Säpo wants to be able to stop hostile property purchases

Russian land purchases have increased sharply in Finland – and also in Sweden, Russians own plots of land in security-sensitive areas.

The security police see a need for new legislation to prevent real estate deals that could threaten the security of the kingdom.

– Previously, there was legislation that meant that as a foreign citizen you could not acquire real estate in Sweden. That legislation no longer exists, says Security Police Chief Charlotte von Essen.

Foreign citizens can today buy real estate anywhere in Sweden, including close to the military’s protected areas.

Recently, Expressen revealed that a Russian businessman with connections to the Russian state for some years now owns a beach plot very close to the defense facility on Muskö in the Stockholm archipelago. With an unobstructed view of the entrance to the top-secret military base, the Russian holdings are said to worry Swedish authorities.

The Tax Agency believes that the man has been resident in Sweden for a long time and is now demanding SEK 200 million in taxes from him.

Security risks are not detected

There are no public records of how many Russian citizens own real estate in Sweden. Sweden – unlike, for example, Finland – has no law regulating foreign purchases of real estate, and the Land Survey does not register real estate ownership by citizenship.

The lack of this information can mean that security risks are not detected, according to Oscar Almén, researcher at the Total Defense Research Institute (FOI).

– If it is the case that the people who own the properties or the land cooperate with the Russian state, they could possibly provide information and carry out war-preparatory actions, he says.

When he and his colleagues recently reviewed Russian ownership in Sweden, they identified 157 Russian citizens who own 247 properties in the country. A few are located near civilian airports.

However, the figures include only Russian citizens living in Russia, and the Russian ownership is likely to be significantly larger, according to Almén. At the same time, he emphasizes that Russian citizenship does not automatically mean a security risk – and that there may also be people connected to the Russian state who do not have Russian citizenship.

Harbor and helipad

In Finland, the number of properties bought by Russians has increased dramatically. In 2021, over 200 permits were granted, an increase of almost 75 percent compared to the previous year. The increase continued in 2022, but not at the same rate according to the Ministry of Defence.

A notable case is the Russian businessman who over a number of years bought several plots of land in the archipelago outside Turku. Several houses were large enough for accommodation activities and were additionally equipped with large piers that were more reminiscent of ports, as well as helipads. In 2018, the archipelago islands were stormed in a giant operation with Finnish elite police, coast guard and military.

The Ministry of Defense has also stopped Russian real estate deals. As recently as December, they said no when Russian buyers wanted to take over a former nursing home near the garrison in Niinisalo. The assessment was that the property could be used in a way that makes it difficult for the country’s defence.

Since the turn of the year, Finland has further tightened the legislation to be able to stop foreign real estate transactions if the ownership is deemed to threaten national security.

But in Sweden, a corresponding law is delayed.

Investigation was buried

In 2019, a government inquiry proposed that the state should be able to review and ultimately prohibit the sale and rental of strategically important properties, ports and airports.

However, the law is complicated and this summer a special investigator was given a new assignment to propose how a state control system can be designed. The proposal is to be presented in February next year.

– It is legislation that we have felt is needed, says Säpochef Charlotte von Essen.

– When it comes to properties in areas where security-sensitive operations are carried out, it must be possible to make an assessment of whether an acquisition could threaten Sweden’s security.

In that work, Säpo could be an actor to consult with, she says.

Intercepted emails

In addition to Russia, Säpo has singled out China and Iran as major security threats to Sweden.

TT: The law is not in place yet – how do you monitor hostile countries that buy properties in Sweden in the meantime?

– We cannot prevent the property acquisition, but what we are doing otherwise, there are no details that I can talk about, says Charlotte von Essen.

In the case of the Russian businessman in Muskö, it appears according to Expressen that the Swedish Tax Agency in its investigation “took part” in the man’s e-mail conversations. How it happened is not answered.

Facts

Properties owned by Russians

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