Kotka seeks to block land deal involving former Russian politician Oleg Fokin

The city of Kotka is seeking to prevent former Russian politician Oleg Fokin from completing a land transaction in the Karhula area. Fokin’s company, Tornado Logistics, sold a plot of land to Prime IT Oy this July, led by CEO Irina Prohorova, according to company registration information. The city government has not yet received a response from the buyer regarding the transaction.

Kotka’s Mayor, Esa Sirviö, will recommend to the city council today that the city exercise its right of first refusal for the purchase. The city intends to pay Fokin’s company €152,880 for the land. This right must be exercised within three months of the sale, which will expire at the end of this week.

Fokin previously served as the chairman of the Petrozavodsk City Council and was convicted of financial crimes in Russia. He moved to Finland at the end of the last decade. He gained attention in the summer of 2023 after acquiring an industrial property in Ilomantsi in Eastern Finland, where he planned to establish a significant technology business. However, the Ministry of Defence thwarted this deal earlier this year.

The city’s justification for exercising its right of first refusal is rooted in concerns about the new company’s intentions for regional development. The city expressed uncertainty about Prime IT’s commitment to the area, noting the company’s limited scope, with only one employee and negligible revenue.

Kotka is utilizing this uncommon right for the second time this year, having previously intervened in a land purchase between an estate and a forestry company. The land in question, approximately 24,000 square meters, currently has no buildings and does not include movable property.