The intention of the project was to assess the opportunities for beginning commercial peat production in the Republic of Karelia and importing peat to Finland and to create the conditions for peat extraction and use in the Republic of Karelia. These actions were also intended to contribute to the promotion of local energy resource use and small businesses as well as to implement the proposition of the Karelian Government regarding developing the energy distribution of small and remote border communities. In accordance with the project plan, the activities included selecting suitable bogs, completing assessment of them, and creating a feasibility plan examining the possibilities for extracting peat and importing it to Finland from Southern Karelia. The project also included a report on the required permits and regulatory requirements for extracting and exporting peat. In addition, the Tacis part of the project included training and support for the local counterparts in all essential subject areas regarding peat production. Achievements: The peat areas in the Republic of Karelia were assessed to examine whether it would be possible to deliver peat to Finland. Similarly, the necessary permits and other materials needed in order to import peat to Finland, the potential users of peat imported from Karelia, and transports costs from selected bogs were assessed. Resources were discovered to be sufficient for delivering peat to Finland and at the same time for use by the Republic of Karelia. The project has led to numerous inquiries from the Republic of Karelia and the Moscow and St. Petersburg regions. One Russian company has already begun operations at Lahdenpohja and is also aiming to deliver peat to Finland in the future. In addition, one company is currently researching options for delivering peat to Finland. The deliveries should begin during 2010–2011. Furthermore, promising negotiations have been conducted regarding starting machine production for peat harvesting in Karelia for the use of both Finns and Russians. The planning and directing of the preparation work in the assessed peat production areas were transferred to the Tacis part of the project once the Interreg segment was concluded. The Tacis project is to obtain additional information and develop cooperation with existing and new companies in Karelia. According to the Finnish perspective, the development work aiming for sustainable development is leading to trans-border cooperation that satisfies both counterparts and positive socio-economic development of the border region. The local counterpart in the Republic of Karelia should, in the mid-term, be able to cover the entire process, from assessing the bogs to obtaining customers, in order for sustainable peat extraction to be possible in Karelia. For this reason, the emphasis of the Tacis project is on supporting local counterparts. Peat production in the Republic of Karelia, however, also offers a diverse range of opportunities to Finnish machine-work contractors.