Swiss Federal Council Headed by Federal Office of Justice Rules Confiscation of Private Russian Assets Without Compensation Violates Constitutions, Legal System & International Obligations, Switzerland Froze $8 Billion of Russian Financial Assets
18th February 2023 | Hong Kong
The Swiss Federal Council working group headed by Switzerland Federal Office of Justice (FOJ) has ruled confiscation of private Russian assets without compensation violates Switzerland constitutions, legal system & international obligations. In 2022 December, the Switzerland State Secretariat for Economic Affairs (SECO) provided an update of $8 billion (CHF 7.5 billion, 1/12/22) of Russian financial assets frozen in Switzerland, with Russians holding around $50 billion (CHF 46.1 billion) of deposits (3/6/22) and $160 billion to $210 billion of wealth (CHF 150 billion to CHF 200 billion, estimates by Swiss Bankers Association) in Switzerland. Swiss Federal Council: “In the context of international proposals to use frozen Russian assets to rebuild Ukraine, the Federal Council sought official clarification on the legal basis for any such action. A working group led by the Federal Office of Justice (FOJ) concluded that the confiscation of private Russian assets would undermine the Federal Constitution and the prevailing legal order. The Federal Council noted the working group’s conclusions at its meeting on 15 February. Support for Ukraine will continue, independent of the discussions on frozen assets … … the expropriation of private assets of lawful origin without compensation is not permissible under Swiss law. The confiscation of frozen private assets is inconsistent with the Federal Constitution and the prevailing legal order and violates Switzerland’s international commitments. Other countries have similar constitutional rights and guarantees.” See below for Swiss Federal Council statement.
“ Swiss Federal Council Headed by Federal Office of Justice Rules Confiscation of Private Russian Assets Without Compensation Violates Constitutions, Legal System & International Obligations “
Swiss Federal Council Statement
Federal Council has received legal clarifications on frozen Russian assets
15th Feb 2023 – In the context of international proposals to use frozen Russian assets to rebuild Ukraine, the Federal Council sought official clarification on the legal basis for any such action. A working group led by the Federal Office of Justice (FOJ) concluded that the confiscation of private Russian assets would undermine the Federal Constitution and the prevailing legal order. The Federal Council noted the working group’s conclusions at its meeting on 15 February. Support for Ukraine will continue, independent of the discussions on frozen assets.
Russia has violated international law in attacking Ukraine and therefore has an obligation to pay reparations to Ukraine for the damages incurred. Against the backdrop of international discussions and several parliamentary requests, the Federal Council asked the administration to examine the legal situation concerning assets that are currently frozen in Switzerland as a result of sanctions against Russia. An internal working group led by the FOJ has informed the Federal Council of its conclusions.
The right to property: a fundamental right
The working group representing the State Secretariat for Economic Affairs (SECO), the State Secretariat for International Finance (SIF) and the Directorate of International Law (DIL), led by the FOJ, concluded that the expropriation of private assets of lawful origin without compensation is not permissible under Swiss law. The confiscation of frozen private assets is inconsistent with the Federal Constitution and the prevailing legal order and violates Switzerland’s international commitments. Other countries have similar constitutional rights and guarantees.
Switzerland to engage in international discussions
A further matter under international discussion is the possibility of confiscating Russia’s central bank currency reserves and other state assets. The introduction of tougher criminal penalties for violating sanctions is also being examined. Switzerland is closely following these proposals and contributes its views to the discussions. The relevant offices will inform the Federal Council regularly on international developments in this regard.
Switzerland to continue its support for Ukraine
Independent of the discussions on frozen Russian assets, the Federal Council has reiterated its intention to continue its support for Ukraine.
Switzerland Froze $8 Billion of Russian Financial Assets, Russians Held $50 Billion of Deposits & Estimated $160 Billion to $210 Billion of Wealth in Switzerland
4th December 2022 – Switzerland State Secretariat for Economic Affairs (SECO) provided an update of $8 billion (CHF 7.5 billion, 1/12/22) of Russian financial assets frozen in Switzerland, with Russians holding around $50 billion (CHF 46.1 billion) of deposits (3/6/22) and $160 billion to $210 billion of wealth (CHF 150 billion to CHF 200 billion, estimates by Swiss Bankers Association) in Switzerland. Only bank deposits in Switzerland with more than CHF 100,000 are included in the update, and excludes securities. Switzerland officials are also looking into possible violation of the reporting rules.
In November 2022, British crown dependency & tax haven Jersey apologised to Russian billionaire Roman Abramovich for conducting unlawful search on his properties in Jersey in April 2022 following imposed sanctions on him (after Russia military operations in Ukraine), and has agreed to pay damages & costs for the unlawful search and to destroy documents.
Earlier in November 2022, Germany police had raided UBS office in Frankfurt & Munich for money laundering & tax evasion, targeting at sanctioned Russian billionaire oligarch Alisher Usmanov. Russian billionaire Alisher Usmanov is estimated to have a personal fortune of $14 billion (2022).
In October 2022, Russian billionaire Alexey Mordashov (Age 57) $521 million Nord SuperYacht has docked near Hong Kong Victoria Harbour, with the Hong Kong government responding that Hong Kong is accountable to United Nations sanctions and not to individual country imposed sanctions such as by United States, United Kingdom or European Union.
7.5 billion of Russian assets have been frozen in Switzerland
Neutral Swiss join EU sanctions against Russia
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