On 12 January 1996, the Agreement on Demarcation of Powers between Public Authorities of the Russian Federation and Kaliningrad Region was concluded between the Russian Federation and its federal subject, the Kaliningrad Region, a northern part of the former East Prussia.  The Kaliningrad exclave has been granted special rights according to this agreement.  Priorities for the Region’s economy are: regulation of cargo and passenger transit, restructuring of the economy, establishment of a transport centre or a centre providing commercial and financial services.