Finland blocks real estate purchases outside the EU

Finland’s Defense Ministry said Friday it had blocked six non-EU buyers from buying real estate in the country for national security reasons, as Helsinki plans to ban Russians from buying real estate.

Finnish Defence Minister Antti Hakkanen has rejected six permits for real estate transactions applied for by buyers from outside the EU and European Economic Area (EEA) from Russia, Ukraine and Switzerland, the ministry said in a statement.

READ ALSO: Lithuania summons Russian diplomat over maritime border expansion

“It cannot be ruled out that the real estate takeovers in question may threaten state security and hinder the organisation of national defence or the supervision and protection of territorial integrity,” the ministry said.

No explanation was provided as to why potential buyers would pose a security risk.

The takeover attempts, made by private individuals and one company, concerned properties located in southeastern Finland, in the cities of Mikkeli, Imatra, Kouvola and Lieksa.

Finland has a 1,340-kilometre-long (830 mi) eastern border with Russia.

The six rejections come as Helsinki plans to tighten rules on foreign real estate transactions to prevent Russian citizens from buying property in Finland.

As part of work on the new draft law, the Ministry of Defence on Monday sent out a “report on the ban on the acquisition of real estate by foreign entities” for comments from experts.

READ ALSO: Putin warns of “problems” with Finland after joining NATO

According to the bill, real estate permits should not be issued to “persons whose country of citizenship has been deemed by the European Union to violate the territorial integrity, sovereignty and independence of another country or whose country of citizenship may constitute a threat to Finland’s national security.”

The ban will also apply to associations operating in such a country, the release said.

Defence Minister Hakkanen said on Monday that “Finland must ensure that no windows of vulnerability are left open to attacks by hostile actors.”

By: Agence France-Presse