Switzerland has paved the way for billions worth of Russian assets to be used to pay for reparations in war-torn Ukraine.
The upper house in the central European nation’s parliament has seemingly moved from its staunch neutrality and utmost discretion when it comes to the banking industry as the war in eastern Europe continues to rage.
On March 7, the Swiss counterpart of the House of Lords narrowly backed a series of motions allowing the country’s government to work on an international legal basis for using frozen assets from an aggressor state to fund the war reparations needed in the countries that had been attacked.
These government-backed motions, approved by 21 votes in favour versus 19 against, had already passed in the lower house in 2023.
More than £6.2billion ($8bn) in Russian central bank reserves and assets are held in Switzerland.
The path towards these assets reaching Ukraine is still long, however, as Bern will now seek to establish the international legal basis needed for a reparations mechanism to be developed at the global level.
The close results of the vote in the Swiss parliament’s upper chamber reflected the lively debate that took place in the country over its neutrality and its role in Europe.
Some fear backing these motions could undermine Switzerland’s historic neutrality, while others asked whether the country was doing enough while a war is being fought in the continent.
Speaking to the upper house, Swiss Foreign Minister Ignazio Cassis said: “The facts are very clear indeed. Russia has seriously violated international law. It must therefore repair the damage caused.
“International discussions are under way regarding compensation mechanisms and Switzerland is participating with its knowledge, its skills and all its history in this area.”
When it comes to the role Switzerland has played since Vladimir Putin ordered the unlawful invasion of Ukraine in February 2022, Mr Cassis believes his nation doesn’t need to “blush”.
While it hasn’t provided military aid to Kyiv and barred countries holding Swiss-made weaponry from exporting it to Ukraine, Bern has matched the economic sanctions on Russia issued by the European Union and provided around £2.65bn in humanitarian support.
Last month, Mr Cassis also declared his country was willing to organise a peace conference “by the summer” and spoke about Ukraine deserving a “just peace”.
This peace would include the recovery of the population, respect for the rule of law and human rights, accountability, justice for the victims and the recognition of international law, Mr Cassis explained.
