Legislation banning real estate transactions by Russian nationals under review in Finland

The proposed legislation banning real estate transactions by Russian nationals is set to be reviewed by the government in early autumn, according to Defense Minister Antti Häkkänen. The initiative has been under preparation at the Ministry of Defense throughout the summer. A working group established by Häkkänen proposed limiting property acquisitions by foreign citizens in May. Häkkänen stated that the legislation is among the top priorities on the agenda for review.

This week, it was revealed that the Ministry of Defense has halted real estate transactions in Sysmä, citing the buyer’s connections to Russia. Häkkänen indicated that several similar property deals have been blocked over the past six months. In these aborted transactions, the buyers were reportedly Russian nationals or dual citizens with ties to Russian organized crime and politics.

Häkkänen asserted that the Defense Forces have substantial information about foreign buyers’ connections, but under the current legislation, it is not possible to prevent all real estate transactions that pose security threats. For example, in 2020, Russian oligarch Igor Kesaev acquired property on Kotasaaren island along the Saimaa deep-water route. Kesaev has been alleged to have links to the Russian security service FSB and the arms industry.

Extensive accommodation facilities and a helicopter pad have been constructed on the island since Kesaev took ownership of the area. The Defense Forces have noted that they are monitoring activities related to Kesaev’s property.