Regional transport subsidy to continue in 2023‒2025 and to cover new municipalities in eastern Finland

On 8 December 2022, the Government issued a decree under which regional transport subsidies will continue in 2023‒2025. The subsidy will remain largely the same as before. Regional transport subsidy will reduce the freight costs caused by long transport distances of products manufactured by SMEs operating in sparsely populated areas. This will improve the competitiveness of companies and support their business activities.

In its budget proposal for 2023, the Government proposes an appropriation of EUR 6.3 million for regional transport subsidies. The appropriation proposed for 2023 is EUR 300,000 more than in 2020‒2022, because the decree will now cover the municipalities of Imatra, Parikkala, Rautjärvi and Ruokolahti as well. The expansion of the support area is based on the proposal of the Working Group of State Secretaries that explored ways to strengthen the vitality of eastern Finland.

“The Government’s message is clear: we want to keep the whole of Finland viable. Transport subsidies are a concrete help to SMEs in sparsely populated areas. It is important to me that the support is expanded to cover new municipalities in eastern Finland. The economy of eastern Finland has been particularly hard hit in recent years, and this is one way to strengthen the region’s competitiveness,” says Minister of Economic Affairs Mika Lintilä.

Transport subsidy available to SMEs operating in sparsely populated areas

Transport subsidy may be granted for the long-distance transport of products manufactured by small and medium-sized companies in the municipalities of Lapland, North Ostrobothnia, Kainuu, North Karelia, North Savo, South Savo and Central Ostrobothnia, the subregion of Saarijärvi-Viitasaari and the municipalities of Imatra, Ruokolahti, Rautjärvi and Parikkala.

Depending on the length of the journey, the subsidy for road and rail transport is 9‒20% of the paid transport fee. The subsidy for port operations is EUR 1 or 2 per tonne shipped, depending on the location of the port. 

The application period for transport subsidy is a calendar year. Applications are submitted electronically to the ELY Centre for North Ostrobothnia within three months of the end of the application period.

Transport subsidy is a discretionary government grant and the granting of the subsidy must comply with the European Union’s rules on state aid.

The decree will enter into force on 1 January 2023.

Inquiries:
Sonja Hällfors, Special Adviser to the Minister of Economic Affairs, tel. +358 295 047 380
Mikko Ojala, Senior Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 295 063 506
Ida Berg, Senior Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 047 043