The Prague Post - Economy not Russia is big fear on Finland's closed frontier

EUR -
AED 4.299696
AFN 74.346056
ALL 95.453247
AMD 439.173161
ANG 2.095564
AOA 1074.777278
ARS 1613.916004
AUD 1.636896
AWG 2.107407
AZN 1.986527
BAM 1.955227
BBD 2.366237
BDT 144.147752
BGN 1.952984
BHD 0.441787
BIF 3493.446285
BMD 1.170782
BND 1.495349
BOB 8.117725
BRL 5.81609
BSD 1.174771
BTN 110.132722
BWP 15.795573
BYN 3.305474
BYR 22947.324487
BZD 2.362838
CAD 1.600553
CDF 2705.676811
CHF 0.918636
CLF 0.026482
CLP 1042.264874
CNY 7.990349
CNH 7.998167
COP 4181.412295
CRC 535.247699
CUC 1.170782
CUP 31.025719
CVE 110.233163
CZK 24.36157
DJF 209.201367
DKK 7.473077
DOP 70.699883
DZD 155.134135
EGP 60.891549
ERN 17.561728
ETB 184.925881
FJD 2.596682
FKP 0.867002
GBP 0.867625
GEL 3.149707
GGP 0.867002
GHS 13.005244
GIP 0.867002
GMD 85.466851
GNF 10311.066053
GTQ 8.979407
GYD 245.809007
HKD 9.169675
HNL 31.212119
HRK 7.537259
HTG 153.783615
HUF 365.026051
IDR 20249.843078
ILS 3.522924
IMP 0.867002
INR 110.150082
IQD 1538.955528
IRR 1544846.666305
ISK 143.795229
JEP 0.867002
JMD 186.107044
JOD 0.830035
JPY 186.891964
KES 151.278166
KGS 102.358414
KHR 4702.581578
KMF 492.899374
KPW 1053.645159
KRW 1733.19037
KWD 0.360624
KYD 0.979017
KZT 544.372777
LAK 25919.514076
LBP 105205.213829
LKR 373.312182
LRD 216.166645
LSL 19.311822
LTL 3.457014
LVL 0.708194
LYD 7.428918
MAD 10.84776
MDL 20.12436
MGA 4872.613529
MKD 61.652739
MMK 2458.362125
MNT 4190.341797
MOP 9.477063
MRU 46.898655
MUR 54.722532
MVR 18.088881
MWK 2036.720464
MXN 20.316343
MYR 4.643319
MZN 74.824752
NAD 19.311822
NGN 1581.761356
NIO 43.237328
NOK 10.87486
NPR 176.213859
NZD 1.988263
OMR 0.450163
PAB 1.174866
PEN 4.037282
PGK 5.167816
PHP 70.749763
PKR 327.510608
PLN 4.244447
PYG 7389.928803
QAR 4.283263
RON 5.09278
RSD 117.35099
RUB 87.920487
RWF 1716.711521
SAR 4.391138
SBD 9.422915
SCR 16.053877
SDG 703.014901
SEK 10.793514
SGD 1.494041
SHP 0.874107
SLE 28.859864
SLL 24550.705757
SOS 671.408955
SRD 43.855121
STD 24232.820735
STN 24.49439
SVC 10.280031
SYP 129.526455
SZL 19.304589
THB 37.906393
TJS 11.060758
TMT 4.10359
TND 3.416013
TOP 2.818962
TRY 52.597767
TTD 7.9647
TWD 36.941098
TZS 3044.033436
UAH 51.545433
UGX 4352.742866
USD 1.170782
UYU 46.706311
UZS 14248.823885
VES 564.498504
VND 30823.75946
VUV 138.190282
WST 3.190848
XAF 655.770405
XAG 0.015377
XAU 0.000248
XCD 3.164097
XCG 2.117288
XDR 0.815568
XOF 655.773205
XPF 119.331742
YER 279.406719
ZAR 19.33236
ZMK 10538.438884
ZMW 22.350736
ZWL 376.991282
  • RBGPF

    -4.0600

    64.94

    -6.25%

  • CMSC

    0.0300

    22.86

    +0.13%

  • GSK

    -0.1450

    55.555

    -0.26%

  • BCC

    0.6500

    82.89

    +0.78%

  • BTI

    0.8900

    57.06

    +1.56%

  • BCE

    0.1150

    23.845

    +0.48%

  • RIO

    -1.8500

    98.43

    -1.88%

  • NGG

    0.9000

    86.5

    +1.04%

  • RELX

    -0.7350

    35.535

    -2.07%

  • JRI

    -0.1200

    12.88

    -0.93%

  • AZN

    -2.1000

    192.71

    -1.09%

  • RYCEF

    0.6500

    15.75

    +4.13%

  • BP

    -0.0450

    46.325

    -0.1%

  • VOD

    0.2100

    15.52

    +1.35%

  • CMSD

    0.0600

    23.19

    +0.26%

Economy not Russia is big fear on Finland's closed frontier
Economy not Russia is big fear on Finland's closed frontier / Photo: Alessandro RAMPAZZO - AFP

Economy not Russia is big fear on Finland's closed frontier

A deserted cafe and petrol station near the Niirala border crossing to Russia shows how life has been on hold since Finland shut the frontier with its giant neighbour in December 2023.

Text size:

Helsinki had accused Moscow of "hybrid warfare" in orchestrating a surge of 1,300 migrants across the border -- a charge the Kremlin denied.

But it was more the economic rather than the military fallout that worried locals AFP talked to in the border region of North Karelia, once a four-hour drive from St Petersburg, President Vladimir Putin's hometown.

At its peak, there were almost two million border crossings a year at Niirala, which is part of the Tohmajarvi municipality, said local authority chief Mikko Lopponen.

"And now there are none. This had an immediate impact on businesses. Companies have found themselves in a very difficult position."

Tohmajarvi "had changed a lot", the 42-year-old said, glancing out the window at a quiet street that used to buzz with transit traffic and tourists.

Hopes to install wind turbines were also dashed "because they interfere with radar and border surveillance systems".

While Lopponen complained there had not been enough government support, the reason for closing the 1,340-kilometre (830-mile) border was "well understood" given the region's history.

Most of Finnish Karelia was grabbed by Joseph Stalin's forces in 1940 after the bloody Winter War, when Finland put up stiff resistance to the Soviets despite overwhelming odds.

"We are used to having Russia just across the border," said Lopponen, who like almost every man and some women, is a military reservist until the age of 65.

- New border fence -

Only the sound of two Finnish guards' footsteps in the snow broke the silence as they patrolled a new border fence.

"The border is very peaceful at the moment, but we are aware the global situation is tense," said Ville Kuusela, a senior border guard.

Finland is building a 200-kilometre, 362-million-euro ($426 million) barrier fence with cameras and sensors in strategic areas to tackle the threat of weaponised migration.

But for now the guards mostly encounter moose, bears and some curious onlookers.

Finland abandoned decades of military non-alignment by joining NATO in April 2023, a year after Russia invaded Ukraine.

Defence Minister Antti Hakkanen told AFP military investment and preparedness had been ramped up in case the neighbours become "aggressive in the future".

Moscow is suspected of sabotaging undersea cables in the Baltic and it has expanded its military bases near Finland's eastern border.

"We have to now run fast to strengthen up our defence," Hakkanen said.

- Record unemployment -

In the sleepy streets of Tohmajarvi, a few elderly ladies arrived at the local market on their kicksleds.

Pilvi Paaskynen, who runs the K Market, remembered how Russian customers used to snap up instant coffee, tea and cheese while Finns crossed the border to buy petrol, cigarettes and alcohol that were cheaper in Russia.

Down the road at the Tavaratori store, with its signs in Finnish and Russian, "sales had halved", a worker said.

Finland had the highest unemployment rate in the EU at 10.2 percent in December, with that figure reaching 18.2 percent in Tohmajarvi, according to the Finnish statistical agency.

But the economic impact of sanctions against Russia and the closure of the border has been less severe than feared, according to Tomi Kristeri, an economist at the Finnish Institute of International Affairs.

"Regional pockets and certain sectors have been hit harder," such as tourism and machine tool manufacturing, he said.

Despite high unemployment, the border closure has raised fears of labour shortages in construction, catering and healthcare, where many Russians work.

In the regional capital Joensuu, vocational school principal Esa Karvinen had more than 2,000 applications from Russia in 2022. "Last year there were less than 200."

- Marooned Russians -

No one wants to live in Tohmajarvi, there are no jobs," said the 41-year-old motel owner Aleksander Kuznetsov, who like the rest of its Russian community, is now cut off from relatives on the other side of the frontier.

Before the border closed, his 14 rooms were booked "two to three days a week", he said. "This month I've only had eight customers."

Fellow Russian Anjelika Hovi, a 51-year-old nurse who is married to a Finn, said her eldest son had left to find a job, working for a time on the border fence.

Kuznetsov said he used to visit his wife and family an hour's drive away across the border in Sortavala "once a week".

But he hasn't seen them in 15 months, with his last trip home taking 27 hours via Narva in Estonia, where a crossing point remains open. It cost him several hundred euros.

"People don't need war, people need a good life, a normal life," he said.

"But I don't know how long I can hold on because money is running out. Maybe half a year, maybe a year."

T.Musil--TPP