In order to strengthen national security and prevent potential threats, the Saeima conceptually supported a new draft law that would prohibit citizens of Russia and Belarus from purchasing real estate in Latvia.
It is also planned to impose such a ban on legal entities – such as businesses or charities – registered in Russia or Belarus. The restrictions will also apply to legal entities in which citizens of these countries own at least 25 percent of the shares, or in which citizens of Russia or Belarus are the ultimate beneficial owners.
As the authors of the bill note, in parallel with the war in Ukraine, the Russian Federation is waging a hybrid war against other democratic and sovereign states that condemn the aggression launched by Russia or provide support to Ukraine in the fight against it. Latvia is among these states.
One of the instruments of Russia’s non-military influence and elements of hybrid warfare is the indirect acquisition of real estate in other countries, the bill states. Russia has also used the presence of its citizens abroad as a reason to start a war, justifying its military actions with the supposed protection of its citizens. The Saeima has previously emphasized that the war launched by Russia against Ukraine requires special attention to think about new measures to protect national security.
The annotation emphasizes that ignorance of the law by a party to a transaction does not exempt him or her from the obligation to comply with the law. Persons must choose such transaction entities that meet the criteria of the law, and they cannot plead ignorance of the provisions of the law. Consequently, a potential seller of real estate will have to evaluate with whom he is concluding a purchase agreement.
For the law to enter into force, the Saeima must pass it in two more readings.
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