Trade has been largely scrapped and billions in investments lost after the fallout between the neighbors over the Ukraine conflict, Petteri Orpo has said

Finland's economic growth has suffered due to sanctions on Russia linked to the Ukraine conflict, Prime Minister Petteri Orpo has admitted. He noted that Finland has lost nearly all trade with Russia and billions in investments since it closed the border with its eastern neighbor.

Finland, which shares a 1,300km (800-mile) border with Russia, has imposed several rounds of sanctions on Moscow in line with EU policy since 2022. It has also tightened entry rules for Russian citizens and shut all but one border checkpoint with its neighbor. The moves saw trade between the two countries drop to $1.5 billion in 2024, compared with $11 billion in pre-conflict 2021.

In an interview with Yle Areena on Saturday, Orpo acknowledged that sanctions have hit Finland harder than most EU members due to its traditionally close trade ties 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 this, Orpo echoed other NATO members in claiming Russia remains a "permanent threat" to Finland and the EU, vowing to increase defense spending and militarization to counter it. Finland joined NATO in 2023, a step Moscow - which views the bloc's expansion as a trigger of the Ukraine conflict - called a "historic mistake."

Russia has repeatedly rejected claims it poses a threat, accusing the West of fueling Russophobia to justify military buildups and divert attention from domestic problems. It has condemned Western sanctions as illegal and warned they would backfire.

The Finnish economy slipped into recession in both 2023 and 2024. According to Eurostat, its growth projections for 2025 are the lowest in the EU.

(RT.com)