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Bern, 16 October 2024 – The Swiss Federal Council has decided to implement most of the measures of the 14th European Union (EU) sanctions package against Russia, which will come into force on 17 October. According to the Swiss government portal, this step is a response to Russia’s continued military aggression against Ukraine and its destabilising actions.
The basis for the sanctions
The 14th EU sanctions package was approved on 24 June this year and is aimed at strengthening existing restrictions to prevent sanctions circumvention and reduce Russia’s ability to wage war. In early July, 116 new individuals and entities were added to Switzerland’s sanctions list, bringing the total number of sanctioned entities in the country to approximately 2,250.
Measures in the commodity sector
The measures include tighter restrictions on the export of goods that could strengthen Russia’s industrial and military-technological potential. The list of organisations subject to enhanced export restrictions will be expanded by 61 new entities, half of which are located in third countries and have links to the Russian military complex. In addition, the re-export of certain critical goods to Russia will be banned, and restrictions on the transfer of intellectual property rights will be introduced.
Financial constraints
The Federal Council has also introduced restrictions on the use of SWIFT alternatives for banks, which will complicate financial transactions for Russian entities. A new legislative initiative prohibits transactions with crypto asset providers that support the Russian defence industry, which in turn limits the financing of Russian military operations.
Energy sector
Significant changes also apply to the energy sector. A ban has been introduced on investments in liquefied natural gas (LNG) projects in Russia. Starting from March 2025, the provision of Russian LNG transshipment services in the EU, as well as the purchase and transportation of Russian LNG through European terminals, will be prohibited.
Protection of Swiss companies
In order to protect Swiss individuals and legal entities, the Federal Council has introduced the possibility of filing lawsuits in Swiss courts against companies that have been sanctioned in order to recover damages. This also applies to companies whose assets were illegally expropriated in Russia.
Subsidiaries abroad
Swiss law allows for the prosecution of companies that use their subsidiaries in third countries to circumvent sanctions. Several companies suspected of violating sanctions through their subsidiaries are currently under investigation in Switzerland.
Further actions
Additional measures include sanctions against 27 vessels involved in Russia’s war against Ukraine, a ban on the provision of services to these vessels, and restrictions on the acceptance of donations from the Russian government by political parties and media organisations in Switzerland.
This package of sanctions is aimed not only at deterring Russia’s military aggression, but also at supporting Ukraine in its time of need. Governments around the world continue to look for effective ways to respond to Russian aggression and strengthen international security.
