The Latvian Saeima has passed a law prohibiting citizens of Russia and Belarus from purchasing real estate in the country. The bill was supported by 69 deputies, with eight opposing it, as reported by LSM.
It will also apply to legal entities in which citizens of these countries own at least 25% of shares (stocks) of the authorized capital, where they are the actual beneficiaries, as well as to legal structures created in these countries. The ban will cover transactions concluded after the law comes into force.
There are some exceptions: in particular, if the property is inherited by relatives or recognized as property by a court verdict. A separate amendment, which would have eased restrictions for Belarusian citizens granted refugee status in Latvia, was rejected before the third reading in the parliamentary committee. However, another wording was included in the final text.
The ban does not apply if a person acquires their only residence and has a permanent residence permit issued before the law’s entry into force, or if they had or subsequently obtained permanent EU resident status in Latvia after the law came into force.
The authors of the law note that alongside military actions in Ukraine, Russia is conducting hybrid warfare against other democratic and sovereign states that do not support and condemn Russia’s aggression or support Ukraine in its fight. Latvia is among these countries.
One of the tools of non-military influence and elements of hybrid warfare is the indirect acquisition of real estate in other countries. Russia also used the presence of its citizens abroad as a pretext for starting the war, justifying military actions as necessary for protection. The Saeima (Latvian parliament) has previously emphasized that the war unleashed by Russia against Ukraine requires special attention to Latvia’s national security and new measures to protect it.
It is stressed that ignorance of the law does not exempt parties to a transaction from the obligation to comply with it. Parties must select participants in the transaction who comply with the law’s requirements and cannot justify themselves by claiming ignorance of its terms. Thus, a potential real estate seller must assess with whom they are concluding a purchase agreement and consider the consequences — according to the law, such a transaction will be declared invalid.
For the law to come into force, it still needs to be signed by the president.
