The closure of Finland's border with Russia has increased costs for the forest industry

The decision of the Finnish authorities to close the border with Russia has led to an increase in production costs for the Finnish forest industry.

The replacement of Russian wood with domestic or imported wood from other countries and the switch to more expensive road transport have increased costs.

Attracting new major investments in border areas has become more difficult due to uncertainty in the region.

MOSCOW, September 11 - RIA Novosti. The decision of the Finnish authorities to close the border with Russia led to an increase in production costs of the Finnish forest industry and a decrease in investments in border regions, Jauri Varvikko, chairman of the Finnish public organization Naapuriseura, told RIA Novosti.

"Previously, the Finnish forestry industry relied heavily on cheap Russian wood, and its replacement with domestic wood or wood from other countries has increased production costs. The closure of the Saimaa Canal has forced freight transport to switch to more expensive road transport," the source said.

Private investors have become more cautious amid uncertainty in the region, Varvicco said.

“It has become more difficult to attract large new business investments to border areas,” he said.

Varvicco added that we are talking about year-round cash flow.

“According to experts, even after the border is opened, restoring economic interaction and trust to the previous level would take at least ten years,” the agency’s interlocutor said.