No Russian assets profits for Ukraine aid, says Switzerland

In contrast, the EU has allocated €1.5 billion from frozen Russian asset profits to support Ukraine's defense and reconstruction efforts.

Jul 28, 2024 - 09:53

Switzerland announced it won’t seize profits from frozen Russian assets for Ukraine, citing legal constraints.

As of April 2024, Switzerland holds approximately €7 billion in frozen Russian central bank assets. These funds are separate from those frozen assets owned by individuals or companies linked to Russia.

“In line with Swiss law and international obligations, Switzerland could not generate any extraordinary income in connection with the funds of the Russian central bank,” the State Secretariat for Economic Affairs (Seco) stated.

In contrast, the EU allocated €1.5 billion to Ukraine on 26 July, sourced from frozen Russian asset profits. According to the European Commission, 90% of this financial contribution will be channeled to the European Peace Facility, while 10% will go to the Ukraine Facility. These funds aim to support Ukraine’s defense and reconstruction efforts.

Globally, about €260 billion of Russian central bank assets are frozen abroad, with over two-thirds in the EU. Ukraine seeks full confiscation of these funds, but current discussions only involve profit transfers.

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