Russian Financial Assets and Properties Blocked in Switzerland: A $1.7 Billion Decline and Sanction Evasion Scandals

The value of private Russian financial assets blocked in Switzerland has decreased by 1.7 billion francs to 5.8 billion francs since November 2022, mainly due to the poor price development of Russian stocks. Despite the rise in many share prices since November 2022, foreign currencies have lost value against the Swiss franc, leading to lower values for foreign securities when converted into francs. The market values of interest-bearing securities have also fallen due to the increase in interest rates. Asset releases totaling 140 million francs have occurred since November 2022, with new people and companies added to the sanctions list contributing to an increase in blocked assets by 50 million francs.

In addition to financial assets, there are also 17 blocked properties in seven cantons, luxury vehicles, works of art, and furniture. The decline in the value of financial assets is surprising given the rise in many share prices since November 2022. However, according to Seco, the price drops in Russian stocks indicate the effectiveness of economic sanctions against Russia. Despite the damage caused by sanctions, Russia has continued its war of aggression against Ukraine. The economic and financial damage in Russia has not been sufficient to stop its aggressive actions. Reports of suspicion regarding evasion of sanctions have led to 50 administrative criminal proceedings, with 34 cases concluded.

The large assets of the Russian Central Bank are also blocked in the West, with around 300 billion US dollars frozen. This adds to the already significant financial losses that Russia is facing as a result of economic sanctions imposed by various countries following its invasion of Ukraine.