History The history of the area needs to be viewed as a complex issue involving all 3 countries. For lack of space, we limit ourselves to the 20th century and on: Finland: Finland gained independence from Russia in 1917 and was granted access to the Barents Sea by a corridor containing the town of Petsamo (Pechenga). It was under Finland when the Nikel discovery was made and the mining commenced. The area was lost to Soviet Union during the "Winter War" in 1939, together with other parts of the country. Current situation: The upper part of the Pasvik river catchment and the river headwaters (Lake Inari) are in Finland. The lake is an important fishing and recreational area. The most important factor affecting the present state of the lake is the hydroelectric power plant constructed in the River Paatsjoki in USSR. This plant started operation in 1934 and it has regulated the water level of Lake Inari ever since. Because of the regulation, the water level of the lake is about 0.5 m higher than in its natural state. The regulation has detrimental effects on the benthic fauna and on fish. The growth and catches of some species of fish, e.g. lake trout and arctic char, have decreased since the beginning of regulation. Efforts have been made to improve the efficiency of fishing in the lake, e.g. by using new types of fishing tackle. Norway: The onset of the industrial era in the region was marked by the opening an iron ore mine in Bjornevatn, a settlement several kilometers south of Kirkenes. The town of Kirkenes itself was built around this mine, which provided work for approximately 1800 workers and closed its operation in 1997 Subsidized farming has been developing in Finnmark since 1930. During the WW II, Kirkenes was one of the strongholds of the German army and a base from which the fleet of planes was operating in the Barents area. At the end of the war, the town was almost completely destroyed, first by bombing by the Red Army, then by fire and explosives by the German army during the German retreat. The area was liberated by the Red Army and strong ties developed between the Norwegian and Russian population, also as a result of gratitude for the help the Russians provided in the first post-war winter. The Cold War, establishment of the Warsaw pact and entry of Norway into the NATO (1949) put end to any cross-border intercourse. A guarded barbed-wire fence was erected along the border and both sides maintained a strong military presence in the area. The dissolution of the Soviet Union led to relatively normal border relations between Norway and Russia. The old roads have been reopened and boat routes to Murmansk have been established. Today, Kirkenes, the municipal center of Sor-Varanger, has approximately 6,000 inhabitants. Total population of the municipality is approximately 10,000 people at 3500 square kilometers. After the closing of the mine, the most important enterprises include service industries, ship repairs, and various initiatives directed toward northwestern Russia. Soviet Union / Russia: In the early twenties, the nickel deposit of Petsamo (Pechenga) was discovered. It was developed by Canadian company INCO and mining started in 1935. The mine and processing plant fell under Soviet control first (after the "Winter war in 1939) and later under German control between 1940-1944. The plant was completely destroyed in 1944. In the armistice with Finland in 1944 the Soviet Union retained the area, re-built the plant and in one year commenced operation. A sister plant was built in Zapolyarny approximately 25 km away. The mine and the factory provided the Soviet state with a significant share of nickel production. Major deterioration of the surrounding environment commenced in the 1960ies as a result of processing ore from Norilsk (Siberia), containing a large amount of pyrite. Current situation: The main problems of this nickel mining area are old-fashioned industrial capital and the adjustment problems of modernisation. Furthermore, recent ore bodies (open pits) provide ore only for few years. Pechenga Nickel Company sees the development of new mining operations crucial for the future of the company. Employees seem to understand the urgent need of modernisation and development, but they are very afraid of its consequences. Rationalisation of labour in such communities like Nikel and Zapolyarnyj is difficult, because there are no other job opportunities available in this twin-city of 50,000 inhabitants. The introduction of modernisation will bring to the cut of about half of the 9,000 employees of the company, involved in all the production units will be redundant and, according to the present economic structure of the region, this redundancy will not be absorbed by other economic activities. Useful Links and sources: For more background information on history of : Norway - http://www.lysator.liu.se/nordic/scn/faq63.html Finland - http://www.lysator.liu.se/nordic/scn/faq43.html#top Sweden - http://www.lysator.liu.se/nordic/scn/faq731.html#top Pasvik Natural Reserve: http://www.metsa.fi/natural/cooperation/inaripasvik/pasvikzapo.html Lake Inari (Enare): http://www.ilec.or.jp/database/eur/eur-17.html The Winter War: http://www.winterwar.com/War'sEnd.htm#demands The Sami: http://www.museumsnett.no/vsm/engelsk.html Nickel mining in NW Russia: http://www.helsinki.fi/aleksanteri/english/publications/sarja3/rautio.pdf Ecological, Geological and economical problems of the Kola Peninsula: http://www.mstu.edu.ru/publish/vestnik/no3/eng_cont.html and http://216.239.37.100/search?q=cache:YD7548EonX0C:www.iiasa.ac.at/Publications/Documents/IR-00-071.ps+pechenga+nikel+mine&hl=en&ie=UTF-8