In 1940, the Soviet Union annexed the territories of Finland that it had occupied during the Winter War, creating what it referred to as the Finnish Democratic Republic. This entity, declared on December 1, 1939, in Terijoki (now Zelenogorsk in Russia's Leningrad region), was predominantly a propaganda tool for the Soviet regime, intended to legitimize the Soviet occupation of Finnish land. The government, known most commonly as the Terijoki government, was led by Otto Ville Kuusinen, whose leadership was acknowledged solely by the Soviet Union that had established it.

The Finnish Democratic Republic was marked by its singular red flag, with no official coat of arms, and it maintained a military force of 27,648 men, although this army did not partake in any significant military engagements. The annexation was part of the larger context of World War II and the expansion of Soviet influence in Eastern Europe as the USSR sought to stabilize its borders and exert control over the Baltic states and Finland.

Additionally, the article highlights significant historical events in Estonia on March 12, including the confirmation of amendments to peasant laws by Alexander I in 1809, the enrollment of Alexander von Antropoff in the Estonian nobility in 1841, and the conclusion of the first international ice sailing competition held in Estonia in 1928. These events reflect the broader historical currents in the region during pivotal moments of the early 20th century and illustrate the intertwined histories of Finland and Estonia during times of regional upheaval.