Entrepreneur in Finland loses state forestry company contract over dual citizenship - Zeme un valsts

Entrepreneur in Finland loses state forestry company contract over dual citizenship

A young entrepreneur from eastern Finland lost a lucrative contract from the state forestry company Metsähallitus earlier this year, when it emerged that she holds dual citizenship.

The woman, publicly known as Sofia for reasons of privacy, had successfully bid for a 60,000 euro contract for forest planting and tending. Metsähallitus had even congratulated her on winning the tender, but... it later emerged that the entrepreneur holds both Finnish and Russian citizenship.

That fact prompted a change in the decision to award the contract. In April 2025 the Finnish state forest manager Metsähallitus informed Sofia that the award was being cancelled, citing the European Union Sanctions Regulation of April 2022, which prohibits the awarding of public procurement contracts to Russian citizens, including those who also hold another citizenship.

“Suddenly I am considered Russian”

Sofia, who is only twenty years old, points out that she has never lived in Russia and has no financial or business ties to the country. “I do not even have a bank account in Russia,” Sofia explained to the broadcaster Yle. “But suddenly I am considered Russian,” says the indignant entrepreneur. At the time she submitted her bid, she believed that dual citizenship did not rule out taking part in a tender for forestry services. Finnish-born Sofia stresses that until she came of age she had “no say whatsoever in the dual citizenship.”

In her formal appeal, the entrepreneur writes: “When I was born, dual citizenship was not an offence. I could not choose my parents or their citizenship.”

The response from Metsähallitus was clear: European Union sanctions take precedence over all other considerations.

State agency: “The regulation is unambiguous”

Heikki Savolainen, head of silviculture at Metsähallitus, described the situation as unfortunate, but stressed that the state agency has no other choice: “This is clearly an accident, but we must act in accordance with the Sanctions Regulation,” he explained, adding that Russian citizens rarely bid in tenders for forestry contracts.

The European Union regulation prohibits the awarding of public contracts to natural persons who are Russian citizens, or to legal entities controlled by them, regardless of any second citizenship they may hold.

The state agency's internal documents, including the initial decision, the appeal papers and the resolution of the matter, confirm that Sofia's bid initially met all the technical requirements, before her citizenship status became the grounds for disqualification.

Sofia considers the decision unfair and discriminatory

“As a Finnish citizen I have the right to work and to run a business,” the entrepreneur stressed. “The regulation needs to be reviewed – it punishes people who were born here and have spent their whole lives here.”

Finland's Non-Discrimination Ombudsman, Kristina Stenman, stressed that her office has received dozens of queries about the impact of the European Union Sanctions Regulation,– particularly in relation to people with dual citizenship. Although she declined to comment on the specific case, Stenman acknowledged that there is a broader problem: “The aim may be to show solidarity with Ukraine, but the way these rules are applied can raise legitimate questions about discrimination.” She noted that, although equal treatment is a legal principle, differential treatment may be permissible where it is justified by law, such as the framework governing the application of European Union sanctions.

Faced with the prospect of losing work contracts and contractual relationships in the future, Sofia is currently considering renouncing her Russian citizenship. But, as she points out, the process is long, bureaucratic and expensive. A relative of the entrepreneur who once had to go through a similar procedure for employment reasons was obliged to travel to Moscow, where he spent months dealing with the necessary paperwork and thousands of euros. “It is dreadful,” Sofia admitted. “Renouncing Russian citizenship does not erase that sense of belonging. It is like cutting away a part of yourself.”

According to Statistics Finland, at the end of 2022 there were almost 38,000 people in Finland holding both Finnish and Russian citizenship. In recent years only a handful have successfully renounced it.

Sofia had intended forestry to be the foundation of her business. She is now reconsidering that. “I simply want the same work opportunities as everyone else,” the young entrepreneur stressed.

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