The Nordic Energy Capital Security Developments in the Baltic Sea

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The Nordic Energy Capital Security Developments in the Baltic Sea February 2017 ISSUE no. 1 Joakim Strand Vaasa - The Nordic energy capital Ivan Timofeev Security developments in the Baltic Sea Region Gisela Grieger China’s One Belt One Road (OBOR) initiative: a win- win situation for the Baltic Sea Region (BSR)? To receive a free copy, register at www.utu.fi/pei The Pan-European Institute publishes the Baltic Rim Economies (BRE) review which deals with the development of the Baltic Sea region. In the BRE review, public and corporate decision makers, representatives of Academia, as well as several other experts contribute to the discussion. Pan-European Institute ISSN 1459-9759 Editor-in-Chief | Kari Liuhto (responsible for writer invitations) Technical Editor | Mira Tuominen University of Turku Turku School of Economics Pan-European Institute Rehtorinpellonkatu 3 FI-20500 TURKU, Finland Tel. +358 2 333 9522 www.utu.fi/pei 28.2.2017 Baltic Rim Economies ISSUE # 1 expert articles Olavi Ala-Nissilä 4 Edwin Bacon 21 Sigrid Kaasik-Krogerus 39 Baltic Sea countries can offer Russia’s parliament and the Heritage in flux: Europeanization as lessons and boost to Finnish potential for political evolution identity politics economy Joscha Schwarzwälder 22 Adelia Fatikhova 40 Solvita Āboltiņa 5 More and better investment in the Company towns in Russian Federation The evolution of cyber security labour market integration of refugees Gisela Grieger 41 threats Holger Mölder 23 China’s One Belt One Road Mats Löfström 6 Information warfare – a Hobbesian (OBOR) initiative: a win-win situation The need for longer perspectives concept of war in the post-truth era for the Baltic Sea Region (BSR)? in a fast moving world Heidi Zidan 24 Dirk Linowski & Andrew Johansson 44 Laimdota Straujuma 7 Novosti Yle – Finnish news in Gauging the impact of China’s One Sustainable development of Latvia Russian Belt, One Road Initiative on the Baltic Rim Joakim Strand 8 Olga Davydova-Minguet 25 Vaasa - the Nordic energy capital Finland’s Russian speakers as Tamas Matura 46 media users China and Central and Eastern Valdemaras Sarapinas 9 Europe: threat or opportunity? Lithuania and Finland: shoulder to Teemu Oivo 26 shoulder in ensuring security for The use of quantity as a competitive Micael Blomster 47 themselves and the whole region edge in Russian TV New Scandinavian rail hub for China traffic over North Finland Edward Hunter Christie 11 Irene Pendolin 27 Russia’s challenge to the security of Union of the Baltic Cities – Kari Reinikainen 48 NATO allies and partners in communicating for a sustainable, Chinese yards to challenge Europe Northeast Europe smart and safe Baltic Sea Region in passenger ship building Hannes Möllits 12 Ivan Timofeev 29 Ott Koppel 50 Russia: reaping the whirlwind in Security developments in the Baltic Some side notes about Rail Baltic 2017? Sea Region Hiltgunt Fanning 51 Uģis Romanovs 14 Konstantin K. Khudoley 31 The economic development of the Defending Baltic States: overlooked Highlights of the current state of Baltic Sea Region - what major importance of Saaremaa and international relations in Baltic Sea indicators tell us Hiiumaa islands Region BIRGITTA BERG-ANDERSSON 54 Sia Spiliopoulou Åkermark 15 Anna Karlsdóttir 32 The impact of EU’s sanctions on Thucydides, Melos and the Åland Securing Nordic Arctic sustainable Russia and Russia’s Islands development – Arctic cooperation counter-sanctions on Finland’s in the Nordic realm exports to Russia Agnieszka Blokus-Roszkowska 16 Opportunities and challenges of Judyth L. Twigg 34 Nikolai Kolesnikov 55 the Baltic Sea Region (BSR) Continued collaboration and Sanctions: no pain, no gain electricity network vigilance against tuberculosis in Tiiu Paas & Maryna Tverdostup 56 Russia Anke Schmidt-Felzmann 17 Human capital in Nordic Countries Russia’s military aggression and Peter W. Schulze 35 and Estonia: PIAAC-based the security threats posed by Geopolitical repercussions of a assessment “purely commercial” projects in the changing world order on Russian-EU Jeff Schubert 58 Baltic Sea Region relations Russia’s technology push: What is Danila BOCHKAREV 18 Ilya Tarasov 37 it? Who believes what? Additional routes will increase Coherence between the interests of Džineta Dimante 59 competition in European energy Russia and Germany in the Baltic Towards circular economy in Latvia market States Tor Morten Osmundsen 19 Jeremy Smith 38 The clean fuel opportunity in the Where are Russia’s national Baltic Sea minorities? Esa Härmälä 20 The Baltic Sea Rim –Biomass base of Europe 3 www.utu.fi/pei 28.2.2017 Baltic Rim Economies ISSUE # 1 Olavi Ala-Nissilä Baltic Sea countries can offer lessons and boost to Finnish economy Expert article • 2128 ix years ago the members of the European Court of Au- In Germany, Sweden and Denmark the structural reforms ditors had a seminar in Tallinn. The then-prime minister, especially in labor market have brought significant benefits to their Andrup Ansip, told us lessons from the Estonia’s history. economies. Unemployment rates in those countries are among the He reminded how - after restoring the independence lowest in the EU. Not so long time ago, Germany used to be called - Estonia had joined the Nato, the EU and the Euroarea the sick man of the Europe. How quickly things can change, when the Sas soon as it was possible. But this was never enough for us, he politicians have the courage to act in the best interest of their country! stressed. We wanted to be economically independent as well. That The Baltic Sea is EU Sea. Eight EU member states are situated was why we decided that we cannot live beyond our means, Ansip around the Baltic Sea. Not to mention Russia and its second biggest told us. And as a consequence, Estonia practically does not have any city, St Petersburg. Security issues in the Baltic Sea area are making public debt (10,1 percent headlines almost on daily of GDP by the end of basis. But, the area is 2015 whereas Euroarea Poland with its 40 million people economic heavy weight as average was more than well. 90 percent of GDP). has huge potential. The country At the moment, the Another example Baltic Sea area is boosting comes from Latvia. The has relatively young and growing Finnish economy through country and its citizens did many channels. German live beyond their means population hungry for learning and shipyard in Turku has won as it tried to catch up with several contracts and the the rest of the EU way too earning. It is the only EU member orders are keeping it busy fast. The economy over- state which has grown every single for the next ten years. In heated and then collapsed Uusikaupunki, automotive suddenly at the end of year since the financial crisis started industry is doing its best 2008. The country was to keep up with increased forced to accept help from in 2007. demand for new jobs. the EU and the IMF under Travelling between strict conditions. But, Finland and Estonia hit a unlike some other bailed-out countries, Latvia did put its house back new record last year. Even the Russian tourists seem to be coming in order in record time. The then-prime minister Valdis Dombrovskis back to boost sales in Helsinki and Eastern parts of Finland. did not hesitate to cut public expenditure and implement reforms. The There is an old Finnish proverb which says that one should not confidence came back, as did the economic growth and the country reach too far to go fishing. In concrete terms, the good place to start could start paying back to its creditors earlier than originally agreed. fishing is the Baltic Sea. Poland with its 40 million people has huge potential. The country has relatively young and growing population hungry for learning and earning. It is the only EU member state which has grown every single Olavi Ala-Nissilä year since the financial crisis started in 2007. The importance of Member of Finnish Parliament Poland was reflected recently as Finnish prime minister Juha Sipilä Member of Grand Committee made his first state visit of year 2017 to Poland. Finland Former Member of the European Court of Auditors 4 www.utu.fi/pei 28.2.2017 Baltic Rim Economies ISSUE # 1 Solvita Āboltiņa The evolution of cyber security threats Expert article • 2129 very year the development and progress of modern tech- people, just as we must be able to respond and counter any attacks nologies brings about ever greater threats and risks to on state institutions, infrastructure and public opinion. global security. The cyber threats we face today force us to In this context, one of the most important takeaways of the accept that security is not something we can take for grant- 2016 NATO Warsaw Summit was the decision that cyberspace is ed. In response to increasingly complex threats, NATO has an operational space equal to land, air and sea. At this time when Edeclared that, depending on their severity, cyber-attacks could trigger cyber threats in the region are becoming increasingly visible and Article 5 of the North Atlantic Treaty. This is not surprising, taking into present, the only potentially effective solution and response is ever consideration the damage that can be caused today through illegal closer cooperation with our partners and allies. Sharing experience use, tampering, paralyzing or the destruction of various information by learning from the conclusions that our partners and neighbours and communication technologies. have drawn from cyber-attacks, as well as from the cyber defence The Baltic States also have their share of experience in this strategies that they have implemented, and by holding exercises to area. In 2007, Estonia was the target of one of the most well-known improve our cyber defence capabilities, we will be able to significantly Russian supported and funded cyber-attacks, which blocked data heighten our ability to prevent incidents and crisis situations.
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