While EU is split on visa ban for Russian citizens, they not only travel freely but also purchase real estate in Europe and Lithuania, as informed by Lithuanian National Broadcaster LRT.
In the first half of this year, Russian citizens purchased 520 real estate properties in Lithuania, including 184 apartments or residential houses. In 2021, Russians purchased over 1 000 real estate objects in Lithuania.
In total, Russians have acquired 12 000 properties in Lithuania, including around 6 000 apartments. This accounts for 0.4% of the total number of flats or residential houses in Lithuania.
Moreover, Russians buy real estate in Lithuania through their companies registered here.
The foreign direct investment in Lithuania’s real estate by Russian legal entities amounts to 106 million euros.
Laurynas Kasčiūnas, chairman of the parliamentary Committee on National Security and Defence (NSGK) considers that some Russians are buying real estate in Lithuania to get their money out of Russia.
«They are big supporters of Russian imperialism, but their children are studying in the West. The logic is the same here – the aim is to get money out of an authoritarian regime. The money is invested in Europe, where there is the rule of law and protection. This shows hypocrisy – the West is bad, but it is better in the West,» he said.
Kasčiūnas considers that the property acquired by Russians in Lithuania does not pose a threat to national security yet.
«When we talk about threats to national security, we should always assess the impact on strategic sectors that affect the development of our economy and political system. Here, we have a security system in place, we limit Russian investment,» Kasčiūnas said.
In its sixth sanctions package, the EU proposed to ban Russian citizens from buying real estate in the bloc. However, this proposal was later dropped. According to Kasčiūnas, it could still be revisited.
Vilnius University professor Vytis Jurkonis thinks that Russians and Belarusians are buying housing in Lithuania because of the human rights situation in their countries. As a second reason is mentioned worsening situation for doing business in those countries.
In his words, banning all Russians from buying real estate in Lithuania is not necessary, as purchases should be assessed on a case-by-case basis.
«We need to talk about specific people – the Kremlin circle, oligarchs, officials, regional leaders […]. The threat here is not that someone has acquired assets, but that we don’t really know who is acquiring them,» he said.
Russians and Belarusians may also want to buy real estate in Lithuania to acquire a Schengen visa more easily.
However, the Foreign Ministry notes that the possession of real estate in Lithuania by a third–country national is not a factor facilitating the obtaining of a visa.
The Migration Department also notes that owning real estate in Lithuania is not a ground for obtaining a residence permit and does not provide for any extenuating circumstances.
According to Mindaugas Statulevičius, the head of the Lithuanian Real Estate Development Association, developers have not noticed a greater willingness of Russians to buy property in Lithuania in recent years.
«We are noticing more of a trend that Belarusian companies are moving to Lithuanian and buying real estate to accommodate their employees,» Statulevičius added.
Moreover, third–country nationals are not allowed to buy land in Lithuania, which also discourages Russians from acquiring property, such as residential houses, in the country.
According to Statulevičius, the Vilnius real estate market is currently heated up due to the high demand from Ukrainians and Belarusian companies.