On 18 March, the Swiss Federal Council decided to fully adopt the new sanctions introduced by the EU against Russia on 15 March (see EU blogpost here). These new EU sanctions had already been partially implemented by Switzerland through the extension of its list of designated parties on 16 March (see blogpost here) with the rest of the package now following. The Ordinance on Measures connected with the Situation in Ukraine is currently being updated, meaning these measures will come into force within the next couple of days.

These new sanctions include extensive measures in relation to goods, restrictions on transactions with certain state-owned enterprises and a ban on providing credit rating services to Russian clients or entities. Of particular interest for the Swiss economy is the announced ban on the export of luxury goods.

As part of its latest sanction package, the EU has withdrawn the Most Favoured Nation (MFN) status for Russia under the World Trade Organization (WTO) regime. The Swiss Federal Council will decide whether to move forward with this based on an analysis currently being conducted by the Federal Department of Economic Affairs, Education and Research.

Whilst not explicitly mentioned in the Federal Council’s press release, it can be assumed that Switzerland will also replicate the sanctions the EU imposed on Russia already on 9 March (see EU blogpost here). These measures include, amongst others, new product control restrictions related to maritime navigation and radio equipment, as well as a clarification of the definition of transferable securities.

An extensive overview of the new measures will follow once the updated Ordinance on Measures connected with the Situation in Ukraine has been published