Imatra-Svetogorsk

Countries: Finland , Russia

Overview

Background

Until 1939 and the invasion of Finland by the Soviet Union during the Winter War, the town of Svetogorsk (Enso in Finnish) was part of Finland. It was only after the Treaty of Moscow signed in 1940 that Finland lost 10% of its territory, including Svetogorsk. After the Second World War, the newly Russian town was repopulated by with inhabitants originating in Ukraine, Belarus or Russia.

Imatra and Svetogorsk are situated 7 km apart, on opposite sides of the river Vuoski, and therefore do not represent a continuous cross-border conurbation. However, they have similar economic profiles, historically linked to the pulp and paper industry. Thanks to the energy provided by the rapids of the river Vuoski, Imatra underwent considerable development from 1929 onwards, up to the 1980s. The collapse of the USSR provoked an economic crisis in the early 1990s, during which unemployment skyrocketed and the population shrank. Today, the paper manufacturer Stora Enso, one of the largest multinational groups in this sector, remains the largest employer in Imatra, with 2,800 employees.

On the Russian side, a large pulp and paper mill was constructed in 1972, after the Soviet Union awarded the project to Finland. This project enabled the two states, as well as the towns of Imatra and Svetogorsk to establish cross-border relations. The company OAO Svetogorsk employs around 3000 people in Svetogorsk. Among them, around 60 border workers make the journey everyday from Imatra.

Since 2002, Imatra and Svetogorsk have shared the only border crossing point between the European Union and Russia comprising a road and rail crossing. The Finnish-Russian border region is also the site of the largest economic and social differentials. Local cross-border flows, while not daily, are mostly of a commercial or professional nature.