Sanctions and commodity trading

Read the PDF edition (2 pages)

The sanctions struck Geneva’s commodity trading even more directly than its wealth management. The embargoes on Russian crude oil and petroleum products, the bans on importing Russian coal, steel, gold and other goods, the restrictions on transport, insurance and financing services linked to these goods, and the price cap on Russian oil decided by the G7 forced traders to reorganise their activities.¹

The Federal Council devoted a report of 20 June 2025 to the subject, on the application and control of the sanctions against Russia in the commodities sector.² This report responded to questions from Parliament and the public about the effectiveness of the controls exercised over a sector that press estimates identified as the principal intermediary for Russian oil before the war.

The large Geneva trading houses reduced or ceased their activities linked to Russian oil. Public Eye observed in 2023 that they barely featured among the buyers of Russian oil, their position having been taken over by small, little-known entities, some of them close to the Kremlin and often established in Dubai.³ This reshuffling shifted part of the flows, revenues and risks towards centres that do not apply the sanctions, without the needs of the global market disappearing.

The price cap, an original mechanism, permits the provision of Western services — transport, insurance, financing — for Russian oil sold to third countries, provided the price does not exceed a ceiling set by the G7.⁴ This mechanism, intended to reduce Russian revenues while maintaining global supply, created verification obligations for traders, charterers, insurers and banks. It also gave rise to circumvention, notably through a fleet of vessels operating outside Western services.

Notes

Sixth package of European Union sanctions adopted by the Federal Council on 10 June 2022, with a progressive embargo on Russian crude oil from December 2022 and subsequently on petroleum products; “La Suisse impose un embargo sur le pétrole russe”, swissinfo.ch, 10 June 2022; G7 price cap adopted by Switzerland, see the following note. ↩
State Secretariat for Economic Affairs, “FAQ – Sanctions contre la Russie” and “Mesures en lien avec la situation en Ukraine”, seco.admin.ch (accessed September 2026), which mention this report. ↩
Public Eye, “Russian oil trade: Dubai pulls out all the stops to edge out Switzerland”, publiceye.ch, 16 November 2023. ↩
Cap of USD 60 per barrel set by the Council of the European Union on 3 December 2022 in coordination with the G7 coalition, applicable from 5 December 2022 to Russian crude transported by sea, reviewable every two months and set at least 5% below the average market price (Council of the European Union, press release of 3 December 2022, consilium.europa.eu); caps for petroleum products from 5 February 2023 (State Secretariat for Economic Affairs, “Ukraine : entrée en vigueur des prix-plafond pour les produits pétroliers russes”, February 2023); Switzerland adopted the mechanism in the Ukraine Ordinance. ↩

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 September 2025.

English

Contact

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.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

Get in touch →

Sanctions and commodity trading

Notes

Setting up or expanding in Switzerland?