On 27 August 2014, the Swiss Federal Council adopted additional measures to prevent Swiss territory being used as a channel to circumvent international sanctions in connection with the situation in Ukraine. To that end, the Federal Council has revised its ordinance dated 2 April 2014 to take into account the new sanctions implemented by the EU in July 2014.

The new ordinance contains restrictions of commerce regarding dual-use goods and specific military goods, goods for the oil industry and the import and export of goods from/to Crimea and Sevastopol.

It also introduces new financial restrictions regarding financial instruments of certain Russian banks as well as the financing of infrastructure projects in Crimea and Sevastopol.

The purpose of this briefing is to provide high-level information as regards the background as well as the contents of the latest measures adopted by Switzerland in the context of the Ukraine-related crisis.

The new Ordinance also evidences Switzerland’s continuous efforts to align its measures with those adopted by the EU.

However, by contrast to the U.S. and the EU, Switzerland has so far not ordered the blocking of property or freezing of assets of any of the persons, companies and organizations that are targeted by the measures adopted since April 2014 in connection with the Ukraine-related crisis. Moreover, when comparing the most recent Ordinance adopted by Switzerland with the rules applicable within the EU, there remain some important differences in the scope and language of the provisions that may entail significant consequences both from a legal and practical perspective. Hence, prior to engaging in cross-border transactions having a connection to Ukraine or Russia, it is essential to also carefully consider and review the relevant EU and U.S. sanctions regimes.