ABSTRACT
The book provides a detailed regional comparative assessment of the Russian economic footprint in CEE and related structural vulnerabilities based on trade, investment, and corporate presence. The authors estimate the size of the bilateral trade balance between Russia and each of the selected countries with a specific focus on energy. They then explain how Russia has been using its dominant position on energy markets as a leverage in achieving a favorable trade position and delaying key reforms such as market liberalization and diversification of sources. The added-value of the investment analysis is in the tracing of FDIs by ultimate beneficial owner to identify which capital inflows from Russia have been channeled through intermediaries in other countries, including offshore zones. The corporate research calculates the share of the revenues, assets, and employment of these companies. The aggregate values of these three indicators are then compared with the totals for the respective economy, creating a proxy for the relative Russian corporate footprint in each of the countries. The authors also provide an analysis of the size and power of local networks linked to Russian investment and partnerships with Russian companies.
