Swiss defend decision not to adopt latest Russia sanctions in full

LONDON (Reuters) - Switzerland on Friday said it was "unequivocally" committed to sanctions against Russia after Bern decided not to adopt in full the latest package of restrictions imposed by the European Union.

The Swiss government this week said it would opt out of a requirement that targets subsidiaries of companies operating in third countries, sparking criticism from the United States Ambassador in Bern, who called it "disappointing".

The clause in question is an obligation for businesses to ensure that their subsidiaries operating elsewhere do not undermine EU sanctions.

"The clause only requires companies to prevent circumvention via their subsidiaries to the best of their ability. It will be quite unclear to companies what measures they are required to take," the State Secretariat for Economic Affairs (SECO) told Reuters.

The government would consider adopting a version in future if it were more precise, added SECO, the government department which oversees Switzerland's sanctions regime.

"Switzerland is unwaveringly and unequivocally committed to sanctions against Russia," it added.



The decision this week has sparked criticism and concerns that Swiss-based commodity traders that have set up operations elsewhere could continue doing business with Russia.

"The Federal Council's decision to not fully adopt all components of the 14th package of EU sanctions yesterday is disappointing, and we hope it will work to close the loophole that enables overseas subsidiaries to evade sanctions," U.S. Ambassador Scott Miller said in a statement.

Source: Investing.com