Federal government intervenes abroad due to sanctions against Russia

Switzerland joins the international oligarch money hunt. But not everyone is happy with how he did it. The canton of Zug, which has attracted the super-rich and commodity groups for decades with its low-tax policy, has sharply criticized the federal government for imposing Russian sanctions and demanded negotiations with those responsible in Bern.

That’s why a secret meeting at the highest level was held on September 27: Economy Minister Guy Parmelin (63) and Seco State Secretariat of Economy Director Helene Budliger Artieda (57), Zug Landammann Martin Pfister (59), Economics Director Silvia in Bern Thalmann- Gut (61) and Finance Director Heinz Tännler (62).

The attendees remained silent. Due to the Sunday Blick research, the public didn’t find out until the end of November. Those concerned kept what was said there to themselves. “We cannot comment on the content of the meeting,” Seco wrote at the time.

Now the reasons for the secrecy are coming to light: Seco boss Budliger Artieda revealed what wasn’t public on the date.

Are we serious about Russian sanctions?

The foreign minister at the time declared, for example, that the federal government is working “in the interests of the Swiss economy” at the international level in connection with the sanctions against Russia – that is, by “handling corporate cases” with foreign governments. This is what emerged from an email digest that SonntagsBlick was able to view based on the Public Information Act.

Therefore, the federal government intervenes abroad to reduce the effects of Russian sanctions on Switzerland and companies located there.

Attempts to exert such influence are deceptive, especially since Bern is suspected of not being serious about sanctions against Russia. Among other things, international criticism is that the federal government has still not set up a task force to track down Russian assets in the country.

Still, Seco despises interventions abroad: “Since they always have economic impacts on states that impose sanctions, it’s common for these states to try to keep negative impacts on their economies as low as possible,” said a spokesperson. The federal government also undertakes this within the framework of the applicable legal system and in accordance with its legal mandate. “Swiss authorities are in regular contact with their international partners.”

Although it describes this as an international practice, Seco is reluctant to disclose which “interests” and companies Switzerland specifically advocates.

“It’s not all about company moves”

It remains unclear at whose request the canton of Zug represents in Bern. The written summary of the meeting shows that, at least, the government took action because it feared that the sanctions would cause companies to “pull back” and thus lose “tax base and employment” – especially for companies operating in the raw materials sector.

When asked by SonntagsBlick, financial director Heinz Tännler said, “It’s not all about company transports.” If companies sanctioned by the international community relocate to countries that do not support the sanctions as a result of these sanctions, this is a logical consequence of the sanctions regime and is recognized by the Zug government.

Tännler: “However, we needed to understand that companies not on the sanctions list were also affected.” Sometimes they have been so constrained by sanctions that their continued existence is in jeopardy. They could no longer even pay rent and salaries. Tännler: “Relocating from Switzerland was not a threat, but a last chance to ensure the company’s continued existence.”

Individual companies have moved their headquarters, sometimes even to EU countries. This was the reason that prompted the board to take action.