Treaty of Nöteborg Treaty of Nöteborg , also known as " Treaty of Oreshek " ( ) , is a conventional name for the peace treaty that was signed at Orekhovets ( , ) on August 12 , 1323 . It was the first settlement between Sweden and Novgorod Republic regulating their border . Three years later , Novgorod signed the Treaty of Novgorod with the Norwegians . Name . The treaty had no special name at the time , as it was just called a " permanent peace " between the parties . Contemporary English language publications most often use the name " Treaty of Nöteborg " for it , which is a direct translation of " Nöteborgstraktaten " by which the treaty has conventionally been referred to in the Swedish language literature . " Treaty of Oreshek " is a similar translation from the Russian " Ореховский мир " . Both " Nöteborg " and " Oreshek " are old names of a fortress in Shlisselburg , used respectively in Swedish and Russian . Recently , the name " Treaty of Pähkinäsaari " has appeared in some of the English language literature , as a direct translation of the contemporary Finnish name of the treaty , " Pähkinäsaaren rauha " . " Pähkinäsaari " was the Finnish name for the island on which the fortress was built . Contents . The original text of the treaty has been lost . It has survived in partial copies in Russian , Swedish , and Latin , which are somewhat conflicting . The treaty was negotiated with the help of Hanseatic merchants in order to conclude the Swedish - Novgorodian Wars . As a token of good will , Prince Yuri ceded three of his Karelian parishes to Sweden ; Sweden would in turn stay out of any conflict between Novgorod and Narva . Both sides would also promise to refrain from building castles on the new border . The treaty defined the border as beginning east and north of the Viborg Castle , running along Sestra and Volchya River s , splitting the Karelian Isthmus in half , running across Savonia , and , according to the traditional interpretations , ending in the Gulf of Bothnia near the Pyhäjoki River . Only the southern part of the border , close to Viborg , was actually considered important and clearly defined in the treaty . Border in the wilderness was defined very roughly , and was presumably considered less important than the line across the Karelian Isthmus . It has also been suggested that the treaty would have originally given both Sweden and Novgorod joint rights to northern Ostrobothnia and Lappland . Aftermath . Finnic tribes living on both sides of the border , mainly Karelians , Finns , and Tavastia ns , had no say in the treaty . Sweden and Novgorod had already " de facto " established their areas of influence in eastern Fennoscandia , with Karelians under Russian rule and other tribes in the west under Swedish rule . The treaty established international approval for that structure , but the concept of " permanent peace " did not have much effect on the long - term conflict between Novgorod and Sweden . The northern part of the border crossed wide stretches of wilderness in which the Hansa and its diplomats were not interested , but these areas became a bone of contention between Sweden and Novgorod soon thereafter . Anxious to retrieve the northern shore of the Gulf of Bothnia , Sweden may have forged part of the treaty only a few years later , and claimed that the northern border went all the way up to the Arctic Ocean . Within five years after the treaty was signed , Swedish colonists started making inroads into northern Ostrobothnia . Sweden also established castles at Uleåborg around 1375 and Olofsborg in 1475 , clearly on the Novgorodian side of the border . The Swedes ' Russian counterparts refused to accept the apparent forgery until 1595 , when the Treaty of Teusina acknowledged the Swedish text as the correct one . However , long before that , Sweden had succeeded in permanently taking over large areas on the Novgorod side of the original border , including Ostrobothnia and Savonia . Eventually , the territory west of the border , along with the expanse to the north , evolved into the country that is known today as Finland .