Hi, Bob,
That is in Finland; the words on the tender are Finnish (vesijarvi means water hill), and the Finnish railways burned wood. This looks like one of the preserved narrow-gauge lines, but the same applied to the broad-gauge (which was 5'). I visited Finland in 1977 and saw one of these ng lines, but it was a weekday and everything was locked up, to my great disappointment.
If you saw the movie Dr. Zhivago, the train scenes were filmed in Finland. For years Finland retained a large number of steam locomotives on strategic reserve, although they are probably all gone now. (I did see some of these in 1977, and found a long oiler in the weeds in a yard) Sweden did the same, and when they disbanded the reserve they were advertised for use on tourist railways. There is one in eastern US or Canada (I forget where) that bought a complete Swedish train with steam locomotive and runs it in the summers; you probably know which one it is.
Chris Holombo
Niles Canyon Railway Steam Crew and Gofer