Finland will pay 1.22 million euros annually for use of the canal. In addition a supplementary rent will be paid in accordance with traffic levels.
The deal will now be ratified by both sides and will be signed in August. Final negotiations on the agreement were held between senior Finnish and Russian officials on Wednesday.
The 43-kilometre long canal was first opened in 1856. After World War II, part of the canal was in territory ceded to the former Soviet union. After successful negotiations, iIt was first leased to Finland in 1963 for a period of fifty years. A widened canal was commissioned for use in 1968.