Swiss raw materials companies must avoid sanctions against Russia: a fine of one million dollars is threatened Swiss raw materials companies must avoid sanctions against Russia: a fine of one million dollars is threatened

There has been a suspicion for some time and it seems to be confirmed. Swiss companies are said to have circumvented Russian sanctions through subsidiaries abroad, according to an investigation by SRF. These subsidiaries are often located in Arab Gulf states that have not imposed sanctions against Russia.

The background

Like the EU, Switzerland has also restricted trade in Russian raw materials. For example, price ceilings apply to petroleum and products made from it.

The fact that a subsidiary of a Swiss company does not comply with the sanctions is not in itself a violation of the law. However, it is illegal if money flows between the two companies – or if business instructions are sent from Switzerland to the subsidiary.

Suspicions are confirmed

The State Secretariat for Economic Affairs (Seco) is responsible for compliance with Russian sanctions. It has been monitoring at least three raw materials companies for some time on suspicion of circumventing sanctions.

The suspicion has now been strongly confirmed at two companies. According to Seco, the violations are particularly serious, and that is why the federal prosecutor’s office is now involved. The maximum penalty the company risks is a fine of one million francs.

Premiere for the Federal Public Prosecution Service

It would be a first: since the Russian sanctions came into effect, the Federal Public Prosecution Service has never investigated companies for violations – Seco is responsible for minor violations. But it is not yet clear whether this will happen. Neither the federal prosecutor’s office nor Seco would like to comment on the cases. In response to a request from the SRF, the federal prosecutor’s office only said that several investigations are currently underway. The first step is to decide whether to initiate formal proceedings.

One of the suspect companies informed SRF through a lawyer that no contact had yet been made with the Federal Public Prosecution Service. It is the presumption of innocence.

(rbu)