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Finland to Ban Privatization of Water Supply on Security Grounds

SAN ANSELMO, CALIFORNIA - JULY 06: In this photo illustration, water from a tap fills a glass on July 06, 2023 in San Anselmo, California. According to a study by the US Geological Survey, nearly half of the tap water in the United States is contaminated with "forever chemicals" that are considered dangerous to human health. Per and polyfluorinated alkyl substances, or PFAS, are chemicals that linger in the body and are linked to health issues like cancer, obesity, liver damage, decreased fertility, thyroid disease, high cholesterol and hormone suppression. (Photo Illustration by Justin Sullivan/Getty Images) Photographer: Justin Sullivan/Getty Images North America (Justin Sullivan/Photographer: Justin Sullivan/Ge)

(Bloomberg) -- Finland proposed to ban municipalities from selling water supply facilities to private investors on grounds of security of supply. 

According to a revised proposal put forth by the government on Thursday, municipalities will need to retain full ownership of water treatment plants, the Ministry of Agriculture and Forestry said in a statement. The move follows criticism against an earlier proposal, which would have allowed a disposal of minority stakes in such units.  

There’s a “strong political will” to remove the current right of municipalities to reduce their ownership, Agriculture and Forestry Minister Sari Essayah said, citing security of supply concerns. The proposal needs to pass parliament before it can become law.

The ministry’s proposal comes amid Finland’s heightened efforts to boost the security of supply and safeguard critical infrastructure. Measures under consideration include the possible confiscations of real estate holdings that may pose a threat to national security after years of Russians buying assets, including near sensitive assets and military sites. 

Over the past 15 months, Finland’s faced three instances of damage to undersea cables by ship anchors. The most recent case in December is being probed as aggravated criminal mischief and aggravated interference of communications.

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