Since the outbreak of the war in Ukraine, Switzerland has been under scrutiny due to its handling of Russian assets within its borders. Recent data suggests that there has been a significant decline in Russian funds present in the country. However, the lack of reliable information on the total amount of Russian assets held in Switzerland’s financial center leaves room for speculation and controversy.
According to a survey by the State Secretariat for Economic Affairs (Seco), Swiss financial institutions reported deposits from Russian citizens or entities totaling CHF 46.1 billion as of June 2022. However, this reporting requirement only included deposits exceeding CHF 100,000 per person, so it does not provide an accurate picture of all Russian funds held in Switzerland.
The Swiss Bankers Association estimated that Russian customers in Switzerland hold around CHF 150 billion in assets. However, this figure differs significantly from the Seco survey due to exemptions for Russian customers who are citizens of Switzerland or an EEA member state. Reports have emerged suggesting that Swiss banks are actively shedding Russian customers, even those not on the sanctions list.
Additionally, statistics from the Swiss National Bank indicate that liabilities of Swiss banks to Russia have decreased significantly over the past two years, from CHF 21.4 billion in 2021 to CHF 10.1 billion in 2023. This is the lowest level since 2010. Both bank deposits and customer deposits have declined, signaling a shift in strategy for banks operating in Russia.
These developments highlight how geopolitical events can impact the financial sector and how countries must navigate their relationships with other nations while maintaining compliance with international sanctions and regulations.
The Seco plans to release updated figures on Russian deposits later this year, which will provide more insight into the changing landscape of Russian funds in Switzerland’s financial center.
