Window to Europe

Russia and Finland are getting prepared to sign a new agreement on the lease of the Russian part of the Saimaa Canal to Finland. In this connection a new checkpoint is to be built on the west side of the canal. It will be capable of servicing at least 2 cargo ships and 15 pleasure boats per day. However, future operation of the canal looks quite pessimistic in the present context.

Today the canal is being used for cargo transportation from Finland to the Baltic Sea as well as for passenger transportation. The most part of the Saimaa canal is being used by Finland under long-term lease agreement with Russia. In 2008, the canal’s throughput totaled some 2 million tonnes of cargo (timber, construction materials, fertilizers, cellulose, paper, coal, sawn timber) and some 30,000 passengers.

However, turnover of timer has sharply declined amid the economic crisis. According to Artur Gavlyuk, Managing Director of North-Western Shipping Company OJSC, though introduction of new export duties was postponed in late 2008 for quite a long period — up to 12 months –shipping companies will be unable to recover former volumes of timber transportation.

“The heaviest drop is registered at Saimaa direction. In navigation-2009 we expect only 20—30% of the last year’s volumes. That is why STK vessels, which are to be put into operation in the first decade of May, will not be fully loaded,” Artur Gavlyuk said.

It should be noted that the Saimaa Canal is involved in the project for inland waterways development announced by the administration of the LeningradNorthern Route” is to run along the Vuoksa river and several lakes of the Karelian Isthmus. This way is to enter the Gulf of Finland by the Saimaa Canal. The route’s total length is 150 km. region. One of the alternatives known as the “

Major advantage of this alternative is no need to carry out large-scale dredging as the existing watercourse of Vuoksa only requires some clearing. Moreover, “Northern Route” is t link inland water systems of Russia and the North Europe. However, the project implementation is indefinitely postponed.

Despite the decrease of the canal significance in the present context its role will значение в будущем будетрастиgrow in the future. The Canal links the largest and the busiest lake system of Finland (Saimaa Lake and other lakes of the Saimaa Bsin) with the Gulf of Finland. So the canal provides a link of inland ports in the east part of Finland with the ports of the European side as well as with inland ports of the Central and East Europe and Russia. As for Russia, Saimaa CanalVyborg and Vysotsk. An international highway runs along the canal. provides a direct link to port complexes of

Moscow and Helsinki have agreed to prolong the agreement on the lease of the canal’s Russian part to Finland, RF Prime Minister Vladimir Putin said according to RIA Novosti.

"Russia and Finland intend to continue partnership and cooperation. It is proved by the decision to prolong the agreement on the lease of the Russian part of the Saimaa Canal to Finland," Putin said upon completion of negotiations with Finnish Prime Minister Matti Vanhanen. "The agreement has already been approved by our countries," he added.

Earlier, RF Transport Ministry said Russia will prolong the agreement on the lease of Saimaa Canal for 50 years for EUR 1.2 mln per year.

In late September 2008, Sergei Aristov, Deputy Transportation Minister of the Russian Federation, and Harri Pursiainen, State Secretary of the Ministry of Transport and Communication of Finland, signed a memorandum on completion of negotiations on intergovernmental agreement on the lease of SaimaaCanal zone.

The Agreement between the Republic of Finland and the Union of Soviet Socialist Republics on the lease to the Republic of Finland of the Soviet part of the SaimaaCanal and Maly Vysotsky Island was signed on September 27, 1962 in Moscow. The Agreement signed for 50 years was ratified by the President of the Republic of Finland on June 7, 1963 and by the presidium of the supreme soviet of the USSR – on July 22, 1963. Exchange of ratification instruments was held in Helsinki on August 27, 1963.

Under the Agreement, Finland is obliged to reconstruct the canal and hydraulic engineering facilities and is entitled to charge for piloting. According to Article 2 of the Agreement on passenger traffic signed between USSR and Finland on October 15, 1990, passengers may be carried by the canal on board passenger vessels, freight-and-passenger vessels or pleasure craft sailing under the flag of the Republic of Finland or of the Union of Soviet Socialist Republics and on board pleasure craft sailing under the flag of a third country. 

The Saimaa Canal is the only inland waterway of Russia available for foreign-flag vessels.