Switzerland will not follow the approach of the European Union and will not withdraw funds for Ukraine from Russian frozen assets stored in Swiss banks.
Points of attention
- Switzerland has declined to allocate funds for Ukraine from the frozen assets of the Russian Federation in Swiss banks, contrasting with the EU's approach.
- The EU has provided Ukraine with a first tranche of 1.5 billion euros from profits of frozen Russian assets to support the country's defense and reconstruction.
- The freezing of assets of the Russian Central Bank in Switzerland is a consequence of the EU sanctions against Russia due to aggression towards Ukraine.
- Switzerland clarified that it cannot generate 'extraordinary income' from the funds of the Russian Central Bank under Swiss law and international obligations.
- The funds transferred by the EU to Ukraine from frozen Russian assets are aimed at strengthening Ukraine's military potential and aiding in the country's recovery efforts.
Switzerland refused to provide Ukraine with funds from the frozen assets of the Russian Federation
This was reported by the State Secretariat for Economic Affairs of Switzerland.
In accordance with Swiss law and international obligations, Switzerland said it could not generate "any extraordinary income in connection with the funds of the Russian Central Bank".
The Swiss State Secretariat for Economic Affairs clarified that this position applies only to Switzerland.
It is noted that as of April 2024, the total value of assets of the Central Bank of the Russian Federation, frozen in Switzerland, amounted to slightly more than 7 billion Swiss francs (approximately 7.08 billion euros). These funds are separate from frozen assets held by individuals or companies linked to Russia.
What is known about the first tranche from the EU to Ukraine from the profits from the frozen assets of the Russian Federation
The European Commission reported that on Friday, July 26, the EU will transfer to Ukraine the first 1.5 billion euros tranche of the proceeds from the frozen assets of the Russian Federation.
It is noted that the revenues received by EU operators and central securities depositories from the frozen assets of the Russian Federation were transferred to Euroclear by the European Commission as the first tranche on July 23.
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 stored in central depositories. Now the EU has started sending these funds to Ukraine.
The EU supports Ukraine. Today we are transferring 1.5 billion euros received from frozen Russian assets to the defense and reconstruction of Ukraine. There is no better symbol or use for the Kremlin's money than to make Ukraine and the whole of Europe a safer place to live, — emphasized the head of the EC, Ursula von der Leyen.
It is worth noting that Ukraine will not receive the money directly, the money will be directed through the European Peace Fund and the Ukrainian Fund to support the military potential of Ukraine, as well as to support the country's recovery.
