Russian Financial Assets in Switzerland: A Surprising Decline in Value Despite Expanded Sanctions

Private Russian financial assets held in Switzerland have decreased by 1.7 billion francs to 5.8 billion francs since November 2022, despite the EU and Switzerland expanding their list of sanctioned individuals and entities. The decline in the value of blocked Russian stocks is a significant factor contributing to this decrease, despite the rise in many stock prices over the same period.

Despite efforts to block Russian assets, a significant amount of the Russian Central Bank’s assets are also blocked in Western countries, including Switzerland. At the end of February 2024, around 7.2 billion francs worth of Russian central bank funds were blocked in Switzerland. Despite these efforts, Russia has continued its aggressive actions in Ukraine, and efforts to evade sanctions have led to administrative criminal proceedings but have had limited impact on Russia’s behavior.

There are currently 17 properties held in seven cantons, along with luxury vehicles, art, and furniture that are blocked. The decline in financial assets is surprising given the increase in many stock prices since November 2022. However, factors such as the fall in interest-bearing securities due to rising interest rates and the poor price development of Russian stocks have contributed to lower values for blocked assets. Additionally, investigations into previously sanctioned entities have increased the amount of blocked assets and recently released initially blocked assets totaling 140 million francs have further impacted the volume of blocked assets.