Kaliningrad – the former jewel in Prussian crown is ‘Russian Alaska’

By Wieslaw Horabik

Date: 02/09/04

CVETA and Oleg run a modest boutique in the city centre of Kaliningrad and devote most of their remaining time to raising their baby daughter, Lena.

Her ancestry reflects 70 years of Soviet policies towards ethnic minorities. Cveta and Oleg can boast a variety of national legacies within the ranks of their families. After chasing away the German civilians from the conquered city, the Kremlin leaders repopulated the region with people from various parts of the Soviet Union. The family boasts Ukrainian survivors of the Great Hunger from the 30s, Belarussians formerly sentenced to life in Siberia, Jews isolated in a small autonomous republic on the Volga River and Russian victims of the Gulag Archipelago

"We are the living illustration of what modern Kaliningrad is," says Cveta, with a smile. "Being a kind of human melting pot, it is a part of Russia, yet it is so very different. We are simply the Kaliningraders, a multinational tribe, the funny lot."

Life is not that funny in the city, though. As Goran Persson, the Swedish prime minister, once remarked: "You just name any human disaster and Kaliningrad has it all."

As Königsberg, the proud capital of German East Prussia was once a city of magnificent palaces, monumental churches and spacious parks, the hometown of philosopher Immanuel Kant and the medieval seat of the Teutonic Knights. But now it has a negative reputation like no other part of eastern Europe and is undernourished and unloved. Cut off from the rest of Russia, bounded by the Baltic Sea, Poland and Lithuania, on 1 May it became a Russian enclave within the EU

Residents of Kaliningrad are 65 times poorer than citizens of "Old Europe" but also considerably poorer than people living elsewhere in Russia - 30% of the population of the province lives below subsistence level. Even though foreign direct investment is higher in Kaliningrad than in the Russian Federation as a whole, it is still much lower than in the neighbouring Baltic countries. There is a growing wealth gap between the region and Poland and Lithuania. Gross domestic product (GDP) per capita is two-thirds of the Lithuanian level and a quarter of Poland's. Industrial production has dropped by 60% since 1990. Before 1 May 2004, when the borders were tightened, the black market accounted for more than 60% of GDP.

Dubbed a "corridor of crime", known for AIDS epidemics, drug trafficking and decrepit blocks of flats, it offers the traveller a unique experience.

"We are a kind of Russian Alaska," says Cveta with a trace of bitterness in her voice. "The problem is, there are no gold mines here and we are not separated from the mainland by Canada."

Kaliningrad does have its equivalent of gold - amber. The city cannot prosper from it, however, since 90% of the mineral is smuggled out of the region. The collection in the Museum of Amber illustrates the unfulfilled potential.

Because of its high levels of nuclear waste, Kaliningrad is also the biggest polluter of the Baltic Sea after St Petersburg. The situation deteriorated because of endemic corruption and political stalemate.

But, above all, Kaliningrad is a huge warehouse. Everything here is cheaper. Beer and vodka are a third of what they cost in Moscow. It is the place to get smuggled cars and discount narcotics. There are 5,000 prostitutes on the streets and more in clubs and casinos.

There is not much left of the city's former splendour and glory which is hinted at in Kant's museum. The opera house and mansions of old Königsberg stretching along the city's canals were levelled during and after World War II. The Dom, or Cathedral, has only recently been restored by German foundations and individual donors. The city's central square is dominated by a huge statue of Lenin

Poland and Lithuania abolished visa-free circulation in and out of Kaliningrad in 2003 in the wake of an agreement reached between the EU and Russia in November 2002. That led to the creation of the so-called Facilitated Travel Document (FTD). The residents of Kaliningrad who want to travel to other parts of Russia and cannot afford to fly have to apply 24 hours in advance to the Lithuanian Consulate to get an FTD. Not too many are interested, however. Moscow is far away from here (more than 1,100 km). Warsaw, Stockholm and Berlin are much nearer. A recent survey found that 70% of the under-21s had never been to other parts of Russia, though most had visited Poland, Lithuania, Germany, Denmark and Sweden.

"I am proud of my Russian heritage," says Oleg, "but I'd like to have opportunities afforded to people living in the EU; particularly since we are located at the very threshold of the European Heaven. But there are visas and we feel locked up in a reservation."

The European Commission has launched an assistance programme in the area. Since 1991, the EU has provided Kaliningrad with roughly €40 million in TACIS assistance.

"People thought at first that the money would be spent on something you can physically perceive (buildings, roads, hospital equipment, etc)," says Natalya Khaliuk from the TACIS Kaliningrad Supporting Bureau. "It took time to understand that TACIS is a technical assistance programme mainly aimed at know-how transfer and education, with smaller possibilities for infrastructure allocations."

The EU support has focused on cross-border co-operation, border management and port development, environment, health and education

But responsibility for Kaliningrad's future lies with the Russian authorities. So far, Kremlin has been sending conflicting messages as to its plans for the province. The Federal Development Programme meant to specify the vision of the region up to the year 2010 is still being elaborated.

Once a military asset (the Russian Baltic Fleet is still based here although much reduced in personnel and equipment), today Kaliningrad is mainly a stage where Russia's powerful energy industry plays out its politics. Situated at the end of a natural pipeline, this strategic port is the most lucrative way for Russian companies to get into the EU markets.

Moscow's 15,000 square km western-most province has not - as promised - turned into a Russian Hong Kong, yet it has managed in the past two to three years to improve living conditions slightly. Thanks to duty-free status granted in the early 1990s, Kaliningrad has attracted significant investment by manufacturers producing cars, TV sets and refrigerators for the Russian market. Since 2002, the region's economy has expanded by around 9-10%.

Yet its future is still uncertain. Political commentators think the enclave is facing two different scenarios. If Moscow loosens its grip and allows the province to reach a customs and immigration pact with the EU, the region could flourish as an economic bridge between Europe and Russia. But if things do not change, trade could bypass Kaliningrad and the region will fall farther behind its neighbours

"We do not want to be Europe's sick man," says Cveta. "And we certainly have rights to hope for a better future, at least for our children."

• Wieslaw Horabik is a Polish freelance journalist.