Imatra ranks last among mid-sized Finnish cities in business climate survey

A new survey by the Federation of Finnish Enterprises places Imatra at the bottom of its ranking of mid-sized cities, with local business owners citing the closed Russian border and a culture of “Karelian envy” as key obstacles to economic growth.

The biennial municipal barometer, which assesses cooperation between local governments and businesses as well as economic policy, ranked Imatra 22nd out of 26 mid-sized Finnish cities—above only Kemi, Hämeenkyrö, Hyvinkää, and Forssa. The result marks the latest setback for the southeastern city, where frustration over stagnant economic conditions has mounted since Russia’s 2022 invasion of Ukraine shut down cross-border trade.

Taxi entrepreneur Petri Huuskonen, managing director of Taxijehu, described the closed border as a persistent drag on local business. “It affects everything we do,” he said. But he also pointed to a deeper cultural issue: “I don’t know if it’s in our DNA, but envy has always been Imatra’s problem.” The term “karjalainen kateus” (Karelian envy) surfaced repeatedly in responses, with long-time machine shop owner Paavo Rämö defining it as “when things go badly for you, at least your neighbor’s doing worse.”

Taru Astikainen, who runs a forest therapy center, linked the city’s economic struggles to a self-reinforcing cycle of negativity. “The global situation keeps feeding this narrative that Imatra is failing,” she said, calling for a more open local dialogue.

City officials acknowledged the poor showing but noted it aligned with past surveys. Arja Kujala, Imatra’s acting city manager, said systematic efforts to improve conditions—including prioritizing local suppliers for municipal contracts—have yet to yield visible results. While over half of city procurement now goes to Imatra-based firms, only 26 local businesses responded to the latest barometer, limiting the scope of findings.