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This article explores the spread of the Covid-19 infection in Russia’s Baltic macro-region. The monthly excess mortality rate in the Baltic region is analysed along with regional and municipal Covid-19 response acts to identify regional features affecting the spread of the disease. The spatial characteristics of Russia’s Baltic regions, germane to the propagation of Covid-19, were distinguished by examining selected social and economic statistical indicators. Based on the space of places/space of flows dichotomy, Russia’s Baltic regions can be divided into three spaces: 1) St. Petersburg, the Leningrad and Kaliningrad regions (dominated by spaces of flows; highly permeable space); 2) the Republic of Karelia and the Murmansk region (the key factors are rotational employment and the introduction of the virus from without); 3) the Novgorod and Pskov regions (lowly permeable spaces of places; the central role of local foci of the disease). The principal risk factor for the space of flows is the rapid spread of Covid-19 along transport arteries, whilst, within the space of places, the coronavirus spreads through spatial diffusion from isolated foci along short radii. In the former case, local authorities counteracted spatial diffusion by restricting movement in the local labour market; in the latter, by limiting travel between the centre and the periphery. The traditional ideas about positive (openness, centrality) and negative (closedness, peripherality) characteristics of space are reversed in the context of the pandemic: periphery gains the benefit of natural protection from the pandemic, whilst centres become acutely vulnerable.

Global manufacturing systems function in such a way that countries develop industrial spe­cialisation, which leads to territorial disparities. The countries of the Baltic region are no exception despite their strong economic ties and developed industries. A signifi­cant element of any manufacturing system is its scientific and technological subsystem, which is described in this article for ten countries (Germany, Sweden, Denmark, Nor­way, Finland, Poland, Estonia, Latvia, Lithuania and Russia), based on an analysis of a clustered set of national character­istics: R&D financing and staffing in the scientific and technological subsystem. A total of ten indicators, absolute and relative, are investigated. The study relies on combined grouping, graphical and cluster analysis to build a typology of countries and distinguish their types ac­cording to their scientific and technological excellence As a result, a typology of the countries of the Baltic Sea region has been pro­posed and types of countries with similar characteristics have been identified: the two main types are traditional market economies and post-socialist countries, whose common features are observed in all sets of main characteristics. Several subtypes are described as well. The research draws on 2010—2019 (2020) statistical data from the European Statistical Office (Eurostat), the Organization for Economic Co-operation and Development (OECD) and Russia’s Federal State Statistics Service (Rosstat).

This paper examines the transformation of the territorial structure of tourism in Estonia, Latvia and Lithuania. The spatial and temporal organisation of tourism in these countries has undergone significant changes since they became independent and joined the EU. These changes have affected the geography of tourist flows and destinations of interest. This study aims to define the geographical and economic peculiarities of the development of tourism in the Baltic States and to identify the central, peripheral and semi-peripheral regions. Elements of the centre-periphery structure were identified through cluster analysis covering the period 2009—2019. Eleven indicators were used to determine the level of socio-economic development, the state of inbound and domestic tourism and the degree of transport infrastructure development. The results of the study suggest that there have been progressive changes in the territorial structure of tourism in the Baltic States. The main centres of attraction are the capitals and their adjacent territories. Horizontal contacts with more developed regions of the EU states and vertical interaction with other regions of Estonia, Latvia and Lithuania have a significant impact on the development of tourism activities. Central regions are dominant in terms of attracting tourist flows. This is characteristic of a highly polarized tourism structure. However, many semi-peripheral and peripheral regions have lately improved their position, being integrated into national and cross-border tourism routes and increasing outreach in the tourism market.

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.

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.

Tourism suffered more than many other sectors amid Covid-19 travel restrictions. This article looks at the impact of the pandemic on the territorial redistribution of tourist flows in the Baltic region. The study draws on regional annual and monthly data on international and domestic tourist arrivals between 2019 and 2021, available on the websites of the statistical offices of the Baltic Region countries. The regions earlier dependent on tourist arrivals from Russia experienced the largest drop in inbound tourism during the Covid-19 pandemic. Yet, domestic tourism burgeoned in most of the region’s countries. In 2021, the most dramatic increase in domestic arrivals occurred, year on year, in the border regions of Russia’s Northwest Federal District; the growth was also notable in Finland and the Baltic States. Domestic tourist flow compensated, partially or even fully, for the decrease in inbound tourist flow in most regions. The structure of inbound tourism changed markedly during the pandemic, with the share of tourists from the Baltic States growing. The strongest rise was in some regions of southern Finland and more modest in Latvia and Lithuania.

This article examines the current military-political strategy of France in the Baltic region. This area has not traditionally been among the main priorities of French diplomacy. However, under President Emmanuel Macron, France pays closer attention to the Baltic Sea due to the growing tension between Russia and the West. According to France’s key strategic documents, the government assesses the present-day situation mainly in a negative way, considering Russian actions as the main reason for the militarization of the region and expressing its readiness to show solidarity with NATO allies. On this basis, Paris is gradually increasing its military presence in the Baltic region, which now exceeds its contingents in the Middle East and the Sahel. For example, French forces still participate in the NATO air policing programme as well as in naval exercises, keeping the troops in Estonia within the Lynx mission. France’s further activity in the region includes enhanced cooperation with Sweden and Finland after they accede to NATO, an already planned increase in military contingent in the Baltic States in 2023, and the development of the European Political Community project. The author concludes that even if France’s presence in the Baltic does not yet pose a critical threat to Russian security, Paris’s policy is becoming more pro-Atlantic to the detriment of previous statements about ‘European sovereignty’ and dialogue with Russia.

This paper explores the Estonian vision of Baltic identity. Estonia’s authorities have repeatedly articulated their scepticism towards the concept of a stand-alone ‘Baltic region’ and the inclusion of Estonia in it, preferring to position their state as a Nordic country. Yet, in numerous cases, they have clearly labelled Estonia as a Baltic State. To identify the contexts and meanings labelling the country as a Baltic State, this contribution provides a content analysis of official speeches given by Estonia’s political leadership. It is concluded that, despite the visibility of socioeconomic issues in the discourse, the most comprehensive image of Estonian ‘Balticness’ is constructed by interconnected narratives built around the Soviet past and the ‘security threats’ associated with Russia. The theoretical framework of regionalism, which allows one to consider the Baltics as a social construct rather than a set of material factors, provides an additional explanatory model.

This article aims to analyse migration from the post-Soviet space to the northeastern periphery of the EU (Poland, Lithuania, Latvia, Estonia) and examine 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.

Today Russia has difficulty doing business-as-usual with EU states. It seems that the countries of the Visegrad Group (V4) and the Baltic Assembly/Baltic Council of Ministers (BA/BСM) have contributed substantially to this state of affairs. Overall, the tensions between Russia and the EU are building up — another tendency that did not arise on the Russian initiative. This article aims to address the question of whether Russia should establish direct relations with the V4 and the BA/BCM as tools to overcome the mentioned difficulties. On the one hand, these associations date back to before the countries acceded to the Union. On the other, they are products of regionalisation in the EU. In answering this question, we achieve three objectives. Firstly, we look for an appropriate theoretical and methodological framework for the study. Secondly, we produce a comparative description of the V4 and the BA/BCM. Thirdly, we examine the capacity of these associations to pursue an independent foreign and domestic policy. This study uses a comparison method to analyse the activities of the two organisations and identify their significance for the EU.

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 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 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 the unique resources of coastal territories along with a technology-driven growth of the blue economy sectors can counterbalance the negative impact of the uneven development of these territories 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 building 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 Baltic Sea countries is analysed to determine national features and explore the possibility of translating the Baltic experience into practice in Russia. The research uses methods such as 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 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.

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 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 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.

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 for developing international cooperation platforms and indicate regional problems of international concern.

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 geoeconomic 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/socio-demographic risks.

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.

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.

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.

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 or 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 visualization. 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. © Satyr, L. M., Zadorozhna, R. P.,Stadnik, L. I. 2021.

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 criticized as outdated and inconsistent with the 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 countries, 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 wave 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 the 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.

The impact of integration processes on language learning and usage is traditionally evaluated in the literature through the prism of sociolinguistics or soft power. This article proposes a new conceptual approach based on measuring various aspects of competition between languages. The language integration and monopolisation indices and the multilingualism coefficient serve as measurement tools. The approach is tested on the situation in the Baltic region of the EU. The article uses data from Eurostat, Eurobarometer, and the Baltic statistical offices to analyse the performance of Baltic language markets by assessing the impact of EU integration on the use of languages in the region. The findings show a growing tendency towards multilingualism in countries participating in integration associations. Integration bodies, however, do not give one language precedence over others but encourage the interpenetration of the languages of their leading economies. The main factor behind the demand for a language is the strength of commodity and labour markets in the country where it is spoken. The article concludes that close economic and political integration stimulates heterochronous processes in supranational associations. The first one is increasing monopolisation in the language market of the association and the language markets of its sub-regions. The second process is a decrease in monopolisation in national language markets.

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 (GVC) and operations of multinational companies is much more resistant to geopolitical and economic shocks than traditional international trade In particular, 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 as 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) as a response to the long-term structural challenges faced by Russia and the Baltics in creating a new generation of internationally competitive firms;(3) as a result of companies tackling the effects of the pandemic against the background of historically stable relationships;(4) as 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 © 2020 All Rights Reserved

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.

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 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.

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.

The Pârâul Pețea Nature Reserve is located in Bihor County (Romania), in the area of the Băile-Felix rural tourist system. It has gained international popularity due to the existence of an ecosystem with thermal waters. Thermal springs are the habitat of rare fauna (Scardinius racovitzai, Melanopsis parreyssi) and flora species including the unique Nymphaea lotus var. thermalis, a tertiary relict lotus flower. Situated on the Hel Peninsula of the Baltic Sea, Hel Marine Station (HMS) is one of the most interesting tourist attractions thanks to the project aimed at the protection of the grey seal in the Polish waters. We employed a number of tools and methods (including observation and monitoring) over a period of three years for the creation of a comprehensive database. We studied the actual condition of separate elements of the two tourist systems and compared the two tourist destinations. We identified differences and similarities between the two places. The lotus flower and the grey seal have become an integral part of the local, national and international collective mentality. Special attention was paid to the causes of almost total extinction of rare species despite being indispensable elements in the promotion and rebranding of the two tourist destinations. We explored the degree of knowledge and the awareness of their value in the local mentality.

This article examines the implications of the deployment of the US ballistic missile defense (BMD) system in the Baltic and Nordic regions. These implications are to be considered to ensure Russia's military security. Using the structural-functional method, the authors analyse the internal structure of the US BMD in Europe, stages of its implementation, and its influence on the military equilibrium in the region. Being similar to other regional missile defence systems of the Pentagon, BMD in Europe increases the offensive capabilities of the US armed forces and its allies and in doing so, it stops performing a purely defensive mission declared by Washington. It is stressed that the deployment of mobile sea- and land-based BMD elements in the Baltic Sea region and Nordic countries will inevitably destabilize the strategic situation and may lead to a new round of arms race in the region. The efficacy of BMD in Europe is evaluated from the perspective of military technology. The system’s potential threats to Russia's military security and its armed forces are assessed. The article considers measures to enhance national security that could be taken by Russia provided the US plans to deploy BMD in Europe are fully implemented.

During the last 25 years, the economy of the Baltic States has been developing in the conditions of sovereignty, both de facto and de jure. This period has been sufficient to identify regular patterns in the national economic models. Studies into the nature of the economic development of the Baltic States have a considerable practical and scientific significance. On the one hand, the three Baltic States are a part of the post-Soviet space. The nature, success or failures of their economies contribute to a more accurate assessment of Russia's development. On the other hand, it is the second decade of the Baltic States' EU membership, and the countries' experience is very relevant. The article identifies and analyses key characteristics of the Baltic States’ economic model. The author puts forward a hypothesis on two stages of the economic transformation undergone by the Baltic States. The first stage is characterised by a combination of transformation and modernisation whereas the second - by transformation accompanied by a number of destructive trends in the economy. The current economic model demonstrates limited stability, partly due to deliberately severed economic ties with Russia.

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.

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.

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.

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.

This article focuses on Latvian contribution to European security, which, for the purposes of this study, is understood as a territorial system of regional security. Such system is a combination of interconnected institutions with Latvian participation operating in the field of security, Latvian cooperation with other European countries in the field of security, and the European perception of major security challenges and threats (that Latvia may or may not agree with). A systemic approach to studying the role of Latvia in the territorial system of European security requires a solid theoretical framework. The theories of international relations discussed in this article fall into two categories: those where territorial security systems are viewed as a product of external factors, and those that focus on internal regional factors. In this article, the authors rely on a variety of methods, including those that are characteristic of classical theories of international relations (such as realism and liberalism), and those employed in social constructivism studies. It is concluded that Latvian cooperation with institutions and countries of the territorial system of European security is rather limited, which indicates either a lack of the country's integration into the system or a crisis of the system itself. An important result of the study is the validation of a systemic approach to studying regional security systems. This angle proves particularly useful in identifying crises of territorial systems of regional security in various regions of the world.

The article scrutinizes Lithuanian foreign policy within the framework of the regional leadership concept first introduced in the early 2000s. The reasons of failure of the first leadership attempt in 2004-2008 are analyzed, as are the reasons behind the revival of the concept in 2010 and onwards. While the overall economy seems to be on the mend and the relationships with the adjacent countries (Poland, mostly) are improving, Lithuanian leadership, argues the author, is still very much a subcontract one: it follows the model of "export democracy", has a narrow agenda and is implicitly geared towards curtailing the influence of its eastern neighbor. The escalation of violence and further development of social and economic crisis in Ukrane make a European-style reform (where Lithuania is a selfproclaimed expert) even less relevant, and confrontational rhetoric towards Russia may lead to economic losses and contribute to rising political tension in the region.

This article examines the views of modern Russian scholars A. Dvornichenko, M. Krom, A. Filyushkin, and S. Mikhalchenko on the pre-revolutionary and Soviet historiography of medieval Lithuania. Chronological problem analysis constitutes the methodological framework of the study. Special attention is paid to the priorities of the Russian scholars in the analysis of the pre-revolutionary and Soviet Lithuanian studies. It is shown that the disintegration of the Soviet Union marked a new period in research on the historiography of medieval Lithuania. The activation of historical and historiographical studies was a result of a revision of views of Lithuanian past. The authors believe that modern historiography exhibits a “nostalgic” attitude to pre-revolutionary works, while the reception of the later, Soviet-era publications is more critically inclined. Post-Soviet historians do not restrict themselves by describing previous historiography: they also consider factors behind the change in the attitudes to Lithuani an past. Thus, the scholars pay special attention to studying the connection between the political situation and the evolution of the views of Russian scholars on the events of Lithuanian history.

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.

The need to enhance the competitiveness and innovation capacity of small and medium enterprises is one of the key objectives of emerging EU economies. In this regard, the authors define the role of knowledge in enhancing business competitiveness in a regional economy. The effect of knowledge management processes on the economic activity of businesses in the Latvian region of Latgale is considered. To assess the role of knowledge and knowledge management processes, the authors apply integrated metrics calculated with the help of correlation analysis based on a 2013 survey of managers and staff of SMEs in Latgale. An assessment of the role of knowledge and knowledge management processes in SMEs of Latgale region using the SPSS programme shows that the knowledge and experience of employees have is at an average level of development - from 2.9 to 3.6 on a 5 point scale. It suggests the possibility of that the processes of knowledge management are not used to their full capacity at the regional small and medium-sized businesses; therefore, there is untapped potential for enhancing the competitiveness of these enterprises. The study emphaisises the need for regional businesses to interpret new knowledge as a key value for developing the competitive and innovative potential.

International cluster is a relatively new form of spatial organization of economy in the process of globalisation, which has become a frequent phenomenon in European countries, including those of the Baltic region. This phenomenon requires a comprehensive study of both regional economics and economic geography. The aim of this article is to identify structured international clusters in the Baltic region and to map out corresponding regions. The obtained results will enable us to get a comprehensive idea of the aggregate of international clusters, which already exist and are emerging in the region. It will also make it possible to put forward a hypothesis about the prerequisites of their formation. The methodological framework of the research is an integrated case study. The article showcases the processes of transboundary and transnational regionalisation in the Baltic region countries, which are aimed at the development of international clusters. ‘International cluster’ is defined as a new form of spatial economy. The author identifies and maps out organised international clusters and cluster initiatives in the Baltic Sea region countries. International clusters of the Baltic region are characterised in compliance with the following criteria: the degree of geographical localisation, the organisational type of formation, and specialisation areas. The author speculates about the degree of involvement of Russian regions in the processes of international cluster cooperation in the macroregion.

The article analyzes the development of EU — Russia energy relations through the lens of the evolution of three parameters: the political agenda (the Energy Dialogue), the institutional structure, and the legal modalities. The identification of these three aspects for assessing the evolution of EU — Russia energy relations is the novelty in the author’s approach. This study aims to identify the previous stages and assess the current state of EU — Russia energy dialogue, since they set out conditions for energy cooperation in the Baltic Sea region. This research is based on a political and legal analysis of various documents and employs various international relations theories (including integration theories). The article demonstrates that the EU nd Russia have made a transition to the integration agenda manifested in the Energy Dialogue (its current goal is the creation of a common European energy market). The author describes the process of gradual consolidation of transgovernmental and transnational institutions, which leads to depoliticization of cooperation and mutual socialization of the partners. Finally, legal discussions on the development of common rules have become more constructive. In sum, the current situation in EU — Russia energy relations is favourable and positively affects cooperation in the Baltic Sea region.

This article is devoted to the issues of cross-border cooperation carried out by agents resident in the Pomeranian and Warmian-Masurian voivodeships. Among such agents there are non-governmental organizations. This article aims to identify the role of NGOs in cross-border cooperation and the predominant fields of their cooperation, as well as to assess their activity in attracting funding from European budgets. The article widely applies the results of surveys of NGOs conducted by the author, compares the results of performance reports submitted by these organisations within international projects, and offers the data presented in relevant publications (Euroregion Baltic documents and Phare CBC reports, Interreg IIIA and, Interreg IIIB, NMF, and Polish-Swiss Cooperation reports, as well as the data of the Central Department of Statistics). The research covers the period from the late 90s to 2012. The article highlights the difficulties agents face in forging and implementing cross-border cooperation, resulting from the mismatching definitions of the tertiary sector in Poland’s neighbour states.

This article describes civil protection activities of the EU in the framework of the Community Civil Protection Mechanism — a system for coordinating civil protection resources and in-kind assistance to countries stricken by natural and manmade disasters. By analyzing the legislation and actual activation of the Mechanism, the authors present the functioning of this system as well as the ongoing changes towards a more planned approach to providing civil protection. The authors address the issue of extending the current civil protection system by introducing preventive measures. The project, co-financed by the by the Civil Protection Financial Instrument, is used as an example of the introduction of preventive measures in the Baltic Sea region.