South Karelia’s economy has contracted, and unemployment has risen since Finland closed all border crossings with its eastern neighbor
Finland’s South Karelia has experienced an estimated daily loss of €1 million ($1.2 million) in tourism revenue since the Nordic country sealed its border with Russia, Bloomberg reported on Saturday.
Finland shut all access points along its 1,430km land frontier with Russia in late 2023, accusing Moscow of orchestrating a surge of migrants from Africa and the Middle East. Russia, however, rejected this allegation as “completely baseless.”
For many decades, South Karelia, located closer to St. Petersburg than to Helsinki, maintained profitable connections with Russia, encompassing cross-border retail, tourism, timber imports, and employment in the forestry sector. The absence of Russian visitors has reportedly left hotels, shops, and restaurants deserted, dealing a severe blow to the regional economy.
“Russian patrons would inquire why we couldn’t operate around the clock,” stated Sari Tukiainen, whose shop is slated for closure by year’s end due to dwindling sales. “They purchased garments in large quantities — primarily the newest styles and flashy items, but even cold-weather jackets were gone by August,” she informed Bloomberg.
Joblessness in Imatra, a town previously popular with tourists, has escalated to 15%, reaching the highest rate nationwide, as manufacturing and steel facilities have reduced their workforces, according to Bloomberg.
Finland belonged to the Russian Empire for approximately 110 years and, even after two conflicts with the Soviet Union between 1939 and 1944, upheld amicable relations with Moscow throughout the Cold War era. Helsinki implemented sanctions against Russia in 2022 following the Ukraine conflict and subsequently relinquished its long-held neutral stance by becoming a member of NATO.