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Development of Business Environment in the Arkhangelsk Corridor
Start date: Sep 14, 2002, End date: Dec 30, 2005 PROJECT  FINISHED 

The project’s aim was to develop the Arkhangelsk corridor into a new functional traffi c connection through Vartius to Karelia and to the Arkhangelsk and Murmansk regions. Th e Arkhangelsk development corridor is based on the new railway connection from the northern part of the Gulf of Bothnia to Arkhangelsk, when the railway between Ledmozero-Kochkoma will be taken into use in 2002. Th e goals of the project included creating awareness of the Arkhangelsk Corridor, increasing cooperation and communication between actors, creating operational models for producing services, and altering the operational environment to assist business activity. Achievements: Cooperation networks were developed during the project and business alternatives were studied together with companies from Kostomuksha. In fact, subcontracting activity was initiated in Kostomuksha already during the project. The project highlighted the signifi cance of the increase in the standard of living and equality issues in the nearby area. Economic growth in Russia’s nearby areas was recognised as having great significance to trade and tourism in Kainuu. The Russian section of the Arkhangelsk Corridor had also become well known as a low-cost production area within close geographic proximity. The positive publicity of the area had been increased and the interest in the area by companies had grown. In addition, the interest of Russian actors in cooperation with Finnish companies had increased. The companies and other actors in the region had excellent opportunities to take part in the growth in Russia, and they should take action in the issue. The limited resources of SME companies in the area were the greatest hindrance to doing so. In addition, Russian language skills should be improved in Kainuu. A Kuhmo-Kostomuksha optical cable work group for promoting the connection was created as a result of the project. Permission to begin construction was finally received from the Russian Federation in 2007. The optical cable connection will strengthen the economic conditions of the region and increase opportunities for bringing about traffic- and development-related investments in the area. The growth in traffic in the region and the logistical status will be revitalised when the Ledmozero-Kochkoma connection, also promoted through this project, is available for commercial use. In addition, a planning committee for the Vartius Border Traffic Centre was established, based on the project’s initiative, and a preliminary plan was created for the centre. The City of Kuhmo later received separate funding for building the Border Traffic Centre, and it was completed during 2007 to serve the import and export activities occurring through the Vartius border-crossing point. Marketing activities for border service company Via Vartius Oy were started. An operational model for producing services to the companies and communities in the region, and the provisional subscription of company shares was implemented. Since the project, the company has become a well-known Russia specialist in the region and in the international networks. At the same time as the interest toward the market in Russia continues to increase, the future of Via Vartius Oy appears bright. Since the project, the company has participated in several commercial projects directed toward Russia. The company was also a member in the ‘Finland’s Economics Strategy for Russia’ taskforce by Sitra.
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  • 62.1%   257 901,30
  • 2000 - 2006 Euregio - Karelia  (FI-RU)
  • Project on KEEP Platform

5 Partners Participants