Finland grants 24.2 million euros for neighbouring area projects in 2005

Press release 42/2005
3 February, 2005


Finland has granted a total of 24.2 million euros this year for development programmes and projects to be carried out in its neighbouring areas. On 3 February, the Government adopted a plan for the use of funds granted for neighbouring area cooperation in 2005. This year, a total budget of 31.2 million euros was allocated for cooperation with the neighbouring areas. Of this sum, the Ministry for Foreign Affairs will use approximately 24 million eruos and the other ministries some 7 million euros.

Finland's cooperation with its neighbouring areas focuses on the northwestern regions of Russia, especially the Karelian Republic, the Leningrad region, the Murmansk region and St Petersburg. The Baltic states' accession to the European Union made Finnish-Baltic cooperation normal cooperation between EU Member States. However, all projects based on earlier commitments will be completed.

In the neighbouring areas in Russia, the cooperation aims to promote regional stability, to support balanced economic and societal developments, to develop the rule of law, and to reform administration and legislation. Further, the cooperation is intended to reduce environmental and nuclear safety risks, to promote security and to improve social welfare and health care.

The Government allocated 1.2 million euros to support independent activities of non-governmental organisations in the neighbouring areas.

When allocating funds for neighbouring area cooperation, the Government took into account the principles and priorities of Finland's new strategy for cooperation in the neighbouring areas, which was adopted in 2004. Most funds were reserved for the environment, economy, nuclear and radiation safety, social welfare and health care, and strengthening of the civil society.

Finland aims to direct its cooperation with the neighbouring areas towards comprehensive sets of projects, so as to disseminate the project results more widely in Russia. Therefore, the Government reserved approximately 3.8 million euros for projects concerning a number of regions in northwestern Russia. For projects concerning Russia in general, the Government allocated some 5.6 million euros. The funds reserved for projects concerning only one region in northwestern Russia were distributed as follows: 1.2 million euros for the Murmansk region, 0.9 million euros for the Karelian Republic, some 3 million euros for St Petersburg, and about one million for the Leningrad region.

The projects are distributed quite evenly between the different regions, so that 33-37 projects will be carried out in all four regions. The large environmental projects planned for St Petersburg increase its proportion in euros.

On 2 February, the Finnish-Russian intergovernmental group on neighbouring area cooperation convened in a meeting in Moscow and adopted an action plan for the cooperation until 2006. The action plan defines the objectives and priorities of joint projects to be implemented in St Petersburg, the Leningrad region, the Karelian Republic and the Murmansk region. Both the Secretary of State of the Finnish Ministry for Foreign Affairs, Arto Mansala, and the Deputy Foreign Minister of Russia, V.A. Tshizhov, stated in their addresses that the cooperation had made positive developments. Its practices and financing mechanisms will be developed with due consideration of changes in the operating environment both in Russia and elsewhere.

Further information: Laura Kakko, Head of Unit, tel. 09 160 55625, and Minni Hyrkkänen, Chief Administrator, tel. 09 1605 5610, Unit for Cooperation with Neighbouring Areas, Ministry for Foreign Affairs.