Swiss Blocked Assets: A Surprising Decline in Private Russian Financial Assets Despite Economic Sanctions

By Eleanor Harrison Apr23,2024
Russian frozen funds have decreased, partly due to price losses

Despite the expansion of sanctions against Russia, the value of private Russian financial assets blocked in Switzerland has decreased by 1.7 billion francs to 5.8 billion francs since November 2022. The decline is primarily attributed to the poor price development of Russian stocks, despite a rise in many stock prices since November 2022.

The list of blocked assets includes 17 properties in seven cantons, as well as luxury vehicles, art, and furniture. However, the decrease in financial assets is surprising considering the increase in foreign currency values against the Swiss franc and the fall in interest-bearing securities due to rising interest rates have contributed to higher values for blocked assets.

The release of initially blocked assets totaling 140 million francs and the addition of new individuals and companies to the sanctions list have affected the volume of blocked assets. Investigations into previously sanctioned entities have also increased the amount of blocked assets. The decrease in the value of blocked Russian stocks is seen as a sign that economic sanctions against Russia are effective, although they have yet to achieve their main goal of stopping Russia’s aggression in Ukraine.

In addition to private Russian assets, a significant amount of Russian Central Bank’s assets are also blocked in Western countries, including Switzerland. At the end of February 2024, around 7.2 billion francs worth of Russian central bank funds were blocked in Switzerland. Despite this economic and financial damage caused by sanctions, Russia has continued its aggressive actions in Ukraine, with efforts to evade sanctions leading to administrative criminal proceedings but with limited impact on its behavior.

Overall, it seems that while economic sanctions may be having some effect on Russia’s economy and behavior, they are not yet sufficient enough to achieve their intended goal completely.

By Eleanor Harrison

As a content writer at newseasoning.com, I infuse flavor into words, crafting compelling stories that captivate and inform our audience. With a keen eye for detail and a passion for creativity, I strive to create content that not only engages but also inspires. Whether I'm concocting a savory blog post or whipping up a spicy product description, I pour my heart and soul into every piece I write. Join me on this flavorful journey as we explore the tantalizing world of content creation together.

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