The project will promote the facilities of the region’s small and medium-sized enterprises to launch co-operation in the regions of the Karelian Republic and north-western Russia. The activities have been divided to three priorities (areas of focus); co-operation between mine towns, promotion of subcontracting activities and promotion of timber trade. The mine town part will study e.g. the possibilities to launch business co-operation between the mines of Pyhäsalmi and Kostamuksha. The subcontracting part will study, in co-operation with the region’s enterprises, the possibilities to establish IT sector joint ventures and to start duty-free raw material import and assembly production in Russia. The part of timber trade in co-operation with the region’s enterprises will search for opportunities to import wood raw material from Russia. Achievements: Implementing the section related to mining was delayed due to a change in ownership at the Pyhsalmi mine and the planned mining cooperation with Russians was unsuccessful. The new Canadian owner of the mine was not interested in cooperation with Russians. The project did, however, complete a study related to the mining industry regarding cooperation opportunities with companies in the Republic of Karelia in the construction industry. The construction stone sites in Karelia and companies in the construction stone industry in the Republic of Karelia and their interest in cooperation with Finns was assessed during the research. In addition, the study examined what type of cooperation would be possible between the professionals and companies in the Republic of Karelia and North Karelia. In reference to subcontracting, a machine shop that manufactures tin plate profiling machines was established in Pyhjrvi as a pilot project. In addition, the market for the companys products was researched and sales into Russia were arranged. The original goals related to subcontracting in the IT industry were not reached due to changes on the market that occurred during the time-frame between the funding application and the final funding decision. However, the project was responsible for arranging an orientation visit to the Republic of Karelia for Finnish entrepreneurs in the IT industry. The actors engaged in discussion with Petrozavodsk State University and visited research and educational institutions in the industry during the trip. Six actors of the industry participated on the trip. Another action was to arrange visits and discussions for IT industry experts from Petrozavodsk State University at Finnish companies and project organisations. Th e actions were successful in initiating cooperation between Petrozavodsk State University and Stone Oy in Nivala. In order to promote wood trade, the project had a report made of the timber resources in the Arkhangelsk region and their suitability for the needs of Finnish counterparts. In addition, the report examined the possibilities to import wood to Finland together with raw material and transport costs and funding arrangements. The project arranged eight trips to the Arkhangelsk region for Finnish wood industry companies. As a result of the trips, several quotations regarding the delivery of wood raw material were obtained and trade agreements signed. Wood imports were started using trial shipments. By utilising the projects specialist services, one company under Finnish ownership was established in Russia.