Swiss Follow EU to Implement Further Sanctions on Russia

(Bloomberg) -- Switzerland is implementing further trade and financial sanctions against Russia, four days after breaking with its historic neutrality to adopt measures from the European Union.

The fresh sanctions, which include banning the exports of goods that could be used by Russia for military purposes, come into effect Friday at 6 p.m. Zurich time, Economy Minister Guy Parmelin told reporters in the Swiss capital Bern.

The country had been under pressure from the EU to join in punishing the Kremlin and facing criticism from Swiss opposition politicians. Switzerland said the implementation of these sanctions is compatible with its tradition of neutrality and remains open to hosting peace talks as the need arises.

Still, it's a bold move for the country, which has a tradition of maintaining a neutral position in international affairs. It also hosted a summit in June between Putin and U.S. President Joe Biden, and later talks between Foreign Minister Sergei Lavrov and U.S. Secretary of State Anthony Blinken.

Influential former Swiss Justice Minister Christoph Blocher this week criticized the government's move, saying Switzerland is gambling away its good offices as a neutral country, at least where Russia is concerned.

“With the attack, Russia is violating international law and is causing immeasurable suffering to the people of Ukraine,” Simonetta Sommaruga, transport and energy minister, said at the press briefing. “The government has therefore made further decisions so that Switzerland can also contribute to alleviate the devastating consequences.”

Swiss steps include sanctions in the financial sector that the EU adopted on Tuesday, in particular with regard to SWIFT. The government said it will freeze assets of more persons with close ties to Russian President Vladimir Putin, bringing the total number of those sanctioned to over 660.

Addressing energy concerns, Energy Minister Simonetta Sommaruga said Switzerland has secured the natural gas it needs for this winter and spring but is working to secure it for next winter.

Refugees

Switzerland is considering special protection for Ukrainian refugees to fast-track a right to local residence. While it discusses with cantonal governments the so-called S-statute which would give Ukrainians a right to live for up to a year in Switzerland, the government has given Ukrainians the right to come to Switzerland visa-free for up to 90 days, said Justice Minister Karin Keller-Sutter.

The following will be prohibited:
Export of goods that could contribute to Russia's military, defense and security sector Providing technical assistance, brokering services or financing Export of certain goods and services in the oil sector Export of certain goods and technology that can be used in aviation and space industry Providing public financing or financial assistance for trade with or investment in Russia Other restrictive measures in the financial sector concern securities, loans and the acceptance of deposits Transactions with the Russian Central Bank

The following will be prohibited:

Export of goods that could contribute to Russia's military, defense and security sector
Providing technical assistance, brokering services or financing
Export of certain goods and services in the oil sector
Export of certain goods and technology that can be used in aviation and space industry
Providing public financing or financial assistance for trade with or investment in Russia
Other restrictive measures in the financial sector concern securities, loans and the acceptance of deposits
Transactions with the Russian Central Bank

Separately, the government expressed concern over the Swiss franc's latest appreciation, which has pushed it closer to parity versus the euro. The Swiss National Bank, which has intervened in the currency in the past, is due to hold a quarterly policy meeting later this month.