Major Sanctions Developments
Switzerland Adds 200 More Names to Russian Sanctions List, Expands Sanctions on Belarus. The Swiss Federal Council announced that it has imposed sanctions on more than 200 individuals and entities in connection with serious violations of international law by Russia in Ukraine. In a statement, Switzerland’s executive branch announced that an additional 197 individuals and nine entities, including oligarchs and prominent businesspeople associated with the Russian regime, will be subject to financial sanctions. Switzerland’s list of sanctioned individuals and entities now fully mirrors that of the European Union. Additionally, in a separate move, the Federal Council expanded sanctions and export controls against Belarus, which, according to a statement, are also “very similar to the measures already imposed on Russia by the EU and Switzerland.”
Sanctions Effects and Enforcement
Russia Says It Has Paid Sovereign Debt Interest. Russia’s Finance Ministry announced it had made USD 117 million in interest payments due on its dollar-denominated bonds to Citi Bank in London. It remains unclear whether the payment will reach investors and allow Russia to avoid defaulting on its foreign debt. The ministry added it would comment later whether Citi—the payment agent for the bonds—had accepted the payment. While Moscow has repeatedly claimed that international sanctions prevent it from paying its debt, U.S. sanctions allow for U.S. investors to continue receiving interest payments from the Russian finance ministry or central bank until 25 May.
Netherlands Calls for Ban on Use of Shell Companies with Links to Russia. The Dutch government is advocating for European Union-wide restrictions on the use of shell companies by wealthy Russians and businesses. According to Bloomberg, the Dutch government is pushing for controls on the use of trust offices that provide services to set up letterbox companies in the country. The Netherlands has been calling for an EU-wide ban but has started preparing legislation to do so at the national level. Dutch Finance Minister Sigrid Kaag noted: “When you think about the effectiveness of sanctions, you also must not forget trust offices, otherwise you provide a silent way out.”
Sanctions Outlook
India, Russia Discuss “Rupee-Ruble” Exchange Scheme. India’s central bank is reportedly in initial discussions on a rupee-ruble trade arrangement with Moscow. The arrangement would allow India to continue to buy Russian energy exports and other goods following the restrictions placed on international payments systems as part of western sanctions packages. Sammy Kotwani, president of the Indian Business Alliance in Moscow, characterized the possible mechanism as “I can give rubles to Sberbank and they can give me rupees in India.” India has attempted to navigate a neutral path in the conflict, declining to participate in sanctions or condemn the Russian invasion at the UN. Russia is an important supplier of both energy and defense equipment to the country.
Final European Airline Operating in Russia Ends Operations. According to the Kyiv Independent, Air Serbia will end flights to Moscow after days of criticism from the European Union, which has instituted a EU-wide ban on flights to Russia.
