Since November 2022, the value of private Russian financial assets blocked in Switzerland has decreased by 1.7 billion francs to 5.8 billion francs, despite the expansion of sanctions against Russia. The decline in the value of financial assets is surprising given the rise in many share prices since November 2022. However, foreign currencies have lost value against the Swiss franc, leading to lower values for foreign securities when converted into francs. Additionally, asset releases totaling 140 million francs have occurred since November 2022, with new people and companies added to the sanctions list contributing to an increase in blocked assets by 50 million francs.
According to Seco, the price drops in Russian stocks indicate the effectiveness of economic sanctions against Russia. Despite the damage caused by sanctions, Russia has continued its war of aggression against Ukraine. The economic and financial damage in Russia has not been sufficient to stop its aggressive actions. Reports of suspicion regarding evasion of sanctions have led to 50 administrative criminal proceedings, with 34 cases concluded.
In addition to private assets, large assets of the Russian Central Bank are also blocked in the West, with around 300 billion US dollars frozen. This represents a significant portion of Russia’s foreign currency reserves and has had a major impact on its economy. The blockage of these assets has made it difficult for Russia to access international markets and obtain funding for its activities, including its ongoing war against Ukraine.