Switzerland has frozen approximately 13 billion Swiss francs ($14.2 billion) of Russian assets, including over 7 billion francs from the reserves and assets of the Russian Central Bank held in the country. According to Bloomberg News on Tuesday, the total amount of private assets frozen by the end of 2023 reached 5.8 billion francs.
The State Secretariat for Economic Affairs reported on Tuesday that this figure represents a decrease compared to 2022 and reflects valuation losses. In March, the Swiss Council of States decided to use the frozen Russian Central Bank assets in Switzerland, valued at about $8.5 billion, for the reconstruction of Ukraine.
Notably, Switzerland abandoned its historical neutrality to adopt European Union sanctions against Russia following its invasion of Ukraine, a move that has proven controversial. Following Russia’s initiation of the war against Ukraine, the United States and European countries rapidly responded with multiple sanctions, including plans to freeze and confiscate Russian assets.
The total value of Russian assets frozen by the West is estimated to be between $300 and $350 billion, roughly half of Russia’s gold and foreign currency reserves. These assets have been frozen by Western countries as part of sanctions following Russia’s invasion of Ukraine. They include crucial reserves from the Russian Central Bank held outside of Russia, mainly in European jurisdictions
The EU has been exploring mechanisms to use the income generated from these assets, such as dividends or interest, which could be legally redirected to support Ukraine without transferring the ownership of the underlying assets. This approach is seen as legally safer and could potentially generate significant funds for Ukraine
The utilization of these assets is seen not just as a financial necessity but also as a moral obligation by some, arguing that it would hold Russia accountable for the aggression while supporting Ukraine’s recovery and future security. However, this move is complex and fraught with legal, financial, and geopolitical challenges, including the risk of setting precedents that might affect international financial relations and asset security globally.
