The longer the war in Ukraine rages, the more Switzerland comes into conflict with the handling of Russian money. SECO Director Helene Budliger Artieda reports serious concerns that the confiscation of such assets would not be expedient in this country.
The EU wants to use Russian money to support the reconstruction of Ukraine. The Federal Council has expressed its concerns – and the boss of the State Secretariat for Economic Affairs (SECO) warns against counterproductive effects.
Assisted by the Freedom of Information Act, «SonntagsBlick» (article behind paywall, german only) was able to view an internal analysis by State Secretary Helene Budliger Artieda. The SECO director writes: «The central bank balance deposited in Switzerland is protected by the immunity from enforcement which covers state assets.»
Sanctions Are Not Criminal Measures
She states that it is not clear «whether the confiscation of such assets» could be reconciled with international law. Confiscating assets may even be counterproductive.
«Sanctions are, first and foremost, time-limited enforcements which should force a state to resume behavior which is compatible with international law. Sanctions are not measures under criminal law. If their assets are confiscated, however, those individuals and businesses affected would no longer have a reason to change their behavior, and the measure may ultimately have a counterproductive effect,» the report states.
