The Swiss Federal Council continues aligning the Swiss sanctions regime to the EU sanctions against Russia. On August 31, 2022, the Swiss Federal Council implemented the remaining technical EU maintenance and alignment measures, which mainly consisted of adjustments of existing measures, such as the ban on accepting deposits or the bans on credit rating services. Also, as anticipated, the EU prohibitions on awarding public contracts to Russian nationals or to entities or bodies established in Russia have also been adopted in Switzerland
1. Introduction
On August 31, 2022, the Swiss Federal Council adjusted certain sanctions measures against Russia and thus implemented the remaining EU maintenance and alignment measures.
In particular, the adjustments include an extension of the scope of the restriction on accepting deposits to specifically cover entities established outside Switzerland and the EEA that are majority owned (directly or indirectly) by Russian nationals or residents.
Contrarily to the restriction on accepting deposits and similar to the EU, the scope of the restriction on accepting crypto-assets and provision of related services remained the same.
The scope of the asset freeze has also been extended to expressly cover assets and economic resources owned or controlled directly or indirectly by natural persons, enterprises and entities acting on behalf of or at the direction of persons listed in Annex 8, as well as enterprises and entities that are owned or controlled by such persons.
Further, similar to the EU, Switzerland has introduced a prohibition on awarding public contracts to Russian nationals or to entities or bodies established in Russia.
The corresponding amendments to the Ordinance on measures in connection with the situation in Ukraine ("UKRO") entered into force on August 31, 2022 at 18:00 CEST1
Also, on August 31, 2022, the State Secretariat for Economic Affairs (SECO) published an amended version of its clarifications in the form of "frequently asked questions" (FAQ) document2 , inter alia to reflect the extension of the scope of the restriction on accepting deposits. Indeed, the previous official guidance in this regard was that accounts of entities established outside Russia whose beneficial owner is a Russian person do not fall under the restriction on accepting deposits. SECO has already changed its position once to bring it in line with the previous EU interpretation. This time, SECO has reversed its position again.
The below provides a summary overview of the most notable restrictions in force today. The corresponding changes introduced since our last update are highlighted in red.
2. Summary overview of the most notable Swiss sanctions against Russia in force as of August 31, 2022 @ 18:00 CEST
|
UKRO / Annex |
Subject matter3 |
Status (in force since) |
Transitional provisions |
Exemptions / Practical considerations |
|
Art. 6 |
Amendment of the scope of the exemptions from Art. 4 (Goods for civil and military use) and Art. 5 (Goods for military and technological reinforcement) |
March 4, 2022 at 18:00 |
N/A |
Now goods and services intended to be used to ensure cybersecurity and information security for natural and legal persons, entities, and organizations in the Russian Federation, with the exception of its government and enterprises that the government directly or indirectly controls fall under the restriction and are no longer exempt from the ban. However, these goods and services may be subject to an exemption granted by SECO |
|
Art. 9 |
Introduction of a new exemption to the ban on sale and export of goods for the aeronautical and space industry |
March 4, 2022 at 18:00 |
N/A |
The prohibition to provide services, including technical assistance or brokering services, related to the problematic goods or in connection with the provision, manufacture, maintenance and use of such goods to any person or entity in, or for use in, the Russian Federation does not apply to the exchange of information for the purpose of establishing technical standards within the International Civil Aviation Organization |
|
Art. 9a (Annex 16) |
A ban on export4 of maritime navigation goods and technology and provision of any services, including technical assistance or related financial support |
March 25, 2022 at 23:00 |
N/A |
SECO may authorize exemptions from this prohibition (i) for non-military purposes and (ii) for a non-military end-user, (iii) if such goods or technologies or the technical assistance or the related financial aid are intended for maritime safety |
|
Art. 9b (Annex 19) |
A ban on export of jet fuel and additives and provision of any services, including technical assistance or related financial support |
April 27, 2022 at 18:00 |
N/A |
|
|
Art. 10 (Annex 4) |
A ban on export of goods for petroleum refining was supplemented with a ban on export of goods for natural gas liquefaction and provision of the services related thereto |
April 27, 2022 at 18:00 |
The ban does not apply to transactions governed by contracts entered into prior to March 5, 2022 and executed until June 3, 2022 |
SECO may, after consultation with the competent services of the Federal Department of Foreign Affairs (FDFA), authorize derogations from these prohibitions insofar as (i) this is urgently necessary to prevent or (ii) mitigate an event likely to have serious and significant effects on human health and safety or on the environment. In urgent and duly justified cases, the export of goods listed in Annex 4 may take place without prior authorization, provided that the exporter informs SECO within 5 working days of the export and explains the reasons for such activities without prior authorizatio |
Footnotes
1 A free English translation and a redline against the version of August 3, 2022 are available, respectively here and here.
2 A free English translation and a redline against the version of July 5, 2022 are available, respectively here and here.
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