Hanko's city authorities will be taking over two apartment buildings owned by Russian oligarch Boris Rotenberg and currently managed by Asunto Lappohjan Vuokratalot.
Tenants at the apartment complex have not been able to pay rent for months as the recipient account linked to Rotenberg has been frozen due to sanctions imposed on Russia. Outstanding bills have reached a total of around 70,000 euros.
City authorities will be taking on the responsibility to deal with any outstanding costs. They have also proposed a budget of 100,000 euros to cover costs of the handover and overdue bills, which is pending the approval of the city council.
Hanko's mayor, Denis Strandell, said that the he is relieved about the decision.
"I have been working on this case almost every day for the past six months. I've spoken to people living in the houses and understand their concerns. It feels good that we're close to reaching a resolution."
Following the signing of the ownership transfer agreement with Rinimex, a real estate company owned by Rotenberg, the flats' occupants will have to forward their unpaid rent payments to the city.
Strandell said that tenants should expect a rent increase, due to the rising costs brought on by the ongoing energy crisis.