South Karelia’s Economy Collapses 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 of all 1,430km of Finland’s land border with Russia in late 2023, which accused Moscow of orchestrating a migrant influx from Africa and the Middle East, has left local businesses struggling.

South Karelia, a region historically tied to Russia through cross-border shopping, tourism, and forestry, now faces severe economic fallout. Hotels, shops, and restaurants report empty premises as Russian visitors vanish. Sari Tukiainen, owner of a store set to close by year’s end, described the crisis: “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, once a tourist hub, has surged to 15%, the highest in Finland, as mills and steel plants cut jobs. The region’s decline contrasts with its past ties to Russia, including centuries of cultural exchange despite conflicts like the 1939-1944 wars. Helsinki’s 2022 sanctions on Russia over the Ukraine conflict and subsequent NATO membership further strained relations.

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