IEŚ Commentaries

Northern Macedonia expands natural gas supply infrastructure

Year 2023: The State of the Central European Economies

In 2023, five Central European economies (Estonia, Lithuania, Hungary, Latvia, and the Czech Republic) are expected to end the year in a state of recession, while four (Hungary, Czech Republic, Poland, and Slovakia) are facing double-digit average annual inflation. Furthermore, as many as seven countries in the region are projected to record budget deficits exceeding 3% of GDP....

Nothing New in the East? Consequences of the Slowdown of the Ukrainian Counteroffensive

The lack of success in the counteroffensive has sparked a lively debate in Ukraine regarding the situation on the front and the overall state of the country. The prolonged war of attrition is advantageous for the Russian Federation, which has the necessary resources to continue its aggression. Russia counts on weakening Kyiv as well as tiring its allies and reducing the scale of...

Impact of Russian-Ukrainian war on crude oil supplies to Bulgaria and Romania

The Russian-Ukrainian war has reoriented the refining sector in the Central European region, including Bulgaria and Romania. The crude oil processing plants operating in these countries had for years imported a large amount of crude oil from the Russian Federation. The change in international conditions has contributed to the activation of efforts to diversify crude oil supply...

International Competitiveness of Economies: The Baltic States

Competitiveness is a key element of the European Union’s development strategy. In all the Baltic states, a significant weakening of competitiveness is currently observed, primarily due to external factors over which these countries, as both small and open economies, have limited influence. At the same time, however, Lithuania, Latvia, and Estonia continue to invest in the...

Uncertain future of Skulte LNG terminal project

There have been efforts in Latvia to build an LNG terminal in Skulte since 2016, but recent decisions by the government in Riga make the realisation of the investment uncertain. Even the damage in early October 2023 to the Balticconnector pipeline, which connects the gas system of Estonia and Finland, has not changed the Latvian government’s approach to the Skulte LNG terminal....

Ukraine’s Defence Minister and His Entourage

In September 2023, a large-scale reorganisation of the Ministry of Defence of Ukraine began. In the view of the authorities, the appointment of Rustem Umerov, an experienced economist and politician, as Minister of Defence was intended to ensure more effective management of the department and stem the tide of criticism against it. Subsequent personnel changes at the ministry may...

Middle Eastern problems of Ukraine

Although the escalation of the Israeli-Palestinian conflict will not significantly inhibit Western, especially American, military aid to Ukraine, it is in a difficult position. By supporting Israel, it will become the object of criticism from the Arab world – which Russia will use for propaganda purposes. By not supporting Israel, it risks deterioration of relations with Western...

Russian mobilisation in occupied areas of Ukraine

Since the beginning of the Russian attack on Ukraine, Russian authorities have pursued a repressive policy towards the residents of the areas occupied by Russian forces. This policy initially affected the residents of Crimea and the controlled parts of Donbas in 2014, and since 2022, has extended to parts of the Kherson and Zaporizhzhia regions. One manifestation of these actions...

Romania strengthens cooperation with Ukraine

Romania and Ukraine have reached a level of mutual understanding hitherto unknown. The countries have managed to arrange relations on the most sensitive issues such as the problem of agricultural imports and the rights of national minorities. This provides the basis for the development of a stable security architecture in this part of the Black Sea region. The effect of the...

The enlargement imperative. The EU between historical chance and great risk (part 2)

The discussion on the enlargement of the European Union has gained new momentum. The admission of new members from Eastern Europe and the Western Balkans is now being presented as a strategic necessity. This has reinforced expectations among candidate countries and sparked debate about the indispensability of institutional reforms among member states. Key decisions on enlargement...

The enlargement imperative. The EU between historical chance and great risk (part 1)

The discussion on the enlargement of the European Union has gained new momentum. The admission of new members from Eastern Europe and the Western Balkans is now being presented as a strategic necessity. This has reinforced expectations among candidate countries and sparked debate about the indispensability of institutional reforms among member states. Key decisions on enlargement...

Reorganization of the gas sector in Czechia

In Czechia, under the influence of the Russian Federation’s full-scale attack on Ukraine, there has been a change in the operation of energy companies, which are supposed not only to meet business objectives but also to strengthen the state’s energy security. In this context, in the past few months, we have seen the implementation of two acquisitions by companies wholly owned...

Ukraine’s Demographic Challenges

Ukraine’s population began to decline long before February 2022. On the eve of the Russian invasion, it ranged from 34.5 to 37.4 million people. The armed conflict catastrophically accelerated the depopulation of the country and led to an even greater deformation of the age and gender structure of the population. Alongside numerous irreparable human losses, mobilisation,...

The Ukrainian Authorities’ Policy towards Internally Displaced Persons following the Invasion by the Russian Federation

The Russian attack on Ukraine resulted in one of the most significant humanitarian crises in Europe since World War II. In its aftermath, millions of Ukrainians were compelled to abandon their former places of residence and seek refuge within or outside the country. Ukraine is making efforts to provide social support to those affected by the war. However, due to the limited...

Russian War Mobilisation One Year After Vladimir Putin’s Decree

On 21 September 2023, a year had passed since the announcement of Vladimir Putin’s decree on mobilization, which remains in effect to this day. This decree led to the deployment of over 400,000 Russian conscripts to Ukraine, while an even larger cohort chose to leave the country due to apprehensions of front-line deployment. In retrospect, it is imperative to acknowledge that...

Bulgaria: technical government settlements on natural gas deal

In Bulgaria, the new government of Prime Minister Nikolai Denkov has ordered an investigation into the 2023 Bulgarian-Turkish agreement, which provides access for Bulgargaz to LNG terminals in Turkey and the Turkish transmission network. According to the government’s position, the agreement between Bulgargaz and BOTAŞ, which was concluded for a period of 13 years, is...

The development of military cooperation as part of multinational units among Visegrad countries (V4) in 2023

The geopolitical location of the Visegrad Group countries at the centre of NATO’s eastern flank makes them an important keystone in the security processes of the Central and Eastern European region. The military dimension of the V4 cooperation has been its key element since the platform’s inception when the countries coordinated their efforts to join NATO. As a result of the...

Consequences of the death of Yevgeny Prigozhin

The failed coup by the Wagnerites showed the weakness of the Russian state and personally humiliated Vladimir Putin. From his point of view, eliminating Yevgeny Prigozhin was necessary. In this way, he wanted to show who was in control of the situation and warn potential rebels. In the short term, this may produce results, but in the long term, the political losses may be serious....

Public Finance Sector Stability in Central European Countries (Part 3)

The Spring 2023 economic forecasts published by the European Commission indicate that, despite a gradual improvement in the stability of the public finance sector, many Central European countries will continue to experience budget deficits exceeding 3% of GDP. The largest budget deficits will be observed in Slovakia and Poland. Despite these challenges, both economies will...

Public Finance Sector Stability in Central European Countries (Part 2)

In 2022, among eleven Central European countries, five of them had budget deficits that exceeded the agreed limit of 3% of GDP. According to the latest data from Eurostat, the highest budget deficits, and consequently, the greatest challenges for the stability of the public finance sector, were recorded in Hungary and Romania. Hungary, thanks to its expansive fiscal policy,...

Azerbaijan’s growing role in ensuring the energy security of Central European countries

The Russian Federation’s armed attack on Ukraine has changed the perception of energy-exporting countries. In the past, Russia played a key role in providing crude oil and natural gas supplies to Central European countries, however, the war has forced countries in the region to seek alternative suppliers. Under these conditions, Azerbaijan has been growing in importance for many...

Verkhovna Rada of Ukraine: The Problem of Maintaining Legitimacy after the End of the Term

The scheduled parliamentary elections in Ukraine were to be held on 29 October 2023, but with the decision to extend martial law until 15 November, the Verkhovna Rada effectively cancelled the elections for this year. At the same time, the debate on the possibility and expediency of holding elections before the end of the armed conflict has once again intensified. Organising...

Underground natural gas storage facilities in Ukraine

Ukraine’s underground natural gas storage facilities, together with its extensive pipeline network, have played an important role in ensuring the availability of natural gas in Europe over the years. However, the importance of Ukrainian infrastructure was reduced as a result of the systematic reduction of natural gas supplies from east to west following the Russian...

Lithuanian strategy towards the Indo-Pacific region

On July 5, the Lithuanian government adopted the Strategy for the Indo-Pacific region prepared by the Ministry of Foreign Affairs. The document was developed in response to the need to ensure security and strengthen Lithuania’s international position as well as to tighten economic cooperation with partners from this region. At the same time, in the Strategy, Lithuania once again...