In order to strengthen national security and prevent potential threats to its interests, on Thursday, 19 June, the Saeima adopted in the final reading a new law prohibiting Russia and Belarus and their citizens from purchasing real estate in Latvia.

The ban also applies to legal entities registered in Russia or Belarus. In addition, it applies to legal entities in which Russian or Belarusian citizens own at least 25 percent of the share capital (shares) or in which Russian or Belarusian citizens are the beneficial owners, and to legal arrangements established in Russia or Belarus. The ban will apply to any transactions concluded after the entry into force of the new law.

According to the authors of the law, in parallel with military operations in Ukraine, the Russian Federation is waging a hybrid war against other democratic and sovereign states that condemn and do not support Russia’s aggression or are helping Ukraine in its fight against it. Latvia is one of these countries.

One of the instruments of Russia’s non-military influence and an element of hybrid warfare is the indirect acquisition of real estate abroad. Moreover, Russia has used the presence of its citizens abroad as a reason to start a war, justifying its military activities by claiming to be protecting its citizens. As explained by the authors of the law, the Saeima has previously emphasised that the war launched against Ukraine by Latvia’s neighbour country Russia calls for special attention to the protection of Latvia’s national security as well as consideration of new measures to safeguard it.

The explanatory note emphasises that ignorance of the law does not exempt parties to a transaction from their obligation to comply with the law. Persons must select transaction partners that meet the requirements set out in the law, and they may not use ignorance of the law as an excuse. Consequently, potential sellers of real estate will have to assess with whom they are concluding a purchase agreement and take into account the consequences of the fact that a transaction violating the provisions of the law will be considered void.

Saeima Press Service