Switzerland: Credit Suisse freezes $5bn of Russian money

Credit Suisse, has frozen roughly 5 billion Swiss francs ($5 billion) of money linked to Russia to avoid falling foul of U.S. sanctions, according to its accounts, further increasing 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.

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

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

A Credit Suisse spokeswoman said that the bank “works with international regulators wherever it does business to ensure compliance with sanctions, including compliance with sanctions involving Russia”.

It did not identify the specific owners of the money.

Switzerland is a favoured destination for Russian roubles, with many oligarchs choosing to send their money to the safety of the Swiss Alps: in 2017, around $6.2 billion, or 14 percent of total Russian cross-border outflows, went to Switzerland, according to Russian central bank data.

Other Swiss banks, including UBS and Julius Baer, told Reuters that they also respected international sanctions, but they declined to say whether they had proceeded with similar asset-freezing operations.