Drivers V: geopolitics, sanctions and neutrality

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Geopolitics has become a direct driver of Swiss banking. When Switzerland adopted the sanctions of the European Union against Russia in February 2022, it departed from its earlier practice of avoiding the circumvention of foreign sanctions without adopting them in full. The decision had immediate consequences for Swiss banks, which had served many Russian clients and had to freeze substantial assets.¹ It also changed the perception of Switzerland among clients from countries that might one day find themselves in conflict with the West. Some wealth from the Gulf, Asia and Latin America became more cautious about Switzerland, while other clients valued the alignment with Western legal standards.

The debate on Swiss neutrality, which the sanctions revived, continues. A popular initiative to anchor a strict conception of neutrality in the Federal Constitution, including a prohibition on adopting non-military coercive measures against belligerent states, was submitted in 2024.² Its fate, and the broader positioning of Switzerland between the United States, the European Union and China, will influence how wealthy families from different regions perceive the safety of their assets in Switzerland. This chapter does not anticipate any vote on the matter.

Pressure from the United States is a further factor. American authorities criticised Switzerland in 2023 for its enforcement of Russia sanctions, and the trade and tariff disputes of 2025 showed how quickly economic relations with the United States can become strained.³ For Swiss banks, access to the dollar clearing system and to the American market is indispensable. A conflict with Washington could therefore affect them more severely than almost any other external event. The UBS case of 2008 and 2009, described in Part E, Chapter IV, remains the reference point for how such conflicts unfold.

Notes

On the Federal Council's decision of 28 February 2022 to adopt the EU sanctions against Russia, the Ordinance on Measures in connection with the Situation in Ukraine (SR 946.231.176.72) and the volume of frozen assets reported by SECO, see Part E, Chapter III, and Part H, Chapter III, as well as the publications of SECO. Figures to be verified. ↩
On the federal popular initiative "Safeguarding Swiss neutrality (Neutrality Initiative)", submitted in April 2024, the Federal Council's dispatch and the parliamentary treatment, see the publications of the Federal Chancellery and the Federal Council. Status to be verified. ↩
On criticism by US officials of Swiss sanctions enforcement in 2023 (including through the US Helsinki Commission and the ambassador) and the US tariff measures affecting Switzerland in 2025, see Part G, Chapter III, Part H, Chapter III, and Part K, Chapter II, as well as the press. Status to be verified. ↩

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of August 2025.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

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Drivers V: geopolitics, sanctions and neutrality

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