Bargaining for oil: From multinational control to state ownership in Finland, 1917-1957

Artikel i vetenskaplig tidskrift, 2026

This article investigates the relationship between multinational oil companies (MNEs) and the Finnish state from independence in 1917 to the opening of a state-owned oil refinery in 1957. Initially, minimal and fiscally focused regulation allowed MNEs to dominate Finland's oil economy. By 1957, however, the state had become a central actor through increased regulation and the creation of state-owned infrastructure. Using the Political Bargain Model (PBM), the article analyses shifts in state-MNE dynamics in terms of goals, resources, stakes, and constraints. It argues that during the interwar period, the state's modernisation goals aligned with MNEs' market expansion interests. Wartime experiences then exposed Finland's dependence on foreign oil, prompting a reassessment of energy security. In the post-war era, the development of domestic physical and intellectual resources enabled the state to counterbalance MNE influence and assert greater control over the national oil economy.