Finnish professor asserts legal resolution of seized Russian assets may take years

The fate of properties and apartments seized from the Russian state could take years to resolve, according to Tomi Voutilainen, a professor of public law at the University of Eastern Finland. He notes that if the opposing party disputes the rulings, the proceedings in district court could be prolonged, and appeals can be made to higher courts, extending the process potentially over several years. Voutilainen emphasizes that court processing times in Finland have been increasing significantly.

Currently, Voutilainen states that the seizures do not affect the use of the properties; for instance, if residents occupy a seized building, they are allowed to continue living there. The seizures are viewed as temporary measures to prevent the owner from transferring or selling the property, and thus should not directly influence activities within the properties.

Finland’s political leadership has remained silent on the matter of the seizures, which Voutilainen regards positively. He insists that this issue is under the jurisdiction of an independent court and should not be influenced by diplomatic or political maneuvers.

Finland began seizing Russian state assets on October 24, marking a significant operation that involved over 40 properties. The background of these actions reflects a decade-long context, starting with Russia’s annexation of Crimea in 2014, during which it appropriated Ukrainian company Naftogaz’s assets. In April 2023, an international arbitration tribunal in The Hague ordered Russia to pay over five billion dollars in damages to Naftogaz and related companies.

The Helsinki District Court ruled in August 2023 that Russian assets could be seized temporarily, totaling over four billion dollars. Finland was the first country to implement protective measures following the Hague tribunal’s decision. The seizures ensure that the owner cannot sell or transfer the assets until the courts legally decide otherwise. If the court permits the sale, proceeds will be awarded to the Ukrainian company Naftogaz as compensation. Voutilainen confirms that the legal process initiated in Finland will be conducted entirely domestically, rather than in international courts.