Th e goal was to improve the competitiveness of the regions, companies and their affi liates and to strengthen their resources and ability to operate. Th e projects focus area was taking expertise from the Oulu South region to Northwest Russia; similarly, Russian expertise was to be brought over to serve the companies and educational institutions in the Oulu South region. Th e target groups in Russia were companies and training and development organisations, universities, higher education institutions, and institutes that were closely associated with public administration. Th e project was to be implemented using diff erent focuses with defi ned activities and cooperation partners in Finland and Russia. Th e goal was to fi nd Russian partners for the professionals/entrepreneurs of the region, to get them to assess cooperation opportunities and, ultimately, begin cooperation with Russians. In accordance with the project plan, the focus areas were manufacturing in Karelia and St. Petersburg, RTD projects, expertise projects, training, personnel and recruitment, construction, the forestry and wood industry, and agriculture. In particular, technological expertise and associated research and development projects as well as mechanical wood refi nement were emphasised during the application phase. Achievements: The project was found to be too extensive and to include too many industries, making its management difficult; however, research information was produced and company relationships were created through the project. These relationships were seen to be continuing to contribute to employment in both Russia and Finland after the projects completion. In addition, some manufacturing/ subcontracting activities were started during the project; these activities were still growing upon conclusion of the project. Exporting expertise and cooperation with the training, research and development industries also achieved significant results. The established relationships were already self-sustaining and were further expanding and strengthening. For example, the import of timber products from the Republic of Karelia to the programme area in Finland was started and standardised during the project. The import volumes have continued to grow after the project. Similarly, log deliveries were made to a Finnish-owned sawmill in Russia during the project. The goals for the construction, agriculture and metal industry focus areas were not so satisfactorily achieved. With agriculture, the reasons included lack of resources, cultural differences and, to some extent, the inexperienced project personnel. A few contract quotations were made in the construction market; however, they have for the most part not led to anything (the stone industry was a positive exception), and the large contracts in, for example, St. Petersburg were not secured. Quick results were expected for the metal industry in the project; however, they were unachievable without greater resources than were available in this project. The awareness and positive attitude regarding Russia was also improved during the project. Similarly, Oulu South was made more known in the nearby Russian areas; however, Oulu South Development Ltd, which originally was to be a development company for the entire southern part of Oulu Province, was shut down in 2003 due to its extremely poor financial situation.