Shuttle Trade across Russia’s Borders with the Baltic States and Poland: Between Tolerance and Suppression

Abstract

The paper focuses on the phenomenon of borderland shuttle trade across Russia’s borders with Estonia, Latvia, Lithuania, and Poland. I argue that borderland shuttle trade is more sustainable in comparison with long-haul shuttle trade, as the former gives entrepreneurs more flexibility, involves fewer transaction costs, and can rely on the extensive support of borderland communities. At the same time, it has some specific vulnerabilities, and its susceptibility to customs control and reliance on overloaded border crossing infrastructure are among the most important. Contrary to beliefs about contemporary states’ inability to exercise efficient control over informal cross-border flows in the age of globalization, this research demonstrates that over the course of time, states may be at least partially successful in suppressing informal cross-border trade. Ultimately, cross-border shuttle trade has proven to be vulnerable to more and more targeted restrictions and control practices. Still, it has also proven to be highly resistant to governmental crackdown in various ways, such as buying fuel from long-haul truck drivers or switching to trade in non-excisable goods or to low-penalty cigarette smuggling. The latter practice illustrates that shuttle trade is only part of the flexible informal cross-border economy and that it can be transformed into low-penalty smuggling when needed.

The Influence of the Polish-Russian Border on the Development Opportunities of the Polish Border Region

“…), 2018). Therefore, it can be concluded that the state border in question is characterised by low stability and, at the same time, high susceptibility to political influence (Golunov, 2017). The influence of changing international agreements between Poland and Russia on the number of people crossing the border proves the strong impact of politics on the functioning of the Polish-Russian border ( fig.…”

Russian border security: trends of post-soviet transformation

“…For instance, during the 2000s and 2010s, informal gasoline traders across the eu-Russia border would make multiple trips in cars with enlarged tanks, as petrol could only be brought in gas tanks only. Some informal cigarette traders would distribute packs among bus passengers to bypass restrictions, while others smuggled cigarettes in worn-out cars (bought for cheap exactly for this purpose), given that confiscation of the vehicle was a typical punishment for tobacco smuggling (Golunov, 2017).…”