The seizures are linked to a compensation claim filed against Russia by Naftogaz, a Ukrainian state-owned oil and gas company, the newspaper the Helsinki Times reported.

Last year, an international arbitration tribunal in The Hague ordered Russia to pay over €5 billion to Naftogaz in compensation for damages incurred by the company owing to the Russian invasion and annexation of Ukraine’s Crimea.

Naftogaz filed a claim in 2016, citing damages from Russia’s 2014 invasion, and in August, the District Court of Helsinki, referencing the tribunal’s ruling and Russia’s failure to pay, instructed the Finnish authorities to seize assets in Finland valued at over €4.2 billion.

The asset seizures began last week without public knowledge, and neither the Russian authorities nor key stakeholders were initially informed, the Finnish newspaper Helsingin Sanomat reported on Tuesday.

Finland is now the first nation to enforce asset seizures under a court order linked to this arbitration ruling, the newspaper reported.

Around 40 assets totaling €35 million have been seized, including a €10 million office building and the €7 million Russian Centre of Science and Culture, both located in the capital, the Helsinki Times reported.

Russia to challenge seizure

Dmitry Peskov, Vladimir Putin’s spokesman, said on Tuesday that Russia would challenge the seizure.

“The Russian Federation will protect its interests and assets. We will use all legal mechanisms available,” Peskov told Helsingin Sanomat.

On Tuesday evening, the Russian Embassy in Finland submitted a diplomatic note to Finland’s Ministry for Foreign Affairs, condemning the asset seizures, Finnish news agency STT reported.

Finnish President Alexander Stubb stated that the seizures are lawful, highlighting that the Enforcement Authority is acting within the framework of Finnish law.