Persons and companies outside the EU and the European Economic Area must apply for permission from the Ministry of Defense before selling real estate.
Minister of Defense Antti Häkkänen (kok) has made three negative permit decisions for real estate transactions by buyers from outside the EU and ETA countries in Ilomantsi and Sotkamo, says the Ministry of Defense.
The buyer in the Ilomantsi store was Tornado Logistics, whose manager is Russian Oleg Fokin. He also owns half of the company.
The company would have liked to buy an old collapsed industrial hall, an outbuilding and a small house in Ilomantsi.
In its decision, the Ministry of Defense cites the deed of sale, according to which, among other things, the roof structure of the industrial hall has collapsed and the building has an extensive mold problem. The hall is located in the immediate vicinity of the railway yard.
“The site could be utilized in a way that can be assessed as complicating the organization of national defense, the control and safeguarding of territorial integrity, and national security,” the ministry justifies the decision.
Fokin is a former Russian politician and current businessman.
According to the Ministry of Defence, it cannot be ruled out that real estate ownership is being used contrary to the benefits of the law on licensing of real estate acquisitions or “as part of large-scale influencing efforts”.
Fokin said in July To Yle about his plans for the industrial building. He said he plans to renovate the building and manufacture power generators there.
However, the company has told the Ministry of Defense that it intends to demolish the buildings and build new ones instead. According to the ministry, the contradiction increases the unreliability of the whole.
In addition, according to the ministry, there are financial ambiguities associated with the company's operations. According to the ministry, it cannot be ruled out that funding would come from sources that would seek to gain influence over the use of the property and its buildings in a way that endangers Finland's security.
Sotkamon in two deals, it has again been the case that the applicant has not provided the required information to the Ministry of Defense during the permit process.
In the case of Sotkamo, the area of the same property has been sold twice between different companies of the same owner.
The companies are owned by a foundation registered in Great Britain, whose second responsible person comes from outside the EU and Eta countries. Despite requests, the Ministry of Defense was unable to see the passport of the responsible person in another case. In another case, the necessary permit application was not made at all.
THE LAW according to which persons and companies from outside the EU and the European Economic Area must apply for permission from the Ministry of Defense before selling real estate. The law has been in force since 2020.
In 2022, an amendment was made to the law, according to which a negative decision can be issued not only for reasons related to national defense and territorial integrity, but also if the real estate transaction threatens national security or makes it difficult to ensure border control, border security or security of supply.
The purpose of the law is, among other things, to prevent Russia from acquiring properties near areas important to Finland's security.
Last October, the Ministry of Defense said he blocked three Russian real estate deals, two in Ruokolahti and one in Kitee.
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