In a decisive move that severs another long-standing tie with its eastern neighbor, Finland has enacted a law prohibiting Russian and Belarusian citizens from purchasing real estate in the country. The legislation, championed by the Ministry of Defence, represents a dramatic policy shift for Helsinki. Finnish Defence Minister Antti Häkkänen celebrated the law’s implementation, framing it as a crucial step to bolster national security. This marks a profound change in attitude for Finland, which, prior to the full-scale invasion of Ukraine in February 2022, had largely encouraged economic and cultural ties with Russia, viewing it as a source of investment rather than a security threat.
The new law, which officially came into force, specifically targets citizens without residency in Finland and legal entities registered in Russia or Belarus. However, the ban is not absolute and contains important distinctions. The term “real estate” in the Finnish context primarily refers to land plots, not apartments within multi-unit buildings. Furthermore, the restrictions do not apply to individuals holding dual Finnish-Russian or Finnish-Belarusian citizenship, nor to those with a Finnish residence permit, although they will now be required to obtain special permission for such purchases, adding a layer of scrutiny and potential cost to the process.
The primary justification for the ban, as articulated by the Finnish Defence Ministry, is rooted in national security. Officials have voiced concerns over the strategic acquisition of properties by Russian nationals, particularly those located near critical infrastructure or along the extensive border. The ministry identified approximately 3,500 properties owned by Russians, arguing that their locations could pose a significant risk in the event of a military conflict—a possibility that Helsinki no longer considers remote. The perception of Russia has fundamentally shifted from one of an economic partner, whose investments were once welcomed, to that of a potential adversary.
This property ban is not an isolated measure but a component of Finland’s broader strategic realignment. Since joining NATO, the country has been actively reinforcing its border with Russia and has controversially withdrawn from the Ottawa Convention, which prohibits the use of anti-personnel landmines. The Finnish military is undergoing modernization and increasing its participation in joint exercises with alliance partners. These actions collectively signify the end of an era famously known as “Finlandization,” a Cold War policy where the capitalist nation maintained a careful neutrality and pragmatic, friendly relations with the Soviet Union to preserve its independence. The new legislation is a clear and logical step in Helsinki’s new security posture.