Finland will decide in weeks whether to join Nato, Prime Minister Sanna Marin said on Wednesday, as the Nordic country and its neighbour Sweden rethink their security posture after Russia’s invasion of Ukraine.
It came as a landmark review of Finland’s defence policy said joining Nato would help it deter an attack from its large eastern neighbour and that the window could close if Russia builds pressure against an expansion.
But it also warned that joining Nato would double the alliance’s 1,200-kilometre border with Russia, bring its forces closer to St Petersburg and thereby risk provoking the Kremlin.
Russia has threatened consequences for Finland and Sweden if they abandon their Cold War-era neutrality in favour of joining Nato, with both countries on guard for potential meddling as they weigh up the pros and cons.
The leaders of the two nations are seeking cross-party consensus before lodging any application, after Russia’s onslaught on Ukraine shifted public opinion towards Nato.
“We have to wonder: what is the best way to secure that this wouldn’t ever happen in Finland?,” Ms Marin said at a press conference in Stockholm with Swedish Prime Minister Magdalena Andersson.
Finland’s parliament will next week begin considering the report published on Wednesday, but “I think it will happen quite fast … within weeks, not within months”, said Ms Marin, who said there were pros and cons to Nato membership.
Ms Andersson said a Swedish defence review was due by late May and that the debate should not drag on into an election campaign in the autumn.
Nato will update its first strategic blueprint for the first time in 12 years at a June summit, making that meeting in Madrid a possible decision point for any application by Sweden and Finland.
All 30 current members would have to approve their membership, but they already have close ties with Nato and the US says it would not expect any major resistance to them joining.
Allies have increased co-operation with Sweden and Finland since Russia invaded Ukraine and invited them to several diplomatic summits. They recently took part in 30,000-troop Nato drills in Norway, known as Cold Response.
Ukraine, Georgia and Bosnia and Herzegovina also have Nato aspirations, although Kyiv has signalled it would be willing to drop that in a potential peace agreement with Russia.
President Vladimir Putin has long viewed Nato’s expansion towards Russia’s borders as a threat to his country and accused western leaders of breaking promises made after the break-up of the Soviet Union.
Nato rejects this narrative and says Russia only has itself to blame for motivating neighbours such as Poland and the Baltic states to shore up their troop numbers.
But the 53-page Finnish review said Russia was likely to keep pressing its demands to stop Nato expansion and that failing to react to its aggressive posture could lead to a “narrowing of Finland’s room for manoeuvre”.
It said Nato membership would change a relationship with Russia which Finland has long tried to stabilise, in view of their 1,340km border and troubled history, but that it would “aim to continue functioning relations with Moscow.
Ms Andersson had said as recently as December that Sweden “will not apply for membership of Nato”, while Ms Marin said in January that a Finnish application was “very unlikely” during her term, but both described the security environment as having changed since Russia's invasion.
Nato’s Article 5 guarantee that allies will come to each other’s defence would provide a “considerably stronger” deterrent to any Russian aggression and thereby improve the stability of the Baltic, the Finnish report said.
Ms Andersson said the security offered by Article 5 could not be replaced by other arrangements, although it would commit Sweden to defending 29 other countries if they were attacked.
Any enlargement would bring the countries under the umbrella of Nato’s nuclear-weapons sharing agreement, although it would not require British, French or American nuclear weapons to be stationed in Finland.
However, Finland’s accession would also “significantly expand the area of the alliance, double its land border with Russia, and move the alliance closer to strategically important areas in Russia” such as St Petersburg and the Arctic Kola Peninsula, the report said.
Officials say attempts to meddle in the Finnish debate could include cyberattacks, increased tensions on the border with Russia, or other risks that are difficult to anticipate.
“We do have a big next-door neighbour which acts like this,” said Ms Marin, who added that it would be preferable if Sweden and Finland made similar decisions, but did not come down on one side or another herself.
“There are both short-term and long-term risks,” she said of the possibility of Finland joining Nato. “These risks are there both if we apply and if we do not apply.”
Ukraine latest - in pictures
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
More from Aya Iskandarani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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UAE squad to face Ireland
Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind
The biog
Favourite books: 'Ruth Bader Ginsburg: A Life' by Jane D. Mathews and ‘The Moment of Lift’ by Melinda Gates
Favourite travel destination: Greece, a blend of ancient history and captivating nature. It always has given me a sense of joy, endless possibilities, positive energy and wonderful people that make you feel at home.
Favourite pastime: travelling and experiencing different cultures across the globe.
Favourite quote: “In the future, there will be no female leaders. There will just be leaders” - Sheryl Sandberg, COO of Facebook.
Favourite Movie: Mona Lisa Smile
Favourite Author: Kahlil Gibran
Favourite Artist: Meryl Streep
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The distance learning plan
Spring break will be from March 8 - 19
Public school pupils will undergo distance learning from March 22 - April 2. School hours will be 8.30am to 1.30pm
Staff will be trained in distance learning programmes from March 15 - 19
Teaching hours will be 8am to 2pm during distance learning
Pupils will return to school for normal lessons from April 5
UAE currency: the story behind the money in your pockets