The Russian core area of
East Europe
dr. Jeney László
Senior lecturer
jeney@elte.hu
Economic Geography
I. International Business bachelor study programme (BA)
Autumn term 2015/2016.
CUB Department of Economic Geography and Futures Studies
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
2
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)
3
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
4
cars
Ethnic based conflicts and their
geoeconomic impacts
5
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)
6
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
7
Area of Russian influences

Periods of Russification
1) Early 1800s
2) 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)
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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
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