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It is the interest of whole Europe that Kaliningrad Region
as a compound part of the Russian Federation would begin
to develop its economic and social sectors more successfully.
We can assume, it may become an economic and transport centre
between the Russian Federation, some CIS countries and the
European Union. It is also stipulated for in the government
programme for the development of the Special Economic Zone.
Proximity to Germany, expectations of some Russian public
authorities and local entrepreneurs and politicians indicate
positive signs for German economy.
The Region is attractive by its natural resources. 95%
of the world’s amber reserves is concentrated here,
there are off-shore oil deposits, peat, mineral water, mine
salt and wood. Industry represents fishing and fish processing,
shipbuilding and ship repair, electronics, electrical engineering,
construction, agriculture, production of foodstuffs and
production with cheap labour force. The skilled and disciplined
personnel is available. In Kaliningrad, there is the State
University, Technical University and Baltic State Academy.
In Kaliningrad Region direct investment are possible in
all production sectors.
Due to the steady political relationships in the Kaliningrad
Region medium and long term strategies are feasible. The
Region has the second largest Russian port on the Baltic
Sea. It is an ice-free port and serves as the most important
gateway to the European part of Russia including Moscow
and to Belarus. Relations with the neighbouring countries
are good, particularly with the main transit country, Lithuania.
In 1997, owing to the special economic status inflation
was lower than in the rest of Russia by 50%. Wages are lower
in Kaliningrad Region than in Poland or Baltic countries
and are about RUB 1,500 (about DM 125) for unskilled labour
and are up to RUB 3,000 (about DM 250) for skilled personal.
Since Kaliningrad Region is not only trading but also producing
in Russia, it has become possible to evade import quotas,
excises and restrictive measures of the Russian government
and to gain extra chances due to the free customs zone.
In the short run, the most favourable prerequisite is the
availability of the cheap labour force.
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