Sanctions vs. neutrality: Swiss fine-tune response to Russia

Russia’s invasion of Ukraine has put Switzerland’s much-vaunted neutrality to the test — and along with it, the country’s traditional role as international intermediary and reputation as a safe haven for the assets of Russia’s richest and most powerful

GENEVA -- Russia’s invasion of Ukraine has put Switzerland’s much-vaunted neutrality to the test — and along with it, the country's traditional role as international intermediary and reputation as a safe haven for the assets of Russia's richest and most powerful.

The Swiss executive branch stopped short of announcing unilateral sanctions against Russian interests after Moscow’s blistering military action in Ukraine. Instead, the Federal Council opted to fall in line with the European Union and pledge that Russian individuals and companies hit with EU sanctions won’t be able to evade them in Switzerland, which is not one of the EU's 27 member states.

The government said Friday that financial “intermediaries” in Switzerland were now banned from starting new business relationships with 363 Russian people and four Russian companies. Any existing business must be reported to the Swiss economic affairs secretariat. Further steps are under consideration.

While hardly a crackdown compared to other Western sanctions aimed at punishing Moscow for its invasion of Ukraine, the impact could be felt. The rich Alpine nation has been the biggest recipient of transactions by Russian private individuals — ahead of Britain, Spain, Luxembourg and the United States, according to a report compiled by the Swiss Embassy in Moscow.