Transit shipments through Finland to Russia contracted sharply last year, while transit freight from Russia rose

BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/13

The value of transit freight to Russia via Finland contracted last year by over a fifth to €14 billion, even less than in the crisis year 2009. Transit shipments fell last year for the third year in a row. Although roughly a third of all Russian imports passed through Finland in the first half of the 2000s, last year just 8 % of Russia’s total imports passed through Finland. This has been partly caused by Russia’s weak economic development but also by improving transport infrastructure in Russia, particularly development of the Port of Ust Luga. Transport freight moving through Finland has also been hurt by increased competition from other transit routes, particularly the Baltic countries.

In contrast, transit freight moving from Russia via Finland to third countries rose last year for the second year in a row to a record level. This transit freight constituted 7 % of Finland’s international sea transport volume. It largely consisted of ore concentrates and chemical products. 

The most recent estimate of Finland’s Ministry of Transport and Communications from 2012 put the Finnish economy’s annual value-added from transit freight at around €90 million and job generation at about 1,200 jobs.

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