and logical analysis, and systems analysis. Perhaps the most significant finding is the description of a methodological framework for sustainable development theory, as seen by major schools of economic thought. Studying the experience of the Baltic Sea countries in creating a new finance model of responsible investment helped detect national features and development priorities that can be used in Russia in devising the ideology, principles, and mechanism of green growth and sustainable growth financing.

This article explores the features and trends in inbound and outbound tourism flows between Ukraine and the Baltic Sea region (BSR) countries in 2012-2019. The research question is whether inbound our outbound tourism prevailed and how visa-free travel to the Schengen Area affected the number of Ukrainians travelling to the Baltic Sea Region. Two data sources were used in the study. These are the Travel and Tourism Competitiveness Index of the World Economic Forum and data from the State Border Guard Service of Ukraine on the number of foreign citizens visiting Ukraine and the number of Ukrainians travelling abroad. The study employs the statistical methods of structural shifts analysis, time series analysis, and graphical visualisation. The findings indicate that Ukrainian outbound tourism was growing steadily over the study period, whilst visa-free travel to the Schengen Area had no statistically significant impact on the number of outbound tourists from Ukraine to the BSR. Outbound tourism flow prevailed over inbound. The number of inbound tourists to Ukraine sharply declined after 2013 because of the socio-political situation in the country. The analysis reveals significant changes in inbound and outbound tourism flow structures. The COVID-19 pandemic is shown to be a critical factor influencing the current state and prospects of the tourism industry.

The sea and inland hinterland of Baltic Europe form a unique macro-regional unit. Strong collaboration links, and competition in the Baltic Sea region, are an inherent feature of the region from the beginning of its civilization development. Since 2004, the Baltic Sea has become an internal sea of the European Union. This fact no doubt strengthened the cooperation of the countries in the region. In many spheres, these ties take the form of networking. The EU Strategy for the Baltic Sea Region is an important stimulus for further integrations. The objective of the article is to identify changing trends and the structural transformation in the Baltic integration process instigated by the implementation of this strategy. The document contains common goals, which strengthen cooperation and draw on the Baltic Sea potential. Three main pillars are outlined in the Strategy: marine protection, better interconnection of the region and growing prosperity. The essence of cooperation involves joint development plans on various levels: governmental, regional and local with the participation of research institutions, regional cooperation infrastructure, operational programmes, as well as the private sector. Political stabilisation and economic development may transform, in a longer time span, the emerging transnational Baltic Europe into a new economic and cultural European centre. The choice of research methodology applied in the study derives from the nature of collected data, i.e. literature regarding scientific accomplishments in the Baltic cooperation, analysis of working documents and reports drawn up by public institutions, the European Commission, and EU national and regional strategic documents.

This work presents findings from research into the relationship between the structural organisation and cultural attitudes of local communities in the Baltic Sea region and the way they perceive environmental risks. The response of the Kaliningrad community to the development of a local potassium and magnesium salt mine is used as an illustration. The article deals with how local communities perceive the image of risks formed and reproduced via various communication channels. The structural context and the context of communication are taken into account. Another focus is on how this perception is affected by the type of community members' cultural attitudes (according to Mary Douglas's grid/group model). The space of categorical variables obtained through multiple correspondence analysis (MCA) aids in clustering the cases (respondents) as well as in testing theoretical assumptions for compliance with the findings. The communicative practices characteristic of all the clusters (classes of cases) are examined; the relationship between the structural organisation of groups, their cultural attitudes, their perception of environmental risks, and the performance of environmental agencies are explored. An evaluation of the comparative efficiency of different ways and means of risk communication with the identified groups is made. It is concluded that the proposed model is methodologically promising and there is a need for differentiated risk-communication strategies.

This article seeks to describe the dynamics of COVID-19 in the Baltic States and to analyse the ways of communicating the threat and its consequences. Particular attention is paid to the media strategies pursued in the study area. The research is based on Russian and English texts from the Baltic media, WHO official documents and datasets, as well as initiatives of the Baltic Sea region organisations (2020) counteracting COVID-19. A combination of these sources builds up an objective view of the situation and demonstrates how the pandemic and its consequences are represented in public consciousness given a certain pragmatic goal. The pandemic is a new type of threat; its consequences demonstrate a tendency towards negative synergy and a category shift from soft threats to hard ones. The research shows that several key strategies - counter-active, projective, conservative, mobilising, resilient, and reflective - are used to communicate the threat and its consequences in the media.

Although Russia and the Baltics have historically been economic partners, the economic relations between them are tense today. Nearly stagnating bilateral trade contributes little to the development of either side. The Baltics-Russian bilateral trade conducted within global value chains (GVCs) and operations of multinational companies is much more resistant to geopolitical and economic shocks than traditional international trade. For instance, the accession of Estonia, Latvia, and Lithuania to the EU and NATO in 2004 and the introduction of reciprocal EU-Russia sanctions in 2014 did not curb GVC activities between Russia and the Baltics. The article discusses factors in the transformation of the Baltics-Russian GVCs amid COVID-19. The research aims to prove regionalisation to be a viable prospect for the transformation of global value chains in Russia and the Baltics. In the medium term, regionalisation is possible as (1) part of global trends towards GVC transformation in the industries in which Russia and the Baltics traditionally specialise; (2) a response to the long-term structural challenges faced by Russia and the Baltics in creating a new generation of internationally competitive firms; (3) a result of companies tackling the effects of the pandemic against the background of historically stable relationships; (4) a product of strong social contacts and soft power. GVC regionalisation will be driven by individual companies, regional (local) governments, and Russian-Baltic cross-border cooperation initiatives. Finally, repercussions for Russian and Baltic politics are discussed alongside GVC regionalisation benefits for all the parties involved.

This research focuses on the features and transformations of power groups and their role in the political life of the societies of the Baltic countries. This article aims to analyse structural and functional changes in the composition of the Baltic political elites after these countries gained independence in the 1990s. The main objective of this research is to reveal the general and the specific in the transformations of Latvian, Lithuanian, and Estonian elites. Changes in the structure of power groups are considered on a sub-regional scale in view of the current Russian-Baltic political interaction. The common and distinctive features in the transformations of Latvian, Lithuanian, and Estonian elites are identified. Quantitative methods of analysis are used to detect trends in the selection of channels and mechanisms of elite recruitment. The study of power groups concentrated on both large-scale socio-political transformations and individual practices. A comprehensive examination of elite transformation in small states such as the Baltics requires the consideration of both domestic and foreign policy aspects. The thesis is put forward that despite some differences between the Baltic States their political elites have undergone very similar transformations since the 1990s. At the time, Baltic elites asserted continuity with pre-war Latvia, Lithuania, and Estonia and detachment from the Soviet past. The 1990s elite struggle for power led to sharp ethnic, linguistic and political divides in Baltic societies. These rifts limit competition between power groups and reduce the ability of political systems to renew themselves. Having reached the ‘back to the West’ goal, Baltic elites replaced it with the idea of ‘Russian threat’. Bridging internal divides, which may weaken the power of the elites, was postponed as a result.

There are several approaches to assessing poverty, namely, the absolute, relative, and subjective ones. They are widely used in studying income dynamics and differentiation at a national level. Yet a new research approach to the study and assessment of ‘multidimensional’ poverty is gaining popularity in developed states. Central to it is the notion of ‘risk of poverty and/or social exclusion’ (AROPE). This approach measures both income level and such non-monetary component as access to social services. Despite the versatility and severity of multidimensional poverty in some European countries, this phenomenon has not been sufficiently explored in socio-economic studies carried out in the Baltic countries of the EU — Latvia, Lithuania, and Estonia. This article aims to identify the characteristics of multidimensional poverty in the Baltic countries and the EU. Its objective is to examine the spread of multidimensional poverty in the Baltic countries and compare it to the situation on a European scale. The work uses Eurostat data. Various indicators suggest that the risk of multidimensional poverty in the Baltic States is above the EU average.

The relevance of this study of post-Soviet transition lies in the focus on the technically theoretical problems that are nevertheless the key to understanding regional development processes in the East of the Baltic Sea. The research aims to verify the theory of peripheral capitalism as applied to the Baltic States. The first theoretical objective is to draw a distinction between the ideas of modernisation and transformation in a regional context. The second objective is to adjust the theory of peripheral capitalism to smaller states. To study the features of the transformation of economic and political systems in the Baltics, this article conducts comparative analysis. Systemic analysis and the principles of theoretical and empirical analysis are used as well. Building on this work, the study identifies the deficiencies of the theoretical and methodological potential of transition studies. These include claims that the theoretical and methodological potential of transition as applied to post-Socialist and post-Soviet Europe has been completely fulfilled. Geographical differences between Latin America and the Baltic States are so obvious that they eclipse economic similarities between the processes and development models characteristic of the two regions of the world. An analysis of current developments in Latin America makes it possible to forecast the economic and, to a degree, political consequences of the trends that are just emerging in the Baltics. This article seeks to prove the above thesis.

A non-linear change process is a specific feature of a poorly regulated market economy. However, many researchers have shown that different economic sectors do not respond to market cycles in a similar way. Regional economic systems are a combination of many sectors, therefore a hypothesis about the correlation between the stability of regional economies and market cycles is examined. The study is conducted using the Baltic countries (hereinafter referred to as Greater Baltic Region, GBR) as an example. GBR countries have been classified into highly stable, relatively stable, unstable, and highly unstable based on the study of the stability of national economies to global cycle processes. The GDP dynamics of the countries were compared to GDP cycles of the US and the EU, which are the main financial centres. To understand the reasons, the sectoral structure of GDP is additionally considered. The results allow the author to classify of GBR countries according to the structure of economic sectors and the stability of the regional economy.

The South-East Baltic is a meeting place of three branches of Christianity: Orthodoxy, Catholicism, and Lutheranism. Dominant in the Baltic region, these religious confessions define the cultural landscape of the area. At the same time, they have an indirect effect on socio-economic development. In this study, we aim to identify the main components of the territorial structure and the formation and transformation factors of the denominational space in the South-East Baltic. The complexity of the denominational structure of the local population stems from the centuries-long position of this region as a political buffer zone. We calculate the potential denominational structure and the potential religious fractionalisation index at the level of basic territorial units and regions southeast of the Baltic Sea. Based on this, we identify the main components of the territorial structure of the denominational space, which includes three denominational shields and contact zones between them. From a practical viewpoint, these components suggest a new variant of the territorial differentiation of the Baltic region. This variant has only limited relevance to ethnic and socioeconomic zoning.

Reforms of natural monopolies need clear delineations between the industries where market mechanisms contribute to social welfare and those where the costs of a transition to a market economy outweigh the benefits. In this article, we emphasise the difficulty of finding the optimum modes of governance within industries as a whole. Using the tools of the transaction cost economics, we show that, alongside the problem of market boundaries and the resultant position and behaviour of a company — an object of antimonopoly regulation — it is necessary to consider the hypothesis about the market being a special mechanism for coordinating interactions between economic entities. In particular, such determinants of transactions as asset specificity, uncertainty, and frequency can create a basis for abandoning the price mechanism. Williamson’s heuristic models suggest that if an activity is characterized by high specificity, uncertainty, and frequency, the very organisation of this activity precludes transaction cost minimisation through the price mechanism employed either in full or in part (hybrid institutional agreements). This can be explained by excessive risks and ensuing high transaction costs. A more efficient solution is the organisation of interactions within a group of legal entities in control (within a single economic entity). In order to compare the practical implementation of institutional alternatives, we examine the modes of governance in the gas supply industry. A major focus is the Baltic region where two interconnected pipelines — the Nord Stream and the OPAL — were constructed. Different ways to handle transactions relating to gas supply were employed at the time. We compare these ways and conclude that it is necessary to consider the determinants of a transaction to select the best structural alternative and to avoid choosing a wrong governance structure.

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.

This article considers Western Europe as a principal centre that has been attracting migrants over recent decades, primarily, in the aftermath of the Arab Spring. The Baltic region states are chosen for demonstration. Although they have different proportions of Muslim immigrants, Muslim diasporas are the most numerous and rapidly growing ones in the Baltics. Undoubtedly, Muslim communities across the region enjoy certain similarities. The differences they have are explained, among other factors, by national policies towards migrant integration. This article aims to identify the features of Muslim migration to the Baltic States in the aftermath of the Arab Spring. The authors analyse the timeline of Muslim immigration to the Baltic region. It is stressed that, despite current difficulties, Germany and Finland are more successful in integrating immigrants than, for instance, Sweden and Denmark. Just like other Western European countries, the Baltic States have not developed a conceptual framework for their migration and integration policies towards Muslim immigrants. The authors describe possible Muslim integration scenarios - the Singaporean and Palestinian ones, simulation, and confrontation. Given their apparent conscientious refusal to adapt and integrate migrants, the Baltic States are most likely to face the Palestinian scenario.

Reinvigorating Russia's development strategy requires a comparison between the social development of the Russian Federation and other Baltic region states, some of which are world leaders in terms of living standards. The most popular tools for country comparison are composite indices that take into account various components affecting the quality of life. This article analyses the current level and changes in the social development of the Baltic States in 1990-2016. The analysis is based on the values of human development index. Having distinct advantages and disadvantages, this index remains to be the most popular and influential tool for assessing a country's social development. A statistical analysis carried out with the use of HDI values makes it possible to divide the Baltic States into three groups according to their current development level and advancement trajectories. The greatest gap in progress was observed in 2000. Later, it narrowed as the social advancement of the third group -Lithuania, Latvia, and Russia- accelerated. The nature of the Baltic States' social improvement in 2015-2016 suggests that a decrease in social development rates will be observed in the coming years across the region, and the gap between the countries will increase.

Circular economy has been studied extensively both in Europe and worldwide. It is largely viewed as a potential strategy for societal development, aimed to increase prosperity while reducing dependence on raw materials and energy. Many businesses regard circular economy as a way to enhance economic growth and increase profits. Governments across the world actively engage in the discussion about the benefits of a transition to a circular economy and about its impact on employment, economic growth, and the environment. This paper aims to study the major issues of circular economy, to identify its advantages, and to offer an insight into the transition stage the Baltic States are undergoing today on their way to circular economy. It is stressed that the Baltic countries are not fully using the opportunities offered by a circular economy. For example, Latvia's, Lithuania's, and Estonia's recycling rates are significantly below those of other European countries. The Baltics depend heavily on EU financial support. An increase in funding will contribute to the implementation of circular economy technologies.

A critical analysis of Hanseatic traditions may produce consequential methodological material for the study of the 21st century Baltic regionalisation. Current trends in the development of the Baltic region, whose academic analysis is impossible without considering earlier cases of successful interactions between the peoples of the Baltic Sea region, necessitate political, economic, and historical research on the strengths and weaknesses of the Hanseatic League. Unfortunately, in the 21st century, the Baltic region turned into a stage for geopolitical controversies. This took a toll on the efficiency of cooperation between the cities of Russia’s North-West and their Baltic counterparts. Therefore, it is important to seize the opportunities provided by the information society and focus on the innovative areas of regional cooperation. An interesting example is the partnership between Baltic universities, which is aimed to draw up an international agenda for sustainable regional development. Baltic cities are involved in various forms of cross-border cooperation, providing opportunities for interstate relations and contributes to laying down crossborder cooperation roadmaps and developing civil society networks. It can be concluded, that the history of the Hanseatic League and its current incarnation — the New Hanse — testify to the fact that productive economic, cultural, and other relations can be established between states but also between cities and universities, thus contributing to closer economic, political and cultural ties between the peoples of the Baltic region.

This article considers the legitimacy of political regimes in the Baltic States by analysing three major parameters: confidence in political institutions, level of corruption, and the development of their party systems. The author identifies the major crisis trends in the legitimacy of the political regimes of Lithuania, Latvia, and Estonia. The article stresses the problem of legitimacy reproduction resulting from the limited representation of the national party systems. Special attention is paid to compensatory mechanisms used by political elites to "artificially" reproduce legitimacy. It makes sense to analyse the deficit of legitimacy in the Baltic States not only in the context of threats to democratic institutions but also considering weaknesses of public institutions and insufficient resources to ensure stateness. This requires developing a hypothesis about smaller states "importing" legitimacy from larger states and intergovernmental organisations, in whose zone of influence they are included. In other words, the EU and NATO can provide smaller states not only with economic and military resources but also legitimation "resources" using their prestige to support the belief of local residents that there is no alternative to the current political system of social organisation. Legitimacy deficit increases the risks of a rift between political elites in the Baltic States, which can become a prologue to a deep political crisis. In these conditions, compensatory mechanisms cannot be considered as targeted exclusively at broad social strata. They are also aimed at political elites, whose consolidation or "encapsulation" is achieved by exaggerating external threats and resorting to repressive measures in an attempt to develop an ethnonational consensus. These methods are used to ensure self-preservation of the Baltic States political regimes within the current ideological and institutional configuration.