Russians Continue to Purchase Elite Real Estate in Finland Through Frontmen 0 11

Changes in the law have only reduced the number of real estate transactions that Russians are making in Finland. The law prohibiting such transactions for citizens of Russia and Belarus came into effect in July.

According to the Cadastre Agency MML, from the beginning of last year until the end of November, Russians acquired 55 properties in Finland: 35 transactions were concluded before the law came into force, and 20 after. This data is based on reports from transaction registrars.

The final number is likely to increase further, as the statistics do not yet include data for December. Additionally, due to autumn delays in processing, some transactions may be reflected in the database later.

In the autumn, Russians continued to purchase real estate, including in Kymenlaakso, South Savo, and North Savo.

In the first half of 2025, before the law changed, the Ministry of Defense issued 39 permits to Russians for purchasing real estate in Finland. After the changes came into effect, another 11 permits were issued. Some applications are still under review, and two applications were rejected.

Unusual Transactions

In the autumn, several cases were identified in southeastern Finland where real estate was transferred through companies.

In recent weeks, the media widely covered the sale of the Zsar shopping village, located near the border with Russia, which went bankrupt three years ago. In November, an offer was made to purchase Zsar. The transaction was supposed to take place by the end of the year, but it has been delayed.

The potential buyer is a company registered in Finland. Its founder is a billionaire with citizenships in Russia and Germany. According to an investigation by Yle, he has connections to the circle of President Vladimir Putin.

The Ministry of Defense does not comment on individual transactions, limiting itself to general statements.

• A citizen of an EU or EEA country is not subject to the law, regardless of whether they are a citizen of Finland and Russia or Germany and Russia, notes Ministry of Defense expert Rikard Lindholm.

Does the Law Allow for Loopholes with Citizenship When Purchasing Real Estate?

• The Ministry of Defense closely monitors possible ways and attempts to circumvent the law, including the use of so-called "golden passports."

A golden passport is citizenship of a country that can be purchased through investments. Many property owners with Russian roots on the eastern border of Finland, for example, hold a Cypriot passport. In Miehikkälä, a long-vacant camp received a new owner just days before the law changes took effect. The enforcement service sold this property at a forced auction to a company registered in neighboring Virolahti.

According to the enforcement service, permission from the Ministry of Defense was not required, as the buyer was a Finnish firm.

However, an investigation by Yle revealed that the company is owned by three citizens of Russia. Meanwhile, the firm that purchased the camp has not yet submitted documents for property registration to the Cadastre Agency.

Yle's MOT investigation showed that the historic Rantalinna villa in Ruokolahti has a new owner – a Canadian-Azerbaijani businessman who has long conducted business in Russia. According to MOT, this entrepreneur may be a frontman, meaning he is registering the property in his name, while the actual owner is another person.

This transaction did not require permission from the Ministry of Defense, as a loophole in the law was used. The businessman did not purchase the properties themselves but the companies that own them.

Expert Rikard Lindholm reminds us of the so-called "frontman clause" outlined in the law.

• If we have grounds to suspect that the property was acquired using a frontman, we can demand retroactive permission, he notes.

Professor of Intelligence Studies Kari Liukko from the University of Turku and the National Defense University believes that extending the law, for example, to people with dual passports, may not have a significant effect.

• Russia has often used Moldovan, Georgian, and even Ukrainian intermediaries in various operations and acts of sabotage. The law can always be circumvented, but communication between agencies needs to be strengthened, says Liukko.

In his opinion, attention should also be paid to properties owned by states that support Russia and its military actions, such as China.

• When Russian intelligence begins to conduct operations, this law will not be enough. In the most secret cases, they do not use dual citizens but involve people who are very difficult for us to identify, notes Liukko.