Deal near Russian border draws attention from security officials
A bankrupt shopping complex near Finland’s eastern border is at the centre of renewed scrutiny over foreign property acquisitions with potential security implications. On December 19, Finnish public broadcaster Yle reported that the prospective buyer of the Zsar shopping centre in the municipality of Virolahti, at the Vaalimaa border crossing with Russia, is Viktor Ignatyev, a businessman with links to people close to President Vladimir Putin, including oligarch Gennady Timchenko.
Ignatyev is a Russian national who also holds German citizenship, a status that allows him to bypass Finland’s ban on real estate transactions by Russian citizens introduced last summer on national security grounds. The Ministry of Defence declined to comment on the potential transaction, maintaining its standard policy of not discussing individual property deals.
Ownership background and links to sanctioned figures
Timchenko, who has long been considered one of Russia’s wealthiest businessmen, is under sanctions imposed by both the European Union and the United States. Washington has stated that the sanctions were introduced because Putin has access to Timchenko’s extensive assets, placing him firmly within the Kremlin’s inner economic circle.
According to Russian trade registry data and media reports, Ignatyev previously held a senior position at the Russian real estate company Tandem-Estate. In 2022, ownership of the company was transferred from Luxembourg to Russia. At that time, Ignatyev owned a one-third stake, while his business partner Vladimir Pinchuk held the remaining shares, underscoring Ignatyev’s long-standing involvement in large-scale property ventures.
Use of intermediaries inside Finland
The Finnish company associated with Ignatyev, Datatriumnord, is managed locally by real estate specialist Igor Rokka. Rokka previously worked at the Ministry of Economic Development of the Republic of Karelia and later served between 2008 and 2016 at Russia’s trade mission in Finland as an administrative official, at that time under the name Igor Titov.
Finnish migration records show that Rokka became a Finnish citizen in 2021. He now represents the interests of multiple Russian owners of apartments and commercial properties in Finland, illustrating how intermediaries with local status can facilitate investments while reducing direct visibility of foreign investors.
Strategic location amplifies security concerns
Opened in 2018, the Zsar shopping complex was designed to attract affluent Russian shopping tourists. The project struggled even before the COVID-19 pandemic, and its prospects deteriorated sharply when pandemic restrictions and Russia’s war against Ukraine effectively halted Russian tourism to Finland. The complex declared bankruptcy at the end of 2022.
Its location, immediately adjacent to the Russian border, gives the property significance that goes beyond commercial logic. Security analysts have warned that commercial real estate in such areas can enable long-term presence, information gathering or logistical support in border regions, particularly when the origins of capital are opaque.
Legal loopholes and broader implications
Finland’s ban on property transactions by Russian citizens contains an exception for individuals who also hold EU or European Economic Area citizenship. This loophole has become a key enabler for Russian businessmen seeking to continue investing despite sanctions and political restrictions, limiting the state’s ability to block transactions even when concerns over Kremlin ties are raised.
The Zsar case highlights the challenges facing Finnish authorities as they balance openness to investment with national security considerations. It underscores growing calls for stronger mechanisms to verify the origin of capital, assess investor links and tighten oversight of transactions involving strategically located assets.
