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Wednesday, 28 March, 2001, 22:32 GMT 23:32 UK
Russia and Finland in energy dispute
Salla border crossing
The border post has been closed since Monday
By Julian Isherwood

Russia has angrily closed its border-crossing point to Finland at Salla in eastern Lapland after Finnish authorities stopped electricity supplies to the Russian side of the border for non-payment.

Salla County Council ordered its electrical engineers to remove meters delivering electricity to the Russian side of the border last weekend, after repeated notices had been delivered of non-payment of electricity supplies for a decade.


During the Soviet era, Finland would not have pressed such a demand for fear of angering Moscow

Salla claims it has some $30,000 outstanding from Russian consumers - predominantly the border post itself.

In the mid-winter snow and ice, the newly developed Cold War of the Finnish frontier has highlighted a problem Russia is only too aware of - the inability of neighbours to pay for energy supplies.

Russia itself has been battling with Kiev to pay for its energy supplies.

The Russian gas transportation firm Itera threatened this week to stop transporting natural gas from Turkmenistan to Ukraine due to mounting debts.

It set April as a deadline for repayment.

In all, Ukraine is thought to owe Russia gas debts of some $1.4bn - an amount currently being contested in the Russian courts.

Gazprom, the Russian gas monopoly has taken Ukraine to the International Commercial Arbitration Court on allegations of the illegal tapping of Gazprom gas on its way from Russia to Europe through Ukraine.

Changed relations

Although the amounts concerned at Salla in Finland are a drop in the ocean in comparison, the refusal by Russia to pay its debt, the Finns' decision to press the demand, and the closing of the border is yet another sign of the changed character of relations between Russia and its neighbours.

Salla border crossing
Only Finnish and Russian traffic is currently allowed
During the Soviet era, Finland - which had a Treaty of Friendship, Co-operation and Mutual Assistance with the Soviet Union - would not have pressed such a demand for fear of angering Moscow.

The dissipation of that fear, Russia's decreased economic importance for Finland, and Finland's core membership of the European Union have all provided an atmosphere of friendly firmness in economic relations between the two neighbours.

Russia stands firm

It is unclear when the Salla dispute will end.

Despite promises from the Russian consul at Alakurtti, Russian border officers have refused to re-open the border.

It has remained closed since Monday, with officers on both sides facing off - Finland opening its side of the crossing point and Russia keeping its firmly closed.

Salla authorities said on Wednesday they would be raising the issue of non-payment and the closed border with Russian customs officials during their scheduled weekly meeting on Thursday - if Russian officers turn up.

The Salla crossing point to Russia is part of an ancient trade route to the White Sea.

Currently the border point allows only Finnish and Russian traffic, although plans are to open the border point for international traffic during 2001.

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See also:

12 Feb 01 | Europe
Kuchma wins Russia's support
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