Game-Theoretical Model of Specific Features of a Potential Treaty between Ukraine and Russia Concerning the Crimea and Draft Special Annexes

Abstract

The problem of treaty between Ukraine and Russia about the implementation of economic, political and other activities of these countries at the Crimea region is practically not covered in the scientific literature. At the same time, the current activities of both countries require a number of treaties between them. Existing international treaties today do not de facto guarantee the territorial integrity of European countries. Therefore, it is often necessary to coordinate the interests of countries by concluding bilateral treaties. The article describes a series of problems associated with Crimea region, both in Ukraine and in Russia, which require compulsory harmonization. A game-theoretical model for describing the treaty between Ukraine and Russia was developed. It is shown that the Nash equilibrium (that is, the optimal situation for Ukraine) is achieved in the case when Ukraine proposes treaties only to coordinate activities at the Crimea region. The necessity of specific Additions of this treaty and the Annexes thereto, which can guarantee its implementation, are highlighted.

Keywords: Crimea, Ukraine, Russia, Treaty, Game-Theoretic Model, Special Items

JEL Classification: D74, F52, N44, P26