The demanded transfer of Russian assets blocked in Switzerland to Ukraine raises Swiss Finance Minister Ueli Maurer's hackles. He also has stark words for Corona debtors.

«Out of the question» is Swiss finance minister Ueli Maurer's response to Ukrainian President Volodimir Zelensky's recent demand that Russian assets frozen in Switzerland be expropriated to Ukraine.

«The protection of property and that of privacy are values of Switzerland that must be defended even in such situations,» Mauer told the Swiss financial newspaper «Finanz und Wirtschaft» (in German, behind paywall).

Maurer, who is stepping down from his role as one of seven federal councilors at the end of the year, added that it is sometimes assumed Switzerland is a center for Russian assets, but that it is not the case.

Breaking Neutrality

Still, his statement contrasts somewhat with Swiss Bankers Association (SBA) projections estimating assets of Russian origin managed in Switzerland at up to $200 billion.

Likewise, most of the large private banks in Zurich and Geneva pointed to client assets with a «Russia nexus». They fairly rushed to declare those assets to the State Secretariat for Economic Affairs (Seco) after Western and Swiss sanctions were imposed against Russia. In July, the amount of money actually blocked in Swiss bank accounts was only 6.7 billion Swiss francs.

Maurer shares with the bankers the fear that with those developments the dam has burst in Switzerland's neutrality. «We gave the little finger and the whole hand was taken,» he said. The situation reminded him of the Corona pandemic. «We started by giving small loans, then Parliament extends the term, then comes À-fonds-perdu contributions, and then the dam burst.»

Repaying Loans

Accordingly, the finance minister, who is considered an iron-fisted saver in the Federal Council body, also has no sympathy for the idea of converting outstanding Corona company loans into preferred shares and handing them over to a state run investment fund.

Because such possibilities are being introduced, some are likely speculating on deferment, partial repayment or total forgiveness and waiting to repay. The government must stand firm: «The loans must be repaid, period.»