Having Lost Trade with Europe, Karelia Now on Brink of Economic Collapse

Paul Goble

            Staunton, Nov. 23 – Karelia which had seen its economy boom because of trade with the European Union is now on the brink of collapse given the imposition of sanctions: while Russia’s economy as a whole grew by two percent in the first half of 2022, Karelia’s is currently on course to fall by ten percent or more by the end of the year.

            The republic's key wood processing industry has already declined 16 percent since the start of 2022, officials say; and they see now way out but to seek more money from Moscow, money that the center does not have available to send them because of the war in Ukraine (versia.ru/karelii-grozit-bezrabotica-i-golod).

            As the situation has deteriorated, some in the republic are recalling the old saying that “Karelians eat bark,” a reflection of fears that if nothing happens soon, they may be forced to do just that.