Switzerland will not transfer revenues from frozen Russian assets to Ukraine, as the European Union did.
Points of attention
- Switzerland refused to transfer the proceeds from frozen Russian assets to Ukraine due to its international obligations and legislation.
- Switzerland maintains a policy of neutrality, but supports sanctions against Russia and provides humanitarian support.
- The European Union has already allocated Ukraine a tranche of revenues from frozen Russian assets/
- The freezing of the assets of the Russian Central Bank is the result of EU sanctions against Russia in connection with the aggressive war against Ukraine.
Why Switzerland refused to transfer income from the frozen assets of the Russian Federation
Switzerland's State Secretariat for Economic Affairs said the country would not follow the EU's approach.
According to Switzerland, according to international obligations and legislation, the country cannot generate "any extraordinary income in connection with the funds of the Russian central bank." It is emphasized that this applies specifically to Switzerland.
As of April 2024, the total value of assets of the central bank of the Russian Federation frozen in Switzerland was just over 7 billion Swiss francs. These funds are separate from frozen assets held by individuals or companies linked to Russia.
It should be added that Switzerland adheres to the policy of neutrality. It did not provide Ukraine with weapons or other lethal aid, but provided humanitarian support. The country also supported sanctions against Russia.
What preceded it
On July 26, the European Union allocated Ukraine a tranche of revenues from frozen Russian assets. It is about the sum of 1.5 million euros.
This is the first tranche for Ukraine from the EU, received from the frozen assets of the Russian Federation.
Funds will be channeled through the European Peace Fund and the Fund for Ukraine to strengthen Ukraine's military potential and help rebuild the country.
The freezing of assets of the Russian Central Bank was the result of EU sanctions against Russia in response to its aggressive war against Ukraine. Revenues received by EU operators do not belong to Russia and are kept in central depositories. Now the EU has started sending these funds to Ukraine.
