Credit Suisse freezes 5 billion francs of Russian money

One of Switzerland’s largest banks, Credit Suisse, has frozen roughly 5 billion Swiss francs of money linked to Russia to avoid falling foul of U.S. sanctions, according to its accounts.

– Credit Suisse works with international regulators wherever it does business to ensure compliance with sanctions, including compliance with sanctions involving Russia – said a spokeswoman for the bank, which did not identify the owners of the money, Reuters reports.

The British agency writes that this move further increases pressure on Moscow.

The move by Credit Suisse, which owned aircraft surrendered by Russian tycoon Oleg Deripaska and had lent money to Russian oligarch Viktor Vekselberg before the sanctions, underscores a widespread fear among banks of reprisals from Washington for working with targeted Russian individuals and entities, the article adds.

For Russia’s elite, it is added, such steps could close off an important avenue for finance as well as a safe haven for billions of rubles of their wealth.

Long popular with wealthy Russians for its combination of bank secrecy, political stability and glitzy ski resorts such as Zermatt and St. Moritz, Switzerland has become one of the most important destinations for money leaving Russia.

Roughly USD 6.2 billion, or 14% of total Russian cross-border outflows, went to Switzerland in 2017 — almost three times as much as went to the United States, according to Russian central bank data.

While U.S. sanctions do not apply to neutral Switzerland, its banks are obliged to follow suit because they depend on access to the dollar and could be blackballed by the United States for any missteps, Reuters notes.

Two of its rivals, UBS and Julius Baer, said they also respected international sanctions, but declined to say whether they had taken similar steps, the British agency adds.

Credit Suisse - Credit Swiss

UBS AG Zurich

Credit Suisse

UBS

Julius Baer

Oleg Deripaska

Viktor Vekselberg

Credit Suisse freezes 5 billion francs

US sanctions toward Russia

American sanctions