The United States has voiced its dissatisfaction with the Swiss government’s recent choice to not fully implement the latest set of European Union sanctions against Russia, aimed at addressing the ongoing conflict in Ukraine. Amb. Scott Miller, representing the U.S. in Switzerland, expressed a desire for Bern to address a “loophole” that enables foreign subsidiaries to evade these sanctions. These sanctions are intended to penalize the Russian government for its military actions led by President Vladimir Putin since February 2022.
In his statement, Miller emphasized the importance of targeting any circumvention of sanctions to hinder Russia’s ability to finance its war. He stressed that it is crucial for U.S. companies to not inadvertently support these efforts. The Swiss Federal Council, which is the governing body of the country, stated on Wednesday that it would adopt “most of the measures” from the recent EU sanctions package. Although not part of the EU, Switzerland has maintained a close alignment with EU sanctions against Russia, striving to disrupt its military activities in Ukraine.
Miller’s remarks highlighted disappointment over the council’s choice to refrain from fully embracing all aspects of the latest sanctions package. Many developed nations have been working to limit Russia’s access to Western financial resources, markets, and technology while restricting or ceasing imports of Russian products. These actions, however, have seen only limited success in impacting the Russian economy, especially since several substantial developing nations—such as China, India, Turkey, and Brazil—continue to conduct significant business with Russia.
Additionally, it was noted that Russian natural gas continues to flow into the European Union via Ukraine. Switzerland has reported that it has implemented more rigorous controls in various sectors like intellectual property, trade secrets, financial messaging services, and exports of natural gas and helium from Russia. However, Switzerland has opted not to impose the EU’s restrictions on applications for patents and other intellectual properties owned by Russian entities, citing the absence of any intellectual property rights infringement by Russia against Swiss firms.
The latest EU sanctions also place an emphasis on the necessity for businesses within the EU to ensure that their foreign subsidiaries do not undermine the sanctions’ effectiveness. The Swiss authorities have stated that their existing sanctions regulations already permit the prosecution of companies that bypass these restrictions through subsidiaries. Consequently, the council decided against adopting this specific EU directive in its present form. Currently, approximately 2,250 individuals, companies, and organizations linked to the situation in Ukraine are listed under Swiss sanctions, with this list being consistent with that of the EU.
