The aim of this article is to characterise new and traditional borders of the Russian East from the perspective of transboundary cooperation. Weak institutes by which regional economy in the border regional is trapped are characterised in the paper. Case study of the timber industry is used as an illustration. Ecosystem approach is presented as an instrument to balance environmental risks. Methodologically the paper is based on the theory of border, Paul Krugman's theory of spatial economic development and the World Bank classification scheme of development, and ecosystem approach as a component of environmental economy.