Finland’s eastern and southeastern border regions are undergoing one of the most significant transformations in their modern history. The closure of the Finnish - Russian border and the consequences of Russia’s full-scale war of aggression against Ukraine have reshaped the economic, social, and security context of these regions. Once gateways for trade, mobility, and co‑operation, they are now part of the EU’s and NATO’s longest external border with Russia, requiring new strategies for resilience, security, and development.
Against this background, the Government of Finland requested technical support from the European Commission under the Technical Support Instrument (TSI). Following the selection of the request, the European Commission tasked the Organisation for Economic Co-operation and Development (OECD) with providing technical support.
The technical support project includes a diagnosis, the development of recommendations for transition strategies and action plans, and the proposals for pilot experiments to test innovative solutions. It draws on lessons from international experience in adapting regions to major geopolitical and economic shocks.
This report corresponds to the project’s final analytical report and provides analysis and recommendations to support the transition of eight Finnish border regions: Lapland, North Ostrobothnia, Kainuu, North Savo, North Karelia, South Karelia, South Savo, and Kymenlaakso. It highlights the challenges posed by demographic decline, economic disruption, and security risks, while identifying opportunities in clean energy, bioeconomy, digitalisation, defence-related industries, and sustainable tourism. The report also examines how multi-level governance and interregional co‑operation can strengthen resilience and ensure that these regions contribute to Finland’s and Europe’s security and prosperity. The report was prepared by the OECD Centre for Entrepreneurship, SMEs, Regions and Cities (CFE) in close co‑operation with the European Commission, Finnish national authorities, regional councils, and other stakeholders. It aims to provide practical guidance and strategic orientation for policymakers at national, regional, and local levels, and to inform broader European discussions on how to strengthen resilience in eastern and southeastern border regions.