Helsinki City denies paying heating bills for Helsinki Arena amidst insolvency claims

The City of Helsinki paid the district heating bill for the Helsinki Arena last spring, according to Ilta-Sanomat. The motive behind the payment was to ensure the arena would not fall into disrepair. The heating bill had previously been overdue from the arena’s parent company, Helsinki Hall.

Kai Paananen, a board member of Helsinki Hall, stated that the company has paid its heating bills. If the city made the payment as well, it did so independently and without the company’s knowledge, he asserted. Jukka-Pekka Ujula, the city’s chief administrative officer, denied to Ilta-Sanomat that the city had paid any invoices on behalf of the hall company. He mentioned in early July that Helsinki is seeking to purchase the arena property. This intention stems from a city council decision to buy the arena or its shares if other negotiations do not progress.

According to Ilta-Sanomat, a group of Finnish investors has covered at least one essential maintenance bill for the arena and has expressed interest in purchasing it. The Ministry for Foreign Affairs’ sanctions unit indicated that the sanctions policy prohibits third parties from making payments on behalf of Helsinki Hall.

Helsinki Hall has reportedly become insolvent, as reported by Helsingin Sanomat. The company has unpaid bills totaling hundreds of thousands of euros, justifying primary creditors to seek the company’s bankruptcy. The arena has been virtually empty for over two years due to the extensive invasion of Ukraine by Russia and the resulting sanctions.

The majority ownership of the management company is held by Arena Events, controlled by Russian oligarchs Gennadi Timchenko, Arkadi and Boris Rotenberg, and Boris Rotenberg’s son, Roman. Except for Roman Rotenberg, all are subject to EU sanctions against Russia.