Switzerland Freezes SFr7.5 Billion In Russian Deposits

Editorial Staff

5 December 2022

Swiss authorities have frozen a total of SFr7.5 billion ($7.48 billion) in assets held by Russian nationals and related entities in Russia as of 25 November.

Up until 3 June, the State Secretariat for Economic Affairs (SECO) had been notified of existing deposits held by Russian nationals and natural persons and legal entities in Russia amounting to SFr46.1 billion, it said in a statement late last week.

Besides the frozen assets, 15 properties in six cantons have also been blocked, SECO said.

Switzerland adopted European Union sanctions on 28 February this year – an unprecedented move by the famously neutral jurisdiction – following Russia’s invasion of Ukraine.

“The level of frozen assets is not a direct measure of how effectively sanctions are being implemented. Moreover, the amount of frozen assets is a snapshot, and the value can fluctuate: the frozen amounts can increase if, for example, new persons are added to the list or if new assets are identified; and they can fall if assets that were frozen as a precautionary measure have to be released again once clarifications have been completed,” SECO said.

Switzerland has made it illegal to accept deposits from Russian citizens or natural persons and legal entities established in Russia if the total value of the deposits per person is more than SFr100,000. Existing deposits exceeding SFr100,000 had to be reported to SECO in aggregated form by 3 June.

SECO said 123 persons or entities reported 7,548 business relationships to SECO with a total value of SFr46.1 billion. Some 28 notifications were received in connection with measures against Belarus involving 294 business relationships with a total value of SFr400 million.

Natural persons who are nationals of Switzerland or of an EEA member state and persons who hold a temporary or permanent residence permit from Switzerland or an EEA member state are exempt from the ban on deposits and the reporting requirement.

Deposits by Russian nationals or natural persons and legal entities in Russia are also exempt, provided the limit of SFr100,000 per person is not exceeded. The level of reported deposits, which exceeds SFr46.1 billion, can therefore not be equated with the total amount of funds of Russian origin held in Switzerland, SECO said.

The organisation said freezing assets is to be distinguished from the obligation to report existing deposits of more than SFr100,000.

All funds and economic resources owned or controlled directly or indirectly by persons, companies and organisations listed on measures linked with the Ukraine conflict are frozen and must be reported to SECO.