In a move that will be a blow to Russians who have used it as a conduit, Switzerland announced yesterday that it is adopting European Union measures against Russians connected to the invasion of Ukraine, along with taking other steps. This course of action is significant for a country famously neutral in the realm of international politics.

Switzerland, the world’s single-largest center for cross-border financial flows and a famously neutral country, announced yesterday that it will adopt European Union sanctions against Russians involved in invading Ukraine by freezing their assets.

"In view of Russia’s continuing military intervention in Ukraine, the Federal Council took the decision on February 28 to adopt the packages of sanctions imposed by the EU on February 23 and 25," the government said in a statement.

“The assets of the individuals and companies listed are frozen with immediate effect; the financial sanctions against Russian President Vladimir Putin, Prime Minister Mikhail Mishustin and Foreign Minister Sergey Lavrov are also to be implemented with immediate effect. Switzerland reaffirms its solidarity with Ukraine and its people; it will be delivering relief supplies for people who have fled to Poland,” it said. 

The Federal Council decided on the action yesterday. 

The Alpine state has already said it will not allow its financial sector to be used by Russia to bypass EU sanctions. 

Such actions highlight the level of co-ordination taking place and how far Switzerland, once known for its bank secrecy laws and non-alignment with major alliances such as NATO, has come. Bank secrecy no longer applies to the accounts of non-Swiss residents and, in the past decade, the country has signed up to various pacts to exchange information with the US and EU, for example.

In its annual report on global wealth, Boston Consulting Group said that in 2020, rankings of “leading cross-border” centers were in descending order of size of wealth: Switzerland, Hong Kong, Singapore, the US, the Channel Islands and Isle of Man, the United Arab Emirates, the UK mainland, Luxembourg, Monaco, and Liechtenstein. In 2025, BCG predicts the following ranking: Hong Kong, Switzerland, Singapore, the US, the UAE, the Channel Islands and Isle of Man, the UK mainland, Luxembourg, Monaco, and Liechtenstein. As of 2020, Switzerland had $2.4 trillion of wealth.

Other Swiss steps
Switzerland is also partially suspending a 2009 agreement on visa facilitation for Russian nationals. The country is banning several people who have a connection to Switzerland and are close to Putin. 

The statement said that Swiss airspace will be closed to all flights from Russia and to all movements of aircraft with Russian markings from 15:00 (CET) yesterday apart from flights for humanitarian, medical or diplomatic purposes.

Swiss policymakers said that they had taken Switzerland’s “neutrality and peace policy considerations" into account.

“Russia's unprecedented military attack on a sovereign European country was the deciding factor in the Federal Council's decision to change its previous stance on sanctions. The defense of peace and security and respect for international law are values that Switzerland, as a democratic country, shares with its European neighbors and supports. As before, Switzerland will examine each further package of sanctions imposed by the EU on a case-by-case basis,” the government said.