Finland is an important trade partner of Russia. According to the Federal Customs Service of Russia, in 2008 the Russian-Finnish goods turnover amounted to $22.4 billion (42.1% growth compared to 2007), including export for $15.8 billion (46.9% growth), import for $6.6 billion (32% growth), positive balance $9.2 billion.
In the first six months of 2009 compared to the same period in 2008, the goods turnover decreased by 46.9%, including export by 45.8% and import by 49.6%. Currently Russia ranks second in Finland's foreign trade (with a share of 11.4%), including the second place in import and third in export.
Energy supplies account for over 80% in the structure of Russia's export to Finland. Small capacity of the Finnish market in energy and feedstock consumption and the fall in oil prices limit the growth of Russian export in conditions of the global economic crisis. Finished goods account for over 80% of import from Finland: cars, equipment and vehicles (61%), products of the chemical (13%), timber and paper (6%) and the food industry (4%). Its dynamics is determined by the customer and investment demand in Russia, which decreased due to the crisis.
Finland ranks eighth in terms of accumulated volume of direct investments in Russia, with investments amounting to $1.6 billion, or 1.7% of the total accumulated volume of direct foreign investments in Russia, according to Rosstat data for June 2009. Finland's government action plan for Russia envisages the increase of this figure to over 5 billion euros.
The lion's share of Finnish direct investments (96%) is concentrated in the North-Western (70%) and Central (26%) federal districts. The most significant Finnish capital investments are concentrated in St Petersburg (36%), the Leningrad Region (21%), the Moscow Region (10.4%), and Moscow (8.4%).
Finland has over 2,000 companies with participation of Russian capital, most of which work with minimal share capital (8,000 euros) and function in the sphere of trade and intermediary and consultancy services, tourism, transport and logistics. The largest Russian investments into Finland are: acquisition by Gazprom of 25% of share capital in the gas monopolist Gasum in 1994, transformation of the former representative office of Ingosstrakh into an insurance company IngoNord in 2001, the establishment of RAO Nordic company as an associated company of INTER RAO UES in 2002, the acquisition of Finnish oil traders Teboil and Suomen Petrooli companies by LUKoil in 2006, and the acquisition of Nickel Harjavalta oil refining company by Norilsk Nickel in 2007.
An Intergovernmental Russian-Finnish Commission for Economic Development was established in 1992 based on an intergovernmental agreement. The 10th meeting of the Commission took place in Moscow on March 20, 2009. The Commission is co-chaired by Minister of Economic Development of the Russian Federation Elvira Nabiullina and Minister of Foreign Trade and Development of Finland Paavo Vayrynen, who meet on a regular basis between meetings.
The legal basis of cooperation of adjacent regions of Russia and Finland is set out in the Intergovernmental Agreement of 1992 On Cooperation of Russia and Finland in the Murmansk Region, the Republic of Karelia, St Petersburg and the Leningrad Region. The Intergovernmental Group, coordinated by foreign ministries, acts according to that agreement. The 12th session of the Group took place in Helsinki on November 17, 2008. Within the framework of adjacent cooperation, over 200 projects are being implemented, including projects in such areas as nature preservation, including the enhancement of security of nuclear power plants, telecommunications, transport, agriculture, forestry, and healthcare.