Russian citizen’s property purchase raises concerns amid Finland’s potential new regulations

Mariia Solodiankina, a Russian citizen in her thirties, purchased a holiday home last year in South Karelia, Finland. Living in the capital region, Solodiankina faced a thrilling challenge as she needed to obtain permission from the Ministry of Defence for the property transaction. She was also concerned that Finland might tighten regulations on property purchases by Russians before her deal was approved. The ministry is currently preparing legislation aimed at prohibiting Russian property acquisitions in Finland.

According to current practices, the Ministry of Defence reviews real estate transactions for individuals from outside the EU and EEA. Between January and July, the ministry made decisions on nearly 70 real estate purchases, blocking three while approving the rest. Most of the transactions under review received positive permits. Since the law came into effect in 2020, there have been ten instances of blocked purchases.

Russian property acquisitions are concentrated in southeastern Finland and the Savonlinna area. Nearly half of these transactions were priced below €30,000, often involving older homes deemed in need of demolition. Notably, one recent approved purchase was a house located about two kilometers from the Southeast Finland Border Guard headquarters.

Solodiankina explained that her purchase was largely motivated by her interest in gardening. Meanwhile, another buyer, Alexander Davydok, acquired a house in Imatra for €54,000 with plans to renovate it for rental purposes. Legal expert Tomi Voutilainen criticizes the proposal for a complete ban on Russian property purchases, arguing it wouldn’t effectively address unwanted transactions. He suggests that such transactions could still be conducted using proxies or rental agreements, questioning the necessity of legislation with limited impact.