BSR Policy Briefing 5/2025

Kaliningrad’s Economy: Vulnerabilities and Performance
By Artur Usanov

Kaliningrad is Russia’s semi-exclave region in the Baltic Sea region and is surrounded by two EU and NATO members: Poland and Lithuania. This location implies several vulnerabilities for Kaliningrad’s economy mainly related to the transit issues. After the start of the full-scale Russo-Ukrainian war and the subsequent economic sanctions imposed on Russia Kaliningrad’s vulnerabilities turned into serious economic problems. Initially their impact on the economy was significant.  However, the federal government was ready to spend money to support the region and Kaliningrad was able to avoid the worst.  As a result, the productive side of the economy suffered a decline in 2022-2023 as measured by GRP while personal income grew strongly.  Overall Kaliningrad’s economy tends to follow general Russian economic trends.

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