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WITH RUSSIA RIGHT ACROSS THE BORDER FINLAND’S SECURITY POLICY Piotr Szymański 73

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With Russia Right acRoss the boRdeR Finland’s security policy

piotr szymański

73

With Russia Right acRoss the boRdeR Finland’s security policy

piotr szymański

nuMBer 73WarsaWMay 2018

© copyright by ośrodek studiów Wschodnichim. Marka Karpia / centre for eastern studies

content editorMateusz Gniazdowski, Justyna Gotkowska

editorKatarzyna Kazimierska

co-operationHalina Kowalczyk, anna Łabuszewska

translationilona duchnowicz

co-operationnicholas Furnival

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pHotoGrapH on coVeraleksey stemmer/shutterstock.com

dtpGroupMedia

Map and cHartsWojciech Mańkowski

puBlisHerośrodek studiów Wschodnich im. Marka Karpia centre for eastern studies

ul. Koszykowa 6a, Warsaw, polandphone: + 48 /22/ 525 80 00Fax: + 48 /22/ 525 80 40osw.waw.pl

isBn 978-83-65827-23-4

Contents

THESES /5

InTroduCTIon /8

I. AuTonomy, IndEpEndEnCE, FInlAndISATIon /9

II. ruSSIA: An opporTunITy And A THrEAT /14

1. russia as a source of opportunities /142. russia as a source of threats /18

III. Co-opErATIvE non-AlIgnmEnT /24

1. Co-operation with Sweden /242. Co-operation with the uSA /263. Co-operation with nATo /284. Co-operation in the European union /30

IV. FInlAnd’S ArmEd ForCES: A modEl dETErrEnCE or A pApEr TIgEr? /31

1. The conscript army and the defensive doctrine /312. Adjustment to the new challenges /33

AppEndICES /38

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THESES

• FinlandviewsRussiathroughtheprismofeconomicandpoliticaloppor-tunities. Russia is an important outlet for Finnish exports and a sourceofsuppliesofnaturalresources.Frequentmeetingsofthetwocountries’presidents and prime ministers are part of the intensive bilateral politi-calrelations.FromHelsinki’spointofview,thesemeetingsprovideaboostforFinland’sinternationalprofileasabrokerinthedialoguebetweentheWest and Russia. Finnish decision-makers also capitalise on diplomaticcontactswithRussiaindomesticpolicy:asanopportunitytodemonstratetotheelectoratetheirpragmaticattitudeinrelationswithacountrywhichisviewedinFinlandasagreatpower.

• Ontheotherhand,FinlandseesRussiaasasourceofchallengestoitssov-ereignty.ThisiswhyFinland’sstrategytowardsRussiacombineseconomicandpoliticalco-operation,intendedatreducingtheriskofbilateraltensions,withmilitarydeterrence.FinlandisconcernedbyRussia’srisingmilitaryandtheRussianvisionoftheinternationalorderbasedongreatpowers’spheresofinfluenceinwhichFinlandhastoplaytheroleofabufferzonebetweenRussiaandNATO.ProofthattheFinnisharmedforcesarebeingpreparedforadefenceoperationagainstRussiaincludemaintaininggeneralconscriptionwith a huge trained reserve force, focusing on territorial defence, and ex-cludingRussianequipmentfrommilitaryprocurements.Regardlessofthis,FinlandofficiallydoesnotdefineRussiaasathreat.ItarisesfromFinland’seffortstomaintaingoodrelationswithMoscowanditsnon-alignmentthatgivesHelsinkinoreasontoseepoliticalandmilitarybenefitsinhighlightingthethreatposedbyRussia’sarmedforces.

• Finlandasanon-alignedcountrysituatedintheperipheryofitscivilisa-tionalbase(theWest)andborderingonapotentiallyhostilepower,iscon-stantlydemonstratingitswilltodefenditsindependence.Itdoessomainlythroughgeneralconscriptionandbyorganisingrefreshertrainingforre-servists.Focusingonmaintainingadequatelytrainedreserveunits,withmoderatedefenceexpenditure,FinlandwantstodeterRussiaaboveallbyway of its armed forces’ wartime strength (currently being increased to280,000soldiers).Thiscapabilitytomobiliseasignificantnumberoftroopsraisesthecostsofpossibleaggression.

• TheRussian-Ukrainianwarhasbreathednewlife into thediscussiononthe weaknesses of the Finnish defence model. Along with the materiel

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shortagesresultingfromunderfundingthetotaldefencesystem,anotherdrawbackoftheFinnisharmyisthetime-consumingmobilisationprocess.Thisconcernsmainlythelandforceswhicharecomposedofreserveunitsandinpeacetimearefocusedontrainingconscripts.Inthecomingyears,Finland will invest in improving the level of the armed forces’ combatreadiness and will allocate additional funds to technical modernisation.However,theplanstoincreasethedefencebudgetneedtobeviewedwithcaution,becausewelfarestateexpensesaregiventoppriorityinFinland.WhatFinland’sministryofdefencewillfindasthegreatestchallengewillbeensuringadequatefundingfortheambitiousprogrammesofrearmingthenavyandtheairforceoverthenextdecade.

• SincethecollapseoftheUSSR,thenon-alignedFinlandhasactedwithcau-tionasregardsenhancingmilitaryco-operationwiththeWest.Besides,ithas avoided developing military capabilities which Moscow might inter-pretasoffensive.However,theincreasingpotentialoftheRussianarmedforcesandthemilitaryinterventions inGeorgiaandUkrainehavemadeFinland decide to intensify its defence co-operation with NATO and theUSA.Thegradualchangeoftheapproachinthisrespectsparksincreasingcontroversiesintheparliament.TheFinnishpoliticalcentre-rightwantsasclosedefenceco-operationwithNATOandtheUSAaspossible,whilethecentre-leftoptsforabalancebetweenthepro-WesterncourseofdefencepolicyandtheneedtomaintaingoodrelationswithRussia.

• FinlandhasnotappliedforNATOmembershipbutdoesnotrulethisoutinthefutureingovernmentaldocuments.Bydoingso,ithintstoMoscowthattheunfavourablechangesintheRussianpolicytowardsFinlandmayencourage it to withdraw from its non-aligned status. However, there isa strong political and social resistance to NATO membership in Finland.Thetraditionofmakingstrategicdecisionsonthebasisofpoliticalconsen-susmeansthatanypotentialapplicationforNATOmembershipwouldre-quiresupportfromallthemajorpoliticalparties.

• Finland’sclosestpartner indefenceco-operation isnon-alignedSweden.ThiscountrywouldbeabletoprovidemilitaryaidtoFinlandfastestofall,andtheSwedishterritorywouldsecurestrategicdepthfortheFinnishairforceandnavy.However,bilateraldefenceco-operationisstillhinderedbyacertainlevelofmistrustbetweenFinlandandSweden.Itismissingcom-monplanningforwartimeandbothpartiesarefarfromestablishingafor-malbilateralmilitaryalliance.FinlandiswatchingtheSwedishdebateon

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NATOmembershipclosely,sincearevisionoftheSwedishstanceonthisissuemighthaveastrongerimpactonincreasingsupportforNATOacces-sioninFinlandthanthethreatposedbyRussia.

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InTroducTIon

TheRussianannexationofCrimeahasprovokedareturntoviewingsecurityintermsofthereadinesstodefendone’sownterritoryintheNordic-Balticregion.ThishasledtointensifyinginterestintheFinnishdefencemodelbasedongeneralconscription,ahugetrainedreserveforce,andterritorialdefence.IthasalsointensifiedthedebateonFinland’spotentialNATOmembershipanditsperceptionofRussia.ItisthusworthhavingacloserlookatFinland’ssecu-ritypolicyandarmedforces,takingintoaccountthespecialnatureofFinnish--Russianrelations.

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I. AuTonomy, IndEpEndEncE, FInlAndISATIon

Since Finland gained independence in December 1917, it has treated Russiaalternatelyasanenemyandafriend.Theanti-SoviettrendcametotheforebetweenWorldWarIandWorldWarII.DuringtheColdWarperiod,Finland--USSRfriendshipwashighlightedintheFinnishgovernment’sofficialnar-rative.SincethecollapseoftheUSSR,Finlandhasmadeeffortstomaintainpartnership-basedrelationswithRussia,havingabandonedthinkingintermsofantagonismorsubordination.

WhenasaconsequenceoftheRussian-Swedishwarin1809RussiaannexedSweden’sFinnishprovinces,TsarAlexanderIgrantedconsenttotheestab-lishment of the Grand Duchy of Finland. The Russian Empire adopted thisconciliatorypolicyinordertoguaranteeFinns’loyaltybecauseitfearedthatSwedenmightmakeeffortstoregainthelostFinnishlandswhichRussiausedasaprotectivebufferforSaintPetersburg.PositiveconnotationsprevailintheFinnishmemoryoftheRussianruleinthe19thcentury.ItisviewedasafactorwhichfacilitatedtheFinnishstate-buildingandnation-buildingprocessandcontributedtothemodernisationofthecountry1.TheGrandDuchyofFinlandwasbondedwithRussiathroughpersonalunionasanautonomouspartoftheEmpirewithitsowngovernment,parliament,currencyandarmy2.ThefactthatFinnishwasgrantedthestatusofthesecondofficiallanguageinadditiontoSwedishplayedanimportantroleinFinns’nationalemancipation.Amonu-mentofTsarAlexanderIIstillstandsinthecentreofHelsinki.

ThesituationchangedalreadyduringtheruleofAlexanderIII,andtherestric-tionofFinland’sautonomybyNicholasIItooktheformofRussification(from1899)3.FinlandcapitalisedontheOctoberRevolutiontobreakfreefromRussiaandannouncedindependenceon6December1917.Theseeventswereaccompa-niedbyaseverepoliticalcrisis.Thefutureofthestatewasdecidedinthecivilwar(January–May1918),whenthegovernmental ‘White’troops(represent-ingbourgeoispartiesandsupportedbyGermany)defeatedtherevolutionary

1 M.Klinge,Krótka historia Finlandii,Helsinki1997,pp.64–65.2 The status of the Grand Duchy of Finland was similar to that of the Kingdom of Poland

in1815–1832.3 ThiswasaneffectofRussia’sconcernaboutthedestabilisinginfluenceoftheliberalFinnish

experimentonthesituationinsidetheEmpireandthedesiretotightenthegriponFinlandout of fear that its territory could be used by Germany in case of war. The Russificationprovokedtension,onemanifestationofwhichwastheassassinationoftheTsar’shighestrepresentativeinHelsinki,NikolaiBobrikov,Governor-GeneralofFinland,in1904.

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‘Red’forces(i.e.FinnishsocialistsbackedbySovietRussia).Intheinter-warperiod,anti-Sovietandanti-RussianrhetoricinFinlandwasaimedatunifyingaFinnishsociety–thathadbeenstronglydividedduetothecivilwar–inthefaceoftheexternalenemy4.ThisfittedinwiththenarrativeofFinland’sroleastheWest’soutpostagainsttheSovietthreat.TheSovietaggressiononFinlandandtheWinterWar(1939–1940)aswellastheContinuationWar(1941–1944;theFinnishcampaignagainsttheUSSRfoughtalongsidetheNaziGermanywiththeintentionofregainingthelandslostintheWinterWarandtoavoidGermanoccupation)reinforcedtheimageofRussiaasanenemy5.AsaresultofWorldWarII,Finlandlostaround2.5%ofitspre-warpopulationand10%ofitsterritory,whichentailedtheneedtoresettle400,000refugees.TheobligationtopaylargewarreparationstotheUSSRwasalsoimposedonit.InWorldWarIIFinlanddefendeditsindependencebutitdidfinditselfinMoscow’ssphereofinfluence(eventhoughFinlandwasnotmadepartoftheEasternBloc).ItwassymbolisedbytheFinno-SovietTreatyof19486andtheSovietmilitarybaseinPorkkalanearHelsinki(leasedin1944–1956).

TheColdWarinitiatedanewerainFinnish-Sovietrelations.TheFinno-SovietTreaty of 1948 envisaged the possibility of military consultations and jointdefenceincaseofaggressionfromGermanyoritsally,imposingtheundertakingonHelsinkiandMoscowtorefrainfromjoininganyalliancestargetedagainstoneanother7.FromHelsinki’spointofview,themostimportantpartwasthepreamblewhichmentionedFinland’sdesiretoremainoutsidetheconflicting

4 Intheinter-warperiod,theantagonismwasfuelledbytheissueofKarelia,thelandspread-ingonbothsidesoftheFinnish-SovietborderwhichwasbelievedtobethecradleofFinn-ish culture and the nation; this belief originated from the 19th-century Finnish nationalepicpoemKalevala.Variousorganisationsspreadingryssänviha,i.e.hatredofeverythingthatisRussian,wereactiveinFinland.H.Luostarinen,Finnish russophobia: the story of an enemy image,“JournalofPeaceResearch”,vol.26,no.2,1989,pp.123–137;B.Szordykowska,Historia Finlandii,Warszawa2011,pp.246–247;C.Browning,P.Joenniemi,Karelia as a Finn-ish-Russian Issue: Re-negotiating the Relationship between National Identity, Territory and Sov-ereignty,UniversityofTartu,May2014,http://ceurus.ut.ee/wp-content/uploads/2011/06/Browning-and-Joenniemi-2014.pdf

5 InSeptember1944,Finlandwithdrewfrommilitaryco-operationwithNaziGermanyandsignedanarmisticewiththeUSSRunderwhichitbeganthewaragainstGermany(theLap-land War). Owing to this Finnish territory was not occupied, and Finland, despite majorcombatantcasualties(around95,000),sustainedminorlossesamongitscivilianpopulation.

6 ItsfullnameistheAgreementofFriendship,Co-operationandMutualAssistancebetweentheUnionofSovietSocialistRepublicsandtheRepublicofFinland.TheperiodbetweenthearmisticewiththeUSSRandsigningtheFinno-SovietTreaty(1944–1947)isknowninFin-landas‘theyearsofdanger’becauseofthefearofacommunistcoup.

7 R.Penttilä,Finland’s search for security through defence, 1944–1989,London1991,pp.29–34.

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interestsofthegreatpowers.ThismadeitpossibleforFinlandtorefertothetreaty,declaringapolicyofneutralityandseekingrecognitionforitintheWestandintheUSSR.Finland’sneutralitypolicyduringtheColdWarwasinfacttargetedatmarginalisingthemilitaryprovisionsofthetreaty,eventhoughofficiallyHelsinkiemphasiseditssignificanceinitsforeignandsecuritypolicy.

Finland’smilitarypotentialintheColdWarperiodwasofficiallydevelopedtorepelNATO’sattackagainstSovietUnionthroughFinnishterritory.TheUSSRwasanimportantsupplierofarmamentandmilitaryequipmenttoFinland,offeringloansfortechnicalmodernisationoftheFinnisharmedforces.However,theseinvestmentsinthedefencecapabilitieswereactuallyaimedatimprovingFinland’sprospectsforavoiding‘militaryassistance’incaseofacrisisbetweentheWestandtheUSSR(i.e.theentryofSovietforcesontoFinland’sterritoryandthelossofindependence)8.

IntheColdWarperiod,Finland’spolicytowardstheUSSRwasbasedontheassumptionthatthebetterthebilateralrelationswere,thegreaterthetrustbetweenHelsinkiandMoscowwouldbeandthemoreroomformanoeuvretherewouldbeindevelopingFinland’sco-operationwiththeWest9.ThispolicythatFinlandhadtoadoptasaresultofthenewbalanceofpowerrequiredpublicsupport,whichwasbuiltinatop-downmannerbycreatingapositiveimageoftheUSSR.ThemeansemployedincludedtheactivityoftheFinnish-SovietSociety, censorship of the media, destructions of book collections, removalofanti-Sovietmonumentsandcontents fromschool textbooks, thedissolu-tionofanti-Sovietorganisationsandpersonnelchangesatstateinstitutions(includingthearmyandthepolice)10.AnothercontributoryfactortothechangeoftheperceptionoftheUSSRwasthedynamicdevelopmentofFinnish-SoviettradewhichbecameoneoftheeconomicpillarsofthewelfarestateinFinland.TheUSSRwasFinland’smost importanttradepartner– inthepeakperiod(1980s),exportstotheUSSRaccountedfor25%oftotalFinnishexports.In1973,

8 One example of strengthening defence against a NATO attack were considerable invest-mentsintheairdefenceoftheLaplandregion(northernFinland)whichwaslocatedalongthelineofpossiblestrikeontheSovietnucleararsenalontheKolaPeninsula.

9 U.Kekkonen,Nie szukajcie przyjaciół daleko, a wrogów blisko,Warszawa1983.10 Thepenaltyofuptotwoyears’imprisonmentforjournalistspublishinglibellousmateri-

alsaboutothercountries(implicitlytheUSSR)wasremovedfromthecriminalcodeonlyin1995.D.Arter,Kekkonen and the ‘Dark Age’ of Finlandised Politics?,“IrishStudiesinInterna-tionalAffairs”,1998,p.41;C.Browning,M.Lehti,Beyond East-West: marginality and national dignity in Finnish identity construction,UniversityofWarwick,p.21.

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FinlandenteredintoafreetradeagreementwiththeEEC11,whilestillbeingboundbylong-termtradeagreementswiththeUSSR.

ThedesiretokeepFinlandoutofthegreatpowers’rivalryandthenarrativeoffriendshipwiththeUSSR(combinedwiththeofficiallydictatedamnesiaasregards,forexample,territoriallosses)wereaneffectofbothpressurefromMoscowandindependentFinnishreflection.ItwasassumedthatFinlandcouldneveragainbecomeengagedinawaragainsttheUSSRbecauseitmightputthesurvivalofthissmallnationatstakeinthenuclearepoch.TheFinnishnationalhero,MarshalCarlGustafMannerheim(heservedaspresidentin1944–1946)backeddefenceco-operationwiththeUSSRandpersonallydraftedtheproposalfortheFinnish-Soviettreatyin194512.

ThepolicyofbuildingspecialFinnish-SovietrelationsknownasFinlandisationwaspursuedbyUrhoKekkonenfromtheagrarianparty(currentlytheCen-treParty)whoservedasFinland’spresidentformanyyears(1956–1982).Fin-landisationhadbothinternationalanddomesticdimensions.Firstly,itmeantrespectingtheKremlin’sinterestsinforeignandsecuritypolicysothatFin-landcouldpreservepoliticalpluralismandafree-marketeconomy.Secondly,FinlandisationentailedFinland’smostseniorpoliticiansseekingtheKremlin’ssupport,whichwashelpfulinthedomesticpowerstruggle13.OneexamplewasPresidentKekkonen’suseofcrisesinrelationswithMoscowtostrengthenhispositionathomebybuildingtheimageofapoliticianwhohadanexclusiverecipeforwarmingrelationswiththeKremlin.Themostimportant‘sideeffects’ofFinlandisationincludedtheSovietinterferencesinFinland’sdomesticaffairsandtheSovietspecialservices’infiltrationoftheFinnishpoliticalandbusi-nesselites.ItcanevenbesaidthattherewasaninformalalliancebetweenPresidentKekkonenandtheKGBatthetimeoftheColdWar;andbothsidesbenefitedfromthisalliance.Ontheonehand,KekkonendidnotallowFinnishcommuniststomonopolisecontactswithSovietspecialservices(theFinnishPeople’sDemocraticLeagueuntilthe1980swasoneofthestrongestpoliticalpartiesinparliament)andthroughhiscollaborationwiththeKGBhegainedthe

11 P.Sutela,Finnish trade with the USSR: Why was it different?,BOFIT,2005,p.6,https://helda.helsinki.fi/bof/bitstream/handle/123456789/12616/118461.pdf?sequence=1

12 Hearguedthat“Finlandcanno longerassumetheroleofaWesternfortressagainst theEast.Wemustleavesuchtalkbehind(…).OurarmywillneveragainfightawaragainstRussia”.R.Penttilä,op. cit.,pp.12–13.

13 J.Lavery,All of the President’s Historians: The Debate over Urho Kekkonen,“ScandinavianStud-ies”,vol.75,no.3,2003,pp.378–381.

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SovietUnion’sconsentforFinlandtodevelopeconomicrelationswiththeWest.Ontheotherhand,theKGBgainedsignificantfreedomforitscovertoperationsinFinlandandinfluenceontheFinnishministryoftheinteriorandthepolice14.Kekkonen’ssystemwasalsousedbythegoverningpartiestomarginalisethepoliticalright(theNationalCoalitionParty)15.

ThecollapseoftheUSSRforFinlandmeantreorientationtotheWestandtheendofitssubordinationtoMoscow.However,FinlandisationhasleftadurablemarkonFinnishpoliticalcultureandtheperceptionofRussia.Eventhoughin201659%ofFinnswereoftheopinionthatRussia’smovesadverselyaffectFinland’ssecurity,atthesametime,83%ofrespondentsbelievedthattheRus-sianpresident,VladimirPutin,iswelcomeintheircountry16.

14 K.Rentola,President Urho Kekkonen of Finland and the KGB,2008,https://helda.helsinki.fi/handle/10224/4054

15 Thissituationwasanalogoustotheinter-warperiod,whenthegoverningpoliticalcentre-rightisolatedthesocialdemocrats.

16 11% were of the opposite opinion. Putin saapuu tänään Suomeen, “Aamulehti”, 1 July 2016,https://www.aamulehti.fi/kotimaa/putin-saapuu-tanaan-suomeen-kysely-suurin-osa-kansasta-toivottaa-tervetulleeksi-23760173/; Finns' opinions on foreign and security policy, national defence and security,MinistryofDefenceofFinland,December2016,http://www.defmin.fi/files/3579/ABDI_(MTS)_December_2016_Report_in_english.pdf

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II. ruSSIA: An opporTunITy And A THrEAT

Finland views Russia simultaneously as a source of opportunities (mainlyeconomic)andasthegreatestthreattoitssovereignty.FromFinland’spointof view, developing co-operation with Russia results in reducing the riskofbilateraltensions.ThisapproachisofkeysignificanceforunderstandingtheFinnishstrategytowardsRussiathatcombinesmilitarydeterrencewitheffortstomaintaingoodpoliticalandeconomicrelations.TheintensivepoliticalcontactswithRussia,inheritedaftertheColdWar,havebeenusedbyFinnishpoliticianstobuildsupportonthedomesticarenaandtoaspiretoplayingtheroleofabrokerbetweentheWestandRussia.Ineconomicterms,RussiaisFin-land’smostimportanttradepartneroutsidetheEUandasourceofsuppliesofnaturalresources.FromFinland’sperspective,theRussianmarkethasanunlimitedcapacitytoreceiveFinnishexportsanddirectinvestments(Peters-burgandLeningradOblastalonehavemoreresidentsthanFinlandasawhole).

Russiaappreciatesitspoliticaldialogueandeconomicco-operationwithFin-land.However,itisawareofthefactthatHelsinki,despiteitspragmaticrela-tionswithMoscow,isunabletosignificantlyinfluencetheEU’spolicytowardsRussia(forexample,onliftingthesanctions).RussiahasalsostronglycriticisedFinland’sparticipationinmilitaryco-operationwithNATOandtheUSA.Ithasregularlydemonstratedthatitisreadytocounteractanypotentialattemptsto change Finland’s policy of non-alignment, employing both military andhybridmeans.Inturn,onthesociallevel,FinlandisafrequentleisureandbusinessdestinationfortheSaintPetersburgmiddleclassandtheKremlinelite.

1. russia as a source of opportunities

(1) The political opportunities. ThespecialnatureofFinnish-Russianrelationsismanifestedinregularcontactsofthepresidentsandprimeministersfromthetwocountries.ThepresidentsofFinlandandRussiaasarulemeettwiceayear17.PresidentSauliNiinistötothiseffectcontinuesthepolicyofhispre-decessor,TarjaHalonen(president2000–2012).ThisoffersRussiatheoccasiontodemonstratethattherearecountriesintheEUthatarewillingtomaintaingoodrelationswithit,whileFinnishpoliticianshavetheopportunitytopresent

17 ThepresidentinFinnishpoliticalcultureperformsthefunctionoftheguarantorofgoodrelations with Moscow. The annexation of Crimea has not affected the frequency of thepresidentialmeetings–in2014–2017SauliNiinistöandVladimirPutinheldeightbilateralmeetings.

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themselvesasresponsibleactorsinrelationswithapowerfulneighbour.Fur-thermore,FinlandwantstoplaytheroleofapragmaticstatewhichisanexpertinRussianaffairsandanon-alignedbridgebetweentheWestandMoscow,whichisexpectedtoraiseitsinternationalprestige.Theroleoftheintermedi-arydatesbacktothetimeswhenFinlandwasengagedintheColdWardétentepolicy.In1973–1975,ithostednegotiationsbetweenWesterncountriesandtheEasternBlocaspartoftheConferenceforSecurityandCo-operationinEurope(theso-called‘HelsinkiProcess’whichendedinthesigningoftheCSCEFinalAct).Examplesofthistraditionbeingdrawnuponare:thetalksofrepresenta-tivesoftheRussianMinistryofForeignAffairsandtheUSDepartmentofStateinHelsinkiinSeptember201718,andtheworkundertheauspicesofFinlandunderwaysince2016aspartoftheInternationalCivilAviationOrganization(ICAO)toimprovethesafetyofflightsintheBalticSearegioninconnectionwiththenumerousincidentsintheairspacebetweenRussiaandNATOsincetheannexationofCrimea19.

However,thespecialnatureofFinnish-Russianrelationsshouldnotbeviewedas‘neo-Finlandisation’.TheroleoftheRussianfactorinFinland’sforeignpolicyhasbeenreducedsincethecollapseoftheUSSRascomparedtotheColdWarperiod.However,FinlandmaintainsapoliticalconsensusasregardstheneedtodevelopgoodrelationswithRussia.PoliticalpartiesonlydisagreeabouttheextenttowhichthedesiretokeepgoodrelationsistoaffectFinland’ssecuritypolicy.Thecentre-leftviewsitselfastheguardianofPresidentKekkonen’sleg-acyandismorewillingthanthepoliticalcentre-righttotakeRussiansecurityinterestsintoconsiderationinFinnishstrategicthinking.

(2) The economic opportunities. Thewell-developedFinnish-Soviettraderela-tionsoriginatedfromFinland’spaymentofwarreparations.Theneedtosup-plygoodstotheUSSRaspartofreparationsledtotheemergenceofbranchesofindustryspecialisedinexportstotheSovietUnion(mainlyproductsoftheelectromechanicalandshipbuildingindustries)aspartoffive-yeartradeagree-mentsimplementedfrom1950.RussiawasFinland’slargesttradepartneruntil2013(withabreakinthe1990scausedbythecollapseoftheUSSRwhichbroughtaboutaneconomicrecessioninFinland).Ineffectofthefinancialcrisisin2008,theEU-Russiansanctionsandcounter-sanctionsafter2014,thedevaluation

18 Under Secretary Shannon Travel to Helsinki, Finland,U.S.DepartmentofState,9September2017,https://www.state.gov/r/pa/prs/ps/2017/09/273930.htm

19 J. Gotkowska, P. Szymański, Rosyjski „plan Niinistö”, “OSW Analyses”, 24 August 2016,https://www.osw.waw.pl/pl/publikacje/analizy/2016-08-24/rosyjski-plan-niinisto

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oftherouble,andlowoilprices,itfelltothirdtofinditselfbehindGermanyandSweden(2016).ThevalueofFinnishexportstoRussiain2008–2016wasreducedmorethanthree-fold.Russia’sshareinFinnishexportsandimportsin2016reached5.7%(5thposition)and11.2%(3rdposition)respectively20.Fin-landexportstoRussiamainlyproductsofthechemicalandtimberandpaperindustries,andindustrialandelectricmachines.Itimportsmainlyenergyprod-ucts.In2016,theirshareintotalimportsfromRussiareached70.5%(including58.2%ofoiland7.1%ofgas)21.ForRussia,Finlandisanoutletoflimited,mainlyregionalsignificance.HelsinkiwantstorevivetradewithRussiaintheareaswhicharenotcoveredbyRussiansanctions.ItisintendedtostimulateFinnishexportsbutalsotomaintainthepositionofFinnishcompaniesontheRussianmarket22.FinlandremainsintheEU’smainstreamasregardscontinuingthesanctionsimposedonRussia.However,ifthestanceofthekeyEUmemberstateschanges(inparticular,thatofGermany),consideringFinland’seconomicinterests,itwouldnotfinditselfinthegroupofcountriesopposingtheliftingofthesanctions.

Energyco-operation,whichmorethanotherareashasenabledFinlandtofillbilateralrelationswithRussiawithrealcontentoverthepastfewyears,hasthegreatestsignificanceasregardsdirectinvestments23.TheFinnishstate-con-trolledenergycompanyFortumownseightheatandpowerplantsincentral

20 Finnish exports to Russia finally on the rise, BOFIT, 3 March 2017, https://www.bofit.fi/en/monitoring/weekly/2017/vw201709_3/; Finnish foreign trade 2016: Figures and diagrams,FinnishCustoms,7February2017,http://tulli.fi/documents/2912305/3437550/Figures+and+diagrams+2016+%28preliminary+data%29/b2fc0c2b-a4eb-4410-a53d-1e961ae2273a

21 In2016,Finlandimported100%ofitsgasfromRussia(6%oftotalenergyconsumption)and88% of its oil (23% of total energy consumption). Finland views Russia as a reliable sup-plierofoilandgas–Helsinkihasneverexperiencedpoliticallymotivatedcutsinoilandgas deliveries. However, in the longer term, Finland’s dependence on imports of energyresourcesfromRussiawillbedecreasing.Helsinkiisintensifyingadiversificationofgassupplies inside the EU (the construction of a gas pipeline connection with Estonia andLNG terminals) and is investing in renewables. Energy supply and consumption, StatisticsFinland, 23 March 2017, https://www.stat.fi/til/ehk/2016/04/ehk_2016_04_2017-03-23_en.pdf;Finland – Energy System Overview,InternationalEnergyAgency,2016,https://www.iea.org/media/countries/Finland.pdf

22 ThefollowingcompaniesareamongthosepresentontheRussianmarket:Fortum(energysector), K-Group (retail chain), YIT (construction sector), Neste (fuels), Nokian Tyres(tyres),Fazer(foodindustry)andStoraEnso,UPMandMetsäGroup(allthree:forestindus-tryandbiomass).

23 Finland’sdirectinvestmentsinRussiain2014reached2.2billioneuros(2.3%oftotalFDI),andRussian investments inFinlandwerehalf that (1.4%of totalFDI). Finnish investment in Russia continues to heavily exceed Russian investment in Finland,BOFIT,13October2015,https://www.bofit.fi/en/monitoring/weekly/2015/vw201546_3/

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Russia,hydroandthermalpowerplantsinnorth-westernRussiaandawindfarminUlyanovsk24.Inturn,RosatomwillbuildareactoratanewnuclearpowerplantinPyhäjoki.Theimplementationofthiscontroversialprojectisplannedfor2018–2024andwillbeofkeysignificanceforthefutureofFinnish-Russianenergyco-operation(itstillneedsfinaladministrativeconsent)25.Onesignofthisco-operationisalsoFinland’sneutralstanceontheNordStream2pro-ject.PipesfortheconstructionoftheNS2arecoatedandstoredattheFinnishportsHamina-KotkaandKoverhar26.Furthermore,inthemiddleof2018,For-tumwillbecomethemainshareholderattheGermanenergycompanyUni-per,whichisapartnerintheNS2project(UniperalsoownsfivepowerplantsinRussia).ThismeansthattheFinnishgovernmentwillindirectlybecomepartofthisundertaking.

Finland wants to participate in the benefits of using the Arctic NortheastPassageconnectingEuropeandAsia,whichmaycontributetotheeconomicdevelopment of Finnish Lapland. Finland is also counting on co-operationwithRussiaasregardsconstructionof theRussianfleetof icebreakersandintheArcticConnectproject–thelayingofanunderwatertelecommunica-tioncablealongRussia’sArcticseashore(10,500km)thatwouldconnectChinaandJapanwithEuropeviaRussia,NorwayandFinland(usingtheHelsinki––Rostockconnection)27.Additionally,despitethedevelopmentofcargocapacityofUst-LugaPortbyRussia,FinnishportsintheGulfofFinlandareimportant

24 Fortum in Russia, https://www3.fortum.com/about-us/our-company/fortum-worldwide/fortum-russia

25 Rosatomholdsa35%stakeinFennovoima,acompanysettobuildthenewnuclearpowerplant.Theprojecthassparkedcontroversiessincethebeginning–in2014,theGreensleftthegovernmentcoalitioninprotestagainstfurtherinvestmentsinthenuclearenergysec-tor,andin2015,theFinnishgovernmentblockedtheparticipationinFennovoimaofacom-panyregisteredinCroatiaduetoitslinkstoRussiancapital.Theestablishmentofthiscom-panywasmost likelyinspiredbyRussiatoresolvetheproblemwiththelackofthe60%shareofentitiesfromtheEUinFennovoimarequiredbytheFinnishside.Twotwo-reactornuclearpowerplantsbuiltinthe1970soperateinFinland:LoviisaandOlkiluoto(theywillbedecommissionedin2027–2042).TheconstructionofathirdreactorinOlkiluotoiscon-tinuedwithdelays.

26 The former social democratic prime minister, Paavo Lipponen, was hired as an advisorbytheNordStreamcompanywhenthefirsttwolinesofthegaspipelinewereconstructed.

27 Report on the Northeast Passage telecommunications cable project,MinistryofTransportandCommunicationsofFinland,Report3/2016,https://www.lvm.fi/documents/20181/880507/Reports+3-2016.pdf/db8fcdda-af98-4a50-950d-61c18d133f74. Russian investments areimportantfortheFinnishshipbuildingindustry–theRussianUnitedShipbuildingCorpo-rationownstheHelsinkishipyardswhereicebreakersarebuiltalsofortheRussianMinis-tryofTransport(informationwasreceivedtowardstheendof2017thatRussiansareplan-ningtoselltheshipyard).

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forRussianimportsviatheBalticSea(goods,afterunloading,aredeliveredbyroadandrailwaytransporttoRussia)28.

Intheservicesarea,RussiantouristsareanimportantsourceofincomemainlyinHelsinkiandthefrontierregions,beingthelargestgroupofforeignersvisit-ingFinland.AccordingtodatafromtheRussianstatisticaloffice,in2016Fin-landwasthesecondmostfrequentlychosendestinationforRussianstravellingabroad29.

2. russia as a source of threats

(1) The political threats. RussiaposesapoliticalthreattoFinlandonthreelevels.Firstly,ontheinternationallevel,HelsinkiisparticularlyconcernedwiththeRussianfocusonmultipolarity,whichisalong-termchallengetothedurabilityofFinland’sintegrationwithWesternstructures.TheRussianvisionoftheinternationalorderincludestheconceptofgreatpowers’spheresofinflu-ence,withFinlandbeingassignedtheroleofabufferzonebetweentheWestandRussia.FromRussianperspectivethisexcludesforexampleFinland’sNATOmembership.RussiathuswantstomaintaintheremnantsoftheColdWar‘Nor-dicbalance’, elementsofwhich includedtheFinno-SovietTreaty,Sweden’sneutralityandDenmark’sandNorway’sNATOmembership(however,withnoNATObases).

Secondly,onthepoliticalandbusinesslevel,theRussianspecialservicesarestillactiveinFinlandeventhoughtheFinlandisationpolicywasdiscontinuedin1991.AreportoftheFinnishSecurityIntelligenceService(Supo)for2016men-tionsasignificantnumberofagentsfromothercountriesoperatinginFinland,butonlyRussia’snameismentionedexplicitly30.Theactivityofforeignintelli-genceinFinlandisconcentratedonrecruitingyoungpoliticiansandobtaininginformationontopicssuchassupportforNATOmembership,energypolicy,theattitudeofbusinesscirclestowardstheEUsanctions,theFinnishchairmanship

28 Finland as a Gateway to Russia, Baltics and the Nordic Region,EmbassyofFinlandintheUSA,5 June2013,http://www.finland.org/public/default.aspx?contentid=275909&nodeid=35833&contentlan=2&culture=en-US

29 Число выездных туристских поездок, Federal State Statistics Service of Russian Federa-tion,http://www.gks.ru/free_doc/new_site/business/torg/tur/tab-tur1-2.htm;Demand for accommodation services grew by 3 per cent in 2016,StatisticsFinland,27April2017,https://www.stat.fi/til/matk/2016/matk_2016_2017-04-27_tie_001_en.html

30 SUPO 2016,FinnishSecurityIntelligenceService,http://www.supo.fi/instancedata/prime_product_julkaisu/intermin/embeds/supowwwstructure/72829_SUPO_2016_ENG.pdf

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oftheArcticCouncil(2017–2019)andcybersecurityinfrastructure31.Charac-teristicareasofactivityofRussia’sspecialservicesincludemonitoringthecasesoftakingcustodyofchildrenfromRussianfamiliesinFinland(thisinforma-tionisthenpublicisedintheRussianpresstoacuseFinnsofRussophobia)andattemptstorecruitagentsamongholdersofdualFinnish-Russiancitizenship32.However,RussiadoesnotplaythecardoftheRussian-speakingminorityinFin-land(around70,000people)totheextentitdoesintheBalticstates.

Thirdly,onthelevelofsociety,RussiawantstoinfluenceFinnishpublicopin-ion.Inthisarea,Russia’sgoalsinclude:underminingpublicconfidenceinthegovernment,weakeningpeople’spro-EuropeanorientationandentrenchingthelowlevelofsupportforNATOmembership.Moscowhasemployedvarioustoolstoachievethesegoals.Forexample,inlate2015/early2016amigrationroute(around1,700people)wasformedontheFinnish-RussianborderintheFarNorthmostlikelywiththeparticipationofRussiansecurityservicesandorganisedcriminalgroups33.ThesemoveswereaimedatescalatingthelargestasylumcrisisinFinland’spost-warhistory(aninfluxofaround32,000asylum-seekersfromtheMiddleEast)and,asaconsequence,afurtherpolarisationoftheFinnishpublicoverreceivingmigrantsandrefugees.Itentailedincreas-ingsupportforradicalorganisations(SoldiersofOdin,theFinnishResistanceMovement)andsloganscontestingthemainstreampolicy.

FinlandisalsooneofthefrontsoftheRussianinformationwar,eventhoughitslinguisticdistinctnessandhigheducationlevelposeabarriertoRussian

31 Russiaisnottheonlycountryinterestedintheseissues,butitiscertainthattheyattractthespecialattentionoftheRussianintelligence.

32 One proof of this is the Finnish debate on blocking holders of dual Finnish-Russian citi-zenship the right to serve in the Finnish armed forces and border guard (the ministriesofdefenceandinteriorareworkingonrelevantlegalchanges).In2015,thenumberofhold-ersofdualcitizenshipinFinlandreached95,000.Russiansformthelargestgroupamongthem–25,000people(followedbySwedes–7,000peopleandEstonians–4,000).Around60holdersofdualcitizenshipserveinthearmedforces.Number of persons receiving Finnish citizenship fell in 2015,StatisticsFinland,12April2016,https://www.stat.fi/til/kans/2015/kans_2015_2016-05-12_tie_001_en.html; J. Huhtanen, Puolustusministeri Niinistö pitää kaksois kansalaisia turvallisuus uhkana – ‘Viides kolonna on torjuttava jo rauhan aikana’,“Hels-inginSanomat”,22January2018,https://www.hs.fi/kotimaa/art-2000005534143.html

33 Finally, Finland and Russia signed an agreement introducing temporary restrictionson border traffic in the Far North. P. Szymański, P. Żochowski, W. Rodkiewicz, Enforced cooperation: the Finnish-Russian migration crisis,“OSWAnalyses”, 6April2016,https://www.osw.waw.pl/en/publikacje/analyses/2016-04-06/enforced-cooperation-finnish-russian-migration-crisis

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disinformation34. Pro-Kremlin internet ‘trolling’ has intensified in Finlandsince 2014 (concerning such issues as the wars in Ukraine and Syria). Anattempttolaunchapro-Russianradio(LoveFM,2016)hasalsobeenmade.Rus-sianpropagandainFinlandisfacilitatedbypro-Kremlinactivistsandsomeorganisations,forexampletheFinnishAnti-FascistCommittee.Inturn,theRussianmedia,dependingontheneeds,presentFinlandoccasionallyasacoun-trypreparingforwarwithRussiaandenteringintosecretmilitarydeals,andatothertimesasMoscow’strustedpartnerintheEU35.ForthisreasonFinlandformedaspecialgroupofexpertsandpublicservantsattheprimeminister’sofficein2015taskedwithmonitoringandcounteractingdisinformation36.

(2)The economic threats.Tradeandenergyco-operationwithRussiaisnotonlyasourceofeconomicandpoliticalopportunitiesforFinland,italsohasnegativeimplications.ThedependenceofsomesectorsoftheFinnisheconomyontheRussianmarketexposescompaniestolossesshouldpoliticalrelationsbetweenMoscowandHelsinkideteriorate(orinthebroadercontext,betweenRussiaandtheEU).TheRussiancounter-sanctionsimposedin2014(embargoonfoodfromtheEU)aboveallaffectedtheFinnishdairyindustry,causingtheemer-genceofgroupsofmanufacturerslobbyingfortheEUsanctionstobelifted37.In2015–2016,FinnishfoodexportstoRussia,whichhadbeenthemostimpor-tantoutletforFinnishmanufacturers,fellthree-fold38.Anotherexampleisthere-emergingthreatofwithholdingRussianexportsoftimbertoFinland(fortheneedsoftheFinnishforestindustryandbiomass).TheRussianparliamentwas

34 In2016,SputnikcloseditswebsitesintheFinnish,Swedish,NorwegianandDanishlan-guages.

35 Collectivework,Russia’s footprint in the Nordic-Baltic information environment,NATOStra-tegicCommunicationsCentreofExcellence,January2018,https://www.stratcomcoe.org/russias-footprint-nordic-baltic-information-environment-0,pp.60–66,73–74.

36 J.Rosendahl,T.Forsell,Finland sees propaganda attack from former master Russia,Reuters,19 October 2016, https://www.reuters.com/article/us-finland-russia-informationattacks/finland-sees-propaganda-attack-from-former-master-russia-idUSKCN12J197

37 FinlandisinthegroupofthoseEUmemberstateswhichhavesustainedthelargestlossesasaresultoftheRussiansanctions.J.Hinz,Friendly fire. Zu den Handelsauswirkungen der Russlandsanktionen, IfW, December 2017, https://www.ifw-kiel.de/wirtschaftspolitik/prognosezentrum/konjunkt/ifw-box/2017/box_2017-17_russlandsanktionen.pdf How-ever,inaggregate,theestimatesoftheFinnishMinistryofFinancewereindicatingasmalleffect of the Russian ban on food imports on the reduction of Finland’s GDP (by 0.1 per-centage points) and a marginal influence on the unemployment rate. The economic effects of the EU’s Russia sanctions and Russia’s counter sanctions, Ministry of Finance of Finland,27 August 2014, http://valtioneuvosto.fi/documents/10184/1058456/venaja_pakotteet_en.pdf/11184e4f-b00a-4474-9576-66c89d9e18ae

38 J.Niemi,Finnish food exports to Russia down more than 70 percent,NaturalResourcesInstituteFin-land,2August2017,https://www.luke.fi/en/news/finnish-food-exports-russia-70-percent/

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consideringtheimpositionofrestrictionsonwoodtradewithFinlandin2015,whenFinlanddidnotallowtheRussiandelegationtoparticipateintheOSCE’sParliamentaryAssemblyinHelsinkiduetoEUsanctions.Furthermore,in2015,twoentrepreneursandfourcompaniesfromFinlandfoundthemselvesontheUSsanctionslist.TheDepartmentoftheTreasuryarguedthatthisdecisionwastakenbecausetheFinnishentitiesdisregardedtheUSsanctionsimposedontheRussianoligarchsGennadyTimchenkoandBorisRotenbergaftertheannexationofCrimea39.

DirectinvestmentsofFinnishfirmsinRussiamayalsoserveasabargainingchipinFinnish-Russianrelations.TheiropportunitiesofexpansionorretainingpositionontheRussianmarketmaydependonconcessionsofferedtoMoscow.ThechangeofthestancetakenbyFinland’sFortumontheparticipationintheFennovoimaprojectmost likelyfits inwiththismodel.TheFinnishenergycompanyinitiallywasnotinterestedinco-operationwithRosatom.However,whentheproblemwithensuringamajoritystakeofEU-basedfirmsfollowedbypoliticalpressureappeared,Fortum,whichownssignificantassetsinRussia,joinedtheconsortiumengagedintheconstructionofthenewnuclearpowerplant40.ThiswasmostlikelyaneffectofthetalksthatwereheldatthesametimebetweenFortumandGazpromonFortumtakingoveramajoritystakeintheRussianenergycompanyTGK-1operatinginLeningradandMurmanskOblastsandintheRepublicofKarelia41.ThenewFinnish-RussiannuclearpowerplantinFinlandwillprovidefurthermotivationfortheFinnishgovernmenttomaintaingoodrelationswithRussia,regardlessoftheinternationalsitu-ation.Asaresult,Finlandmayfinditselfinadifficultsituationinthefuture–FinnishexpertspointoutthatthereistheriskthatRosatommaybeplacedonthelistofcompaniescoveredbyUSandEUsanctions42.

39 BotholigarchshaveFinnishcitizenshipandhaveinvestedinFinland.Treasury Sanctions Individuals and Entities Involved In Sanctions Evasion Related To Russia and Ukraine, U.S.Department of the Treasury, 30 July 2015, https://www.treasury.gov/press-center/press-releases/Pages/jl0133.aspx

40 T. Martikainen, A. Vihma, Dividing the EU with energy? Unpacking Russia’s energy geoeco-nomics,FIIA,1March2016,http://www.fiia.fi/en/publication/571/dividing_the_eu_with_energy/

41 Researcher: Horse-trading behind planned Fortum-Fennovoima deal, YLE, 2 December 2014,https://yle.fi/uutiset/osasto/news/researcher_horse-trading_behind_planned_fortum-fennovoima_deal/7665234

42 T.Martikainen,K.Pynnöniemi,S.Saari,Venäjän muuttuva rooli Suomen lähialueilla,FIIA,30August2016,http://www.fiia.fi/en/publication/607/venajan_muuttuva_rooli_suomen_lahialueilla/

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Furthermore,fromthepointofviewofFinland,whichisbuildingitsbrandby promoting Finnish nature, Russia is a country that pollutes the naturalenvironmentinitsimmediateneighbourhood.ForthisreasontheFinnishsideraisestheissueoftheprotectionofthenaturalenvironmentintheBalticSea(theKrasnyBordumpsitenearSaintPetersburgpollutesthewatersoftheGulfofFinland)andintheArctic(thereductionofCO2emissions)duringallFinnish-Russianmeetingsonthepresidentialandprimeministeriallevel.

(3) The military threats. RegardlessofthepositivechangesthathavetakenplaceinFinland’ssecurityenvironmentastheresultofthecollapseoftheUSSR,suchustherestorationoftheBalticstates’independenceandweakeningofRus-sia’smilitarypower,FinlandneverstoppedperceivingMoscowasastrategicchallengeandthreattoitssovereignty.Finland’sborderwithRussiais1,340kmlong and it runs along areas of military importance for the Kremlin: SaintPetersburg(theNavyheadquarters)andtheKolaPeninsula(theNorthernFleetbase).Furthermore,sincePolandandtheBalticstatesjoinedNATO,theborderbetweentheallianceandRussiahasbeenshiftedclosertoFinland’ssouthernfrontier.

FinnishpoliticiansandmilitaryofficialsformallydeclarethatthereisnodirectthreatofRussianaggression.However,Finland’sentiremilitarypotentialsincetheendoftheColdWarhasbeendevelopedandprofiledtoconductadefenceoperationincaseofaRussianattack.ThefactthatithasretainedaconscriptarmyfocusedonterritorialdefencewithalargetrainedreserveprovesthatFin-landdoesnotruleoutthepossibilityofaclassiclandinvasion(withakeyroleofKarelianIsthmusdirection).However,FinnishexpertsbelievethataFinnish-RussianwarthatisnotpartofabroaderRussia–NATOconflictisunlikely,andthatapotentialconflictintheNordic-BalticregionwouldmostlikelyinvolveRussianstrikesonFinland’snavalandairbasesinordertopreventNATOfromusingthem,forexample,todefendtheBalticstates.NoraretheyrulingoutthepossibilityofasubversiveactionsaccordingtotheschemeadoptedbyRus-siansduringtheannexationofCrimea(forexample,onthedemilitarisedAlandIslands)43.

43 The status of the archipelago makes its defence more difficult, which was the sub-ject of debate in Finland in the 1990s and after the annexation of Crimea. J. Gotkowska,P.Szymański,Gotland and Åland on the Baltic chessboard – Swedish and Finnish concerns,“OSWAnalyses”,26October2016,https://www.osw.waw.pl/en/publikacje/analyses/2016-10-26/gotland-and-aland-baltic-chessboard-swedish-and-finnish-concerns

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Finland isconcernedaboutRussia’s increasingmilitarycapabilitiesand itsheightenedmilitaryactivityneartheFinnishfrontier inrecentyears.Thisincludesanintensificationofmilitaryexercises,thereactivationofthemecha-nisedbrigadeinAlakurtti(50kmfromtheFinnishborder)andtheviolationsofFinnishairspacebyRussianaircrafts(alienunderwateractivitywasalsospottedintheFinnishterritorialseain2015).Finlandreadsallthisasawarningagainstfurtherenhancingmilitaryco-operationwithNATOandtheUSA,andademonstrationofRussia’scapabilitytoblockpotentialjointmilitaryactionwithNATOincaseofconflictintheregion.RussiastraightforwardlydefinesFinnish-NATOco-operationasathreattoitssecurityanddeclaresthatFin-land’sNATOmembershipwouldresultinanadjustmentoftheRussianmili-taryposturetothenewsituationintheregion44.RussiawantstobuildasenseofuncertaintyaboutitsreactiontotheshiftinthebalanceofpowerintheNordic-Balticregion,whichisexpectedtoentrenchthestatus quoasregardsFinland’snon-alignedstatus.

Publicopinionpollshaverevealedthatthesenseof threat fromRussiahasintensifiedamongtheFinnishpublicsincetheRussianaggressiononUkraine,eventhoughterrorism,organisedcrime,theeconomiccrisisandglobalwarm-ingareviewedasmoreseriousthreats45.TheRussianthreathassuchadistantplaceinthepollontheonehandbecausethistopicisonthemarginsofpublicdebateand,ontheotherbecauseFinnsareusedtotheneighbourhoodwithRussiaandtrusttheirpublicinstitutions,inparticular,thearmy(thisleveloftrustisthehighestintheEU).

44 S. Blank, General Makarov Makes Incendiary Remarks in Finland, “Eurasia Daily Moni-tor”, 18 July 2012, https://jamestown.org/program/general-makarov-makes-incendiary-remarks-in-finland/

45 J. Raeste, J. Saarinen, Suomalaisten Venäjän-pelko kaksin-kertaistunut neljässä vuodessa,“HelsinginSanomat”,27September2014,http://www.hs.fi/kotimaa/a1411744065107;Finns' opinions on foreign and security policy, national defence and security, Ministry of Defenceof Finland, November 2017, http://www.defmin.fi/files/4062/Finns_opinions_on_For-eign_and_Security_Policy_National_defence_and_security_november_2017.pdf

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III. co-opErATIvE non-AlIgnmEnT

DuringtheColdWar,Finland’ssecuritypolicy,focusedonensuringinterna-tional recognition of its declared neutrality, employed above all diplomaticmeasures.InadditiontobuildingtrustinrelationswiththeUSSR,thismeantengagementintheUNsystemwhichmanifesteditself,forexample,throughparticipationinpeacekeepingoperations.FinlandcapitalisedonthecollapseoftheUSSRtoaccelerateitsintegrationwiththeWestencompassingco-opera-tionwithNATOaspartofPartnershipforPeacesince1994andEUmembershipsince1995.Thisledtoreplacingtheconceptofneutralitywithnon-alignment,i.e.remainingoutsidemilitaryalliancesandfreelyshapingitspoliciesincaseofconflict46.

Finland’ssecuritypolicyisbasedonfourpillars:itsnon-alignment, invest-mentsinitsowndefencecapabilities,maintaininggoodrelationswithRus-sia,andmilitaryco-operationwithWesternpartnerstowhichHelsinkihasattachedspecialsignificancesincetheannexationofCrimeain2014.Finlandviewsthisco-operationaboveallasanopportunitytoimproveitscapabilitytodefenditsownterritoryratherthanpreparationtojointheNATO.How-ever,asectionofFinland’spoliticalleftandcentreopposeenhancingdefenceco-operationwiththeUSAandNATOinresponsetogrowingtensionintheregionandappealformorebalancingbetweentheEastandtheWest.ThemostlikelyscenariointhecomingyearswillbethatFinlandwillmaintainitsnon-alignedstatuswhileactuallydevelopingmilitaryco-operationwithSweden,theUSA,NATOandaspartoftheEU.Themainmotivesbehindthisstrategyofco-operativenon-alignmentwillremainunchanged:Finland’sinsufficientmilitaryexpenditureandtheRussianthreat.

1. co-operation with Sweden

TheColdWardivisionofEuropepreventedthedevelopmentofFinnish-Swedishdefenceco-operationbecauseSwedenwaspartoftheWest.Sincethe1990s,bilat-eralco-operationhasbeenimpededduetothedifferencesinperceivingthreatsandthedevelopmentofdifferentdefencemodels–expeditionaryinSweden,andonefocusedonterritorialdefenceinFinland.Thecentreofgravitywastheco-operationofthetwocountries’naviesandco-operationincrisismanagement

46 Atpresent,thegovernmentaldocumentsincludeastatementthatFinlandisnotamemberofamilitaryalliance.

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operations47.In2003,FinlandandSwedenbeganholdingcross-borderairforceexercises.ThefactorsthattriggeredtheintensificationofFinnish-Swedishmili-taryco-operationwereatfirstthefinancialcrisis(lookingforwaystosavemoneythroughbilateralandmultilateralprojectsaspartofNORDEFCOsince2009)andthentheannexationofCrimea,afterwhichSwedenbecamefocusedonregionalsecurity.Otherfactorsthatcontributetotheirco-operationisthenon-alignedsta-tusofthetwocountriesandtheabsenceofpoliticalcontroversies–94%ofFinnswantcloserdefencebondswithSweden48.

Through this bilateral co-operation Finland wants to raise the possibilityofcoordinatedFinnish-Swedishresponseincaseofcrisisorconflict,becausethesuccessofFinland’sdefenceoperationtoagreatextentdependsonSweden.ThiscountrywouldbeabletooffermilitarysupporttoFinlandfastestofallandtoguaranteethetransitofmilitaryassistance.Sweden’sterritorycouldalsosecurestrategicdepthfortheFinnisharmedforces,mainlythenavyandtheairforce(refuellingandammunitionreplenishmentatSwedishbases).Thesetwobranchesofbothcountries’armedforceshavedevelopedmostintenseco-opera-tionsince2014.Itresultedinahighlevelofinteroperability,includingexercisesaccordingtothejointdefencescenario49.AlthoughtheFinnish-Swedishagree-mentsonstrengtheningmilitaryco-operationenvisagethemutualuseofeachother’sbaseinfrastructure,theyregulatedefenceco-operationatpeacetimeanddonotimposeanywartimeobligations50.

Enhancing military co-operation with Sweden will gain more significanceinFinland’sdefencepolicy(thereisagreatdealofunusedpotential,especially

47 C.Salonius-Pasternak,Deeper defence cooperation: Finland and Sweden together again?,FIIA,3December2017,https://www.files.ethz.ch/isn/186091/bp163.pdf

48 Finns' opinions…,November2017,op. cit.49 ExamplesoftheseincludetheNorthernCoastsandRuskaexercisesin2017.Northern Coasts

exercise to deepen the bilateral cooperation between Finland and Sweden (FISE),FinnishDefenceForces, 12 September 2017, http://merivoimat.fi/en/article/-/asset_publisher/nothern-coasts-harjoituksessa-syvennetaan-fise-yhteistyota;Ruska 17 and Baana 17 exercises taking place in October,FinnishDefenceForces,22September2017,http://ilmavoimat.fi/en/arti-cle/-/asset_publisher/ilmaoperaatioharjoitus-ruska-17-ja-lentotoimintaharjoitus-baana-17-jarjestetaan-lokakuussa

50 TheyadditionallyprovideforcreatingajointSwedish-FinnishNavalTaskGroup(by2023),closerco-operationonanti-submarinewarfare(forexamplecoordinatedpurchaseofSaabDynamicsAbtorpedoes)anddevelopingtheconceptofacombinedFinnish-SwedishBri-gade (by 2020). Final reports on deepened defence cooperation between Finland and Sweden,GovernmentofSweden,19May2015,http://www.government.se/49baf3/globalassets/gov-ernment/dokument/forsvarsdepartementet/final-reports-on-deepened-defence-coopera-tion-between-finland-och-sweden.pdf

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inthecaseofthelandforces).However,neitherHelsinki51norStockholmiscon-sideringabilateralmilitaryallianceatpresent(StockholmwouldratherchooseNATOmembershipasanalternativetoitsnon-alignment).Oneofthereasonsforthisisthestillinsufficientdegreeoftrustbetweenthetwocountriesandtheinsufficientdeterrencevalueofsuchanalliance.However,thisdoesnotruleoutjointdefenceplanninginthefuturewithoutassumingformalcasusfoederis.Helsinki’schoiceofanewfighteraircraftwillgreatlyinfluencethescaleofmilitaryco-operationbetweenFinlandandSwedeninthecomingdec-ades.SwedenwillcertainlyresorttotheargumentofinteroperabilityandthepossibilitytouseSwedishairbasesintheprocessoflobbyingsothatFinlandchoosestheSwedishaircraftJAS39Gripen.

2. co-operation with the uSA

TheColdWarbalanceofpowermadedefenceco-operationbetweenFinlandandtheUSAimpossible.ThesituationchangedimmediatelyafterthecollapseoftheUSSR,whenFinlanddecidedtoprocure62USF-18fighteraircraft(1992).ThustheUSAbecameastrategicpartnerinthedevelopmentofFinland’sairforce,whichstillaffectstheco-operationintrainingpilots,exercisesandthemodernisationofaircraft.SinceFinlandhassmallmissilestockpiles,suppliesfromtheUSAwouldbeofkeysignificancefortheFinnishairforceincaseofconflict(thedomesticdefenceindustryisworkingmainlyfortheneedsofthelandforces).Thenavyandthelandforcesareincreasinglyinterestedinco-operationwiththeUSA(procurementofnavalweaponsandmodernisa-tionoftheartillery).

AlthoughtheUSAhassuppliedaroundhalfofFinland’sarmamentandmili-taryequipmentpurchasedabroadsince1990,thishasnottranslatedintomoreextensivedefenceco-operation52.OntheonehandthereasonsforthisincludedthelackofFinland’sNATOmembershipandtheUSfocusonmilitaryengage-mentoutsideEurope(mainlytheMiddleEast).Ontheotherhand,enhancingdefenceco-operationwiththeUSAhasmetwithpoliticalresistance,especially

51 EventhoughavisionofsuchanalliancehasbeenpushedthroughbysomeFinnishpoliti-ciansandissupportedbynearlyhalfofcitizens.Poll shows support for military union with Sweden, YLE, 23 March 2014, http://yle.fi/uutiset/osasto/news/poll_shows_support_for_military_union_with_sweden/7151598

52 Collectivework,NATO’s Northeastern Flank – Emerging Opportunities for Engagement,RANDCorporation,2017,https://www.rand.org/pubs/research_reports/RR1467.html,p.209.

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fromtheFinnishcentre-left;thereasonsforthatbeinganti-Americansenti-mentandanunwillingnesstoinflamerelationswithRussia53.

Over the past few years, these limitations have gradually been overcomeasaresultofthedevelopmentofRussia’smilitarycapabilities.Thestrengthen-ingoftheUSmilitarypresenceintheBalticstatesandPolandsince2014hasreinforcedtheperceptionoftheUSAinFinlandasaguarantorofthestatus quointheNordic-Balticregion.Inturn,Finland’ssignificancefortheUSAhasgrown,giventhepossibilityofmonitoringRussianmilitaryactivityintheFarNorthandguaranteeingthesecurityoftheBalticstates54.FinlandwantstousetheincreasedUSmilitarypresenceintheregiontointensifyco-operationwiththeUSAintheareaofbi-andmultilateralexercises,andthereforetoimproveinteroperability–mainlyofbothcountries’airforcesand,sincerecently,alsoofthelandforces.Arrow2016wasthefirstevermilitaryexerciseonFinnishsoilwhichengagedaUSmechanisedinfantrycompany.FinlandhasalsoinvitedtheUSAtotakepartinalargenationaldefenceexerciseplannedtobeheldin2021thatwillbemodelledontheSwedishAurora2017exercise55.TheFinn-ishengagementinUSmilitaryexercisesintheregion(SaberStrike,BALTOPS)has also increased. In 2016, the two countries signed a statement of intenttoenhancedefenceco-operation56.AllthisisaimedatdemonstratingtoRussiathatthenon-alignedFinlandispartoftheWestandinfactanorthernexten-sionofNATO’seasternflank.Militaryco-operationwiththeUSAissupportedby59%ofFinns(35%areopposedtoit)57.

In the future, Finnish-US military co-operation will include increasinglyadvancedmilitaryexercisesandfurtherUSengagementinthemodernisationofFinland’sarmedforces.TheUSoffersFinlandthesaleofanti-missileandanti-aircraft(ESSM)andanti-ship(Harpoon)missilesforthenavyandcoastal

53 FinlanddoesnotparticipateintheUSForeignMilitaryFinancingandtheNationalGuard’sStatePartnershipProgram.

54 FinlandisbuildingitspositioninrelationswiththeUSAalsothroughexpeditionaryengage-ment(100soldiersinIraqiKurdistanaspartoftheUS-ledcoalitionagainstIslamicState).

55 TheparticipationofUSforcesinsuchexerciseswillmarkabreakthroughintheFinnishdefencepolicy.

56 J.GotkowskaP.Szymański,Pro-American non-alignment. Sweden and Finland develop closer military co-operation with the United States,“OSWCommentary”,1April2016,https://www.osw.waw.pl/en/publikacje/osw-commentary/2016-04-01/pro-american-non-alignment-sweden-and-finland-develop-closer; P. Szymański, Bliższa współpraca obronna Finlandii i USA w cieniu Su-27, “OSW Analyses”, 12 October 2016, https://www.osw.waw.pl/pl/pub-likacje/analizy/2016-10-12/blizsza-wspolpraca-obronna-finlandii-i-usa-w-cieniu-su-27

57 Finns' opinions…,November2017,op. cit.

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artillery58aswellasanewfighteraircraftfortheair force(F-35orSuperHornet).

3. co-operation with nATo

Despitethegradualopeninguptomilitaryco-operationwiththeWest,FinlandhasnotmadeeffortstojoinNATOsincetheendoftheColdWar.Thefactorsthatdecidedaboutthis includedbothfearsofMoscow’sreactionandofFinland’sbeinginvolvedinaconflictbetweenRussiaandtheWestaswellastheconvic-tionthatafterthecollapseoftheUSSR,Europewouldmanagetobuildanewsecurityorder.Finlandalsowantedtokeepthesenseofcontinuityinitsfor-eignandsecuritypolicyinwhichnosuchradicalturnhadbeenmadeafter1991asinthecaseofthecountriesfromtheformerEasternBloc.ItwasmotivatedbythefactthatoneofthepillarsofFinland’sinternationalidentityisthelegacyoftheCSCE,withFinlandplayingtheroleofabrokerbetweentheEastandtheWest.NATOmembershipiscurrentlysupportedby2outof9parliamentarypartiesand22%oftheFinnishpublic(62%areopposedtoit).Interestingly,thesupportlevelisthelowestamongtheagegroupwhichiscurrentlybecominginvolvedinpolitics(25–34years)59.Asectionofthepoliticalcentre-rightwhoperceiveaccessiontoNATOasaninvestmentinFinnishsecurityemphasisethesignificanceofalliedguaranteesindeterringRussia.Meanwhile,thecentre-left,whobelievethataccessiontoNATOwouldadverselyaffecttheFinland’slevelofsecurity,traditionallyviewsthenon-alignedstatusasafactorthatcontributestostabilityintheregion.Lowpublicsupportformembershipisaneffectofmanyfactors,including:thelegacyoftheWinterWar(thebeliefthatFinlandiscapableofindependentdefence)andtheColdWarneutralitypolicy,theunwillingnesstoparticipateindistantconflictsandtheperceptionofNATOasanaggressivealliance,aswellasthefactthatthisissueremainsasecondarytopicinpoliticalparties’agendas(andthereforeinelectoralcampaignsandpublicdebate)60.

Regardlessof thedivisions,subsequentgovernmentshavegraduallydevel-opedevercloserco-operationwithNATO,withoutapplyingformembership.

58 R. Häggblom, No Finnish Harpoon/ESSM-order (at least for now), “Corporal Frisk”, 7 February2018,https://corporalfrisk.com/2018/02/07/no-finnish-harpoon-essm-order-at-least-for-now/

59 Finns' opinions…,November2017,op. cit.60 J.Gotkowska,P.Szymański,Between co-operation and membership. Sweden and Finland’s rela-

tions with NATO, “OSW Studies”, February 2017, https://www.osw.waw.pl/en/publikacje/osw-studies/2017-03-03/between-co-operation-and-membership-sweden-and-finlands-relations

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TheintroductionofNATOstandardsintheFinnisharmedforcesandthepar-ticipationinNATOexercisesandoperations(theBalkansandAfghanistan)wereanimportantinstrumentoftheirmodernisation.Thehighlevelofinter-operabilitywithNATOforcesdemonstratedthroughtheFinnishparticipationinNATOResponseForce(NRF)since2012meansthattherearenobarriersinmilitarytermstoFinland’smembershipinthealliance.HelsinkiwantsMos-cowtoviewitasareliablealternativetoFinland’snon-alignmentandthuspreventRussiafrompursuingapolicythatwouldposeathreattoFinland’ssecurityinterests.ForthisreasonFinlanddoesnotofficiallyruleoutapplyingformembershipincaseofunfavorablechangesinitssecurityenvironment.

NATO’s stronger concentration on collective defence since the annexationofCrimeacontributestoshiftingthecentreofgravityofFinland-NATOrela-tionsfromglobalcrisismanagementtotheBalticSearegion,thuscreatingnewperspectivesforestablishingcloserco-operation.OneexampleistheHostNationSupportagreementwithNATOthatmakeitpossibleforNATOtouseFinland’sterritory,territorialwatersandairspaceatpeacetime,incrisissitu-ationsandincaseofconflict–eachtimesubjecttotheFinnishgovernment’sconsent(thisagreementhasbeeninforcesince2016).Furthermore,since2014,FinlandhasbelongedtoagroupoffiveprivilegedpartnersofNATOaspartoftheEnhancedOpportunitiesPartnership,whichoffersitgreateropportuni-tiesofco-operationasregardsexercises,militaryoperationsandconsultationsonsecurityintheBalticSearegion61.Theseareheldinthe28+2format(NATOplusSwedenandFinland).

FinlandisunlikelytotakeactiontojoinNATOduringthenextparliamentaryterm(2019–2023).ObjectionfromtheSocialDemocratsandtheCentrePartywillnotbetheonlyobstacle–eventhepro-NATOparties(theNationalCoali-tionPartyandtheSwedishPeople’sParty)believethat,consideringthecur-renttensionsbetweenRussiaandtheWest,theapplicationformembershipneedstobepostponed.However,thedevelopmentofthediscussiononFinland’sNATOmembershiptoagreatextentdependsonthefutureofSweden’ssecuritypolicy.Sweden’sapplicationforNATOmembershipwouldstokeFinland’sfearsofremaininginthesecurity‘greyzone’betweenNATOandRussia,provideastrongargumenttoitssupportersinFinland,andweakentheobjectionofthecentre-leftandthepublic.ItisinHelsinki’sintereststocoordinatetheissuesofpossibleNATOmembershipwithSwedentoavoidrepeatingthesituation

61 Exchangeof informationwithNATOinordertobuild jointsituationalawareness isalsoveryimportantforFinland.

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fromthe1990s,whenSweden’sapplicationforaccessiontotheEuropeanCom-munitycameasasurprisetoFinland.ThefurtherreinforcementoftheallieddeterrenceintheNordic-Balticregionisanotherfactorthatmaycausearevi-sionoftheapproachtoNATOinFinland,asthisplacesincreasingemphasisonthedifferencebetweenmembersandnon-members.

4. co-operation in the European union

Finland,withitsperipherallocationandnon-alignedstatus,treatsenhanc-ingEuropeanintegrationasaninvestmentinitsownsecurity.ForthisreasonitactivelyparticipatesindiscussionsonthefutureoftheCommonSecurityandDefencePolicywhich,initsopinion,shouldbecomeaneffectiveinstrumentofimprovingmemberstates’militarycapabilities62.Finland,whichhasawell-developedarmsindustry,seesthebenefitsofestablishingtheEuropeanDefenceFund(EDF).HelsinkiactivelysupportedtheinitiationofPermanentStructuredCooperation(PESCO)intheareaofsecurityanddefenceandbecameengagedinthefirststageinthreeprojectsinradiocommunication,themobilityofforces(so-calledmilitarySchengen)andcybersecurity63.However,Finlandtradition-allyopposestransformingtheEUintoamilitaryalliance.ThisisaneffectnotonlyofFinland’snon-alignmentandunwillingnesstoprovidesecurityguaran-teestotheBalticstatesbutalsoofthedifferencesinthedefencepoliciesofthememberstates,includingtheunderstandingofthemutualassistanceclause(article42.7oftheTreatyoftheEuropeanUnion).

62 J.Sipilä,Developing the EU’s defence dimension is in Finland’s interest,GovernmentofFinland,7 June 2017, http://vnk.fi/en/artikkeli/-/asset_publisher/paaministeri-juha-sipila-eu-n-puolustusulottuvuuden-kehittaminen-on-suomen-etu

63 TheEuropeanSecureSoftwaredefinedRadio,theMilitaryMobilityandtheCyberRapidResponseTeamsandMutualAssistanceinCyberSecurity.Finlandalsohasobserversta-tus in the Cyber Threats and Incident Response Information Sharing Platform. T. Wie-gold, Vollzugsmeldung: PESCO, mehr Zusammenarbeit in der Verteidigung, in Kraft (Update),“Augengeradeaus”,11December2017,http://augengeradeaus.net/2017/12/vollzugsmeldung-pesco-mehr-zusammenarbeit-in-der-verteidigung-in-kraft/

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Iv. FInlAnd’S ArmEd ForcES: A modEl dETErrEncE or A pApEr TIgEr?

FromFinland’sviewpoint,Russia’swarswithGeorgiaandUkrainehaveproventhatitisrighttosticktotheprincipleoftotaldefenceandaconscriptarmycon-centratedonnationaldefencetasks64.Atthesametime,theRussianannexationofCrimeasparkedadiscussionontheweaknessesoftheFinnishdefencemodelresultingfromfinancialandmaterielshortagesandthetimeneededtomobilisereservists.Asaresult,Finlandbeganinvestinginimprovingthelevelofthearmy’scombatreadinessandisincreasingthewartimestrengthofitsarmedforcesforthefirsttimesincethecollapseoftheUSSR.TheFinnisharmedforcesarecomposedofreserveunitsandarefocusedontrainingconscripts,whichmakesitdifficulttoassesstheirrealdefencecapabilities.

1. The conscript army and the defensive doctrine

Since 1991, Finland has maintained the foundations of its defence doctrineformedinthe1950sand1960s–generalconscription,alargetrainedreserve,territorialdefenceprinciple,andatotaldefencesystem.Theargumentsformaintainingthisdoctrineincluded:thecontinuingsenseofthreatfromRus-sia,thesocio-politicalsupportforconscriptionandtheeconomiccrisisinthe1990s which discouraged the government from a costly professionalisationofthearmedforces.ThismakesFinlanddistinctfrommostcountriesintheregionwhich,sincethelate1990s,haveinvestedinexpeditionarycapabilitiesfortheneedsofNATOcrisismanagementoperations.

Finlandstillbelievesthataconscriptarmyischeaperandmoreeffective.Oneoftheargumentsfortheextensiveengagementofitssmallpopulation(5.5million)inthecountry’sdefenceistheneedtodefenditslargeterritory(338km2)65andlongborderwithRussia.Compulsorymilitaryserviceisalsoanimportantpartofcivileducation–around70%ofannualcohortofmalecitizens is drafted (during the Cold War period this ratio reached around95%).TheageingofsocietywillbeachallengefortheFinnisharmedforcesinthefuture.Thesmallernumberofconscriptsmayprovokeadiscussion

64 Totaldefencemeanstheparticipationofallstatestructuresandsocietyinwartimeefforts.Comprehensive security is building the country’s resilience to all kinds of military andnon-militarythreatsthroughcivilianandmilitaryco-operationatpeacetime.

65 FinlandhasthelowestpopulationdensityamongtheEUmemberstates.

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onagreateropeningupoftheFinnisharmedforcestowomen’smilitaryser-vice.81%ofcitizenssupportedconscriptionin201766.

Finlandassumesthatasacountrysituatedintheperipheryofitscivilisationalbase(theWest)andborderingonapotentiallyhostilepower,itmustconstantlydemonstrateitswillandreadinesstodefenditssovereignty.Itdoessomainlythroughconscription(over20,000conscriptstrainedannually)andrefreshertrainingforreservists(around18,000annually).Atthesametime,FinlandprofilesitsmilitarypostureanddefenceinvestmentsinawaythatwillnotbeinterpretedbyRussiaasdevelopingoffensivecapabilities.FromFinland’sviewpoint,themaindeterringfactorshouldaboveallbeitscapabilitytomobi-liseasubstantialreserveforce(in2017,thewartimestrengthofFinnisharmedforcesreached230,000soldiers,i.e.over4%ofpopulation),whichraisesthecostsofanypossibleaggression.Therefore,Finland’sarmedforcesatpeacetimeisatrainingstructurewithasmallnumberofprofessionalsoldiers(8,000)focusedonworkwithconscripts.However,thisisalsothecauseofthegreat-estweaknessoftheFinnishlandforces:thelowlevelofunits’combatreadi-ness67.Mobilisationofthereserveistime-consuming,whileRussiahastacticalmilitaryformationsalongtheborderthatcanlaunchoffensiveactionsatshortnotice68.Finland’sairforceandnavyaremoreprofessionalisedthanitslandforces,andassuchhaveahigherlevelofcombatreadiness.

The insufficient defence budget also has an impact on the condition of theFinnisharmedforces.InFinland,otherpriorities,forexample,welfarestateexpenses,oftenprevailovertheneedsofthearmy.ForthisreasontheFinnishplanstoincreasedefencebudgetneedtobeviewedwithcaution69.Thelong-standingstagnationindefenceexpenditureatalevelaround1.5%ofGDPhasresultedinshortagesinweaponsandmilitaryequipment,includingfortheneedsofwartimeforces.Forexample,thenumberofnavyvesselshasdecreased

66 Finns' opinions…,November2017,op. cit.67 The special forces are the only part of the Finnish land forces prepared for immediate

response.S.Forss,L.Kiianlinna,P. Inkinen, H.Hult, The Development of Russian Military Policy and Finland,NationalDefenceUniversityofFinland,2013,p.56.

68 Thisconcernsthemechanisedbrigades:138thinKamenka(LeningradOblast),80thinAlakurtti(MurmanskOblast)and200thinPechenga(MurmanskOblast).

69 One of the government’s priorities after the election in 2015 was to gradually increasedefenceexpenditurethatwasexcludedfromtheausterityprogramme.Meanwhile,in2016-2018militaryexpenditurewereraisedbyonly2.5%(from2.8to2.87billioneuros).

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overthepastfewyears,andtheparliamentaryreportpreparedin2014pointedtoshortagesofanti-tankandairdefencesystems70.

ThelandforceswhichhavesignificantartilleryandarmouredpotentialarethemostimportantbranchoftheFinnisharmedforces.Atpeacetimetheycon-sistoffivebrigades(includingtheArcticandthearmouredbrigade)andtworegiments(thespecialforcesandonetaskedwithurbanwarfare,especiallythedefenceoftheHelsinkiarea).Atwartimethemanoeuvrablecomponent(around35,000soldiers)istobethemainstrikeforceofthelandtroops.Theterritoriallyorganisedregionalcomponent(around125,000soldiers)istaskedwithslowingdowntheenemy(seeAppendix2).ThenavyisinchargeofprotectingthesealinesofcommunicationanddenyingaccesstotheFinnishcoastline(thegreatsignificanceofminelaying)71.Ensuringairsuperiorityusedtobethemainroleoftheairforce.However,sincethesecondmid-lifeupgradeoftheF/A-18Hornetfighterfleet(gainingair-to-surfacecapabilitiesbyequippingitwithJASSMmissilesandJDAMandJSOWprecisionbombs),whichwascompletedin2016,theirtaskshavebeenexpandedtoincludeairsupport72.Foracountrywithapopulationof5.5million,Finlandhasstrongfighterfleet–62modernisedF/A-18Hornets.

2. Adjustment to the new challenges

Eventhoughthekeyelementsofthedefencedoctrinehavebeenpreserved,theFinnisharmedforcesarebeingreformedundertheinfluenceofnewtrendsinmilitarytechnologyandinthesecurityenvironment.Investmentsinoffen-sivecapabilitiesarethemostimportantchange.Increasingthelevelofcombatreadinessalongwithagreaterreadinesstorecieveandprovidemilitaryaidalsocarrygreatweight.

70 Long-term challenges of defence: final report of the parliamentary assessment group,Parliamentof Finland, May 2014, https://www.eduskunta.fi/FI/tietoaeduskunnasta/julkaisut/Docu-ments/ekj_5+2014.pdf

71 BalticSeatransportisofkeysignificanceforFinland,sincearound90%ofitsexportsand80% of its imports are transported by sea. H.Haapavaara, Merivoimille neljä 105-metristä korvettia – 1,2 miljardilla suurimmat alukset sitten panssarilaiva Ilmarisen ja Väinämöisen,“Tekniikka&Talous”,17January2018,https://www.tekniikkatalous.fi/tekniikka/metalli/merivoimille-nelja-105-metrista-korvettia-1-2-miljardilla-suurimmat-alukset-sitten-panssarilaiva-ilmarisen-ja-vainamoisen-6696642

72 All Finnish Air Force’s Hornets Upgraded to MLU 2,FinnishDefenceForces,16December2016,http://ilmavoimat.fi/en/article/-/asset_publisher/kaikki-ilmavoimien-hornetit-on-nyt-paivitetty-mlu-2-tasoon

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(1) Quantity versus quality.SincetheendoftheColdWar,Finlandhascon-ductedanumberofreformsofitsarmedforcesguidedbytheprincipleofreplac-ing the quantitative approach with investments in improving the qualityofthetrainingofsoldiers,andofmilitaryequipment(seeAppendix3).Thisentailedgradualreductionsinthenumberofprofessionalmilitarypersonnelandinthesizeofwartimeforces,whichwerecorrelatedwiththeshrinkingoftheRussianarmyafterthecollapseoftheUSSR.Sincethe1990s,Finlandhasreduceditswartimeforcesbymorethanahalf—from530,000to230,000soldiers.Anothercausebehindthiswasthesearchforbudgetarysavings,whichwasessentialduringthemostthoroughreformconductedin2013–2014afterthe financial crisis. The wartime strength was reduced then from 358,000to230,000soldiers,whichmostofallaffectedthelandforces(cutfrom265,000to160,000).Therehavealsobeenreductionsinprofessionalmilitarypersonnel(from15,000to12,300,includingcivilians),thescaleofrefresherexercisesforthereserve(from25,000to18,000reservistsannually)andthegeneralnumberofstructuresinthearmedforces(from51to32)bymergingunits,centralisinglogistics,andeliminatingonelevelofcommand(i.e.fourregionalcommandswhosecompetenceshavebeentakenoverbybrigades),amongothermeasures73.

Ananalogoustrendhasalsobeenseen inmilitaryequipment.FinlandhasbeengraduallywithdrawingormodernisingitsColdWareraweapons(mainlypost-Soviet),focusingontheacquisitionofsmallerquantitiesofmoretechno-logicallyadvancedsystems.Givenitsbudgetlimitation,Finlandprefersbuyingsecond-handarmamentfromitspartners(e.g.LeopardtanksfromGermanyandtheNetherlands,MLRSmultiplerocketlaunchersfromtheNetherlandsandK9self-propelledhowitzersfromSouthKorea).Alessfrequentchoiceistoacquirenew armament, as was the case when Finland replaced the Soviet Buk airdefencesystemswiththeNorwegian-USNASAMS2.Ingeneral,theFinnisharmyhasa limitedquantityofmodernmateriel (mainly formanoeuvrableforces)andastilllargeColdWareraarsenal(mainlyforregionalforces).Fin-landistoallocateanadditional150millioneurosannuallytothenewprocure-mentsfrom2021.Inthecomingdecade,Helsinkiisplanningtoacquirenewmulti-rolevessels(atanestimatedcostof1.2billioneuros)andfighteraircraft(atanestimatedcostof7–10billioneuros).Bytheseambitiousmodernisationprogrammes Finland’s defence budget is intended to rise to the level of 2%

73 Kokonaisarvio puolustusvoimauudistuksesta valmistunut, Ministry of Defence of Finland,31 October 2016, http://www.defmin.fi/ajankohtaista/tiedotteet/kokonaisarvio_puolus-tusvoimauudistuksesta_valmistunut.8043.news;P.Felstead,Northern composure, “Jane’s”,2017,http://www.janes.com/images/assets/660/69660/Northern_composure.pdf

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ofGDPstartingfrom2022(increasingthepublicdebt).Duringtheimplemen-tationofbothprogrammesFinlandwillmostlikelytrytobalanceprocurementsfromSwedenandUSA.Giventhehuge(forFinland)costsofthenewvesselsandfightersFinland’sarmamentplansmayfacesomedelays.

The Russian-Ukrainian war provoked a discussion in Finland as to whetherthearmyreformcompletedin2014hadbeenreasonable.Asaresult, inJune2017,Finlandadoptedanewstrategicplanningdocument(theGovernment’sDefenceReport)underwhichitsarmedforces’wartimestrengthwasincreasedto280,000soldiers,whichissettostrengthenmainlytheregionalforces74.How-ever,thesignificanceofthiscorrectionofthereformshouldnotbeoverstated,sinceitwillbeachievedpartlybyincludingconscriptsandborderguards,whohavepreviouslynotbeencounted,intothewartimeforces.Nordoesthissolvetheproblemoftheinsufficientnumberofprofessionalsoldiers(around600positionsremainedunmannedintheFinnisharmedforcesduetobudgetcuts).Besidesthis,itraisesthequestionwhetherarmyiscapableofprovidingmobilisedreservistswithsufficientquantityofweaponsandmilitaryequipment.ItispossiblethattechnologicalprogressandtheadditionalburdenlinkedtotrainingconscriptswillforceFinlandtoincreasethenumberofprofessionalsoldiers.

(2) Conventional versus hybrid conflict. TheFinnisharmedforcesarefocusedondevelopingitscapabilitiesofrepellingaconventionalattack.However,theconclusions made after the Russian Crimean operation have made Finlandattach greater importance to counteracting hybrid threats. As part of this,ithasstrengthenedtheborderguard(intermsofpersonnel,equipmentandnewpowers),updatedthemilitaryexercisesscenariosandintroducedanumberoflegalamendmentsenablingamorerapidresponsetotheemergenceofsub-versiveparamilitarygroupsandtheexpropriationofrealestatelocatedclosetomilitaryobjectswhenthereisasuspicionthatthesecanbeusedagainstthecountry’sdefencepotential.TheEuropeanCentreofExcellenceforCounteringHybridThreatsestablishedin2017inHelsinkiforNATOandEUmemberstatesisexpectedtobeanimportanttooltoimproveresiliencetohybridaggression.

(3) Combat readiness.Althoughtheneedtoincreasethelevelofcombatreadi-nessofthearmedforceshadbeendiscussedforalongtime,ithasonlybeen

74 Government’s Defence Report, Government of Finland, 16 February 2017, https://www.defmin.fi/files/3688/J07_2017_Governments_Defence_Report_Eng_PLM_160217.pdf

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inthepastfewyearsthatanumberofnewsolutionswereadoptedinthisarea75.Theseincludeupdatingthereservists’database(900,000reservists),increasingthenumberofrefresherexercisesforreservesoldiers(duetofundingshort-ages,only4,000-5,000reservistsparticipatedinthemannuallyin2012-2014;thisnumberis18,000atpresent)andadaptingadditionalairfieldstoaccom-modatestandbyfighters(QuickReactionAlert).Furthermore,since2016,thepresidenthashadtherighttocallupasmanyas25,000reservistsforsnapdrills(withoutthethreemonths’noticethathadhithertobeenrequired).ThislineofstrengtheningdefencecapabilitiesisalsoincludedintheGovernment’sDefenceReportwhichassignssomeconscriptstotherapidmanningofunitsintheeventofacrisisorconflict.Theirmilitaryservicehasbeenextendedfrom6to12months.Since2018,Finlandwillallocateanadditional55millioneurosannuallyonimprovingthelevelofitsarmy’scombatreadiness.ThesechangesareaimedatreducingRussia’sinitialstrikeadvantageincaseofaconflictandimprovingflexibilityinrespondingtoirregularwarfare.

(4) Offensive capabilities and retaliation. Thepurchaseof70USJASSMlong-rangecruisemissiles(air-to-surface) in2012,whicharealreadyintegratedwithFinnishHornets,wasadeviationfromtheprincipleofdevelopingstrictlydefensivecapabilities.Theyhavearangeofupto350km,whichmeansthatFinlandforthefirsttimeinhistoryiscapableofdestroyingtargetsattherearoftheenemy’sforces.Atthesametime,FinlandupgradeditsMLRSmultiplerocketlaunchers,gainingthecapabilityofusingGMLRSguidedammunitionwhichhavearangeofupto70kmandATACMSballisticmissileswitharangeofupto165km(purchaseoflatterwaspostponed).However,thesehavebeentheonlymovesmadebyFinlandsofarthatcanberecognisedasbuildingitsownoffensivecapabilities(mainlyduetodefencebugetconstraints)76.

(5) International co-operation. TheFinnisharmedforces,whichuntilrecentlystuck to the principle of independent defence, are increasingly opening uptotheoptionofreceivingandprovidingmilitaryassistance.ThispertainsnotonlytotheagreementwithNATO(HostNationSupport),butalsotolegisla-tionchangesintroducedinJune2017thatallowFinlandtoaskanotherstate,theEUandinternationalorganisationsformilitarysupport.Atthesametime,

75 P.Järvenpää,Preparing for the worst: conscription and reserve forces in the Nordics,ICDS,Octo-ber 2016, https://icds.ee/wp-content/uploads/2016/ICDS_Analysis_-_Preparing_for_the_Worst_-_Pauli_Jarvenpaa.pdf

76 Inthecaseofthenavy,thepurchaseofHarpoonmissiles(RGM-84Q-4HarpoonBlockIIPlusER)wouldensuresuchcapabilities.

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Finlandwillbeabletosenditssoldiersabroadwithamandatetouseforceinordertoaidanotherstate77.TheseareessentialchangesintheFinnishdefencepolicybecauseuntilrecentlythelawpermittedengagingthearmedforcesonlyinthreecases:nationaldefencetasks,supporttotheadministration,andpar-ticipationincrisismanagementoperations.Workonamendingrelevantlegis-lationbeganin2009andgainedmomentumafterFranceactivatedthemutualassistanceclauseoftheTreatyofLisbon(article42.7)ineffectoftheterroristattacksin2015.

77 Decisionstothiseffectaretakenbythepresidentinco-operationwiththegovernmentandafterconsultationswithparliament(commissionforforeignaffairs).

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APPENDICES

Appendix 1. Finland’s military expenditure in billions of US$ and as a per-centage of GDP

1999 2001 2003 2005 2007 2009 2011 2013 2015 2017

[%][US$ bn]

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1.0

1.5

2.0

Source:SIPRIMilitaryExpenditureDatabase,SIPRI,https://www.sipri.org/databases/milex

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App

endi

x 2.

Fin

land

’s ar

med

forc

es in

201

778

land

For

ces

nav

yA

ir F

orce

Tota

l

Prof

essi

onal

sold

iers

an

d ci

vilia

n pe

rson

nel

4,30

0(o

f whi

ch c

ivili

ans:

800

)1,

400

(of w

hich

civ

ilian

s:

n/a)

2,00

0(o

f whi

ch c

ivili

ans:

n/

a)

12,3

00(o

f whi

ch c

ivil-

ians

: 4,3

00)

Cons

crip

ts*

20,0

003,

400

1,300

25,0

00

War

tim

e st

reng

th16

0,00

020

,000

24,0

0023

0,00

0**

Mos

t im

port

ant

mili

tary

equ

ipm

ent

Tan

ks (1

80):

100

x Le

opar

d 2A

4, 8

0 x

Leop

ard

2A6

Infa

ntry

figh

ting

veh

icle

s (21

2): 1

10 x

BM

P 2,

102

x CV

9030

FI

NA

rmou

red

pers

onne

l car

rier

s (70

9), i

nclu

ding

:33

9 x

MT-

LBV,

260

x S

isu

XA-

180/

185

Trac

ked

carr

iers

(120

0)co

mm

and

vehi

cles

(161

)Su

ppor

t veh

icle

s (24

)H

owit

zers

(775

), of

whi

ch: 4

71 x

D30

tow

ed h

owit

zers

,13

2 x

K83

/K98

tow

ed h

owit

zers

, 72

x 2

S1 se

lf-pr

opel

led

how

itze

rs

mor

tars

(716

): 69

8 x

KRH

92

mor

tars

, 18

x A

MO

S se

lf-pr

opel

led

auto

mat

ic m

orta

rsm

ulti

ple

rock

et la

unch

ers (

75):

41 x

M27

0 M

LRS,

34

x RM

70A

nti-

tan

k w

eapo

ns: M

72 L

AW R

PG a

nti-t

ank

guid

ed m

issi

les

MBT

LAW

, Spi

ke a

nd T

OW

2A

ir d

efen

ce s

yste

ms:

24

x N

ASA

MS

2, C

rota

le S

AM

, Sti

nger

an

d RB

S70

(ASR

AD

-R) M

AN

PAD

SH

elic

opte

rs (2

7), of

whi

ch: 2

0 x

NH

90 ta

ctic

al tr

ansp

ort h

elic

opte

rsu

Av (1

1): 1

1 x re

conn

aiss

ance

AD

S 95

RA

NGE

R

mis

sile

boa

ts (8

)m

inel

ayer

s (5)

min

esw

eepe

rs (1

3)la

ndin

g cr

afts

(51)

Aux

ilia

ries

(29)

Figh

ter

airc

raft

(62)

:7 x

F/A

-18

D,55

x F

/A-1

8 C

Trai

ner

airc

raft

(74)

Tran

spor

t and

sur

-ve

illa

nce

airc

raft

(1

2), o

f whi

ch:

3 x C

ASA

C-2

95M

, 3 x

Le

arje

t 35 A

/S

*Num

bero

fcon

scri

ptst

rain

eda

nnua

lly,*

*In

addi

tion

toth

eth

ree

bran

ches

oft

hea

rmed

forc

es,f

ore

xam

ple,

logi

stic

sisc

onsi

dere

dpa

rto

fthe

war

tim

est

reng

th.

78

Dev

elop

edo

nth

eba

siso

fthe

web

site

ofF

inla

nd’s

arm

edfo

rces

,htt

p://

puol

ustu

svoi

mat

.fi/e

tusi

vu,h

ttps

://pu

olus

tusv

oim

at.fi

/en/

exch

ange

-of-i

nfor

-m

atio

nan

dTh

e Mili

tary

Bal

ance

201

6,II

SS,L

ondo

n20

16,p

p.9

2–94

.

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Appendix 3. Finland’s wartime strength of armed forces in thousands of soldiers and as percentage of population

1975 1990 2000 2010 2015 2020

[%]

700

530

450

358

230

280

[thousands of soldiers]

0

100

200

300

400

500

600

700

800

3

6

9

12

15

Source:P.Visuri,Evolution of the Finnish Military Doctrine, 1945-1985,“FinnishDefenceStudies”,WarCollege,Helsinki1990;R.Penttilä,Finland’s search for security through defence, 1944-89,London1991;Population,StatisticsFinland,https://www.stat.fi/til/vrm_en.html;The Military Balance,IISS

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map. Finland’sterritoriallossesinWorldWarII

FINLAND

RUSSIA

ESTONIA

Murmansk

Tallinn

Saint PetersburgStockholm

Helsinki

SWEDEN

SALL

AKA

RELIA

Borders in 1939

Bordes after 1944

PETS

AMO

Source:R.Penttilä,Finland’s search for security through defence, 1944-89,London1991