European Union sanctions against the Russian central bank came into effect on Monday morning following an announcement in the official EU gazette, and Switzerland also indicated that it would 'very likely' freeze Russian assets soon.
The sanctions include a ban on transactions with the Russian financial institution, stated European Commission President Ursula von der Leyen. All assets of the bank in the EU will also be frozen to block financing for Russian President Vladimir Putin’s war in Ukraine.
The measure is considered equally significant as the planned exclusion of Russian financial institutions from the SWIFT banking network.
The EU sanctions and punitive measures from the Union’s G7 partners will freeze approximately half of the financial reserves of the Russian central bank, said European diplomacy chief Josep Borrell on Sunday evening.
According to experts, this will prevent Russia from using foreign currency to stabilize the ruble. The Russian currency has already weakened, which will create further problems for the citizens of Russia.
Not all reserves of the Russian central bank can be blocked, Borrell said, as not all are in the West. The EU cannot block reserves in Moscow or China, he stated, adding that Russia has recently begun to hide them in countries where they cannot be blocked.
Russia is expected to be excluded from the international payment system SWIFT during the day, and the EU also plans to impose additional sanctions on Russia’s ally Belarus and Russian oligarchs, businessmen, and politicians.
Swiss President Ignazio Cassis stated that it is 'very likely' that his government will make a decision on freezing Russian assets in Switzerland on Monday, reported the local news agency SDA.
The possibility of following the example of other countries in sanctioning Putin will also be considered, Cassis said, emphasizing that the final decision on freezing capital must take into account Switzerland’s neutral status.
Cassis had previously invoked Swiss neutrality, stating that Bern would not impose sanctions on Russia despite the invasion of Ukraine, the Dpa agency reminds.
