Finland Reports South Karelia Losing One Million Euros a Day as Russian Tourists and Workers Stay Away

For decades, Russian visitors fueled the economy of Finland’s border regions, but now the streets of South Karelia tell a very different story.

Once bustling with tourists and workers crossing from Russia, towns like Imatra are facing an unprecedented economic drought.

According to Bloomberg, the region is losing around €1 million every single day due to the absence of Russian visitors—a consequence of the border closures that began in 2023 amid migrant concerns.

Imatra’s Transformation

Walking through Imatra today, the change is stark. The city center that used to hum with activity now has shuttered shops and empty streets.

Buses that once ferried tourists to spas and hotels no longer appear, and local resorts are struggling to stay afloat.

Even historic landmarks like the city’s famous hotel are being propped up with municipal budget funds just to keep them running.

Jaakko Jappinen, Imatra’s marketing and tourism director, summed up the situation bluntly: “Russian money was easy, but it left too many services for the city. The easy money is gone.”

The Toll on Industry and Jobs

The absence of Russian visitors is more than a tourism problem—it’s affecting the broader economy.

South Karelia’s steel plant has scaled back its workforce, while major forest industry companies, including UPM-Kymmene Oyj, Stora Enso Oyj, and Metsä Group, have also announced staff reductions.

Even the local healthcare system has had to let some employees go.

Government Response and Hope for the Future

There may be a silver lining. Finnish Prime Minister Petteri Orpo suggested in October that the Russian-Finnish border could reopen in the future, provided Russian authorities can guarantee that illegal migrants will not enter Finland.

Meanwhile, the Finnish government has allocated €7 million to support development in the country’s eastern regions.

Imatra, once a top destination for Russian tourists, will receive €4 million to strengthen local businesses and investment.

Mayor Mattias Hilden stressed the importance of developing the Karelian railway to sustain the forestry industry, which remains a critical sector for the region.

How It All Began

The border closures trace back to the autumn of 2023, when Finland began restricting crossings amid a rising influx of asylum seekers from the Middle East and Africa.

Helsinki has partly blamed Moscow for the situation, though Russia denied any responsibility, stating it cannot control citizens of third countries approaching the Finnish border.

That same year, Finland also joined NATO, adding another layer of geopolitical tension to the region.