The Armistice restored the Moscow Peace Treaty of 1940, with a number of modifications.

The new armistice also handed all of Petsamo to the Soviet Union, and Finland was further compelled to lease Porkkala to the Soviet Union for a period of fifty years (the area was returned to Finnish control in 1956).

Other conditions included Finnish payment of nearly $300,000,000 ($5.4 billion in today's US dollars) in the form of various commodities over six years to the Soviet Union as war reparations.

[4] Further, the individuals that the Soviets considered responsible for the war had to be arrested and put on trial, the best-known case being that of Risto Ryti.

[5] The armistice compelled Finland to drive German troops from its territory, leading to a military campaign in Lapland.