The Federal Council has adopted new sanctions against Russia. Switzerland is thus implementing the tenth package of sanctions from the European Union as of Wednesday evening. The government introduces the possibility of making assets available to a person or entity under sanctions to protect the material interests of the Swiss economy.
On March 1, around 120 new names had already been added to the list of persons and entities targeted by sanctions, the Federal Council said in a statement on Wednesday. It now incorporates the other measures of the 10th EU sanctions package.
These provide for the adaptation of provisions relating to compulsory reporting in the financial field. They also prohibit Russian nationals from serving on the governing bodies of critical infrastructure owners or operators.
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screw turn
In the field of goods, new controls and restrictions are introduced on the export of various goods, including dual-use goods, goods intended for military and technological reinforcement or for the development of the defense and security sector, goods intended for the strengthening of Russian industry, or goods intended for the aeronautical and space industry. The import of crucial goods for the Russian export sector is also tightened.
As for Syria, the Federal Council decrees a humanitarian exception concerning the provision of certain services to Russian organizations. This exception concerns the activities of Swiss public bodies or organizations that receive funding from the Confederation to carry out humanitarian actions.
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Sulzer et medmix
When safeguarding the interests of Switzerland so requires, it will now be possible to authorize the making available of assets or economic resources to a natural or legal person, a company or an organization affected by the sanctions. An adaptation which concretely aims to prevent “shareholdings in the Swiss companies Sulzer and medmix from falling into the hands of two Russian banks subject to sanctions”, explains the press release.
After the sanctions adopted in 2018 by the United States against Viktor Vekselberg, and the Swiss sanctions against two Russian banks, the main shareholder of Sulzer and medmix, Tiwel Holding, could no longer honor its loan with the said banks: however, Tiwel Holding’s stakes in Sulzer and medmix are deposited with these banks as collateral for the loan.
The Federal Council reiterates its desire to limit the unintended consequences of sanctions on Swiss companies as much as possible. Through his intervention, he wants to prevent sanctioned Russian banks from indirectly benefiting from the sanctions, according to the press release.
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