Helsinki court upholds seizure of russian state assets

Finnish enforcement authorities have seized russian-owned properties in Finland valued at over €40 million. These include both movable and fixed assets such as cultural and administrative buildings. One of the most visible is the russian Science and Culture Centre in Helsinki.
 

The seizures were initiated at the request of Ukraine’s state energy company Naftogaz, which is seeking enforcement of a €4 billion arbitration ruling issued in 2023 by the Permanent Court of Arbitration in The Hague. The award covers damages related to russian military action in Crimea.
 

russia filed a response in March, demanding the cancellation of the asset freezes and compensation for legal costs. In its statement, the russian state argued that the Helsinki court lacked jurisdiction due to the principle of sovereign immunity from enforcement actions.
 

russia also claimed that non-commercial properties should be protected from seizure but did not clarify which specific assets this would include. It further cited customary international law, asserting that a foreign state is not obligated to submit to the courts of another.
 

The court rejected these arguments. It found that the seizures were legal and necessary to prevent the potential dissipation or concealment of assets by the russian state. It also accepted the claim that asset retention was needed to secure the creditor’s interest in the arbitration award.
 

The court had originally issued a temporary seizure order in August 2023 without hearing russia’s position. The latest ruling followed further proceedings that included Moscow’s formal response.
 

The decision means that russian state property in Finland can remain frozen, with further seizures permitted if needed to cover the full compensation amount.
 

russia expressed dissatisfaction with the ruling and retains the right to appeal.

Source: Helsinki Times