Russian frozen funds have decreased, partly due to price losses

The value of private Russian financial assets blocked in Switzerland has decreased by 1.7 billion francs to 5.8 billion francs since November 2022. This decline is primarily attributed to the poor price development of Russian stocks. Despite the EU and Switzerland expanding the list of sanctioned individuals and entities, the amount of blocked assets has decreased over time.

There are 17 properties blocked in seven cantons, along with luxury vehicles, art, and furniture. The decline in financial assets is surprising considering the rise in many stock prices since November 2022. However, the decrease in foreign currency values against the Swiss franc and the fall in interest-bearing securities due to rising interest rates have contributed to lower values for blocked assets.

The release of initially blocked assets totaling 140 million francs and the addition of new individuals and companies to the sanctions list have affected the volume of blocked assets. Investigations into the assets of previously sanctioned entities have also increased the amount of blocked assets. The decrease in the value of blocked Russian stocks is seen as a sign that economic sanctions against Russia are effective, although the sanctions have yet to achieve their main goal of stopping Russia’s aggression in Ukraine.

In addition to private 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 the economic and financial damage caused by sanctions, Russia has continued its aggressive actions in Ukraine. Efforts to evade sanctions have led to administrative criminal proceedings, but the impact of sanctions on Russia’s behavior remains limited.