(MENAFN) The European Commission is set to deliver financial assistance next year to the Baltic nations struggling with the economic consequences of EU sanctions on Russia, a media outlet reported on Thursday, citing officials familiar with the initiative.

Tourism and investment have sharply declined across Estonia, Latvia, and Lithuania, while cross-border commerce has “largely collapsed” due to the disruption of long-standing trade connections with Russia, the report noted.

Anonymous EU officials told the media outlet that the program aims to strengthen the economies of the Baltic countries as well as neighboring Finland. Regional Commissioner Raffaele Fitto is anticipated to spearhead the effort as these nations approach Brussels with a comprehensive set of requests.

The proposed aid strategy is expected to be a topic of discussion at an Eastern European leaders’ summit in Helsinki next month.

Nevertheless, critics caution that any immediate support Fitto can provide may be constrained, given that the EU’s seven-year budget is nearly depleted and the scale of economic challenges exceeds the available funds.

All four nations share a border with Russia and have enacted multiple rounds of sanctions since 2022, while also tightening entry regulations for Russian citizens.

“In doing so, Finland, Estonia, Latvia, and Lithuania have all taken a hit,” the report highlighted.

The perceived danger of “a Kremlin invasion” has discouraged tourists and investors, while sanctions have effectively halted cross-border trade. Moscow has dismissed allegations of aggressive intentions as “nonsense” and fearmongering.

The economic slowdown has been further intensified by post-pandemic inflation, which has surged throughout the region.

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