Swiss Sanctions against Russia: The Risk for Swiss Banks Due to Swiss Discontinuing with its Neutrality Policy
https://www.rozen-bakher.com/timeline-risks/27/08/2022/1922
Published Date: 27 August 2022 at 19:22
Risks Timeline by Dr. Ziva Rozen-Bakher
Comments on Contemporary Risks by Dr. Ziva Rozen-Bakher
From other Research Activities of Dr. Ziva Rozen-Bakher:
27 August 2022 at 19:22. Is Switzerland has lost its strategic asset, namely the neutrality policy? and if it poses a risk for Swiss banks?
Since 1815, Switzerland maintained a neutrality policy even towards the Nazis during WWII, and even after that, when the Swiss banks kept the Nazis’ bank accounts, despite the outcry of the international community. Neutrality policy is based on the idea of avoiding the favour of any side involved in a conflict, which allows the neutral country to mediate in conflicts.
However, for the first time since 1815, Switzerland chose a side in the conflict between Russia and Ukraine by joining the sanctions of the EU against Russia, which marks the end of the Swiss neutrality policy, and as a result, Russia puts Switzerland in the list of Unfriendly Countries. No surprise that when Switzerland suggested to Russia that it would present Ukraine in Russia, then Putin opposed it on the grounds that Switzerland is no longer a neutral country.
On the one hand, Switzerland acted against Russia based on its viewpoint, but on the other hand, Switzerland lost its position as a neutral country, resulting in the inability to mediate between sides in conflicts, such as the refusal of Russia to let Switzerland represent Ukraine in Russia.
Is Switzerland made a wrong decision by joining the sanctions against Russia? My prediction is that Switzerland made a huge mistake that de-facto led to the loss of the most significant strategic asset of Switzerland, namely its neutrality not only regarding its global position as a prominent mediator but also with a high risk for the Swiss banks because foreign investors from non-West countries will no more feel safe to put their money in the Swiss bank because of the fear from the West sanctions. it took Switzerland 200 years to build trust among their investors, while unclear how one poor decision will impact the Swiss banks in terms of the capital flight by non-West investors and the reduction of opening new Swiss investment bank accounts by non-West investors.
Ukraine War: Can Switzerland Stay Neutral Toward Putin’s Fascism? - Bloomberg
Ukraine working with Switzerland to identify assets belonging to Russian oligarchs - Ambassador
