The Swiss State Secretariat for Economic Affairs, SECO, clarified that Swiss banks cannot use money frozen in Switzerland that originates from Russia for their own purposes. The prohibition applies to any attempt to manage such assets as if they were part of a live portfolio, including seeking new investments, selling holdings, or altering income streams tied to the frozen funds. The constraint is clear: assets held in frozen status cannot be actively managed for profit or loss by financial institutions.
Officials emphasize that any action that would enable the management or utilization of frozen assets is disallowed. Exceptions exist, however, for routine administrative activities that financial institutions carry out in the ordinary course of business. These may include recording accrued interest or commissions on the frozen accounts, provided they do not amount to real portfolio management or value extraction from the assets.
A previous stance noted that there is no legal basis for transferring Russia’s frozen assets to Ukraine. A Swiss working group led by the Federal Office of Justice examined the matter and concluded that such a transfer would not be supported by current law or policy. The decision underscores Switzerland’s commitment to adhering to applicable sanctions and domestic legal frameworks when interfacing with frozen assets in international operations.
On the sanctions front, it was reported on February 14 that the Swiss government had blocked a total of 8.1 billion dollars in Russian assets as part of broader international measures. The total could rise if additional assets held by domestic banks are identified as frozen under applicable sanctions. SECO spokesperson Antje Bertschy noted that sanctions were imposed by other Western states and reflected coordinated international actions aimed at isolating and constraining sanctions evasion. The reported figure captures assets frozen within Swiss jurisdiction, with ongoing monitoring to identify further blocks as sanctions regimes evolve. [Citation: SECO]