Swiss Authorities Freeze 1.3 Billion Swiss Francs (€1.4 Billion) Linked to Russian Senator Kerimov

Swiss authorities have frozen 1.3 Billion Swiss Francs, which may be linked to Russian senator and billionaire Suleiman Kerimov, in the latest move targeting Russian oligarchs as part of sanctions over the war in Ukraine.

The Swiss State Secretariat for Economic Affairs (SECO) announced that it had blocked 1.3 billion Swiss francs, equivalent to €1.4 Billion, potentially connected to Kerimov, a high-profile member of the Russian Federation Council.

This development is part of an ongoing investigation being led by the Swiss Federal Prosecutor’s Office, which is probing allegations of money laundering and violations of sanctions against four individuals associated with Kerimov.

The case, which was first reported by Swiss newspaper Le Temps, began in November 2023. SECO, the Swiss federal body responsible for enforcing sanctions, initiated the probe, and Swiss authorities have since carried out a series of raids in relation to the case. So far, eight properties have been searched, although no arrests have been made.

The €1.4 Billion freeze is a significant amount in the context of such investigations, according to SECO. This case is part of Switzerland’s broader effort to enforce international sanctions imposed in response to Russia’s invasion of Ukraine, which began in February 2022.

As of now, the total value of Russian assets frozen in Switzerland as a result of these sanctions has reached 7.1 billion Swiss francs. These assets include real estate, luxury vehicles, and works of art, belonging to individuals and companies facing restrictions due to their ties to Russia.

While the Swiss Federal Prosecutor’s Office has disclosed few details about the individuals involved, it is known that the investigation was launched following the imposition of sanctions by the United States on Kerimov’s family. These sanctions targeted his wife, two daughters, son, and 28 affiliated companies. The U.S. government has accused Kerimov of being closely involved with Russian President Vladimir Putin’s inner circle, using his vast wealth to exert influence on behalf of the Kremlin.

Suleiman Kerimov, who has served as a member of the Federation Council of Russia since 2008, is one of the wealthiest men in Russia. His business interests span energy, finance, and metals. Kerimov’s wealth, much of which is tied to stakes in large Russian companies, has attracted significant scrutiny since Russia’s annexation of Crimea in 2014, leading to the first rounds of international sanctions. The U.S. Treasury Department sanctioned him personally in 2018, accusing him of “illicit financial activity,” and freezing his assets in the United States. The latest measures, implemented after Russia’s full-scale invasion of Ukraine, expanded sanctions to cover Kerimov’s family members and companies.

Despite the sanctions, Kerimov and his family have reportedly used complex networks of offshore companies and intermediaries to manage their wealth, evading full enforcement of the restrictions placed upon them. This ongoing investigation in Switzerland, however, suggests that international authorities are closing in on these networks.

Switzerland, known for its strict banking secrecy laws and status as a major global financial hub, has faced criticism for being slow to act on freezing Russian assets following the invasion of Ukraine. However, the country has recently increased efforts to enforce sanctions in line with the European Union and the United States. The significant sums frozen in connection with Kerimov reflect the intensity of these enforcement actions.