Finland blocks another property acquisition by Russian buyer

Finland’s Ministry of Defence blocked three real estate transactions, one of which involved a company partially owned by Russians.

The ministry justified its actions by saying that allowing these acquisitions could potentially impede the defence of Finnish territory. This move follows similar decisions made in October, where three planned property transactions involving Russian buyers were also blocked.

The decisions concerned one property in Ilomantsi in southeastern Finland and two in Sotkamo, in central Finland, the ministry said in a statement.

The prospective buyer of the property in Ilomantsi was a partly Russian-owned company. The parcel of real estate in Sotkamo had been sold twice between companies held by a different owner, the ministry said.

It was not immediately clear if the Sotkamo property deals were linked to Russia. The Finnish defence ministry was not immediately available for additional comment.

Finland moved to limit Russian citizens’ property acquisitions near strategically important locations with legislative changes that took effect from the beginning of 2023, in response to Russia’s 2022 invasion of Ukraine.

Finnish authorities have the right to review transactions made by companies from outside the European Union and European Economic Area.

With inputs from Reuters.