Continuation War - Armistice and Aftermath

Armistice and Aftermath

Mannerheim had repeatedly reminded the Germans that in case their troops in Estonia retreated, Finland would be forced to make peace even on extremely unfavourable terms. The territory of Estonia would have provided the Soviet army with a favourable base for amphibious invasions and air attacks against Finland's capital, Helsinki, and other strategic targets in Finland, and would have severed Finnish access to the sea. The initial German reaction to Finland's announcement of ambitions for a separate peace was limited to only verbal opposition. However, the Germans arrested hundreds of sailors on Finnish merchant ships in Germany, Denmark and Norway.

Previously, in return for critically needed food and defense materiel from the Germans, President Ryti had personally committed, in writing, that no separate peace with the Soviets would be attempted. Accordingly, it became clear that he must resign, paving the way for a separate peace. Finland's military leader and national hero, Carl Gustaf Emil Mannerheim, was extraordinarily appointed president by the parliament, accepting responsibility for ending the war.

On 4 September, the cease-fire ended military actions on the Finnish side. The Soviet Union ended hostilities exactly 24 hours after the Finns. An armistice between the Soviet Union and Finland was signed in Moscow on 19 September. Finland had to make many concessions: the Soviet Union regained the borders of 1940, with the addition of the Petsamo area (now Pechengsky District, Russia); the Porkkala peninsula (adjacent to Helsinki) was leased to the USSR as a naval base for fifty years and transit rights were granted; Finland's army was to be demobilized with haste, and Finland was required to expel all German troops from its territory within 14 days. As the Germans did not leave Finland in time for the given deadline, the Finns fought their former co-belligerents in the Lapland War. Finland was also to clear the minefields in Karelia (including East Karelia) and in the Gulf of Finland. Retreating German forces had also mined northern Finland heavily. The demining was a long operation, especially in the sea areas, lasting until 1952. 100 Finnish army personnel were killed and over 200 wounded during this process, most of them in Lapland.

As sizable numbers of civilians who had been relocated into Finland from Karelia in 1939-40 had moved back into Karelia during the war and they had to be evacuated again; of the 260 000 civilians who had moved back into the Karelia only 19 chose to remain and become Soviet subjects.

Nevertheless, in contrast to the rest of the Eastern front countries, where the war was fought to the end, a Soviet occupation of Finland did not occur and the country retained sovereignty. Neither did Communists rise to power as they had in the Eastern Bloc countries. A policy called the Paasikivi–Kekkonen line formed the basis of Finnish foreign policy towards the Soviet Union until its dissolution in 1991.