ABSTRACT

One of the key functions of the EU–Russian border is its role as a filter, regulating the flow of goods. The intensity of this flow depends on several factors: the gap between prices on different sides of the border (prices are usually lower on the Russian side), the structure of demand (buyers in the EU need Russian raw materials, while Russian buyers are interested in European consumer goods), and Russia’s transit geographical position between Asian producers and EU consumers. The border divides two customs spaces, which are defended from each other by different protectionist limitations. It is used not only as a barrier against importing and exporting dangerous items (such as illicit drugs) or items that are protected by law (for instance, works of art), but for regulating the volumes of and extracting customs duties for goods legally transported between the EU and Russia.