– Switzerland makes an exception to sanctions against Russia
So far, Bern has decided to go along with most of the measures in the EU package, except one. The PS describes the Federal Council’s decision as “scandalous”.
Published today at 5:32 p.m.
There should be no new regulations to punish Swiss commodity traders and other companies that do business with Russia through overseas subsidiaries.
MARTIN RUETSCHI/KEYSTONE
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After Russia’s invasion of Ukraine, EU sanctions against Moscow became the subject of heated political debate in Switzerland. At the beginning, the Federal Council hesitated but finally agreed with most of them and thus implemented other measures of the 14e package of sanctions. However, the government decided not to take one back.
According to this regulation, companies must ensure that subsidiaries established in third countries do not compromise sanctions, even if they do not carry out activities in the relevant EU country. This is not what the Federal Council wants for Switzerland.
The Federal Department of the Economy, Education and Research, headed by Federal Councilor Guy Parmelin, stipulates that there are means to continue circumventing sanctions via subsidiaries. SECO cites the example of payments made from Switzerland, prohibited due to sanctions. “In this context, the Federal Council has decided not to materially associate itself with the relevant EU provision in its current form.” What is the relationship between international law and domestic law? An international standard accepted by Switzerland becomes part of the Swiss legal order and thus becomes applicable nationally. The question that arises as to the harm that the adoption of Swiss regulations would cause has remained unanswered until now.
A decision that is not unanimous in the Federal Council
The PS describes this decision as “scandalous” and strongly condemns it. Switzerland openly places the interests of commodity traders above solidarity with Ukraine and international peace. “With this decision, the Federal Council cements the economic model of Switzerland, which, as the largest financial and commercial center in the world, once again wants to protect war profiteers. The about-face by the Federal Council is a huge step backwards,” declares PS co-president Cédric Wermuth.
According to two sources, the decision was also controversial within the Federal Council. The latter had a rather critical co-report. Berne looked into the issue several times before making its decision, it is said. So far, Switzerland has mostly supported EU sanctions. However, there have already been exceptions. For example, the country has not banned Russian TV channels.
However, the Federal Council decided on Wednesday to ban Swiss political parties, NGOs and media from accepting money and other donations from the Russian government. This “with the aim of limiting Russia’s influence on Switzerland’s democratic processes”.
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Charlotte Walser has been part of the Federal Palace team of the Tamedia editorial team since 2021. A doctor of philosophy, she has worked as a journalist since 1995. From 2010 to 2020 she was a Federal Palace correspondent for the Keystone-SDA news agency. She has also worked for InfoSud and the UN refugee agency UNHCR.More info
Larissa Rhyn is deputy head of the Switzerland section. Previously, she worked as a correspondent at the Federal Palace for the SRF and the NZZ in Bern. She studied political science and international relations in Zurich, Montreal and Geneva. More info
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