Helsinki bids to expropriate Russian-owned arena

The City of Helsinki is taking legal action as it steps up its efforts to expropriate Finland’s largest arena from its Russian owners.

Helsinki Halli (cap. 15,500) is owned by Arena Events Oy (AEO) – a company co-founded by oligarchs Gennady Timchenko and Roman Rotenberg – and has been shuttered since the end of February 2022 due to sanctions relating to Russia’s invasion of Ukraine.

“Making it available for use again is very important for the fields of culture and sports, as well as for major entertainment and business events,” reads a press release from the Finnish capital.

After being repeatedly frustrated in its attempts to facilitate a voluntary sale of the venue, the city is now preparing an application for an expropriation permit, with the application expected to be submitted in November and December.

Finland’s central government will then rule on whether or not to grant the request. However, the city warns the process involves several phases and could be protracted.

“It is difficult to predict its duration and outcome due to possibility of appeals,” continues the authority. “Even if the city is granted the right to pre-possession, it will take at least a year for the city to assume control over the arena and potentially start operations. If there are appeals, the expropriation process could assumedly take several years.”

“Due to payment difficulties, the company that owns the arena has drifted into a situation that also threatens to compromise the building’s condition”

Describing the move as a “last resort”, it adds that the application will be waived if use of the arena can be “secured in another fashion”.

Formerly known as Hartwall Arena, the venue currently owes €212,000 in unpaid rent according to YLE, while its electricity and heating have been cut off, leading to concerns it will fall into disrepair.

“On 30 October, the City of Helsinki submitted an application for a summons to the Helsinki District Court regarding unpaid rent on the Ilmala arena’s leased land,” adds the city. “Due to payment difficulties, the company that owns the arena has drifted into a situation that also threatens to compromise the building’s condition.

“The Helsinki City Board’s decision proposal entitles the city manager to approve, if necessary, the reasonable and appropriate expense to the city that is necessary to secure the technical condition of the arena and to demand payment of the resulting arrears from the party originally responsible for them.”

It was revealed last month that a new 9,800-capacity multi-purpose arena is slated to open in the Finnish town of Hyvinkää, 30 miles from Helsinki, by the end of 2026.

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