Switzerland intensifies sanctions against Russia and lowers oil price caps: a new phase of economic pressure
Switzerland officially announced the expansion of its sanctions measures against the Russian Federation, accompanied by new restrictions and adjustments to oil price caps.
On August 12, the country added 14 individuals and 41 organizations to its sanctions lists, reflecting a direct response to the European Union’s decision adopted as part of its 18th sanctions package, which came into effect the same day.
These measures involve freezing assets and banning entry for persons and companies linked to Russia’s military and economic sectors, including shadow fleets, crude oil traders, and military-industrial suppliers regardless of their location.
Particular attention is paid to 105 ships from third countries now under a comprehensive ban on purchase, sale, and related services, aiming to curb circumventions of existing restrictions.
A key decision was to reduce the price ceiling for Russian crude oil to $47.6 per barrel, effective from September 3, serving as an important tool to control the market and prevent circumventions.
In the export sector, stricter controls now apply to 26 entities, including third-country companies involved in exporting drones and military goods that bypass previous bans.
Additionally, Switzerland has adopted supplementary lists introduced by the EU on July 15 for Moldova and July 18 for Belarus, involving asset freezes and bans on economic activities against over ten individuals and organizations in these states.
In Moldova, these measures target actors involved in referendum and presidential election preparations for 2024, seen as part of Russia’s influence strategy.
Regarding Belarus, eight military-industrial companies are now under sanctions, prohibiting all economic transactions with the EU.
Notably, EU’s 18th sanctions package also caps the price of Russian oil, a measure supported by Slovakia and Malta, with the UK joining this initiative.
Canada has also announced plans to further lower the price cap for Russian oil, complicating additional circumvention efforts.