Best I can come up with is the Lapland equivalent of an ice-fishing "tipper." Figure one lure on the line for jigging, and another on a separate line, which is run through the hole and tied off on the fisherman's hand or clothes or such with the bait moving with the current. Jam the rod into the earth or ice and let it catch your fishes.
But I dunno. It sure was made deliberately for some purpose. Folks in that culture didn't have spare steel to make fanciful tools; if they made it, it had to be practical.
BTW...all this brings to mind one of my absolute favorite outdoor films: NANOOK OF THE NORTH, shot in 1923 as a documentary, and it is remarkable in the detail and narration. A friend on another forum said he found it on a You tube site and he and his wife loved it. Great fishing, living, enduring film, almost one hundred years old. I encourage you folks to take a look, it really is great. (and no special effects. If you see it on the film, it happened.)