Finland continues raw material trade with Russia at the Vainikkala border crossing

According to researcher Alexandr Kolyandr from the American CEPA think tank, both President Putin and the Kremlin benefit from raw material trade at the expense of Finland. Most raw materials enter Finland via the Vainikkala border crossing in South Karelia, while the Niirala crossing in North Karelia sees significantly less cargo traffic.

Kolyandr, originally from Kharkiv, Ukraine, has covered Russian business and economy for major media outlets and now resides in London, working at CEPA after leaving Russia in 2022. He suggests that the Kremlin gains political leverage from the continuation of trade, as it prevents Russia from being entirely isolated. Kolyandr argues this allows Russian propaganda to portray Western politicians as prioritizing their countries’ economic interests over Ukraine’s fate.

Statistics compiled show that Finland is still engaging in substantial trade with Russia amid the ongoing conflict. For instance, Finnish imports of Russian nickel reached €1.115 billion in 2022. While imports have decreased by a third early this year compared to the same period last year, the import of Russian fertilizers surged dramatically, with an early-year total of €10.5 million, compared to just €5.5 million last year.

Kolyandr asserts that Finnish officials could end these raw material transactions if they chose, but haven’t done so. He finds this situation paradoxical, noting it reflects an effort to avoid self-harm while supporting Ukraine. He emphasizes that ending purchases of raw materials could adversely affect Russia’s war financing in the long run, but highlights the complexities of trade dynamics involving China, which has increasingly become a destination for Russian exports. The West must think strategically about its economic stance against Russia and its influence in the resource market.