On 12 February 2025, the Swiss Federal Council announced the adoption of the remainder of EU’s 15th package of sanctions against Russia, which entered into force on 13 February 2025 (the official media release is available here). Designations introduced under the 15th EU sanctions package had already been adopted by Switzerland on 23 December 2024. These new listings included 54 individuals and 30 companies and organizations being subject to asset freezes and a ban on providing funds and economic resources, as well as 52 vessels of Russia’s so-called shadow fleet being subject to a comprehensive service ban (see official media release here). This latest update to the Ordinance on Measures in Connection with the Situation in Ukraine (“Ordinance“) realigns to a great extent Swiss sanctions with those imposed by the EU. However, it should be noted that this is again a partial implementation of EU sanctions only and namely excludes the new EU provisions concerning European central securities depositories.
Prohibition on Recognition and Enforcement of Certain Russian Proceedings
A new provision has been introduced to protect Swiss companies from litigation with Russian counterparties. Under the newly added Article 29d of the Ordinance, the recognition, implementation, or enforcement of decisions by Russian courts related to Article 248 of the Russian Arbitration Procedure Code, which claims exclusive jurisdiction over disputes between Russian and Swiss companies, or equivalent Russian legislation is now prohibited.
Requests for mutual legal assistance in criminal matters related to alleged violations of such decisions will not be executed. Additionally, penalties or other sanctions under the Russian Criminal Code related to alleged violations of these decisions will not be recognized or enforced.
The content of this provision is fully in line with new Article 11c of Council Regulation (EU) No 833/2014. It aims to safeguard the rights of Swiss companies and protect them from unjustified financial harm.
Divestment and other deadline extensions
There has been an extension of a number of deadlines in relation to derogations for the withdrawal of investments from the Russian Federation. Most importantly, all deadlines for derogations from prohibitions on the import, export, sale, supply, transit and transport of goods and on the related transfer of intellectual property rights or trade secrets or the granting of rights of access or re-use protected by such rights or constituting trade secrets in the context of divestments under Article 30a of the Ordinance have been extended until 31 December 2025.
Similarly, the following deadlines for license applications have also been extended to 31 December 2025:
- Exceptions to the ban on transactions with state-owned companies (Article 30b; Article 35 para. 17 let. b of the Ordinance);
- Exceptions to the bans on services and software (Article 30c of the Ordinance);
- Exceptions to the prohibition on satisfying certain claims (Article 30cbis of the Ordinance).
These amendments align with Art. 5aa para. 3 point (d) and para. 3a, Art. 11 para. 4 and Art. 12b paras. 1-2a of Council Regulation (EU) No 833/2014.
Furthermore, the addressees listed in Article 15 para. 9novies of the Ordinance have been reduced. The purpose of this exception is to facilitate the sale and transfer of property rights in an entity established in Switzerland, a member state of the EEA or the United Kingdom, owned by one of the listed addressees of this exception, by authorizing the release of frozen funds or economic resources or the provision of such funds or resources. The applicable deadline has also been extended to 30 June 2025. This measure aligns with Article 6b para. 5f of the Council Regulation (EU) No 269/2014.
Non-implementation of the derogation and “no liability” clause for central securities depositories (“CSDs”)
Without any reference to this decision in its press release, the Federal Council has decided not to implement at this stage two measures from the 15th sanctions package that are aimed to protect CSDs that may fall within Swiss jurisdiction.
In the 15th sanctions package, a new para. 12a was inserted to Art. 5a of the Council Regulation (EU) No 833/2014. It is a “no liability” clause for EU CSDs to clarify that CSDs, its directors and employees will not be liable for performing in good faith their obligations under sanctions related to the handling of reserves as well as assets of the Central Bank of Russia unless it is proven that the action was the result of negligence.
In addition, the 15th sanctions package inserted in Art. 6b para. 5j of Council Regulation (EU) No 269/2014 a new derogation to the freezing of funds and economic resources and to the prohibition to make funds or economic resources available to designated persons. When adopted in the EU, this derogation was aimed at further insulating European companies from increasing litigation and retaliatory measures in Russia. It allows the release of certain cash balances held by EU CSDs to allow them to fulfil legal obligations to their non-sanctioned clients. According to the new Art. 6b para. 5j, the competent authorities of EU Member States may authorise the release of cash balances frozen by a CSD and attributable to the National Settlement Depository (“NSD”) or to another entity listed in Annex I, after having determined that:
(a) the CSD maintains one or more accounts with the NSD;
(b) the NSD or another entity listed in Annex I maintains an account or accounts with the CSD holding the cash balance to be released;
(c) the NSD has debited an amount from the CSD’s account(s) pursuant to legislation, court order or other measure attributable to the Russian Federation without the prior consent of the CSD;
(d) the released cash balance is to be used by the CSD to meet its legal obligations towards its participants and does not exceed the amount debited by the NSD; and
(e) the released cash balance is not made available to or for the benefit of designated persons as listed in Annex I.
Conclusion Two months after the 15th EU sanctions package entered into force, the Swiss government has largely realigned itself with the EU on sanctions imposed against Russia. Crucially, the extension of various deadlines has resolved the legal uncertainty that had arisen from the differences between the EU and Swiss regulations. This came timely before the EU is considering its 16th sanctions package.
