Finland’s South Karelia has faced severe economic decline and rising unemployment following the closure of all land border crossings with Russia in late 2023, according to Bloomberg. The region, which relies heavily on cross-border trade and tourism, is estimated to lose €1 million ($1.2 million) daily in tourism revenue.

The Finnish government cited concerns over migrant flows from Africa and the Middle East as justification for shutting the 1,430km border with Russia. Moscow dismissed these claims as “completely baseless.” For decades, South Karelia maintained strong economic ties with Russia, including retail, tourism, and forestry industries. The abrupt separation has left local businesses struggling, with hotels, shops, and restaurants reporting significant declines in activity.

Sari Tukiainen, a store owner in Imatra, described the impact: “Russian customers asked why we couldn’t stay open around the clock,” she said. “They bought clothes in stacks — mostly the latest fashion and bling, but even winter coats were sold out by August.” Her business is set to close by year’s end due to dwindling sales.

Unemployment in Imatra has surged to 15%, the highest in Finland, as mills and steel plants reduce staffing. The region’s economic reliance on Russia contrasts with Finland’s shift toward NATO membership after imposing sanctions on Moscow over the Ukraine conflict. Historical ties between Finland and Russia, including a 110-year period under the Russian Empire, have been overshadowed by recent geopolitical tensions.