Russia’s enclave in Europe – Kaliningrad – is undergoing an economic boom, driven by tax breaks which have attracted foreign car manufacturers. Growth rates in Kaliningrad currently outstrip those of Russia itself.

The exclave is separated from the rest of Russia and its residents can only reach other parts of Russia through Poland or Lithuania. To learn more on Kaliningrad's history please follow the link.

Kaliningrad is classed as a special economic zone, which allows customs-free imports and tax breaks – as long as products are sent to mainland Russia.

80% of TV sets in Russian homes are made in Kaliningrad.

The favourable economic environment has also turned Kaliningrad into a Car Capital.

Carmakers BMW, Hummer and Kia are among foreign investors. The BMW-Avtotor joint venture keeps winning awards for quality.

Production has increased by 10% in the last few years. The factory’s now working at full steam, producing 600 BMWs a month – all bound for Russia.

Kaliningrad’s Commercial Port is occupied handling 6 million tonnes of cargo a year. It proudly boasts of its status as Russia’s only ice-free port on the Baltic.

Kaliningrad also boasts 90% of the world’s amber deposits.