The Kaliningrad region of the Russian Federation became an enclave in the EU as a consequence of the EU enlargement in 2004. The EU recognized Russia’s concerns about a possible negative impact of the enlargement on transit of persons and goods between Kaliningrad and the rest of Russia. This led to an agreement between the EU and Russia on 11 November 2002 on a transit regime for persons. A joint statement of 27 April 2004 contains provision to ensure efficient transit of goods.

The region suffered economic decline in the 1990s. However, since 2001 economic growth in Kaliningrad has been faster than the Russian average. This has partly removed the worry expressed in the Commission’s com¬munication from 2001, that Kaliningrad would become a pocket of poverty inside the EU with sharp economic disparities towards the neighbouring Polish and Lithuanian regions.

Kaliningrad has status as Special Economic Zone which entails favourable rules for payment of customs duties. This has led to establishment of plants for assembly of goods for the Russian market based on imported parts. New rules introduced in 2006 give tax incentives for large investments.

Kaliningrad is becoming an important hub for export of Russian raw materials (i.a. wood) and for import of manufactured goods from the EU. Tourism and other services have been developing rapidly. The region has almost 1 million inhabitants.

EU Policy Aims

• To promote sustainable development of Kaliningrad as an integral part of both Russia and the Baltic Sea region.
• To help ensure efficient transit of persons and goods between Kaliningrad and the rest of Russia and to solve practical problems that may arise as a result of the region’s enclave position in the EU.
• To help protect the environment in Kaliningrad and the Baltic Sea region.
• To make Kaliningrad a positive example of cooperation between the EU and Russia.

EU actions

TACIS and other EU instruments have been active in Kaliningrad since 1991 and have provided over €100 M for projects in the region. A special envelope of €25 M under TACIS was created in 2004 to support economic and social development. Kaliningrad is included in cross border programmes in the period 2007-13. The EU is a major donor to the Northern Dimension Environmental Partnership Support Fund which helps finance environment related projects.  

Examples of projects financed by the EU:

A number of projects have been aimed at solving the problem of long queues of lorries waiting to cross the border into Kaliningrad. Russian and Lithuanian customs authorities work with the Commission to make transit arrangements function smoothly.

The Chernyshevskoye border crossing point (€8 M investment) on the Lithuanian border was opened in October 2009. It has capacity to handle the high volume of traffic on this important trade route.

A border crossing project at Mamonovo (€13.3 M investment) on the Polish border to handle heavy road traffic started in 2007. Construction work was completed in December 2009.

The EU is co-financing the upgrade of waste water plant facilities. A waste water treatment plant in Gusev with an expected total cost of €6.5 M is jointly funded by the EU (€3 M) and the regional authorities.

A programme to upgrade waste water plant facilities is being implemented. The EU contributes with €9.5 M, the Nordic Environmental Finance Corporation (NEFCO) contributes with €0.5 M and the Kaliningrad Region is expected to contribute with approximately €10 M under a loan through NEFCO.

An administrative capacity building project (budget €6.7 M) includes components for promotion of the region as an investment location and for e-government in the regional and municipal administrations.

See also:

• Kaliningrad: Transit, Communication from the Commission to the Council, COM(2002) 510 final - 18/09/2002
• The EU and Kaliningrad, Communication from the Commission to the Council, COM (2001) final - 18/01/2001