Tue. Jul 16th, 2024

Bern, 16 August 2023

On 16 August, the Federal Council decided to enact further sanctions against Russia. This aligns Switzerland with the EU, which adopted these latest measures as part of its eleventh package of sanctions. The new measures take effect at 6pm on Wednesday, 16 August. More than one hundred additional individuals and entities were already added to the sanctions list on 28 June.

In response to Russia’s ongoing military aggression against Ukraine, as well as Russia’s continued destabilising actions that undermine Ukraine’s territorial integrity, sovereignty and security, the EU adopted new measures against Russia on 23 June as part of the eleventh package of sanctions. Already on 28 June, the Federal Department of Economic Affairs, Education and Research (EAER), in its capacity as the competent body, implemented sanctions on more than one hundred additional individuals and entities. The main aim of these latest measures is to effectively prevent and combat the circumvention of sanctions in third countries and by third countries.

The Federal Council will adopt the remaining measures contained in the eleventh package of sanctions that are relevant to Switzerland with effect from 16 August. These measures include a ban on exports of dual-use goods and goods that contribute to Russia’s military and technological enhancement to 87 additional companies, including companies from third countries that have delivered such goods to Russia. In addition, the list of goods subject to an export ban will be extended to include electronic components and precursors to chemical weapons. The sale of intellectual property rights and trade secrets to Russia is also now prohibited in connection with various goods. This is to prevent goods that are not allowed to be delivered to Russia from being produced in Russia. The ban on transit through Russia has also been extended to other goods, such as jet fuels and fuel additives, as well as goods suitable for use in the aviation or space industry.

In the financial sector, the existing ban on selling securities denominated in Swiss francs or in an official currency of an EU member state to Russian nationals and entities was expanded. The sale of securities to Russian citizens and entities is now prohibited, regardless of the currency.

The Federal Council is also adopting the possibilities enacted by the EU for granting exemptions in the humanitarian field and for the purpose of withdrawing Swiss investments from Russia.

As part of the eleventh package of sanctions, the EU has created the legal basis for an instrument to prevent the circumvention of sanctions. This provides the possibility of banning exports to third countries of goods that can be used for civilian and military purposes (dual-use goods) and goods that contribute to Russia’s military and technological enhancement. The EU envisages using this instrument exclusively as a last resort. At present, it has no material impact. The Federal Council is determined to take effective action against the circumvention of sanctions and will examine the implementation of this instrument in the event that it is actually used by the EU.

Effectively stopping attempts to circumvent sanctions requires close international coordination. Switzerland is closely following international discussions on this topic and is working closely with the EU and other partners. It participates in a wide variety of meetings and formats, for example in various subgroups of the EU Freeze and Seize Task Force, the Sanctions Coordinators Forum in Brussels in February, the Switzerland-UK Sanctions Dialogue and the EU-Switzerland Sanctions Dialogue in April.

Source – Swiss Government

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