Kaliningrad, which will host four World Cup matches this month, is a peculiar Russian exclave on the Baltic Sea. Wedged between Poland and Lithuania, both members of NATO and the European Union, it is geographically separated from the rest of Russia—a Free Economic Zone (FEZ) that has earned it status as the “Russian Hong Kong.”

But as attention turns to the soccer tournament, the Kremlin is set to make a statement in this highly militarized, western-most territory that serves as the Russian Baltic Fleet base and, as of this February, home to a permanent arsenal of nuclear-capable Iskander missiles: On the world stage, Russia will showcase its new $300 million Kaliningrad stadium, known as Arena Baltika, which can house 35,212 people—a far larger capacity than is necessary for the 4,000 fans the local Baltika team typically attracts.

Ostensibly, the stadium is just a sports venue for Croatia vs. Nigeria on June 16, Serbia vs. Switzerland on June 22, Spain vs. Morocco on June 25, and England vs. Belgium on June 28. But situated 28 miles from the Polish border on Kaliningrad’s Oktyabrsky Island, the colossal structure also sends an aggressive message, say some veteran Russia-watchers.

“Putin wants to show off Kaliningrad as a militarily powerful bastion against NATO influence moving eastward, and also, with the shiny stadium, show that Kaliningrad is more prosperous than it actually is,” said William Courtney, a senior fellow at the RAND Corporation who previously served as a negotiator at the U.S.-Soviet Defense and Space Talks in Geneva and as ambassador to Georgia and Kazakhstan.

The sectoral sanctions the U.S. applied after the 2014 Russian invasion of Ukraine and annexation of Crimea have hurt the Russian economy, and Kaliningrad has been no exception, with a reputation for being financially troubled and requiring subsidies from Moscow. But Courtney says there is a bit of posturing going on through the imposing construction, in keeping with a decades-long trend.