Negotiations continued throughout 1938 without results. Finnish reception of Soviet entreaties was decidedly cool, as the violent collectivization and purges in Stalin's Soviet Union resulted in a poor opinion of the country.In addition, most of the Finnish communist elite in the Soviet Union had been executed during the Great Purge, further tarnishing the USSR's image in Finland.
Yartsev suggested that Finland cede or lease some islands in the Gulf of Finland along the seaward approaches to Leningrad; Finland refused.
In April 1938, NKVD agent Boris Yartsev contacted the Finnish Foreign Minister Rudolf Holsti and Prime Minister Aimo Cajander, stating that the Soviet Union did not trust Germany and that war was considered possible between the two countries.
The Red Army would not wait passively behind the border but would rather "advance to meet the enemy".
Hostilities ceased in March 1940 with the signing of the Moscow Peace Treaty.
Finland ceded territory representing 11 percent of its land area and 13 percent of its economy to the Soviet Union.