The city of Helsinki is initiating a compulsory purchase of the largest sports arena in the Finnish capital from its Russian owners, who have been sanctioned.

Source: Reuters

Details: In 2023, Helsinki announced that Russian-Finnish businessmen Gennady Timchenko and Roman Rotenberg, who control the company that owns the arena, would face expropriation if they did not voluntarily sell the property.

The Helsinki Arena, a large concert venue and hockey arena, has been closed since 2022 due to sanctions imposed on Russian investors following Moscow's full-scale invasion of Ukraine that year.

The extension of the expropriation was reportedly necessary to stop the building from deteriorating and to prevent Finland's reputation from being damaged by its inability to cater for major international events.

In 2023, the Helsinki authorities estimated that hotels, restaurants and other businesses lost up to US$425.24 million in revenue per year while the arena was idle.

All of Timchenko's assets in the EU have been frozen, and Rothenberg is subject to US sanctions imposed on his father Boris, uncle Arkady and their families for their close ties to Russian ruler Vladimir Putin.

Background: The Helsinki District Court granted a motion filed by Naftogaz of Ukraine and five other companies of the Naftogaz Group and seized certain assets owned by Russia in Finland.

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