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Russia–Switzerland relations

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Russia–Switzerland relations
Map indicating locations of Russia and Switzerland

Russia
Switzerland

Russia–Switzerland relations are foreign relations between Russia and Switzerland. Switzerland opened a consulate in Saint Petersburg in 1816, upgrading it to a legation 90 years later. The two countries broke off diplomatic relations in 1923, when Russia was going through a period of revolutionary turmoil – and they were not resumed until 1946.

History

Imperial Russia and Switzerland

Suvorov's army crosses the Swiss Alps (1799)
Monument near Andermatt (2015)

Contacts of some consequence between the Swiss and the Russians started as early as the 17th century, when a twenty-year-old Swiss soldier François (Franz) Lefort came to Moscow in 1675 to serve the Romanov Dynasty, and soon reached a position of prominence. Although Czar Peter I was crowned while still a child (1682), it was Peter's sister Sophia, and later his mother Nataliya Naryshkina, and their boyar relatives, who were running the country for over a decade after - leaving young Peter with plenty of time to dream of how to change his country when he has real power. Lefort happened to be one of the people who greatly influenced the young Czar's world view, and, once Peter became fully in charge of the country, the Swiss soldier became one of his top advisers and became highly influential during the first several years of Peter's modernization campaign.

Even though Lefort died fairly early in Peter's reign (1699), quite a few other Swiss soldiers, adventurers, educators, and scholars made a contribution in the history of Russian Empire. The Swiss-Italian architect Domenico Trezzini was the general manager of the construction of Saint Petersburg until 1712,[1] and is credited with the creation of Petrine Baroque, characteristic of that city's early architecture. The mathematician Leonhard Euler and five members of the Bernoulli family became members of the Saint Petersburg Academy of Science. A century after Lefort, Frédéric-César de La Harpe was influential in the upbringing of the future Czar Alexander I.

The first large-scale appearance of Russians in Switzerland dates to the early years of the Napoleonic Wars, when Suvorov's army fought back and forth across Switzerland and northern Italy in 1799–1800. While the results of these campaigns were inconclusive, they earned Suvorov the rank of Generalissimo, and became (in particular, the retreat over Panix Pass) a favorite topic for Russian painters.

To reciprocate, around 8,000 Swiss men joined Napoleon's army that invaded Russia in 1812. Only a few hundreds survived the disastrous campaign. The heroism of the Swiss at Berezina is immortalized in the Beresinalied.

Lenin's stay in Switzerland commemorated at Spiegelgasse 14, Zürich

In the 19th century Switzerland became a popular refuge with Russian anti-Czar émigrés, due to its culture of freedom, absence of a particularly close relationship between the Swiss republican government and that of Imperial Russia, and on occasions, its neutrality in wars as well. The list of Russian exiles who found shelter in Switzerland runs from Alexander Herzen, who became Swiss citizen[1] in 1851, to Vladimir Lenin, who stayed in Switzerland during World War I, and was only able to leave the country in 1917 thanks to the so-called sealed train.[2][3]

The same reasons made the country a magnet for Russian students. The number of Russian students in Switzerland peaked in 1906–07, just after the defeat of the Russian Revolution in 1905, when 36% of all university students in Switzerland were Russians (2,322 out of the total of 6,444).[1] Not only the majority of all foreign students enrolled in Swiss universities that year (there were 3,784 of them[4]) had come from Russia, over two-thirds of these Russian students (1,507 of 2,322) were female mostly because of the Russian educational qualification for the Jewish population.[5]

Modern Russia and Switzerland

After the dissolution of the Soviet Union, the number of Russian visitors and migrants to Western Europe increased significantly, compared to the Soviet period. However, for most of them Switzerland remained somewhat of a flyover country on the way to the more popular Mediterranean destinations.[6]

The tranquility turned into tragedy on 1 July 2002, when a Bashkirian charter flight collided with a DHL cargo plane just before entering Swiss air space from Germany. All 71 people aboard the two aircraft died in the collision. Having lost his entire family, Vitaly Kaloyev killed the air traffic controller, Peter Nielsen, whom he deemed responsible for the accident.

Russia has allegedly sent several spies to Switzerland over the years. In 2018, a confidential intelligence report compiled for the Swiss government found that one in four Russian diplomats based in Switzerland is a spy.[7][8]

Russian spies had also allegedly targeted a laboratory in Spiez in 2018 that was testing the nerve agent used on Sergei Skripal. [9]

In 2020, the Swiss police made the public aware that two "Russian spies", one of whom was disguised as a plumber, had travelled to Davos with diplomatic passports prior to the Annual Meeting. The Russian Embassy in Bern denied having carried out "preparatory work" for spying on the World Economic Forum.[10][11]

In June 2021, Switzerland hosted the 2021 Russia–United States summit, in Geneva.

Following the 2022 Russian invasion of Ukraine, Switzerland decided to adopt all EU sanctions against Russia.[12] According to the Swiss President Ignazio Cassis, the measures were "unprecedented but consistent with Swiss neutrality". The administration also confirmed that Switzerland would continue to offer its services to find a peaceful solution in the conflict. Switzerland only participates in humanitarian missions and provides relief supplies to the Ukrainian population and neighbouring countries.[13] In total, about 870 people and more than 60 companies are subject to Swiss sanctions.[14] Switzerland closed its airspace to Russian aircraft in March 2022.[15]

Russia's ambassador to the United Nations in Geneva expressed his disappointment and stressed the previously excellent relations between the two nations. On 6 March 2022, Russia has listed Switzerland as a country that has taken "unfriendly actions" against Russian citizens. The RF will require additional controls for Swiss-Russian businesses in the aftermath of the severe sanctions Switzerland imposed on Russian entities.[16]

Resident diplomatic missions

At the end of 2018, there were 732 Swiss nationals living in Russia.[17] As of 2020, 16,500 Russian nationals lived in Switzerland.[18] There are 70,000 Russian speakers in Switzerland (2022). [19]

  • Russia has an embassy in Bern and a consulate-general in Geneva.
  • Switzerland has an embassy in Moscow and a consulate-general in Saint Petersburg.
  • Embassy of Russia in Bern
    Embassy of Russia in Bern
  • Consulate-General of Russia in Geneva
    Consulate-General of Russia in Geneva
  • Embassy of Switzerland in Moscow
    Embassy of Switzerland in Moscow
  • Consulate-General of Switzerland in Saint Petersburg
    Consulate-General of Switzerland in Saint Petersburg

Trade

Russia is Switzerland's 23rd largest trading partners with a trade volume of $5.1 billion. Russia accounts for 1% of Swiss exports and 0.4% of Swiss imports.[21] Switzerland mainly exports medicines, medical products, watches and machinery to Russia, while the chief imports are gold, precious metals and aluminum.[22]

Switzerland is a major hub for commodities trading globally. As such, about 80% of Russia’s commodity trading goes through Geneva and with a further estimated 40 commodities companies linked to Russia in Zug.[23] Gunvor, Vitol, Trafigura and Lukoil Litasco SA are oil and commodities trading firms with stakes in Rosneft and Lukoil, two major Russian oil companies.[24][25][26] MMK (a Russian-based company in Lugano) is also a major player in the commodities/steel trading with Eastern Europe.[27]

The headquarters of Russia's Nord Stream 2 pipeline project linking Russia with Germany are in Switzerland. In March 2022, the company had to lay off 140 people due to economic sanctions against Russia.[24][28]

Gas makes up roughly 15% of Switzerland’s final energy consumption. Around half of this comes from Russia (via Germany).[29]

Switzerland is also a major hub for Russian (and Ukrainian) grain and vegetable oil trading.[30]

Sberbank, Gazprombank and VTB Bank have a branch in Switzerland, the largest recipient of Russian private capital. [31] Between $5 billion and $10 billion of private Russian money flows through Switzerland every year.[24]

According to the Neue Zürcher Zeitung, the amount deposited in Swiss banks by Russian nationals amounts to some $150 billion but according to the Bank of International Settlements, Russian nationals have only ~$11 billion deposited in Swiss bank accounts.[32] When including brokerage accounts, other investments and assets held through offshore accounts, the estimated amount was between $100 and $300 billion in 2022.[33] According to the Swiss Bankers Association in 2022, the amount held by Russian clients in Swiss banks is between $160 and $214 billion. [34]

As of March 2022, $6.2 billion of Russian money was frozen by the Swiss authorities.[35]

The business association Economiesuisse informed that its sanctions against Russia would have a limited effect on the Swiss export economy. However, KOF (a Swiss economic research institute) reported that in case of tougher sanctions in the future, like for example a gas and oil ban, Swiss gross domestic product (GDP) would fall by 3-4 percentage points, spread over two years.[36][22]

200 Swiss companies in Russia have registered with the Swiss Embassy in Moscow. Some of these companies, such as ABB, Holcim and Nestlé, have suspended or significantly reduced their operations in Russia.[21] [37] [38]

Russian investments represent only 1% of annual foreign direct investment into Switzerland (2022).[39]

As of December 2021, Credit Suisse had about $900 million credit exposure to Russia while UBS had only $200 million exposure to Russian assets. [40] Other sources say UBS had $634 million “at direct risk” in Russia and Credit Suisse $1.7 billion.[41]

About 4% of Credit Suisse wealth management business is with rich Russian clients.[42]

Swiss pension funds have on average between 0.3% and 0.5% of assets invested in Russia.[41]

In 2019, Russian visitors represented 1.7% of hotel nights in Switzerland.[22]

Individuals

Sergei Mikhailov, a Russian businessman and alleged leader of the “Solntsevskaya Bratva” criminal syndicate was arrested in Geneva in 1996 and incarcerated for two years.[43][44]

Swiss police arrested Russian businessman Vladislav Klyushin while enroute to Zermatt in 2021 and extradited him to the United States on charges of commercial espionage.[45]

Known Russian oligarchs living in Switzerland are Viktor Vekselberg (Renova Group), Alisher Usmanov (USM) and Gennady Timchenko (Gunvor/Volga Group). The Swiss government has extended EU sanctions onto these individuals after the 2022 Russian invasion of the Ukraine.[33] Switzerland further imposed travel bans on five unnamed Russian oligarchs with close ties to President Putin.[46]

Andrey Melnichenko (MDM) reportedly lives in St-Moritz.[47]

Dmitry Pumpyansky (OAO TMK/Sinara Group) reportedly lives in Geneva with his family. [48]

Petr Aven (Alfa-Bank) has reportedly a residence in Bern. [49]

In addition, about 85 Russian nationals held “Golden Visas” in Switzerland in 2022. [50]

See also

Notes and references

  1. ^ a b c "Bilateral relations Switzerland–Russia". Swiss Government portal. 8 February 2022. Retrieved 2 March 2022.
  2. ^ Ted Widmer (20 April 2017). "Lenin and the Russian Spark". The New Yorker. Retrieved 26 November 2019.
  3. ^ Joshua Hammer (2017). "Vladimir Lenin's Return Journey to Russia Changed the World Forever". Smithsonian. Retrieved 26 November 2019.
  4. ^ Chisholm, Hugh, ed. (1911). "Switzerland § Education" . Encyclopædia Britannica. Vol. 26 (11th ed.). Cambridge University Press. pp. 244–245.
  5. ^ "Censorship in the Russian Empire". www.yivoencyclopedia.org.
  6. ^ Switzerland is a party to IASTA, and generally allows overflight of its territory by other countries' civil aircraft. (International Air Services Transit Agreement - list of signatory states)
  7. ^ "Swiss police found 'Russian spies' in Davos last year". The Guardian. 21 January 2020. Retrieved 9 March 2022.
  8. ^ "Mystery surrounds Swiss arrest of suspected Russian spy". swissinfo. 16 February 2020. Retrieved 9 March 2022.
  9. ^ "Switzerland Demands Russia 'End Illegal Activities' After Two Suspected Spy Cases". RadioFreeEurope/RadioLiberty. 17 September 2018. Retrieved 27 March 2022.
  10. ^ "Swiss police 'exposed Russian spies in Davos'". BBC. 21 January 2020.
  11. ^ "Swiss police found 'Russian spies' in Davos last year". the Guardian. AgenceFrance-Presse. 21 January 2020.
  12. ^ Allen, Matthew (4 March 2022). "Switzerland triggers wide range of sanctions against Russia". swissinfo. Retrieved 7 March 2022.
  13. ^ "Switzerland adopts EU sanctions against Russia". Swiss Government portal. 28 February 2022. Retrieved 7 March 2022.
  14. ^ "Swiss extend blacklist over Russia's invasion of Ukraine". swissinfo. 16 March 2022. Retrieved 19 March 2022.
  15. ^ "Forget Londongrad: Switzerland in Focus as Sanctions Target Rich". swissinfo. 2 March 2022. Retrieved 19 March 2022.
  16. ^ "Russia issues list of 'unfriendly' countries amid Ukraine crisis". AlJazeera. 8 March 2022. Retrieved 8 March 2022.
  17. ^ "Authorities advise Swiss citizens to leave Russia". swissinfo. 11 March 2022. Retrieved 19 March 2022.
  18. ^ Sallier, Pierre-Alexandre (17 March 2022). "La guerre transforme les Russes de Suisse en parias". TdG. Retrieved 19 March 2022.
  19. ^ "Russian media in Switzerland: A mix of propaganda and anti-regime critics". SWI swissinfo.ch. 22 April 2022. Retrieved 22 April 2022.
  20. ^ "Sanctions vs. neutrality: Swiss fine-tune response to Russia". ABC News. 27 February 2022. Retrieved 21 March 2022.
  21. ^ a b Davis Plüss, Jessica (3 March 2022). "Swiss multinationals under pressure to untangle ties with Russia". swissinfo. Retrieved 7 March 2022.
  22. ^ a b c "Neutral Switzerland's economy shaken by sanctions on Russia". France24. 5 March 2022. Retrieved 7 March 2022.
  23. ^ "Russia Inc.'s Swiss Trading Hub Wrestles With 'Dark Side'". SWI swissinfo.ch. 11 March 2022. Retrieved 27 March 2022.
  24. ^ a b c "Switzerland faces pressure to toughen sanctions on Russia". swissinfo. 26 February 2022. Retrieved 2 March 2022.
  25. ^ Stegmüller, Céline (5 July 2021). "Commodity trading in Switzerland, explained". swissinfo. Retrieved 4 March 2022.
  26. ^ Etienne, Richard (18 March 2022). "A Genève, un roi du négoce de pétrole russe vacille". Le Temps (in French). Retrieved 22 March 2022.
  27. ^ Franchini, Federico (1 April 2022). "War and sanctions impact steel traders in Lugano". SWI swissinfo.ch. Retrieved 1 April 2022.
  28. ^ "Russia sanctions: Nord Stream 2 fires more than 140 people in Zug". swissinfo. 2 March 2022. Retrieved 2 March 2022.
  29. ^ Change, Olivia (19 March 2022). "What the Ukraine war means for Switzerland's energy policy". swissinfo. Retrieved 19 March 2022.
  30. ^ Dupraz-Dobias, Paula (2 March 2022). "Swiss trading hub adapts to new wartime reality". swissinfo. Retrieved 4 March 2022.
  31. ^ "Russian Bank VTB's Swiss Commodities Unit Lays Off Workers". SWI swissinfo.ch. 10 March 2022. Retrieved 26 March 2022.
  32. ^ Allen, Matthew (3 March 2022). "The Russian oligarchs' billions frozen in Swiss banks". swissinfo. Retrieved 7 March 2022.
  33. ^ a b "Forget Londongrad: Switzerland in Focus as Sanctions Target Rich". swissinfo. 2 March 2022. Retrieved 2 March 2022.
  34. ^ "Russian clients have up to CHF200 billion in Swiss banks". swissinfo. 15 March 2022. Retrieved 19 March 2022.
  35. ^ "Russian asset seizure reaches CHF5.75bn in Switzerland". SWI swissinfo.ch. 24 March 2022. Retrieved 25 March 2022.
  36. ^ Keystone-SDA/Sunday papers/ilj (13 March 2022). "Experts warn of hit to economy without Russian oil and gas". SWI swissinfo.ch. Retrieved 25 March 2022.
  37. ^ "Nestle Stops Most of Russian Production, Barring Essentials". SWI swissinfo.ch. 23 March 2022. Retrieved 25 March 2022.
  38. ^ "Cement maker Holcim to quit Russian market". Reuters. 29 March 2022. Retrieved 18 April 2022.
  39. ^ Walker, Owen (8 March 2022). "UBS reveals $10 million of loans to sanction-hit clients". swissinfo. Retrieved 19 March 2022.
  40. ^ "Credit Suisse Flags $914 Million Russia Net Credit Exposure". SWI swissinfo.ch. 10 March 2022. Retrieved 27 March 2022.
  41. ^ a b "Swiss banks count cost of Russia sanctions". swissinfo. 17 March 2022. Retrieved 19 March 2022.
  42. ^ "Credit Suisse CEO Signals Bank to Review Russia Wealth Business". swissinfo. 15 March 2022. Retrieved 19 March 2022.
  43. ^ "Geneva ordered to compensate businessman for time served". swissinfo. 24 July 2000. Retrieved 19 March 2022.
  44. ^ "World: Europe Alleged Russian mafia chief acquitted". BBC. 11 December 1998. Retrieved 19 March 2022.
  45. ^ "Swiss extradite Russian businessman Vladislav Klyushin to the US". swissinfo. 19 December 2021. Retrieved 8 March 2022.
  46. ^ "Russia sanctions list: What the West imposed over the Ukraine invasion". swissinfo. 7 March 2022. Retrieved 8 March 2022.
  47. ^ Shargorodsky, Marat (4 March 2022). "Retour sur l'histoire des oligarques et leur amour pour la Suisse". Bilan. Retrieved 19 March 2022.
  48. ^ "Swiss media on the lookout for Putin's alleged mistress – and Russian oligarchs". SWI swissinfo.ch. 20 March 2022. Retrieved 21 March 2022.
  49. ^ "Meet the oligarchs: Switzerland's awkward guests". SWI swissinfo.ch. 25 March 2022. Retrieved 26 March 2022.
  50. ^ "Meet the oligarchs: Switzerland's awkward guests". SWI swissinfo.ch. 25 March 2022. Retrieved 26 March 2022.
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