KALININGRAD - THE FREE ECONOMIC ZONE I N RUSSIAN FEDERATION
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General information about Kaliningrad Region

The population of Kaliningrad Region is about 1 million inhabitants, of these, 400,000 live in the city of Kaliningrad.  The Region comprises 15 thousand km2 and is entirely separated from the rest of Russia.  It borders on Poland in the south-western part, it is surrounded by Lithuania from south-east to north and borders on the Baltic Sea in the western part.

Relationships with the Baltic countries and special agreements with other neighbouring countries provide the basis for the Region’s foreign policy.  The relationships will change when Poland and the Baltic countries join the European Union. 

Kaliningrad is home for the Russian Federation Baltic Navy.  After World War II, the Region was a closed military base of the Soviet Union.  Since the collapse of the USSR, Russian nationals, especially from the Baltic countries and other countries of the former Soviet Union, came to Kaliningrad.  Despite the fact, that some Germans, primarily from Kazakhstan and Kirghizia, emigrated to the Region, the proportion of the German nationals is often overestimated.  According to the statistics, it accounts for only 0.1 per cent.  Only some fragments are left from the German past, and the Region with the support of German organisations considers keeping the monuments in good condition to be very important.  On 24 October 1998, the Königsberg cathedral was reopened.  Due to the German donations collected, first of all, by "Die Zeit - Stiftung Ebelin und Gerd Bucerius Fund", another roof and new bells were erected on the cathedral located in the centre of the city.  Nationalities of the Kaliningrad Region represent the multi-national structure of the former Soviet Union.

Since the fall of the USSR, the Russian government has reduced the amount of subsidies earmarked for the Region.  For this reason, the Region incurred a severe economic crisis.  A wide range of companies involved exclusively in the production of military and space equipment lost the basis for existence.  Also, the local producers were unable to resist the hard competition, especially from the neighbouring countries.  Agriculture is of vital importance for the Kaliningrad Region, which is not being developed, however.  At present, about 68% of goods are imported.

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