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Trade representative of Russian Federation in Finland
Dr. Valery A. Shlyamin

Threats and opportunities in Russian-Finnish
economic cross-border cooperation
by the example of Euregio Karelia

Joensuu,
20.11.2013
1
Russia

Finland

1st place in the Finnish
foreign trade

15th place in the Russian
foreign trade

14.2% share

2,3% share

Source: Federal customs service of the Russian Federation,
National Board of customs of Finland, 2013

2
Euregio Karelia
Agreement signed on
the 24th of February 2000
Kainuu
North Karelia
Northern Ostrobothnia
Republic of Karelia
Trade between Russian cross-border regions and Finland,
mil. USD
4500

3967

4000
3500
2998

3000

2769

2500
2368

1856

2000
1636

1692

1664

1500
802

1000
459
500
330
217
0
80

2000

727
420
75

2005

Republic of Karelia

482
80

2006

1139

938
548

517

1062
639

842
302

298
198

2007
Murmansk region

214

2008

1158

98

2009

100

2010

Leningrad region

252
239

2011

280
242

2012

Saint Petersburg

Source: Rosstat

4
Finnish investments to Russian cross-border regions,
mil. USD
600,0
480

500,0

439
400,0

300,0

267
173

200,0

1
0,2
2000

53

40
16
0,0
2005

Republic of Karelia

28
0,1
2006

0,3
2007

Leningrad region

267

189
128
139

83

100,0
4

233

171

149

0,0

213

29
0,0
2008

90

40
0,0
2009

169

14
0,0
2010

Murmansk region

34
0,0
2011

33
0,0
2012

Saint Petersburg

Source: Rosstat

5
ВАЛОВОЙ РЕГИОНАЛЬНЫЙ ПРОДУКТ НА ДУШУ НАСЕЛЕНИЯ
по ППС, долл. США
GROSS VALUE ADDED AT BASIC PRICES PER CAPITA, PPP, USD
2000

Russia*
North-west region*
Republic of Karelia
Leningrad region
St. Petersburg
Murmansk region
Finland*
Pohjois-Karjala
Kainuu
Pohjois-Pohjanmaa

2005

2006

2007

2008

2009

2010

2010 to
2000
2010
2000
Whole
Whole
Change, country = country
%
100
= 100

5 402 9 867 12 455 14 029 16 625 15 532 16 400

304%

100%

100%

5 543 10 274 12 721 14 541 17 408 17 393 17 968

324%

103%

110%

5 266 8 869 9 950 11 316 12 280 11 270 12 393

235%

97%

76%

4 545 9 581 12 446 13 086 15 817 17 523 18 376

404%

84%

112%

5 440 11 134 13 817 16 865 20 956 21 234 21 546

396%

101%

131%

8 083 12 300 15 060 16 747 18 459 17 458 18 445

228%

150%

112%

22 419 26 691 28 770 31 635 33 469 31 141 31 842

142%

100%

100%

16 354 19 660 21 544 22 990 24 048 22 454 23 331

143%

73%

73%

14 410 17 764 19 915 21 847 23 822 20 746 22 700

158%

64%

71%

19 712 24 712 25 322 28 481 29 797 25 666 27 223

138%

88%

85%

6
Соотношение уровней ВРП на душу населения по ППС,
долл.США регионов СЗФО и приграничных регионов
Финляндии (ВРП по ППС Финляндии принят за 100%)
Comparison of gross value added (at basic prices per capita, PPP, USD)
of the regions in North-West Russia and Finland’s regions
Finland’s GDP PPP=100%
2000

2005

2006

2007

2008

2009

2010

Growth
2010 /
2000

24%

37%

43%

44%

50%

50%

52%

214%

25%

38%

44%

46%

52%

56%

56%

228%

23%
20%

33%
36%

35%
43%

36%
41%

37%
47%

36%
56%

39%
58%

166%
285%

24%

42%

48%

53%

63%

68%

68%

279%

36%

46%

52%

53%

55%

56%

58%

161%

100%

100% 100% 100% 100% 100%

100%

100%

73%

74%

75%

73%

72%

72%

73%

100%

64%

67%

69%

69%

71%

67%

71%

111%

88%

93%

88%

90%

89%

82%

85%

97%

 

Russia*
North-west region*
Republic of Karelia
Leningrad region
St. Petersburg
Murmansk region
Finland*
Pohjois-Karjala
Kainuu
Pohjois-Pohjanmaa

7
Levels of cross-border cooperation
between Russia and Finland
1.Cross-border cooperation of Russia-EU (ENPI programmes, ENI) 

2.Russian-Finnish intergovernmental commission on cross-border
cooperation (in accordance with Agreement on assisting cross-border 
cooperation between Russia and Finland, 13.04.2012).
3.Regional cooperation.
4.Cooperation between municipalities, including border cities and
communes.
5.Business-level – direct conccetions between enterprises, cross-border trade 
of goods and services.
6.Cooperation of NGO’s (совокупность гуманитарных связей).
7.People-to-people contacts.

8
Threats and opportunities in Russian-Finnish
economic cross-border cooperation
THREATS
•
•
•
•
•

the slow growth of the economies 
of Russia and Finland; 
increasing international and interregional competition;
increasing regional disparities 
inside cross-border regions in 
Russia;
decline of Finland's share in 
foreign trade of Russia and its 
cross-border regions;
decline of Finland's share in 
Russian cross-border regions total 
investments.

OPPORTUNITIES
•
•
•
•
•
•
•

•

deepening of investment 
cooperation;
enlargement of innovation 
interaction of business communities;
increase of trade in services;
industrial and scientific-industrial 
cooperation of enterprises;
participation of Finnish companies in 
modernization of the Russian 
economy;
exploiting advantages resulting from 
Russia’s WTO accession;
making use of the economic 
potential of the "Northern 
Dimension“ policy,the Baltic, 
Barents and Arctic cooperation;
making use of the strong growth
of passenger cross-border traffic
between Russia and Finland.
Passenger cross-border traffic between Russia and Finland
Passengers

Passengers

Growth

Border
crossing point

2007

2012

%

Raja-Jooseppi
– Lotta

58 000

128 000

120,7%

Salla – Salla

67 000

221 000

229,9%

Kuusamo –
Suoperä

16 000

44 621

178,9%

Vartius –
Lyttä

450 000

502 000

11,6%

Niirala –
Värtsilä

919 000

1 501 000

63,3%

Imatra Svetogorsk

930 000

2 225 000

139,2%

Nuijamaa –
Brusnitchnoje

1 635 000

3 380 000

106,7%

Vainikkala –
Buslovskaya

399 000

484 000

21,3%

Vaalimaa –
Torfjanovka

2 720 000

3 495 000

28,5%

Total

7 194 000

11 981 000

66,5%
Euroregion “Karelia” in new conditions
1.

2.

3.

4.

Need to update the Euroregion " Karelia" concept, taking into
account the new realities (partnership of Russia and the EU, the
accession of Russia to the WTO, new challenges and
opportunities in the economy and social sphere of the regions).
Need to develop a new program of cross-border co-operation of
the Republic of Karelia and neighboring areas with an emphasis
on the development of joint ventures and the establishment of
cross-border network of joint projects, including joint projects in
education, health and culture.
Saving a unique model of the Euroregion "Karelia" as a
harmonious combination of the features of multi-level crossborder cooperation.
Marketing of updated model of the Euroregion "Karelia" at the
national and international level.
11
Thank you for attention!
www.rusfintrade.ru

12

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Threats and opportunities in Russian-Finnish economic cbc - Euroregion Karelia by Dr. Valery A. Shlyamin

  • 1. Trade representative of Russian Federation in Finland Dr. Valery A. Shlyamin Threats and opportunities in Russian-Finnish economic cross-border cooperation by the example of Euregio Karelia Joensuu, 20.11.2013 1
  • 2. Russia Finland 1st place in the Finnish foreign trade 15th place in the Russian foreign trade 14.2% share 2,3% share Source: Federal customs service of the Russian Federation, National Board of customs of Finland, 2013 2
  • 3. Euregio Karelia Agreement signed on the 24th of February 2000 Kainuu North Karelia Northern Ostrobothnia Republic of Karelia
  • 4. Trade between Russian cross-border regions and Finland, mil. USD 4500 3967 4000 3500 2998 3000 2769 2500 2368 1856 2000 1636 1692 1664 1500 802 1000 459 500 330 217 0 80 2000 727 420 75 2005 Republic of Karelia 482 80 2006 1139 938 548 517 1062 639 842 302 298 198 2007 Murmansk region 214 2008 1158 98 2009 100 2010 Leningrad region 252 239 2011 280 242 2012 Saint Petersburg Source: Rosstat 4
  • 5. Finnish investments to Russian cross-border regions, mil. USD 600,0 480 500,0 439 400,0 300,0 267 173 200,0 1 0,2 2000 53 40 16 0,0 2005 Republic of Karelia 28 0,1 2006 0,3 2007 Leningrad region 267 189 128 139 83 100,0 4 233 171 149 0,0 213 29 0,0 2008 90 40 0,0 2009 169 14 0,0 2010 Murmansk region 34 0,0 2011 33 0,0 2012 Saint Petersburg Source: Rosstat 5
  • 6. ВАЛОВОЙ РЕГИОНАЛЬНЫЙ ПРОДУКТ НА ДУШУ НАСЕЛЕНИЯ по ППС, долл. США GROSS VALUE ADDED AT BASIC PRICES PER CAPITA, PPP, USD 2000 Russia* North-west region* Republic of Karelia Leningrad region St. Petersburg Murmansk region Finland* Pohjois-Karjala Kainuu Pohjois-Pohjanmaa 2005 2006 2007 2008 2009 2010 2010 to 2000 2010 2000 Whole Whole Change, country = country % 100 = 100 5 402 9 867 12 455 14 029 16 625 15 532 16 400 304% 100% 100% 5 543 10 274 12 721 14 541 17 408 17 393 17 968 324% 103% 110% 5 266 8 869 9 950 11 316 12 280 11 270 12 393 235% 97% 76% 4 545 9 581 12 446 13 086 15 817 17 523 18 376 404% 84% 112% 5 440 11 134 13 817 16 865 20 956 21 234 21 546 396% 101% 131% 8 083 12 300 15 060 16 747 18 459 17 458 18 445 228% 150% 112% 22 419 26 691 28 770 31 635 33 469 31 141 31 842 142% 100% 100% 16 354 19 660 21 544 22 990 24 048 22 454 23 331 143% 73% 73% 14 410 17 764 19 915 21 847 23 822 20 746 22 700 158% 64% 71% 19 712 24 712 25 322 28 481 29 797 25 666 27 223 138% 88% 85% 6
  • 7. Соотношение уровней ВРП на душу населения по ППС, долл.США регионов СЗФО и приграничных регионов Финляндии (ВРП по ППС Финляндии принят за 100%) Comparison of gross value added (at basic prices per capita, PPP, USD) of the regions in North-West Russia and Finland’s regions Finland’s GDP PPP=100% 2000 2005 2006 2007 2008 2009 2010 Growth 2010 / 2000 24% 37% 43% 44% 50% 50% 52% 214% 25% 38% 44% 46% 52% 56% 56% 228% 23% 20% 33% 36% 35% 43% 36% 41% 37% 47% 36% 56% 39% 58% 166% 285% 24% 42% 48% 53% 63% 68% 68% 279% 36% 46% 52% 53% 55% 56% 58% 161% 100% 100% 100% 100% 100% 100% 100% 100% 73% 74% 75% 73% 72% 72% 73% 100% 64% 67% 69% 69% 71% 67% 71% 111% 88% 93% 88% 90% 89% 82% 85% 97%   Russia* North-west region* Republic of Karelia Leningrad region St. Petersburg Murmansk region Finland* Pohjois-Karjala Kainuu Pohjois-Pohjanmaa 7
  • 8. Levels of cross-border cooperation between Russia and Finland 1.Cross-border cooperation of Russia-EU (ENPI programmes, ENI)  2.Russian-Finnish intergovernmental commission on cross-border cooperation (in accordance with Agreement on assisting cross-border  cooperation between Russia and Finland, 13.04.2012). 3.Regional cooperation. 4.Cooperation between municipalities, including border cities and communes. 5.Business-level – direct conccetions between enterprises, cross-border trade  of goods and services. 6.Cooperation of NGO’s (совокупность гуманитарных связей). 7.People-to-people contacts. 8
  • 9. Threats and opportunities in Russian-Finnish economic cross-border cooperation THREATS • • • • • the slow growth of the economies  of Russia and Finland;  increasing international and interregional competition; increasing regional disparities  inside cross-border regions in  Russia; decline of Finland's share in  foreign trade of Russia and its  cross-border regions; decline of Finland's share in  Russian cross-border regions total  investments. OPPORTUNITIES • • • • • • • • deepening of investment  cooperation; enlargement of innovation  interaction of business communities; increase of trade in services; industrial and scientific-industrial  cooperation of enterprises; participation of Finnish companies in  modernization of the Russian  economy; exploiting advantages resulting from  Russia’s WTO accession; making use of the economic  potential of the "Northern  Dimension“ policy,the Baltic,  Barents and Arctic cooperation; making use of the strong growth of passenger cross-border traffic between Russia and Finland.
  • 10. Passenger cross-border traffic between Russia and Finland Passengers Passengers Growth Border crossing point 2007 2012 % Raja-Jooseppi – Lotta 58 000 128 000 120,7% Salla – Salla 67 000 221 000 229,9% Kuusamo – Suoperä 16 000 44 621 178,9% Vartius – Lyttä 450 000 502 000 11,6% Niirala – Värtsilä 919 000 1 501 000 63,3% Imatra Svetogorsk 930 000 2 225 000 139,2% Nuijamaa – Brusnitchnoje 1 635 000 3 380 000 106,7% Vainikkala – Buslovskaya 399 000 484 000 21,3% Vaalimaa – Torfjanovka 2 720 000 3 495 000 28,5% Total 7 194 000 11 981 000 66,5%
  • 11. Euroregion “Karelia” in new conditions 1. 2. 3. 4. Need to update the Euroregion " Karelia" concept, taking into account the new realities (partnership of Russia and the EU, the accession of Russia to the WTO, new challenges and opportunities in the economy and social sphere of the regions). Need to develop a new program of cross-border co-operation of the Republic of Karelia and neighboring areas with an emphasis on the development of joint ventures and the establishment of cross-border network of joint projects, including joint projects in education, health and culture. Saving a unique model of the Euroregion "Karelia" as a harmonious combination of the features of multi-level crossborder cooperation. Marketing of updated model of the Euroregion "Karelia" at the national and international level. 11
  • 12. Thank you for attention! www.rusfintrade.ru 12