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With the aid of France, Sweden and Russia agreed
to negotiate in Nystad (Uusikaupunki). Since
Sweden was in inferior position, Russia could
basically dictate its demands. Therefore the
peace treaty, signed on August 30, 1721, was
exceedingly favourable to Russia. Sweden
recognised the new border, which meant that
Sweden had lost all its southern Baltic areas
to Russia, and also the south-eastern part of
Finland.
Russia guaranteed the old privileges and
religious freedom of its newly gained
territories. Sweden received 2 million roubles
of compensation for the lost territories, and
Sweden was also allowed to buy tax-free grain
worth up to 50 000 roubles from the Baltic. |
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| The Peace of Nystad meant several things to
Helsinki. First of all, the Russian troops
occupying the town were to leave in due time.
The people of Helsinki could then return to
their home town. The peace treaty meant that
the border got a lot closer to Helsinki, the
border was less than 200 kilometres from
Helsinki. |
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