Ministry of Defense orders compulsory sale of factory property in Ilomantsi

The Ministry of Defense has ordered the compulsory sale of an old factory property in Ilomantsi. This is the same property that the ministry prevented from being sold in January due to security concerns involving a company owned by a former Russian politician. The company was given six months to find a new owner for the site, which was formerly known as a caviar factory. When this effort failed, the property was transferred to the Enforcement Authority for auction.

In March 2023, Yle visited the dilapidated factory building, which has been reported to be in poor condition. The factory structure’s roof is partially collapsed, and the building is significantly run-down. The last operations at the site occurred in the early 2010s when a Russian-owned company attempted to convert the factory into a sturgeon farm, but it went bankrupt before production could begin. The bankruptcy estate tried to sell the distressed property for nearly eight years before it was bought by a company partially owned by the Russian ex-politician.

Ilomantsi’s caviar factory is not the only property facing a negative decision regarding its sale; recently, a private home in Kotka was auctioned after the Ministry of Defense prohibited its sale to a Russian woman due to application deficiencies. Following a ruling that prevents purchases, non-EU and EEA buyers have had to seek permission from the Ministry of Defense for real estate acquisitions since 2020. If the ministry does not grant permission, buyers have six months to resell or otherwise transfer the property, with this term starting after any appeals are resolved. If not complied with, the property will also go to the Enforcement Authority for sale.