The project intended to develop and modernise the souvenir and craft industry in the Republic of Karelia by assuming European, mainly Finnish, best practices in product design, distribution, and marketing. Th e intention of the project was to create a production, collection, marketing, and distribution chain, which would be based on a central offi ce in Petrozavodsk and its side branches in the pilot areas (Petrozavodsk, Belomorsk, Kemi in Viena, and Olonets). In addition, the chain would include an e-commerce system to be generated during the project for selling souvenirs. Th e project would also establish three craft workshops and provide training on various levels for professionals in the art industry and for those just getting started in craftsmanship. Achievements: Th e project had a study done on European experiences on developing the souvenir industry and completed background research on the souvenir market of the Republic of Karelia. A publication was produced based on the research. In addition, a database of 201 craftsmen and their products from the area of the Republic of Karelia was created. Th e database was included on the Craft and Design Network website created during the project at http:// crafts.karelia.ru/news eng.htm. A craft and souvenir shop was also created for the website. Th e project created and equipped craft workshops in the pilot areas in Petrozavodsk, Belmorsk, Kemi in Viena, and Olonets. Lectures, seminars, educational courses, and craftsmens learning trips to Finland to craft and design organisations were arranged in order to develop the quality of the crafts and souvenirs. Th e subjects of the courses included national tradition, craftsmanship techniques, developing new souvenir designs, and packaging. In addition, professionals in the craft industry were off ered personal consulting. An art curator network was created in the pilot area, in which Finnish and Russian designers assisted craftsmen in creating 75 new souvenirs. Th e products were created in accordance with the planned Karelia Brand, and a logo was designed for the same. Business plans were created for three products for small-scale experimental production. Th e project opened the Karelian Craft and Design Network coordination centre in Petrozavodsk and communication offi ces in the areas. Th e coordination centre was responsible for networking activities with the regional communication offi ces, which implemented the collection and distribution of the souvenir products by operating as local souvenir shops during the tourism season of 2008. An exhibition of new souvenir products was organised in Petrozavodsk. A network between Karelian craftsmen was established during the project activities, and the offi ces and coordination centre are still operational after the project.