Between fascination and distrust, Russia, the largest state in the world, has always aroused great interest in the West. It may be due to its troubled and exciting history, its culture, the immeasurable greatness that reaches from Eastern Europe as far as Asia, or perhaps, due to its influence and its importance, be it economic or political. What is certain is the fact that for us Europeans Mother Russia, "big and with long national routes", as Dostoevsky wrote, remains a puzzle.
We understand little of the policy administered with authority by President Vladimir Putin and we are surprised by the disastrous falls and the even more exceptional economic and social recoveries, which have always characterized the news of the Federation.
The Coronavirus pandemic is only the latest in order of time and has affected everyone without distinction, triggering a deep economic crisis. Russia has had to manage a particularly impetuous wave of infections, ranking in the first places after the United States, India and Brazil for the number of infections (to date more than a million cases) and a rigid lockdown of more than six weeks.
From 2017 until the arrival of the virus, the big country has been able to count on a gradual and constant growth. In fact, at the end of 2019, the World Bank witnessed an increase in gross domestic product of 1,7% (annualized figure), acceptable inflation (4% on average in 2019) and encouraging projections for 2020 and 2021 (1,6 , 1,8%, respectively XNUMX% growth).
As in other countries, Covid-19 has changed the cards, resulting in a significant downward revision of estimates, caused by an economic slowdown and the fall in the price of oil.
The Federal Statistical Service of Russia (Rosstat) and the Bank of Russia confirm this: in the second quarter of this year, Russian GDP contracted by 8,5%. The situation, however, unlike what was predicted in the spring, in full pandemic, seems to improve and it is estimated that the gross domestic product will suffer an annual decline of 5%, and then, in 2021, continuously improve and finally return to growth in 2022. .
All of this is part of a context that is already particularly complex in itself: the volatility of the ruble, a foreign policy committed to multiple chessboards and the weight of six years of sanctions following the Ukrainian crisis.
Inspired by a culture that places resilience at the center in order to achieve the desired success, the Russians have always been ready to sacrifice in the name of their country. Like the Bogatyri, invincible heroes of Slavic epic poetry, considered capable of making any effort, the Russian people know deprivation, but they do not break down, on the contrary, they transform it into an element of strength.
It was President Putin himself who admitted it during the Russia Calling Investment Forum, held in Moscow in November of last year: «Initially the sanctions created anxiety, but at the same time they spurred us to improve, to become more self-sufficient. The whole country has been able to progress to guarantee Russia greater autonomy in the economic and technological fields. Paradoxically, in commercial terms, the sanctions have caused greater losses to Europe, rather than to our Federation ».
The Russian government's aid to the economy following Covid-19 aligns with the same mindset, therefore, relatively contained. The package of support measures is around 64 billion euros, in addition to targeted contributions, such as subsidies to families, loans to companies and changes to the tax regime in order to tax higher incomes more. The goal is clear: Russia chooses the compromise in order to protect jobs on the one hand, especially small and medium-sized enterprises, and on the other hand, not to undermine reserves too much. It should also not be forgotten that the national projects, in place to stimulate growth, have enormous dimensions (planned investments of around 373 billion euros) and times, also thanks to the health crisis, which are expected to be too long before seeing positive repercussions. , think of the construction of bridges, roads, railways, but also those related to training and research.
However, there is no lack of will and initiatives.
In fact, the great Federation has been trying to diversify exports for some time. Within the Eurasian Economic Union (UEE), new trade agreements have recently been signed with Serbia, Singapore and Iran, although dependence on oil exports remains dominant (in 2018 black gold accounted for 65% of total Russian exports ).
Furthermore, it remains essential to underline that after having recovered from the fall of the Soviet Union, Russia has managed in a few decades to completely reprogram its economic system, trying to restore authority to the banks following the delusions of the 90s, stemming the black, increasing reserves (500 billion euros) and reducing public debt (14,2% of GDP). All this, while organizing the Winter Olympics in Soci in 2014 and the World Football Championships in 2018, events which, due to their resonance and presentation, have allowed the rest of the world to look at the former homeland of communism with different eyes.
Switzerland is showing growing interest in the Federation - as Economie Suisse testifies - by being among the ten most important foreign investors in the country. Confederate exports to Russia increased by 12% between 2017 and 2018 and mainly concern the pharmaceutical, machine and watch sectors. Our country, although aware of the problems relating to sanctions and the complex bureaucratic system, welcomes the Russian desire to increase labor productivity and advance in the field of digital technologies.
One of the most dynamic regions from this point of view, and therefore particularly attractive for investors, is certainly that of Kaliningrad, the most westerly of all Russia, located in the heart of Europe.
Russian exclave between Poland and Lithuania, overlooking the Baltic Sea, the Kaliningrad region covers an area of 15.000 square kilometers and is inhabited by about one million people. Bordering Poland to the west (35 km) and Lithuania to the east (70 km), Baltic Russia is far from Moscow (1289 km), but for it has always remained particularly strategic.
Conquered by the Red Army in 1945, at the time Königsberg, the capital of East Prussia and later declared a Russian territory and renamed Kaliningrad, it saw one of the bloodiest battles of the Second World War on the eastern front fought on its lands.
After the Potsdam Conference, the very rich Königsberg, the city that gave birth to Immanuel Kant, saw the total Russification of the area. Once the already decimated German population that still remained in the region was expelled to Germany, Kaliningrad, in honor of Mikhail Ivanovich Kalinin (from 1919 to 1946 President of the Presidium of the Supreme Soviet), became in all respects Soviet land. Pride of the USSR in the times following the Second World War and then during the years of the Cold War, the Kaliningrad region still remains today a flagship of the Russian presence in Europe. The town of Baltijsk, in the north-west of the region, located on the homonymous strait and meeting point between the Vistula lagoon and the bay of Gdansk, is home to the only Russian port free from ice all year round and where the fleet is maintained of the Baltic.
Loved by President Putin, who spends at least a few days of vacation a year in the seaside town of Pionersky, 30 km from the city center, the region has undergone extraordinary development in recent years.
A Russian outpost in Europe, although small in size, Kaliningrad holds an important geopolitical position for the Federation. Its economic and social progress aims to be a model and showcase for Russia to come.
In addition to boasting the most beautiful beaches in the big country and being named among the top five Russian cities for tourism in 2019, Kaliningrad has also been in the top positions for several years in terms of investments and trade. Old East Prussia ranks among the best Russian regions to move, live and do business. The quality of life, nature, its breathtaking landscapes and a priceless historical legacy make it one of the most interesting territories in Europe to bet on. The economic activities are manifold, from agriculture to fishing, from the extraction and processing of amber to the construction of industrial machinery, from shipbuilding to the food and pharmaceutical industry, without forgetting the ambition to become one of the high-tech poles. most prestigious countries of Russia, thus confirming itself as the leading region for nanotechnologies and microelectronics.
In this regard, the opening in April 2019, right in Kaliningrad, of the first engineering center in Russia of the Swiss Swedish multinational giant ABB (Asea Brown Boveri), a leading company worldwide in the field of electrical engineering, did not go unnoticed. .
More recent is the news of the creation of a production site for photovoltaic converters in the region by the Russian company Hevel Group, one of the most important in the country in the solar technology sector. The project's estimated investment volume is of considerable size and is around 20 billion rubles (about 220 million euros) and intends to employ up to 1000 people in the area.
However, Kaliningrad does not focus solely on the primary and secondary sector, the exclave wants to establish itself more and more in the services sector as well.
Since 1996 the region has enjoyed a special economic status (SEZ - Special economic zone). The latter, which guarantees tax benefits and incentives for the creation of businesses in the area, was enriched two years ago with several amendments, signed in person by the President. Among the most interesting, the one that confirms the creation of an offshore area (called SAR - Special administrative region), the only one in the country in addition to that of the Coastal territory, located in the Russian Far East (Vladivostok). The tongue of land in charge is located near the brand new stadium (built for the recent football world championships) and is called by the locals "Oktyabrsky Island", of October. On reflection, this tax free Russian island in the heart of Europe has everything, and perhaps even more, to rival other European islands with subsidized tax regimes, think of Jersey, Guernsey and Isle of Man, but also Cyprus. or to Luxembourg.
The rapid development of the Kaliningrad region, its constant improvements, so evident in recent years, are certainly related to the consolidation of an energetic and determined policy. It is well known that the President holds Russia's westernmost region in high esteem, welcoming its economic development and encouraging new initiatives. However, their realization is realized above all thanks to the actors active in the area. In fact, the young Governor Anton Alikhanov, born in 1986, has been working at the head of the region for almost four years, appointed Governor in 2016, at the age of 30 (then the youngest in the entire Russian Federation) and mentioned last year in the list of the 127 leaders under 40 years of age committed to changing the world compiled by the WEF (Young Global Leaders).
