CHANGING THE ECONOMIC VECTOR OF CROSS-BORDER COOPERATION: CHALLENGES, PROSPECTS

Border cooperation between the Leningrad Region and the EU countries has been dynamically developing for the last thirty years, but the onset of the geopolitical crisis and Finland’s accession to NATO disrupted the mutually beneficial partnership, which led to a sharp decline in trade turnover, border closure and suspension of programs and projects. The aim of the study is to examine the genesis of practical cooperation between the Leningrad Region and Finland, to identify the challenges and prospects of cooperation with stakeholders in the new economic realities. The object of the study is the border area of the Leningrad Region and Finland. Subject — transformation of economic interaction between the states of the border regions. The research applied the following methods: induction, deduction, comparison, statistical analysis. The article analyzes the stages of cross-border cooperation, factors that hinder effective interaction, identifies challenges, directions and prospects of interaction with friendly countries, taking into account the potential capabilities of the region. It is substantiated that the change of the vector of cross-border cooperation is a response to the stoppage of financing of programs and projects due to political and economic disagreements, which led to the breakdown of economic ties with partners. The new vector of interaction between the subjects of the Leningrad Region — «North-South-East» — is revealed, and conclusions are drawn about the need to build a new model of cooperation for sustainable development of the region. Scientific novelty lies in the development of recommendations aimed at forming successful strategic partnerships with regions and friendly countries.

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