Main Goals of European and Swiss Sanctions:
Not in Line with those Main Goals:
5. Difficulty in applying foreign law leads to the majority of persons affected are not targeted by the sanctions.
4) and 5) leads to an increased workload for authority and banks as gatekeepers.
Are you trading goods that are purchased from Russia or originate in Russia?
Not all goods coming from Russia into the EU or Switzerland are subject to the Swiss/EU or US sanctions. The ones that are not prohibited in the Swiss Ordinance/EU Council Regulation 833/2014 are allowed to be brought into the EU and Switzerland or third countries via EU/Switzerland.
The goods with respect to which sanctions apply are subject to various regimes, e.g.:
✓ may be allowed to transit via Switzerland/EU without limitations, such as certain fertilizers,
✓ may be fully prohibited into the EU/Switzerland or any third country by the EU/Swiss operators.
Are you selling dual-use goods or technology goods to third-world countries? Secondary sanctions
Compliance and risk assessment procedures are required to prevent sanctions circumvention: “No re-export to Russia” clause.
13th package adopted on 23 February 2024:
27 new entities that were involved in the circumvention of trade sanctions located in:
✓India,
✓Sri Lanka,
✓China,
✓Serbia,
✓Kazakhstan,
✓Thailand, and
✓Turkey were added to the sanctions list.
They will be subject to tighter export restrictions concerning dual-use goods and technologies.
Does your parent company have sanctioned individuals or companies as shareholders, CEOs or Board members?
If your parent company is incorporated in Russia and has sanctioned individuals (or companies) as CEOs, Board members or shareholders, Swiss or EU banks may freeze your bank account. In this case, legal opinion with analysis of the ownership and control may help Swiss, EU banks unfreeze your account. SECO and EU local sanctions authorities may also issue confirmations that sanctions do not apply to your company.
Do you deal with a company incorporated in Russia?
It is generally, not prohibited to enter into business relationships with companies incorporated in Russia.
Even if your business partner is not sanctioned itself, the business structure of your Russian business partner has to be checked: are there any sanctioned shareholders or sanctioned individuals serving as CEOs or Board members of the shareholders?
Do you provide services to Russian nationals or Russian companies?
Certain services to companies incorporated in Russia are prohibited, such a
✓accounting,
✓audit,
✓public relationship,
✓bookkeeping,
✓legal,
✓architectural services and others.
These services to Russian individuals are allowed. There are prohibitions with respect to trusts and similar legal arrangements with Russian individuals residing in Russia as beneficiaries or trustors.
