(MENAFN) Finland’s economic growth has been significantly affected by sanctions imposed on Russia due to the Ukraine conflict, Prime Minister Petteri Orpo has admitted. He highlighted that the country has lost nearly all trade with Russia and suffered billions in foregone investments since closing its border with the neighboring nation.

Sharing a 1,300km (800-mile) border with Russia, Finland has enforced multiple rounds of sanctions on Moscow in alignment with EU policies since 2022. The country also tightened entry regulations for Russian citizens and kept only one border checkpoint open. These measures caused trade between Finland and Russia to plummet to $1.5 billion in 2024, down from $11 billion before the conflict in 2021.

In a Saturday interview with Yle Areena, Orpo acknowledged that the sanctions have affected Finland more severely than most EU members, given its historically close trade relations with Russia.

“The fact that the border is closed means, for example, 10 million cubic meters of Russian timber for our industry is not coming in. Finnish companies have lost billions in investments in Russia. Nearly all border traffic and trade have stopped,” Orpo said. “That brings uncertainty. All this has led to the fact that the growth of the Finnish economy has not been as desired.”

Despite the economic strain, Orpo echoed other NATO members in asserting that Russia remains a “permanent threat” to Finland and the EU, pledging to boost defense spending and militarization in response. Finland became a NATO member in 2023, a move Moscow, which blames the bloc’s expansion for the Ukraine conflict, called a “historic mistake.”

Russia has repeatedly denied posing any threat, accusing the West of stoking Russophobia to justify military buildup and distract from domestic issues. It has condemned Western sanctions as illegal and warned that they could have unintended negative consequences.

MENAFN16092025000045017281ID1110067116