The Development of Finnish-Soviet Economic Relations since 1918

Abstract

In the development of economic relations between Finland and the Soviet Union, the period from 1918 onwards seems to be divided at least into two phases on any criteria. A quick look at trade statistics reveals the insignificance of the mutual trade in the interwar period as compared with the steady and extensive exchange after the Second World War. The difference is reflected also in the framework of economic relations-during the first two decades of Finnish-Soviet relations the states did not succeed in concluding a trade agreement of any kind. The Second World War, of course, seems to be an intervening variable that explains the sharp change, but it is not fruitful to plead to war unless it is more precisely considered what was included in the development of the Finnish-Soviet economic relations in the two phases from 1918 to recent years. It is obvious that the bilateral relations between these two neighbouring countries have reflected and been dependent to a varying extent on the development in the wider international arena.