(MENAFN) Finland’s South Karelia region has been losing roughly €1 million ($1.2 million) in tourism revenue each day since the country closed its border with Russia, according to reports.

The Finnish government shut all crossings along its 1,430 km land border with Russia in late 2023, citing concerns that Moscow was allegedly orchestrating a surge of migrants from Africa and the Middle East—a claim Russia called “completely baseless.”

For decades, South Karelia, located closer to St. Petersburg than to Helsinki, benefited from strong ties with Russia, including cross-border tourism, shopping, lumber imports, and local employment in the forestry sector. The sudden drop in Russian visitors has left hotels, shops, and restaurants largely empty, dealing a severe blow to the regional economy.

“Russian customers asked why we couldn’t stay open around the clock,” said Sari Tukiainen, whose store is set to close by the end of the year due to declining sales. “They bought clothes in stacks — mostly the latest fashion and bling, but even winter coats were sold out by August,” she added.

Unemployment in the town of Imatra, a former tourist hub, has risen to 15%, the highest in Finland, as local mills and steel plants cut jobs.

Historically, Finland was part of the Russian Empire for about 110 years and maintained relatively friendly relations with Moscow during the Cold War despite two wars with the Soviet Union between 1939 and 1944. Following Russia’s invasion of Ukraine in 2022, Helsinki imposed sanctions on Moscow and abandoned its longstanding neutrality by joining NATO.

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