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 a Bloomberg report. The closure, implemented in late 2023, cited Moscow’s alleged role in facilitating a migrant influx from Africa and the Middle East, a claim Russia dismissed as “completely baseless.”

For decades, South Karelia, located near St. Petersburg, thrived on cross-border ties, including tourism, shopping, lumber imports, and forest industry jobs. The abrupt loss of Russian visitors has left hotels, shops, and restaurants struggling, with local businesses reporting sharp declines. Sari Tukiainen, a store owner in Imatra, noted that Russian customers once bought heavily, even snapping up winter coats by August. Her business is now set to close due to dwindling sales.

Unemployment in Imatra has surged to 15%, the highest in Finland, as mills and steel plants reduce staff. The border closure marks a dramatic shift for a region historically linked to Russia, despite Finland’s wartime history with the Soviet Union. Helsinki’s decision followed sanctions against Russia over the Ukraine conflict and its subsequent NATO membership, severing decades of neutral ties.