East Europe: political giant vs. economic lagging 1

Delimitation and main features of East Europe

East Europe: physical geographical aspect East European Plain 4.5 mn km2 European part of former SU (except: Karelia, Western peripheries  North and Central Europe) Highest point: Podolia 515 m West: no natural frontier  state borders

East Europe: military aspect NATO NATO East Europe During Iron Curtain After Iron Curtain United Nations Rounds: Only Russia (political Core) East Slavic countries: RU+BY+UA Former SU (East Slavic + Baltic states+MD) Former SU+East Central Europe (V4) +DDR Post-socialist countries: Balkan Peninsula too

Religious feature: Eastern Christianity Area of Eastern Christianity (orthodoxy) Centre: from Constantinople (Byzantium) to Moscow But: East Balkan Peninsula too Atheism Religious minorities East Europe

Home of Eastern Slavs Slavic countries Eastern (RU, UA, BY) Western (PL, CZ, SK) Southern (former YU, BG) Eastern Slavs: offshoots of the Broader Rus’ East Slavic Countries European Russia (except: Karelia, Kaliningrad) Belarus (except: Western part) Ukraine (except: Transkarpathia, Galicia, Podolia) East Europe 6 6 6

The Russian core area of East Europe

Historical development Russian Empire (incl.: Belarus, Ukraine, East Poland too) After WWI: Ukraine + Russia (incl. Belarus) 1922: Soviet Union (Russia, Belarus, Ukraine) From 1991: independent states Russia, Ukraine and Belarus South Caucasus: Georgia, Armenia and Azerbaijan Independent Russia remained considerable power Russian presidents Boris Yeltsin (1991–2000) Vladimir Putin (2000–2008) Dmitry Medvedev (2008–2012) Vladimir Putin (from 2012)

1990s: economic hardship Transition to capitalism: economies shrank Inefficient, uncompetitive factories Most industries downsized dramatically  shutting down 1998 global financial crisis Depreciated the Russian ruble Further lowered living standards

2000s: economies began growing again Average 6–8 % GDP growth Russia GDP: WR10. Bureaucratic reforms Soaring global prices for oil and natural gas However: dependence on oil and gas (80% of exports, 32% of GDP in 2007  13% in 1999)

Foreign direct investments 1990s: inflow was prevented Corruption Poor infrastructure Unwieldy bureaucracy RU 1991–2001 FDI: 18,2 bn $ (China: 46 bn $) Per capita FDI: 15 $ (1149 USA, 224 Hungary) After mid 2000s: FDI in Russia expanded rapidly 2008: 70 bn Investors: CY, NL, L, UK Sectors Mainly oil, natural gas, metal ores Also automotive industry (VW Kaluga, Ford and Japanese companies)  2006: first time  foreign cars outsold domestic cars

Ethnic based conflicts and their geoeconomic impacts

Russia: mixture of political units 52 % of the minorities: autonomous territorial units: 15 national autonomous republics 2 autonomous districts (okrug) Homelands in European Russia North Europe, Urals and Middle Volga: relative higher share of Russians North Caucasus: Russian minority 90 numerically significant recognized nationalities 55 nationalities without republic status (homeland)

Official constitutional position of republics 1990s: the Kremlin gave up much of its power Also other official language besides Russian 1350 newspapers, 300 TV and 250 radio channels in 50 minority languages and also in the federal TV and radio broadcasting 75 minority languages taught in 10 thousand schools Minority organisations (2000) 2000s: the Kremlin took it back European Council: discrimination in legislation Public actions are hampered Lots of minorities are out of minority education Lack of minority teachers, books Maintenance of minority culture is insufficient

Area of Russian influences Periods of Russification Early 1800s Soviet times Permanent movements within the SU Out-migration of Russians to Belarus and Ukraine till 1989  to industrial concentrations Share of ethnic Russians Belarus: 13% (63% speaks regularly Russian) Ukraine: 22%  Crimean Peninsula, industrial areas of Eastern Ukraine, cities Russia: 82% (re-migration) 15

Ethnic based tensions in the successor states North Caucasus: remained part of Russia  resistance against Russian rule 1991: Chechnya also attempted its independence  2 bloody wars in Russia (1994–1996 and after 1999  more 100 thousand victims) Ukraine: Crimean Peninsula and East Ukraine (Russians) Crimean Peninsula and East Ukraine (Russians) Moldova: Transdnistria (Russians) Georgia: conflict with Russia Abkhazia (Abkhasians): occupied by Russia (hard entrance from Georgia) South Ossetia (Ossetians) Closed Georgian–Russian border Good relationship to the West (EU and NATO) Armenia: conflict with Turkey and Azerbaijan Armenian genocide by Turkey (not declared by Turk.) Lost territories (Mt. Ararat) in Turkey Karabakh question: Nagorno-Karabakh (Armenians) in Azerbaijan Closed Arm–Turk and Arm–Azeri borders Good relationship with Russia