The Significance of Russia for Finnish Companies

Abstract

This Policy Brief analyses the importance of Russia on the Finnish economy. We scrutinize both the trade relations and the presence of Finnish firms in Russia and that of Russian firms in Finland. We will show how Russia was seen as a large opportunity for the Finnish economy in the first two decades after the collapse of Soviet Union. During the 2010s, relations have, however, weakened, due to economic sanctions and the devaluation of ruble. The relations reached such low levels by the new war in Ukraine that new sanctions will most probably not cause economic crisis in Finland. A recession outcome would need an escalation in war and/or more severe deterioration in energy and raw material markets. Nonetheless, growth will decline and inflation will spike.

Publication info

Results of research
Company Resilience in the Era of Globalization (CRIEG)
Research group
Business renewal
Series
ETLA Muistio - ETLA Brief 105
Date
10.03.2022
Keywords
Russia, Significance, Economy, Companies, Exports, Imports, Investment
ISSN
2323-2463
JEL
F23, F14, F51, F1
Pages
14
Language
Finnish