Why Zug

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The reasons why Russian and Kazakh groups chose Zug were the same that attracted other international companies: low taxes, the tax privileges for holding and domiciliary companies until 2020, political stability, a reliable legal system, an English-speaking business environment and discretion. For groups from the former Soviet Union, two further factors mattered. The first was the presence of the traders with whom they did business, together with the lawyers, banks and service providers that specialised in the trade. The second was the protection that a Swiss company offered against the uncertainties of their home countries. By putting the group's assets and its international sales under Swiss law, a holding company in Zug offered protection against expropriation, arbitrary taxation and the conflicts between rival groups that characterised the business environment in Russia in the 1990s and 2000s.

Switzerland's neutrality played a part as well, since Russian and Kazakh groups considered that Switzerland would not take political measures against them as quickly as the member states of the European Union. The expectation proved correct for a time. After the annexation of Crimea in 2014, Switzerland adopted the European Union's sanctions against Russia only in part, confining itself to measures to prevent the circumvention of European sanctions through Switzerland.¹ The expectation proved wrong in 2022, when Switzerland adopted the European sanctions in full, a turn that Chapter III examines.

Notes

Federal Council, press release "Situation in Ukraine: Federal Council decides on further measures to prevent the circumvention of international sanctions", 27 August 2014, admin.ch: amendment of the Ordinance of 2 April 2014 on measures to prevent the circumvention of international sanctions in relation to the situation in Ukraine, following the EU measures of July 2014; Switzerland does not adopt the EU sanctions but prevents their circumvention through Switzerland. ↩

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.

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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.

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.

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Why Zug

Notes

Setting up or expanding in Switzerland?