Tuesday, November 10, 2015

Cutting the Ties

Politico Europe reports the Baltic Republics - Estonia, Latvia, and Lithuania - are currently part of the Russian electric power grid/system, established before their independence.  They want out.

Their preference is to be integrated into the European Union grid. Their reasons are several but probably the most critical is that, in the event of a Ukraine-type conflict with Russia, Moscow could turn off the electricity, crippling their economies.

Meanwhile, a small piece (5,800 sq. miles) of Russia called the Kaliningrad Oblast sits on the Baltic coast surrounded by Lithuania and Poland. Entirely separated from the rest of Russia, it is slightly larger than Connecticut.

The Russian Baltic Sea naval home port and three air bases are located in Kaliningrad.  Formerly a part of Germany, its population is now overwhelmingly Russian.

Russia isn't happy about the Baltic Republics changing grids. If they change, Kaliningrad's power becomes an issue. It is now part of the same Russian grid the republics are now on, controlled from Moscow.

This poses a dilemma for Russia, as the Politico article points out. Given the current weakness of the Russian economy, heavily dependent on the sale of oil and gas for which prices have fallen, Russia doesn't need this sort of expensive problem.