The Republic of Karelia was formed following the dissolution of the Karelian Autonomous Soviet Socialist Republic. As the Soviet Union began to dissolve in the early 1990s, various ethnic groups sought greater recognition and autonomy. Karelia, predominantly inhabited by the Karelian people, has a rich cultural history influenced by both Finnish and Russian traditions. The establishment of Karelia as an autonomous republic aimed to preserve this unique cultural heritage and cater to the local populace's needs through regional governance. The shift was significant in promoting self-determination within regions that once comprised the USSR. Political changes were accompanied by social upheavals, economic transitions, and aspirations for greater regional autonomy, with Karelia becoming a focal point in the quest for identity among its citizens.

In a broader context, the creation of the Republic of Karelia exemplifies the post-Soviet dynamics in Russia, where autonomy and ethnic identity became pivotal in defining local governance and political structures. The move was largely welcomed by the Karelian population, who felt it legitimized their historical claims to sovereignty and cultural heritage. The Republic's government focused on fostering cultural identity and regional development, notably through local initiatives that drew on Karelian traditions and languages.

Over the years, Karelia has also navigated challenges related to economic development and political integration within the Russian Federation. The efforts to maintain a robust Karelian identity alongside governance remain strong, highlighting tensions and opportunities within the complex fabric of modern Russia.