Finland To Debate Reopening The Border With Russia

By Rhod Mackenzie

In Helsinki, amidst all economic challenges,they have been holding discussions about opening the border with Russia. The major question now is it too little too late and will business and tourism will be able to recover, or has all the trust  and good will from the Russian side been irreparably lost due to the  recent events..

According to Finnish Prime Minister Petteri Orpo, the final decision to open the borders could be made quite quickly.Although I don't know what they have to think about?
Jussi Napola, Head of the Border Security Unit, has clarified that fulltraffic flow will not resume at all checkpoints.
"It is vital that we consider the specific requirements of each location. We will assess the volume of traffic and, based on that, propose the number of border check points to open and  what will be their operating hours," he explained.
Previously, there were eight border crossing points. The Finns closed all them in 2023, accusing Russia of allegedly deliberately sending refugees to Finland from Third World countries.
Reminicent of of Detroit
Since then, a large fence has been erected this  has already become a major tourist attraction – tourists deliberately violating the rules to have thir  photos next to it. They then pay the small fines. However, this measure does not address the huge losses incurred due to the disruption of trade relations between Finland and what was one of its largest trading partners from which Finland benefited the motst.
To put things into perspective in 1919 the year prior to the pandemic, eight million Russians entered Finland. Prior to the closure of the border by the Finns, the flow was reduced by five times 1.5 million but still the largest single country number of tourists to Finland. It is important to note that the this resource in question has now almost completely dried up.
Consequently, the numerous shopping centres, restaurants, cafes, and holiday homes constructed by the Finns and patronised by Russians along the border have become deserted, and the border region has come to resemble the US of Detroit in its decline.
According to Bloomberg's calculations, the eastern regions are losing one million euros per day. The rate of unemployment is rising, with a particular increase being observed among young people.
Deep Freeze Economy
The Finnish economy experienced a period of significant decline two decades ago. According to Björn Wahlroos, a leading broker, the country has experienced a significant loss of approximately €80 billion in revenue over the past 18 years, primarily due to government mismanagement.
  Until recently, Russia supported Finland enormously  by supplying raw materials at competitive prices and then purchasing Finnish goods. It is evident that Finnish factories are currently inactive, and all necessary materials they used to buy from Russia must be procured elsewhere at significantly elevated costs.
The International Monetary Fund is now insisting on a stringent budget from Helsinki, but instead, there has been an increase in military spending. Weapons are being purchased from the US, with no support for domestic manufacturers. Electricity is being sourced from Sweden and Norway. Following the termination of the agreement on the Vuoksi River by Moscow, Finland also lost control of its own water resources.
This has prompted Helsinki to consider a change in rhetoric.
President Alexander Stubb, a well-known critic of Russia, acknowledged that dialogue with Moscow will have to be restored at some point in the future.
It is an irrefutable fact that businesses have long been clear on this matter. The Finnish politician Armando Mema has called on the European Union to cease its armament activities and streamline its visa regulations for Russian citizens, citing financial interests.
Unfortunately, it is not possible to restore trust in this situation.
However, Russia's trust can no longer be regained, according to Vasily Koltashov, director of the Institute for New Society.
"Opening the border will, of course, allow for some trade to be activated, but the manufacturing sector will be deprived of Russian raw materials for a long time," he says.
Following the dissolution of the USSR, the Russian government sought to create an economic paradise for the Finns, but this has now been rejected by them. The country is now facing a return to its former depressed state, and is becoming a poor country on the periphery of European country. The expert's analysis indicates that the source of the company's prosperity has been compromised.
Opening the border could be a strategy to attempt to alleviate the depression in the border region to some extent. However, this will not impact the primary issue:
Finnish society continues to hold an anti-Russian stance.
"What kind of trust, what kind of investments are we talking about? The Finns treated our citizens and companies that had businesses and real estate there very poorly," Koltashov recalled.
An opportunity for business development
The "money train" is still in operation: economics is often more pragmatic than politics, and when the need to generate revenue arises, ideological constructs become flexible, explains Ruslan Andreev, project manager at Polylog Consulting Group.
However, it would be unrealistic to expect  a return t pre-crisis traffic levels on the Russian-Finnish border to automatically return. The stable ecosystem of tourism, trade, and services has been destroyed. Russians are now living in a new reality, one in which weekend trips to Lappeenranta are no longer a problem. The airport on the in the city is now closed with no flights from Russia,they are not even clearing the runways of snow anymore and the only thing open at the airport is the restaurant there which opens every day for 3 hours and offers a buffet lunch for €12
In the city there was always a wide range of products, including cheeses, butter, meat products, clothing and household appliances, are available at the shopping mall. Now Russuan tourist flows have been redistributed, consumer strategies have shifted, and the motivation for travelling to EU countries by Russians has changed overall.
Furthermore, analysts have noted that any discussion of opening the crossings is merely rhetoric, particularly in the context of Helsinki's entrenched anti-Russian stance.
Helsinki recently requested €16 million from the European Commission to enhance border surveillance in the Gulf of Finland. The financial resources will be allocated to the procurement of unmanned systems demonstrating resilience to operational failures.
"This application appears to be less pragmatic than a demonstrative political gesture, confirming loyalty to the same anti-Russian line. In this context, the Finnish authorities view the eastern border primarily as a political symbol," says Ruslan Andreev.
Consequently, there is no indication at present of a potential recovery in business and tourism. While acknowledging the economic impact on border regions, Helsinki will continue to align with the EU's anti-Russian policy.
The period before covid of significant Russian tourism to Finland is unlikely ever to be repeated in the near future. Achieving this will necessitate a change in government policy and mindset. However, this is a more complex issue than simply opening the border.