Sanctions and Their Aftermath (2022–2026) — conclusion

Conclusion of Chapter III

On 28 February 2022, Switzerland adopted the European Union's sanctions against Russia in full. The sanctions froze billions of francs in assets, prohibited the trade in many Russian commodities and restricted the export of sensitive goods. The traders of Zug and Geneva withdrew from most of their Russian business, which moved to Dubai and other jurisdictions. Russian-linked companies in Zug, among them EuroChem and the Nord Stream companies, faced sanctions, insolvency or close scrutiny. Kazakhstan and Central Asia gained importance as sources of supply and as transit routes, with new compliance risks. The effect on the canton's economy was limited, while the effect on its reputation was significant. The clear rejection of the neutrality initiative in September 2026 confirmed that Switzerland will continue to adopt European sanctions.

Conclusion of Part I

For three decades, Zug was one of the places through which the raw materials of the former Soviet Union reached the world. Its traders financed and marketed Russian and Kazakh production. While Russian groups established companies in the canton, the Nord Stream pipeline companies made it part of European energy politics. The war in Ukraine and the sanctions of 2022 ended most of this business. The canton's economy absorbed the loss without difficulty, since the Russian-linked activities formed a small part of the whole. The episode confirmed a pattern that runs through this book, in which Zug's openness to international business brings prosperity as well as exposure to the political risks of that business. The following part examines one of the conditions of that openness: the English language as the infrastructure of the canton's international economy.

In five sentences

After the dissolution of the Soviet Union, the traders of Zug, led by Glencore, became major financiers and buyers of Russian and Kazakh raw materials. Russian groups such as EuroChem and SUEK established companies in the canton, where Gazprom and its European partners chose to seat Nord Stream AG in 2005 and Nord Stream 2 AG in 2015. The Russian invasion of Ukraine in 2022 led Switzerland to adopt the European Union's sanctions in full, which froze assets, ended most of the Russian commodity trade in Zug and pushed Nord Stream 2 AG into composition proceedings before the Zug court. The sabotage of the pipelines in September 2022 destroyed the business of both Nord Stream companies. The canton's economy absorbed the loss while its reputation suffered, with the debate on neutrality and sanctions continuing to shape the framework for its internationally active companies.

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.