Swiss Ditch Historic Neutrality to Enforce Russia Sanctions

(Bloomberg) -- The Swiss government broke with a long-entrenched tradition of neutrality and agreed to enforce European Union sanctions against Russian companies and individuals including President Vladimir Putin and Foreign Minister Sergei Lavrov.

The government's decision Monday to implement the sanctions with immediate effect -- which prompted Lavrov to cancel a planned trip to Geneva -- came after a weekend in which it was criticized by opposition politicians and in editorials in leading Swiss papers as well as by other governments.

The European Commission on Friday urged Switzerland to follow its lead on punishing the Kremlin, noting that although not an EU member state, it's still “part of Europe.”

Swiss President Ignazio Cassis told reporters Monday that adopting the EU sanctions is not a black-and-white decision that precludes it playing a role as a neutral party in the future, but rather a case of choosing where to put the emphasis.

“Given the huge violation of international law that's taken place in the last few days, the Swiss government has put an emphasis on the respect and protection of values that are the basis for our civilization,” Cassis said at a news conference in Bern.

It's a bold departure for Switzerland, which has long played a neutral role in international affairs. It hosted a summit in June between Putin and U.S. President Joe Biden and then talks between Lavrov and U.S. Secretary of State Anthony Blinken.

Josep Borrell, the EU's foreign-policy chief, welcomed the move, saying it was “very, very good news.”

Earlier frustration with Switzerland stemmed from its decision to only block Swiss banks from opening new accounts for Russians sanctioned by the EU but not freeze existing ones.

Read more: EU Adopts Sanctions on Some of Russia's Wealthiest Tycoons

Swiss banks had about $23 billion in Russian holdings in the third quarter of last year, mostly made up of deposits, according to data from the Bank for International Settlements.

Economics Minister Guy Parmelin told reporters on Friday that while he understood people might want the country to do more, the Swiss tradition of neutrality and diplomacy was decades-old and “respected and understood” in the EU.

Over the weekend, Cassis tweeted he had spoken to Ukrainian counterpart Volodymyr Zelenskiy to express his support and solidarity but stopped short of any mention of sanctions.

Then on Monday he convened a press conference to announce the new measures, which among other things will close Swiss airspace to all aircraft flying from Russia, including the private jets which have long whisked Russian oligarchs in and out of the country.

Travel bans on five oligarchs close to Putin were implemented, while visa-facilitation services for Russians in place since 2009 will also be scrapped, including for holders of diplomatic passports.

“This doesn't prevent us from playing a diplomatic role,” Cassis said. “We will always need diplomacy. No conflict can be resolved without diplomacy.”

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