Switzerland broke with its longstanding tradition of political neutrality on Monday, announcing that it intended to match EU sanctions on Russia — including those directed personally against President Vladimir Putin — in response to the invasion of Ukraine.
The step was a “unique and difficult” decision but “morally” imperative because of Russia’s brutal military campaign against its neighbour, federal president Ignazio Cassis said at in a press conference in Bern, flanked by three other member’s of the country’s seven-person ruling executive.
“In view of the violation of international rights in recent days, the Federal Council has chosen to respect those values that form the basis of our civilisation,” Cassis said.
Switzerland will mirror the full range of EU sanctions applied on February 23 and 25, the government said.
As well as targeted asset freezes against Russians and Russian organisations, Bern said it would implement a travel ban on five oligarchs close to Putin. Visa-facilitation services — which have made it easier for all Russians to enter Switzerland since 2009 — will also now be ended, including for holders of diplomatic passports. Swiss airspace has been closed to all Russian airlines since 3pm local time on Monday.
Long seen as one of the world’s most accommodating countries for Russians to party and do business in, Switzerland will now become one of the least accessible.
Finance minister Ueli Maurer said he did not expect the measures to affect the Swiss financial system. Russian wealth accounts for about 1 per cent of annual foreign direct investment into Switzerland, he told reporters, equivalent to about SFr7.5bn ($8.2bn), based on government data.
He added that matters could change as a result of the consequences of the war. As well as being a location for Russian personal wealth, Switzerland is also a foreign hub for some of the country’s biggest businesses — including the state-owned gas giant Gazprom and Nord Stream 2.
A significant portion of Putin’s alleged wealth has, in recent years, been traced to the country: the 2016 “Panama papers” leak of documents from the offshore law firm Mossack Fonseca allegedly identified millions held in Zurich by the Russian cellist Sergei Roldugin, apparently on behalf of the Russian president.
The Swiss have come under increasing pressure in recent days from European allies to act against Russia, even though doing so transgresses the country’s longstanding — and almost politically sacrosanct — commitment to international neutrality.
EU high representative Josep Borrell said he was “very happy” with the Swiss decision to move in lockstep with the bloc in its efforts to punish Russian belligerence. Russian oligarchs have now lost a major haven for wealth in Europe, he added.
Bern has meanwhile continued to stress it is still hopeful of a diplomatic resolution to the Ukraine crisis, and repeated an earlier offer of mediation between Kyiv and Moscow made last week.
Swiss break neutrality tradition to match EU sanctions on Russia
Pinoy Variant