Finland’s South Karelia region is experiencing significant economic hardship due to the closure of its border with Russia. The Nordic country shut all crossings along its 1,430km land border with Russia in late 2023, citing concerns over an influx of migrants from Africa and the Middle East, which Russia has dismissed as “completely baseless.” As a result, South Karelia has been losing an estimated €1 million in tourism income every day.

The region had previously enjoyed strong economic ties with Russia, driven by cross-border shopping, tourism, lumber imports, and local jobs in the forest industry. However, the loss of Russian visitors has left hotels, shops, and restaurants deserted, dealing a heavy blow to the local economy. Business owners in the region are feeling the effects, with some forced to close their stores due to falling sales. Sari Tukiainen, whose store is set to close by the end of the year, recalled that Russian customers would often ask why her store couldn’t stay open around the clock, and would buy clothes and other items in bulk.

The town of Imatra, a former tourist hotspot, has been particularly affected, with unemployment climbing to 15%, the highest in the country. Mills and steel plants have cut jobs, exacerbating the economic downturn. Finland’s historical ties with Russia date back to its time as part of the Russian Empire, and despite two wars with the Soviet Union between 1939 and 1944, the country maintained friendly relations with Moscow during the Cold War. However, Helsinki imposed sanctions on Russia in 2022 over the Ukraine conflict and later joined NATO, marking a significant shift in its foreign policy.

The economic impact of the border closure is likely to be long-lasting, with the region’s economy expected to continue struggling in the coming months. The loss of tourism income and the decline of cross-border trade are having a ripple effect on the local economy, with businesses and residents feeling the effects. As the situation continues to unfold, it remains to be seen how the region will recover from the economic downturn and what steps will be taken to revitalize the local economy.