Finnish authorities are preparing to completely ban Russians from buying real estate in the country
Currently, a person must obtain a permit from the Ministry of Defense to make a purchase.
Finnish Defense Minister Antti Häkkinen has announced his intention to seek a complete ban on real estate transactions for Russian citizens. A "legal solution" to the issue may be found as early as this spring, he said in an interview with Uutissuomalainen, moscowtimes.eu reports.
Häkkänen did not rule out that the restrictions would also apply to real estate leases. He also considers it necessary to check the already conducted transactions of this type.
The Finnish Defense Ministry has blocked the sale of real estate to Russians several times before. One such case occurred in October 2023. The decision concerned two properties in Ruokolahti and one in Kitee. Two transactions were intended to be carried out by private individuals, and one by a Russian-owned company. The Ministry of Defense explained that the sale of these facilities could interfere with the "organization of national defense and protection of the territorial integrity" of Finland.
The ministry also argued for another blocking of three deals in January 2024. The decision concerned a former factory building in Ilomantsi and two stores in Sotkamo. In Ilomantsi, the buyer was Tornado Logistics oy, a company owned by Oleg Fokin, the former head of the Petrozavodsk City Council, who had previously served time in Russia for fraud. He was going to set up the production of an electric generator in the purchased building – the "killer" of Elon Musk's Tesla car.
In turn, the property in Sotkamo was resold twice between companies owned by a UK-registered fund headed by a non-EU or eurozone person. The Ministry of Defense noted that the owner did not provide all the information on time.
Finland tightened the conditions for selling real estate to foreigners in 2020. Persons who are not citizens of the EU or the Eurozone must obtain permission from the Ministry of Defense to conclude a transaction. The requirement also applies to companies and organizations located in the EU zone but with at least 10% of their ownership outside the EU.
It is noted that after Russia's invasion of Ukraine in 2022, Finland imposed restrictions on the purchase of real estate by Russians near strategically important facilities. However, the law does not apply to the purchase of apartments.
In late November, it was reported that in 2023, Russians purchased 116 properties in Finland.
Background. As it has become known, more than 20 companies that supply military products to Russia operate in Finland.
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