|   | | | | SITE March 2025 Newsletter
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| | | | In this March edition of the SITE Newsletter, we explore significant developments shaping Europe's economic and societal dynamics. We begin by examining whether Western unity remains intact as Trump's approach to Russia signals a potential shift in global alliances, with SITE Director Torbjörn Becker shedding light on the economic drivers behind this strategy. We then analyze the Baltic States' recent move to cut energy dependencies on Russia, highlighting emerging risks and opportunities. Additionally, we delve into a new study examining whether experiences of war unite or fracture societies. Furthermore, we evaluate Sweden's pathway to a sustainable electricity future, emphasizing the essential role of EU collaboration. We also present new research investigating whether public procurement can effectively drive innovation, taking a fresh look at recent evidence. Finally, in this month's Editor's Choice, we highlight a recent policy brief discussing why lowering the Russian oil price cap could potentially backfire, exploring its unintended economic and geopolitical consequences. | |
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| A NEW WORLD ORDER
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 | | Photo: Rokas Tenys, Shutterstock |
| | Is The West Still United? |
| With Trump's approach to Russia signaling a potential shift in global alliances,Torbjörn Becker, Director of the Stockholm Institute of Transition Economics (SITE), sheds light on the economic drivers behind this strategy.
"Trump wants to enrich oligarchs on both sides of the Atlantic and, in some way, ensure he gets compensated for the U.S. support provided so far.", says Becker to Dagens Nyheter.
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| CUTTING TIES
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 | Photo: JU.STOCKER, Shutterstock
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| | Baltic States Cut Energy Ties With Russia, But New Risks Emerge |
| | The Baltic states officially severed their energy ties with Russia and Belarus on February 7, 2025, successfully desynchronizing from the BRELL electricity network without experiencing blackouts. However, recent cable disruptions in the Baltic Sea have raised new energy security concerns, underscoring the need to diversify and decentralize power systems. A new policy brief by Chloé Le Coq (CREED & SITE) & Ewa Lazarczyk (Reykjavik University) analyzes the challenges and lessons learned from this transition and compares it to Ukraine's energy resilience. |
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| THE EFFECTS OF WAR
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 | Photo: Andrii Yalanskyi, Shutterstock
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| | Does War Bring People Together Or Drive Them Apart? A New Study Explores The Effects Of Violence On Society |
| | War reshapes societies, but does it make people more cooperative or more divided? Anders Olofsgård, Deputy Director of SITE, explores how exposure to violence affects social trust, cooperation, and political engagement. The findings have important implications for Ukraine's future, particularly its path toward EU membership. |
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| SWEDEN'S ENERGY FUTURE
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 | Image: Cloudy Design, Shutterstock
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| | Sweden's Electricity Future Depends On EU Cooperation |
| | Sweden is moving toward a fossil-free future, but its electricity market faces significant uncertainties regarding demand, costs, and policy directions. A new report by SITE research fellow Chloé Le Coq and her co-authors highlights that Sweden's energy transition cannot happen in isolation. Strong European cooperation and robust regulatory frameworks are crucial for ensuring stability and efficiency. |
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| NEW RESEARCH
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 | Image: Yeexin Richelle, Shutterstock
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| | Can Public Procurement Drive Innovation? A Fresh Look At The Evidence |
| | Governments spend billions on procurement, but can these contracts be a tool to drive innovation? A new study co-authored by Giancarlo Spagnolo, professor at SITE, explores the effectiveness of Public Procurement of Innovation (PPI). Forthcoming in the International Journal of Industrial Organization, the study finds that while PPI can foster innovation—especially for small and young firms—major challenges remain in policy design and implementation. |
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| | EDITOR'S CHOICE |
 | Photo: Sven Hansche, Shutterstock
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| Why Lowering The Russian Oil Price Cap Could Backfire
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| | Western sanctions on Russian oil were meant to cut war funding—but a new policy brief suggests that pushing the price cap even lower might actually help Russia profit more. This analysis by Diego S. Cardoso (University of Illinois Urbana-Champaign), Stephen Salant (University of Michigan), and Julien Daubanes (Technical University of Denmark) challenges the logic behind tightening sanctions without also expanding global oil supply. |
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| | | | FREE NETWORK POLICY BRIEFS | |
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 | | | | Grapes, Apples, And Hazelnuts: Can Farm Subsidies Fix Georgia's Agriculture? | |
| | | | By: Elene Seturidze & Tatia Khidasheli, ISET-PI | |
| | | | Government subsidies in Georgia are meant to support farmers and boost agriculture—but they may be doing more to protect incomes than to grow the industry. This policy brief analysis from the ISET Policy Institute shows how subsidies have helped in the short term but haven't solved deeper issues like poor infrastructure, low-quality produce, and risky export dependencies.
Photo: Shyshko Oleksandr, Shutterstock | |
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 | | | | Ukraine's Fight Is Our Fight: The Need for Sustained International Commitment | |
| | | | By: Torbjörn Becker, Maria Perrotta Berlin, Anders Olofsgård, Jesper Roine, SITE | |
| | | | Ukraine's fight for survival is also Europe's fight for peace, stability, and economic security. This policy brief analysis by SITE emphasise that helping Ukraine is not only a moral duty, but also a smart investment that could save Europe far more money in the long run.
Photo: Michele Ursi, Shutterstock
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 | | | | Can Gender Diversity Drive Innovation In Post-Communist Economies?
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| | | | By: Natalja Apanasovich & Radzivon Marozau, BEROC | |
| | | | Diverse workplaces aren't just about fairness—they may also be a key to innovation. A new policy brief explores how gender diversity in business ownership and workforce composition influences firm innovation in post-communist economies. The study finds that diverse teams enhance problem-solving, technology adoption, and managerial practices, leading to more innovation.
Photo: XArtProduction, Shutterstock
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| | | | (Listed from oldest to most recent as of this month.) | |
| | | | "Can Russia sustain its war economy?" / "Så länge har Ryssland råd att kriga" (Göteborgs Posten) | |
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| | | | April 22 | SITE Seminar with Nicolas Gavoille | |
| | | | On Tuesday, April 22, Prof. Nicolas Gavoille, SSE Riga, will present their working paper at SSE and online via Zoom. MORE INFO >> | |
| | | | June 9 | SITE Seminar with Georgy Egorov | |
| | | | On Monday, June 9, Prof. Georgy Egorov, North Western Kellogg, will present their working paper at SSE and online via Zoom. MORE INFO TBA >> | |
| | | | May 8 | SITE 2025 Energy Talk | |
| | | | N/A | SITE 2025 Development Day Conference | |
| | | | N/A | FREE Network Academic Conference | |
| | | | N/A | FREECE 2025 Workshop | |
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| | | | THANK YOU FOR READING
THIS MONTH'S NEWSLETTER
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Until then, see you in the next newsletter!
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