History
The canal, inaugurated in 1856, was built between the cities of Lappeenranta and Viipuri (now Vyborg, Russia), both of them then in the autonomous Grand Duchy of Finland in the Russian Empire.
In the Moscow Peace Treaty of 1940, the Karelian Isthmus and the city of Vyborg were ceded to the Soviet Union, thus effectively splitting the canal in half and ending all traffic.
Following a treaty agreement in 1963, Russia leased the Russian section of the canal area and the island of Malyj Vysotskij (Ravansaari) to Finland for fifty years. A new deeper canal was constructed by the Finns, which opened to traffic in 1968. The length of the canal itself is 42.9 kilometres (26.7 mi).
The area is not part of Finland; it is a special part of Russia. Russian law is in force, with a few exceptions concerning maritime rules and the employment of canal staff, which fall under Finnish jurisdiction. There are also special rules concerning vessels travelling to Finland via the canal. Russian visas are not required for just passing through the canal, but a passport is needed and it is checked at the border.
Negotiations in 2008 agreed upon an extension of 50 years in 2013, with an increase of the yearly rent of 290,000 euros to 1.22 million euros. The rent will thereafter be adjusted every 10 years. (The original rent was increased only once between 1963 and 2013.)
Read more about this topic: Saimaa Canal
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