Until recently, the Finnish-Russian border was teeming with life. The high-speed Allegro train, a joint project of Finland’s national VR Group and Russia’s state-owned Russian Railways, took passengers from Saint Petersburg to Helsinki in less than four hours. Further north, the Finnish city of Imatra in South Karelia was a major draw for Russian tourists, who travelled there to shop, enjoy spa weekends, and see the Imatra Rapids, which Catherine the Great made fashionable after visiting in the 18th century.
But now, all the Russian tourists are gone and the border traffic has ground to a halt. The Allegro train no longer runs. Finnish media recently called Imatra “the emptying city”. Its sprawling Tsar Outlet Village, which once catered to Russian shoppers, is deserted. Imatra’s economy, already reeling from the pandemic, is seriously ailing. The city has an unemployment rate of 16.4%, well above the national rate of just under 12%. And South Karelia is said to be losing an estimated €1 million in tourism revenue each day.
Many residents say it’s a worthwhile sacrifice. The border with Russia has been closed since late 2023, when the Finnish government accused Russia of weaponising migrants by sending waves of asylum seekers into Finland. Helsinki claimed this was retaliation for the Nordic country’s decision to join Nato earlier that year, a choice made in the aftermath of Russia’s full-scale invasion of Ukraine. The Finnish government responded by closing the entire 1,340-kilometre border and announcing the construction of a 200-kilometre border fence. The forbidding metal barrier was finished last month, but the beefing up of security continues. On Monday, the Finnish government announced that it was procuring one million anti-personnel landmines for the border, following a decision by Helsinki and other regional capitals to withdraw from a humanitarian UN treaty banning their use.
The border region’s economic decline and rapid militarisation are emblematic of the entire Nordic region’s radically changed approach to relations with Russia and the United States. During the Cold War and to a lesser extent after it, Finland and Sweden managed relations with Moscow through a combination of pragmatic diplomacy, deterrence, and trade. Today, after Russia’s full-scale invasion of Ukraine, both diplomacy and trade have been severely downgraded. These two Nordic nations, which touted an enlightened neutrality during the Cold War and maintained good relations with both the Soviet Union and the West, have recently joined Nato. Meanwhile, New Defense Cooperation Agreements (DCAs) signed with Sweden, Finland, Norway and Denmark, have given the US armed forces “unimpeded access” to 47 military bases across the region, some of them perilously close to the Russian border. Sweden and Finland are even weakening their long-standing taboo on nuclear weapons.
As the region’s security order has undergone an accelerated Americanisation, Nordic societies have also increasingly been remade in America’s image. They have become more militarised, more hawkish and more hostile to diplomacy, while their once-robust social welfare states have been gutted and inequality has soared. In Finland, there has even been a marked increase in homelessness. Many say the deteriorating quality of life is a small price to pay in the face of Russian aggression in Ukraine. But others warn that the Nordic countries have surrendered their sovereignty to an unpredictable United States, which has left them weaker and more exposed — rather than more secure.
Overt dependence on the United States would have been unimaginable not so long ago. During the Cold War, Finnish President Urho Kekkonen saw neutrality as a natural state for his country, a function of both its geography and its history of wars with Russia. Neutrality, Kekkonen said, “is not the product of abstract thought nor is it imported from elsewhere: it has grown out of the soil of Finnish history”. Finland’s neutral position was articulated in the preamble to the 1948 Agreement of Friendship, Cooperation, and Mutual Assistance with the Soviet Union, which emphasised the country’s desire “to remain outside the conflicts of the great powers”.
Complicating matters, however, was the fact that the same agreement also contained a military-consultation clause: if an adversary like Germany were to launch an attack on the USSR from Finnish soil, then Finland was expected to consult with Moscow about a response. The clause was politically sensitive, as it would permit the Soviets to exert diplomatic pressure on Helsinki. Indeed, Atlanticist critics have characterised Finland’s Cold War neutrality as quasi-neutrality, one that supposedly cloaked deference to the Kremlin in neutral garb. There is even a pejorative word for it: “Finlandisation”. And yet, Finland’s foreign policy was also effective. It kept the peace, and by the Eighties, Finland was one of the richest countries by per-capita income in the world, exceeding both Britain and France. When the Soviet Union collapsed, Finland lost one of its most important trading partners. The effect was immediate and devastating: Finnish economists call the ensuing crisis “The Great Depression of the Nineties”.
Sweden embraced neutrality much earlier, following a succession of wars with Russia, particularly the devastating 1808-9 Finnish War that saw a defeated Sweden lose more than a third of its territory. The country’s longstanding doctrine was “non-alignment in peace, so as to maintain neutrality in war”. Indeed, non-alignment was part of Sweden’s nation-branding as a “moral superpower”, which supporters saw as a “cherished model for the world” ripe for emulation. During the Cold War, the policy was best embodied in the figure of Social Democratic Prime Minister Olof Palme. The late premier, who was assassinated in 1986, presided over what Swedish sociologist Göran Therborn has called “a radical independent internationalionalism”. Over the years, Palme was photographed chomping on cigars with Fidel Castro, protested the war in Vietnam (prompting the US to recall its ambassador on two occasions), and likened the 1972 American bombing of Hanoi to “Guernica, Oradour, Babi Yar, Katyn, Lidice, Sharpeville, and Treblinka”.
While Finland’s and Sweden’s decisions to join Nato may have looked like an abrupt decision made entirely in response to the war in Ukraine, Euro-Atlantic integration had actually been a long, gradual process that started soon after the 1991 Soviet collapse. Finland’s choice to purchase 64 McDonnell Douglas F/A-18 hornet fighter jets from the US in the early Nineties was a critical turning point. Finland and Sweden joined the Partnership for Peace programme in 1994, and began participating in military exercises with Nato. The next year, Finland and Sweden joined the EU, unofficially ending their neutrality. Throughout the early 2000s, both countries supplied troops to Nato-led combat and stabilisation missions, including in Afghanistan and Kosovo. These steps laid the groundwork for their rapid accession to Nato. All that was required was a trigger that could convert public opinion to Atlanticism en masse, and Russia’s 2022 full-scale invasion of Ukraine provided it. Nato accession was presented as the only response to the shock of the Ukraine war, and with no alternatives discussed and the public afraid, the final push towards membership was made with a conspicuous lack of debate.
But Nato accession was just the start. Some commentators, including former Finnish President Sauli Niinistö, say the recent defence agreements have been even more pivotal than Sweden’s and Finland’s decisions to join Nato. The surge in DCAs actually began shortly before Russia’s full-scale invasion, with Norway. In 2021, Oslo and Washington signed an “SDCA”, or Supplementary Defense Cooperation Agreement, which eventually gave US forces and contractors “unimpeded access” to 12 military bases. After the Russian invasion, the SDCA with Norway served as a template for the entire region. In December 2023, the US signed new DCAs with Finland, Sweden and Denmark, bringing the total number of Nordic military bases granting unimpeded access to the US military to 47. The DCAs also authorise the US to take “necessary and proportionate measures” to protect US forces “within or in the immediate vicinity of” said bases, meaning they give US military personnel and military police power over local civilians in and around these locations. In addition, they grant the US exclusive control over who enters specified military facilities, construction rights to build on Nordic soil, and jurisdiction over crimes committed by American soldiers.
The DCAs have not passed without controversy. In 2022, the top military and civilian prosecution authorities in Norway expressed concern that the Americans’ threat perception might differ from that of Norway’s. Some fear that US forces might therefore drag the country into a confrontation without its consent. Others worry that an enhanced American military presence in Nordic countries would make them obvious targets in a war between the US and Russia. These concerns grew more acute after the start of the US-Israeli war on Iran, when American allies in the Middle East found themselves on the receiving end of Iran’s retaliatory strikes. Meanwhile, analysts at the Stockholm International Peace Research Institute have warned that a US decision to deploy missiles to Nordic bases close to Russian assets could provoke a situation akin to the Cuban Missile Crisis.
The agreements were signed with an initial duration of 10 years. Researcher Joel Linnainmäki, at the Finnish Institute for International Affairs, notes that this 10-year duration “somewhat cushions against political turbulence in the transatlantic relationship”. The DCAs were drawn up at a time of both deteriorating regional security and uncertainty over trans-Atlantic security guarantees. With the spectre of Donald Trump omnipresent, the Nordic states sought stronger bilateral defence relations with the US outside of Nato. The DCAs also reflect the belief that even the Nordics’ accession to Nato is insufficient to counter the Russian threat.
“The underlying idea has been that Nato alone is ultimately not enough,” Markku Kangaspuro, professor and research director at the Aleksanteri Institute at the University of Helsinki, tells me. “Rather, the commitment of the United States is indispensable for a military deterrent that, in the final analysis, rests on nuclear weapons.”
Indeed, Sweden and Finland are doing away with their long-standing aversion to nuclear weapons, another dramatic transformation. During the Cold War, Finland championed disarmament and non-proliferation, hosting the first US-Soviet Strategic Arms Limitation Talks (SALT) in Helsinki from 1969 to 1972. Over in Stockholm, Prime Minister Palme joined a 25,000-strong anti-nuclear protest in 1983; demonstrators formed a four-mile human chain linking the American and Soviet embassies to protest against the planned deployment of 108 American missiles in Western Europe. The Stockholm protest was part of that year’s Europe-wide demonstrations against the stationing of US “Euromissiles” on the continent, which drew up to five million people.
The mass mobilisation of the Eighties contrasts with the comparative silence that reigns today. In June, Finland lifted its blanket ban on nuclear weapons. The Nuclear Energy Act, on the books since 1987, had criminalised the import, transport, and possession of nuclear weapons on Finnish soil; amendments passed this summer have lifted those prohibitions. Kangaspuro tells me: “Finland is now signalling in many ways that its priority is no longer to promote international control and limitation of nuclear weapons, or nuclear disarmament, as it has done until now.” While there was political opposition to the decision and some small protests, it did not prompt demonstrations of the kind seen during the Cold War.
Similar changes have been floated in neighbouring Sweden. Earlier this year, Defence Minister Pål Jonson said that Sweden should consider allowing nuclear weapons to be deployed on its territory in wartime. It was a pronounced shift from even just a few years prior, when both then-Prime Minister Magdalena Andersson and conservative leader Ulf Kristersson agreed that Sweden’s decision to join Nato should not change its prohibition on nuclear weapons on Swedish soil. Earlier this year, Sweden, Norway and Denmark were also among the first countries to join France’s Forward Nuclear Deterrence Initiative, while Finland became a member in mid-December last year. The war in Ukraine and Trump’s unpredictability have again made the unthinkable thinkable.
Meanwhile, Nordic countries have dramatically increased their defence spending in recent years. Sweden, Norway and Denmark have more than doubled their spending since Russia’s full-scale invasion of Ukraine, while Finland has nearly doubled it. In Finland, the government has tied brutal austerity measures in part to wartime necessity. Campaigning in 2023, Riikka Purra, the chair of the nationalist Finns Party and current minister of finance, declared culture “a luxury service, which unfortunately costs too much money in present-day Finland”. As the Nordic countries have adopted a more US-dependent security policy, their economies have also grown to resemble the American one. The marketisation of education and health care, rising inequality, and beefed-up military budgets are bringing once strong welfare states more in line with American free-market orthodoxy.
The Atlanticisation of the Nordic states’ security policies occurred in tandem with the liberalisation of their economies, and with direct and indirect influence from the United States. As Swedish historian Jenny Andersson describes it, during the late Sixties, the Swedish Employers’ Confederation (SAF) began to “actively promote international neoliberal ideas”, with the aim of changing attitudes towards the welfare state within Swedish society. Meanwhile, the neoconservative Swedish think tank Timbro, founded in 1978, “was directly modeled on the American Heritage foundation”. In 1982, SAF director Sture Eskilsson initiated the Market Economic Alternative for Sweden (MAS), adopted from the Heritage Foundation’s own Mandate for Leadership, a vast policy programme prepared for Ronald Reagan’s administration during the early Eighties. One of the activists for MAS was Sweden’s uber-Atlanticist former Prime Minister Carl Bildt, who was a young MP at the time. In Finland, meanwhile, the adoption of economic liberalism was directly tied to the notion of “joining the West” — liberalisation and free markets were always bound up with geopolitical alignment with Nato.
Today, between Trump’s demand that Europe spend more on its own defence and the threat of war with Russia, Nordic social welfare is being squeezed out of existence. The remnants of Cold War Nordic distinctiveness in both security and the economy are disappearing. These nations are gambling that all the breakneck changes are worth it. But by allowing the US armed forces unimpeded access to their military bases, the Nordic countries have sacrificed some of their sovereignty in pursuit of security. This has been presented to the public as an unambiguous good, with little discussion of the risks. But in tethering their fates to Washington’s whims, Nordic nations have reduced their own ability to act autonomously and painted a target on their own backs.
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