Kaliningrad, June 2002

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Publication Date 19/06/2002
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Kaliningrad is a region of Russia, located on the Baltic Sea and bordered by Poland and Lithuania. After EU enlargement, when Poland and Lithuania join the European Union (possibly in 2004), Kaliningrad will be a Russian Federation enclave surrounded by EU territory.

Russia feels that its citizens should be able to continue travelling freely between Kaliningrad and the rest of Russia but this has met with stiff opposition from the EU. Russian proposals for special 'transit corridors' without visas are not acceptable, either for the EU or the candidate countries. EU Member States have decided that, after enlargement, EU legislation will require Russians (and other third country nationals) crossing EU territory by land between Kaliningrad and the rest of Russia to have a valid international passport and visa. Under current plans, a visa regime will be introduced for Kaliningrad citizens on 1 July 2003.

Practical co-operation between EU and Russian authorities at the border will be necessary. The EU has requested Russia to facilitate this co-operation by concluding a readmission agreement. The EU has proposed to contribute substantial funds for infrastructure improvement at border crossings and improved border control. This would significantly shorten the current 5-hour waiting period to cross the Russian border. The EU stressed that bona fide persons should be able to cross the border as easily as possible and invited Russia to permit the opening of consulates in Kaliningrad, issue passports to her citizens, as well as to rapidly ratify the border agreement with Lithuania.

The issue, a high priority for the Spanish Presidency, has not yet been resolved with Denmark due to take over the rotating presidency on 1 July 2002. Following a meeting of EU foreign affairs ministers in Luxembourg on 17 June 2002 European Commission administrative officials and a committee of permanent member-state representatives have been tasked with examining the available options in consultation with Poland and Lithuania. Meanwhile, EU leaders will discuss the issue at the Seville European Council on 21-22 June 2002 when a compromise will once again be sought.

Background

Before the Second World War, the territory of Kaliningrad, then known as East Prussia, was part of the German Reich. It was separated from the rest of Germany by the so-called 'Polish corridor' which gave the Poles access to the Baltic, notably through the port of Danzig (now Gdansk). In 1945 the northern part of the territory was formally incorporated into the Soviet Union (the southern part was given to Poland). Its main asset is the city and port of Königsberg (renamed Kaliningrad in 1946 after the Soviet politician Mikhail Kalinin). Its main importance was as a military base and as the headquarters of the Soviet Baltic Fleet. The end of the Cold War resulted in the withdrawal of large numbers of military personnel from the area.

After EU enlargement Kaliningrad will become a Russian Federation enclave surrounded by EU territory. It is a region of 15,700 square kilometres (about one-third of the size of Denmark), with a population of 950,000. It is some 400km away from the Russian "mainland". Heavily militarised in the Soviet period, living standards have fallen even more steeply than the Russian average since 1990. Today, GDP is 35% lower than the Russian average and more than 30% of the population lives below the poverty line. Europol reports that the region is beset by crime.

Already Kaliningrad faces severe economic and social problems because of its isolation, widespread pollution, the lack of investment, and high crime rates; and the likelihood is that it will fall still further behind its neighbours as they begin to draw benefit from incorporation into the European Union. Enlargement of the European Union will have a lasting effect on Kaliningrad's development. The effect will be felt on the whole of the Baltic region and will influence relations between Russia and the EU. All these and other problems are outlined in the European Commission's Communication, The EU and Kaliningrad [COM(2001)26], published on 17 January 2001.

The EU and Kaliningrad

The European Union has provided significant EU support to Kaliningrad in the last ten years. It has financed a variety of projects, mostly through the Tacis programme, including large projects in the sectors of institution building, energy, transport, enterprise restructuring, management training and the environment. Kaliningrad has received €15 million of Tacis assistance with another €15m in the pipeline. Tacis activities were begun in Kaliningrad in 1991 and were increased in 1994, when Kaliningrad was selected as a priority region. In 1999 and 2000 new projects to be implemented in 2001 were identified. These include border crossing, waste management and health projects, the development of Kaliningrad's port, support to innovative SMEs and the promotion of trade and investment in Kaliningrad. EU current and future Member States are also active in the region, mainly in administrative reform, health and the environment.

On 17 January 2001, the Commission published a Communication The EU and Kaliningrad [COM(2001)26] which offers ideas and options for an EU debate with Russia, Lithuania and Poland on the future of Kaliningrad. The discussion paper outlines areas in which close co-operation is required, in order to take advantage of future opportunities offered by enlargement and to reduce the impact of existing problems confronting Kaliningrad. Practical measures to improve border management and facilitate border-crossing procedures are suggested, as well as initiatives in the transport and energy sectors. European Commissioner for External Relations Chris Patten said:

"I hope that this will be a vigorous debate on the opportunities and challenges the enlargement process brings to Kaliningrad and neighbouring countries and regions. Kaliningrad should not become a bone of contention between Russia and the enlarged EU. The Russian Federation, and in particular Kaliningrad, stands to benefit economically from enlargement. But Kaliningrad suffers from organised crime, environmental pollution and extensive drug and health problems. We should help - and not just out of altruism. These problems have obvious transborder implications. That is why we are presenting these proposals and why we are already involved in many projects. We will work closely with Russia, Poland and Lithuania to find practical solutions and seize the opportunities offered by future EU enlargement".
European Commission Press Release IP/01/66

The Communication claimed that Kaliningrad will benefit economically from enlargement, but at the same time it will face changes affecting the movement of people and goods as well as its energy supplies with the rest of Russia and with its neighbours. Suggestions for how to cope with these changes include:

  • carrying out, in the first half of 2001, an assessment of the trade impact of enlargement on Kaliningrad;
  • launching discussions between the EU, Russia, Lithuania and Poland to improve border management and speed up border-crossing procedures;
  • designing a multi-modal transport strategy with a view to securing funding for priority transport projects;
  • identifying key investment requirements to modernise the regional transport infrastructures;
  • assessing the possibility of using Community rules on small border traffic and transit;
  • facilitating visa issuance and managing migration flows efficiently (reducing cost of passports and of visas) and considering opening Member States' consulates;
  • concluding quickly a readmission agreement with Russia;
  • assessing possible scenarios for Kaliningrad's future energy supply;
  • reviewing consequences of enlargement on fishing access and on the future fisheries agreement between the EU and Russia;
  • discussing key issues of environmental concern in Kaliningrad.

In his speech The EU and Russia - the way ahead, Chris Patten says:

"This paper includes some of the very practical issues like visas and border formalities for travel between Kaliningrad and the rest of Russia and for trade and other economic links. I hope that, by putting the questions on the table, our paper will help us work towards constructive solutions".
European Commission Press Release SPEECH/01/11

Moscow was apparently surprised by the cooperative tone of the communication. Kaliningrad is a showcase and could be a pilot for future EU-Russia relations. The EU is opposed to making too much of a special case of Kaliningrad. In particular, it is opposed to any new treaty, saying that the enclave is fully covered in the general Partnership and Cooperation Agreement (PCA) between the EU and Russia.

The European Parliament's view is that Kaliningrad, as part of Russia, is essentially a Russian responsibility. A parliamentary delegation visited Kaliningrad in April 2001. In its Draft Report on the Communication from the Commission to the Council on the EU and Kaliningrad.(also known as the Hoff Report ), the Rapporteur , Magdalene Hoff says:

"Kaliningrad is a test case for the PCA between the EU and Russia: are the partners able to find a solution for Kaliningrad together, resolving a common problem in a spirit of partnership?
There is an urgent need to put a stop to the economic and social collapse of Kaliningrad. Otherwise, a dangerous hot spot would emerge in the midst of the EU's Baltic region, forming a permanent source of unpredictability, instability, environmental degradation and crime. Domestic and foreign investors would be even less willing than before to provide investment. The financial gap at the EU's eastern borders would become wider. The situation would encourage separatist tendencies in Kaliningrad, putting further pressure on international relations in the Baltic region.
... but above all it is Moscow which has primary responsibility for the area ... the first concrete steps must be taken by Russia. It is Russia which will decide on the status of Kaliningrad - that must be the principle underlying any negotiations".
HoffReport

The Northern Dimension

The Northern Dimension in the external and cross-border policies of the European Union was first recognised at the Luxembourg European Council in 1997 and covers the Baltic Sea region, the Arctic Sea region and North West Russia. It addresses the special challenges of these regions. Its aim is to increase cooperation between the EU member states, the EU applicant countries and Russia, creating security and stability and addressing the problems related to uneven development in the region - not the least of which is Kaliningrad.

It is implemented within the framework of the Europe Agreements with the Baltic States, the Partnership and Cooperation Agreement with Russia and the European Economic Area regulations. The areas for cooperation include: the environment, nuclear safety, energy cooperation, infrastructure, business cooperation, justice and home affairs, social development and Kaliningrad. The Northern Dimension operates through the EU's financial instruments available for the region: Phare, Tacis and Interreg. The Helsinki European Council (December 1999) asked the Commission to prepare an Action Plan for the Northern Dimension. This was adopted in June 2000 by the Feira Council, which identified environment, nuclear safety, the fight against international crime and Kaliningrad as the priority areas of the Northern Dimension. A report on the Action Plan is due at the end of 2002.

Council of Baltic Sea States

The Council of Baltic Sea States (CBSS) brings together Germany, Sweden, Denmark, Finland, Russian Federation, Estonia, Lithuania, Latvia, Poland, Norway and Iceland. Resulting from the Baltic Sea Declaration, (Ronneby, Sweden, September 1990) it was established in Copenhagen in 1992, with the objectives of fostering regional co-operation and stimulating the overall development of the Baltic region.

On 6 March 2002, at a meeting of Foreign Ministers to mark the tenth anniversary of the Council of the Baltic Sea States (CBSS), Commissioner Chris Patten underlined the important role played by the CBSS in promoting intensified co-operation among the Baltic States and securing a decade of overall development of the region. The Commissioner also stressed the importance of the CBSS contribution to the development of the Northern Dimension, one of the priority sectors for the EU's external and cross-border policies in the region.

Referring to the EU's determination to work with Russia on the unique situation of Kaliningrad, Commissioner Patten said:

"We need to explore common ground between Russia's wish to ensure easy transit ...and our own need to ensure our security. We cannot override our basic rules here, including Schengen, nor undermine the enlargement negotiations themselves. We are ready to continue making a major effort to find solutions to outstanding issues. With goodwill and a spirit of co-operation, there is a great deal we can achieve together".
European Commission Press Release IP/02/371

EU's relations with Russia

The legal basis for the EU's relations with Russia is the Partnership and Cooperation Agreement (PCA) of 1994, which came into force in 1997. The EU now has ten PCAs with countries in Eastern Europe and Central Asia. They are legal frameworks, based on respect of democratic principles and human rights, setting out the political, economic and trade relationships between the EU and its partner countries. Each PCA is a ten-year bilateral treaty.

The EU Common Strategy on Russia dates from June 1999 and is one of a series of strategies in response to the recognition (confirmed by the Amsterdam Treaty) that more coherence was needed between the EU and Member States' policies vis-à-vis certain other countries. It provides for an overall policy framework in the priority areas of:

  • Democracy, rule of law, public institutions
  • Integration of Russia into a common European economic and social space
  • Stability and security in Europe and beyond
  • Common problems (environment, crime, illegal immigration)

In addition, the EU provides both technical and economic assistance to Russia.

There are many opportunities for discussion between the EU and Russia. The Presidents of the Russian Federation, the European Council and the European Commission meet twice a year at an EU-Russia Summit. Meetings alternate between Brussels and Russia. The 7th EU-Russia Summit was held in Moscow on 17 May 2001, the 8th EU-Russia Summit was in Brussels on 3 October 2001 and the 9th EU-Russian Summit was in St Petersburg on 29 May 2002. There are also annual Cooperation Councils (ministerial level), annual Cooperation Committees (senior official level) and nine sub-committees dealing with technical issues. All meetings alternate between Brussels and Russia. In addition there is a Joint Parliamentary Committee (representatives of the European Parliament and the Russian Duma) which meets on a regular basis to discuss current issues. Kaliningrad has been the subject of debate at most of these meetings in 2001 and 2002.

The Kaliningrad issues were discussed under the Partnership and Cooperation Agreement (PCA) at the 7th EU-Russia Summit of 17 May 2001, after which a joint statement was issued, saying:

"We have committed ourselves to fostering the development of the Kaliningrad region. As referred to in the Commission communication on Kaliningrad issues such as movement of people, transit of goods, energy and fisheries will need to be addressed within the PCA framework, with a view to working out practical arrangements subsequently, with due respect to the Community acquis. The involvement of future Member States in the process of finding practical solutions for Kaliningrad is important and should be encouraged".
European Commission Press Release PRES/01/189

Developments in 2002

On 6 March 2002, at a meeting of Foreign Ministers to mark the tenth anniversary of the

Council of Baltic Sea States (CBSS), Commissioner Chris Patten spoke about the challenges and benefits of EU enlargement for Kaliningrad and underlined the EU's determination to work with Russia on the unique situation of Kaliningrad. The Commissioner stressed that:

"some people fear isolation and some fear a further burden on the region. The reverse is true. Enlargement offers first and foremost new opportunities for more co-operation, for better mutual understanding and more prosperity for the people of Kaliningrad".

The outstanding issue between the EU and Russia is Russia's demand for easy transit of people between Kaliningrad and the rest of Russia after EU enlargement and the EU's need to ensure its own security. Mr. Patten said.

"We cannot override our basic rules here, including Schengen, nor undermine the enlargement negotiations themselves ...[but] we are ready to continue making a major effort to find solutions to outstanding issues. With goodwill and a spirit of co-operation, there is a great deal we can achieve together".
European Commission Press Release IP/02/371

In a speech to the European Parliament's Plenary Session on 14 May 2002, Commissioner Chris Patten said:

"The Commission has made huge efforts to work with Russia on Kaliningrad, addressing both the impact of enlargement and future development policy as part of a comprehensive approach. We have made clear our willingness to increase financial and technical help to deal with challenges faced by Kaliningrad, to facilitate co-operation between customs/immigration authorities in Russia, Lithuania and Poland, and to address movement of persons and transit issues by exploring the flexibility permitted by the Schengen acquis. Under excellent leadership from the Spanish Presidency, Member States have recently confirmed that we cannot derogate from the Schengen acquis, nor undermine enlargement negotiations themselves. Visa-free transit corridors are not acceptable to the candidate countries. I hope Russia will accept this and work with us to make border crossing, which is the real impediment to progress, quicker and easier. Efforts are needed from both sides since we need to agree on how to take forward some key issues before further assistance can be offered. In this context, we shall be looking for progress on a readmission agreement and improved co-operation on border management. We also hope Russia will make easier the establishment of consulates in Kaliningrad and in mainland Russia, and ensure that Kaliningraders are issued with passports that conform with international standards. We hope that the special meeting of the Co-operation Committee in Kaliningrad can make further progress on these issues with a view to the Moscow Summit".
European Commission Press Release SPEECH/02/201

On 15 May 2002, there was an EU-Russia relations special meeting in Kaliningrad [IP/02/721]. Following a decision to dedicate a special meeting of the Co-operation Committee to the impact of EU enlargement on Kaliningrad, it was decided to hold the meeting in Kaliningrad itself to underline the importance which both the EU and Russian authorities attach to this issue. The meeting of the Co-operation Committee was chaired by Catherine Day (Deputy Director General for External Relations of the European Commission). Maxim Medvedkov (Deputy Minister for Economic Development and Trade of Russia) and Governor Vladimir Egorov of Kaliningrad headed the Russian delegation. The agenda covered a wide range of issues including visas, border control, organised crime and environmental pollution as well as questions of security of energy supply and transport and telecoms links. The outcome of the Co-operation Committee was to serve as input for discussions on Kaliningrad at the EU-Russia Summit on 29 May in Moscow.

At the meeting, the EU underlined Russia's responsibility for Kaliningrad and its development. However, with enlargement approaching, the EU recognised the unique situation of Kaliningrad, as well as the particular challenges and opportunities that will arise for the enclave. The EU stressed its comprehensive approach to Kaliningrad and its willingness to discuss all issues in an open and constructive manner. It also highlighted the important financial support the EU is providing to help improve conditions in Kaliningrad and its willingness to continue to provide funding and expertise in the coming years

The EU has already committed over €40 million of assistance to Kaliningrad (to the end of 2003). In the meeting in Kaliningrad, the EU outlined a package of measures to help the enclave. This includes:

  • assistance with border control and customs infrastructure to ease visa-issuance and movement of goods;
  • work with Russia to boost economic recovery in Kaliningrad and halt the growing wealth gap between the region and neighbouring candidate countries;
  • co-operation on tackling transnational questions, notably combating crime, pollution and communicable diseases (Kaliningrad is an HIV hot-spot and tuberculosis levels are a significant concern).

The 9th EU-Russia Summit meeting on 29 May 2002 was dominated by the Kaliningrad issue. Arguments about the future status of Kaliningrad overshadowed the summit despite a decision to recognise formally Russia as a market economy. This was a "recognition and reward for the major reform Russia has undertaken in recent years". Kaliningrad dominated the summit and officials were unable to reach any agreement on it.

A joint statement was issued after the summit, saying:

Taking into account the legal and practical consequences of EU enlargement, Russia and the EU agreed to continue joint work with a view to reaching mutually acceptable solutions for the Kaliningrad region. This will be of key importance for the development of a strategic partnership between the Russian Federation and the European Union and for strengthening the atmosphere of good-neighbourliness and mutual understanding.
European Commission Press Release DOC/02/12

The impasse reflected the hard-line positions maintained by both sides, adding fresh urgency to the need to find a resolution ahead of the proposed introduction of visa regimes for Kaliningrad residents in July 2003. The EU insists that local people will in future be required to seek visas for travel through Poland and Lithuania in transit to Russia. The Russian government argues that transit corridors should be provided to maintain the status quo.

At the General Affairs Council in Luxembourg on 17 June 2002 ministers once again failed to reach a compromise. They tasked European Commission administrative officials and a committee of permanent member-state representatives with examining the available options in consultation with Poland and Lithuania but time is clearly running out for a resolution that was a high priority during the Spanish EU presidency.

Responding to mounting concern in Russia over the fate of its Kaliningrad citizens, the Polish president, Aleksander Kwasniewski, has suggested a flexible visa system (cheap, long-term, multiple-entry visas) for residents of the Russian enclave of Kaliningrad travelling to and from the rest of Russia.

In a speech to the 4th Baltic Sea States Summit, at St Petersburg on 10 June 2002,

Michel Barnier, European Commissioner responsible for Regional Policy and Institutional Reform, said:

"We are confident that, by discussing concrete issues in a truly co-operative spirit, we will find concrete solutions concerning Kaliningrad. The EU is ready to work with Russia on all aspects of Kaliningrad's future development within the Baltic region. Last month, we set out a comprehensive approach which would include facilitating the movement of people and goods, tackling the common challenges I have referred to and contributing to the economic development of Kaliningrad. At the same time, it is imperative that the solutions we find respect the wish of our present and future Member States to defend their borders and their security, and allow them to exercise all the obligations that EU membership entails. We are ready to commit still more resources to support these objectives, if Russia is ready to cooperate with us".
European Commission Press Release SPEECH/02/270

Further information within European Sources Online:

European Sources Online: Topic Guides
Information on European countries: Russian Federation
 
European Sources Online: In Focus
EU-Russia relations, May 2001
Russia strengthens its ties with the West, May 2002
 
European Sources Online: Financial Times
14.02.01: Call to make Kaliningrad mirror Hong Kong
09.04.01: Intense suspicion gives way to support; Russia and the EU
30.05.02: Status of Baltic enclave overshadows summit
07.06.02: Poland rejects Kaliningrad corridor hopes
15.06.02: Russia steps up pressure on EU to ease Kaliningrad visas regime
 
European Sources Online: European Voice
01.03.01: Moscow talks aim to ease enclave plight
08.03.01: Kaliningrad's well-placed ally
20.09.01: Schengen poses tough hurdle for candidates
17.01.02: Fear of Russian "isolation" after enlargement
14.02.02: Russia calls for "one pair of hands" to steer Kaliningrad
02.05.02: Prodi "no" to Kalinigrad free movement of citizens
06.06.02: Doubts grow over deadlock on Kaliningrad

Further information can be seen in these external links:
(long-term access cannot be guaranteed)

EU Institutions

 
European Commission: DG Press and Communications
 
Press releases
17.01.01: Commission launches debate on the impact of enlargement on Kaliningrad [IP/01/66]
10.04.01: Fourth meeting of the Cooperation Council between the European Union and Russia, Luxembourg, 10 April 2001 [PRES/01/142]
17.05.01: Russia - European Union Summit (Moscow 17 May 2001) Joint statement [PRES/01/189]
06.03.02: Commissioner Chris Patten highlights challenges and benefits of EU enlargement for Kaliningrad [IP/02/371]
16.04.02: Fifth meeting of the Cooperation Council between the European Union and Russia, Luxembourg 16 April 2002 [PRES/02/101]
16.05.02: EU-Russia relations special meeting in Kaliningrad [IP/02/721]
29.05.02: Russia - European Union Summit (Joint statement) [DOC/02/12]
Memos
16.01.01: EU-Russia relations. Visit of Chris Patten, 17-19 January
17.05.01: Background note on the EU Russia Summit (Moscow 17 May) [MEMO/01/178]
02.10.01: Background note on the EU Russia Summit (Brussels 3 October 2001) MEMO/01/308]
27.05.02: Press background note Ninth EU-Russia Summit meeting, Moscow, 29 May 2002 [MEMO/02/109]
Speeches
18.01.01: The EU and Russia - the way ahead (Chris Patten)[SPEECH/01/11]
06.06.01: The Northern Dimension and cooperation in the Baltic Sea areas (Chris Patten) [SPEECH/01/260]
14.05.02: EU-Russia Summit and Hoff Report on Kaliningrad (Chris Patten) [SPEECH/02/201]
28.05.02: EU-Russia relations, May 2001 (Chris Patten) [SPEECH/02/235]
10.06.02: The Northern Dimension in an enlarged Union (Michel Barnier) [SPEECH/02/270]
 
European Commission: External Relations website
Homepage
The Northern Dimension
Action Plan
Kaliningrad, June 2002
EU support to Kaliningrad
EU's relations with Russia
 
International Organisations
 
Council of the Baltic Sea States - CBSS
Homepage
Baltic Sea Declaration, Ronneby, September 1990
Baltic Sea States Summit meetings
1st Baltic Sea States Summit, Visby, 3-4 May 1996
2nd Baltic Sea States Summit, Riga, 22-23 January 1998
3rd Baltic Sea States Summit, Kolding, 12-13 April 2000
4th Baltic Sea States Summit, St Petersburg, 10 June 2002
European Union and the Baltic Sea region
 
Arctic Council - AC
Homepage
 
European Bank for Reconstruction and Development - EBRD
Homepage
 
Nordic Council
Homepage
 
Nordic Investment Bank - NIB
Homepage
 
Nordic Environment Finance Corporation - NEFCO
Homepage
 
Nordic Project Fund - NOPEF
Homepage
 
News services
 
BBC News Online:
15.02.01: Kaliningrad: proud past, uncertain future
15.02.01: EU visit for poverty-hit Kaliningrad
15.02.01: Russia's enclave of grim problems
05.03.02: EU talks to address Kaliningrad problem
06.03.02: Russia sounds Kaliningrad warning
03.05.02: Lithuania rejects Russia - Kaliningrad corridor
30.05.02: Russian press picks over EU meeting
07.06.02: Poland moots flexible Kaliningrad visas

Further and subsequent information on the subject of this week's In Focus can be found by an 'Advanced Search' in European Sources Online by inserting 'Kaliningrad' in the keyword field.

Freda Carroll
KnowEurope Researcher
Compiled: 19 June 2002

Background and reporting on the week's main stories in the European Union and the wider Europe.

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