Finnish court suspends new seizures of Russian state assets

In brief

• A Finnish enforcement authority has suspended new seizures of Russian state assets.
• The suspension follows a Helsinki Court of Appeal ruling and lasts until the appeal is decided.
• Assets worth at least 40 million euros were frozen under a claim by Ukraine's Naftogaz, based on a 2023 award of more than 5 billion euros against Russia.

Enforcement pause

Finland's enforcement service has suspended new seizures of Russian state property on its territory, according to Helsingin Sanomat (У Фінляндії суд призупинив арешти російських активів – Європейська правда). The move follows a ruling by the Helsinki Court of Appeal issued on Wednesday. The suspension remains in force until the appeals court decides the case or issues other instructions.

Background of the seizures

The seizure operation began in August 2024. Assets worth at least 40 million euros have been frozen so far, following a request from Ukraine's state energy company Naftogaz and its subsidiaries.

The arbitration award

The freezes rest on a decision by the Permanent Court of Arbitration in The Hague, handed down in April 2023. It ordered Russia to pay Naftogaz more than 5 billion euros in compensation for losses caused by the occupation of Crimea. Moscow has refused to pay, prompting Naftogaz to seek enforcement in countries where Russia holds assets. Finland is one of them, and by 2024 it had become possibly the first country outside Ukraine to seize Russian state property for this purpose.

What a freeze does and does not do

A freeze prevents Russia from selling or transferring its assets in Finland. Selling seized assets, however, requires a separate court ruling, which could reach the Supreme Court and take years.