Switzerland will not follow the EU’s example It is will not transfer profits from frozen Russian assets to Ukraine.
This statement was made by State Secretariat for Economic Affairs.
Switzerland, in accordance with its legislation and international obligations, is not entitled to receive any special income from the funds of the Russian Central Bank.
US$7.9 billion remained tied up in Switzerland
As of April 2024, approximately $7.9 billion of Russian Central Bank funds remained immobilized in Switzerland.
These funds are kept separate from frozen assets belonging to individuals or companies linked to Russia.
The EU announcement
On Friday, the European Union (EU) announced the release of 1.5 billion euros (1.44 billion Swiss francs) in aid to Ukraine.
It’s about her First installation from profits from Russian assets seized in response to the war that began in 2022.
About 90% is in Belgium
Around €200 billion of Russian assets were frozen in the EU following Russia’s invasion of Ukraine in February 2022, with around 90% located in Belgium, home to international capital depository Euroclear.
In May, the EU-27 agreed to seize the interest generated by these frozen assets from the Russian central bank.
Interest is expected to accrue annually between 2.5 and 3 billion euroswhich will be used to support Ukraine’s defense and post-war reconstruction.
Support for weapons and reconstruction
“The EU stands by Ukraine. Today, we are transferring €1.5 billion of frozen Russian assets for the defence and reconstruction of Ukraine,” European Commission President Ursula von der Leyen said in a press release.
She added: “There is no better symbol or use for Kremlin money than making Ukraine and all of Europe a safer place to live.”
90% of the interest generated by these earmarked funds (which remain earmarked) will go to the European Peace Facility (EPF), an EU mechanism for managing interventions in conflicts, including the acquisition of weapons.
The remaining 10% will go to the EU’s separate “mechanism” for Ukraine, which was created to support the country’s reconstruction needs.
Moscow’s response
Ukrainian Prime Minister Denis Shmihal expressed his gratitude for the EU’s support, thanking von der Leyen and the EU for their significant contribution to Ukraine’s defence and reconstruction. The Ukrainian Defence Ministry also appreciated the EU’s assistance, noting that the funds will strengthen Ukraine’s defense capabilities.
On the contrary, Russia condemned the decision as “illegal”. Dmitry Peskov, spokesman for Russian President Vladimir Putin, said such actions would cause a cautious response from Russia.
Source swissinfo