This report argues that the current policies of the Russian government, under Vladimir Putin, pose a significant challenge to the development of transparent democratic governments and free markets in those countries dependent on Russia for their energy resources. Over the past few years, the Kremlin has increasingly used its energy monopoly to influence policies in the neighboring countries of Estonia, Latvia, Lithuania, Poland, and Ukraine. It would be an exaggeration to call Russian economic power projection imperialism, but the neocolonial characteristics of Russia's foreign energy policy are readily apparent to those living in the immediate neighborhood.
