Switzerland announced on August 12, 2025, that it is expanding its sanctions against Russia, aligning with the European Union's 18th sanctions package adopted on July 18, 2025. The State Secretariat for Economic Affairs, Education and Research (EAER) confirmed that 14 individuals and 41 legal entities are now subject to asset freezes and prohibitions on economic resources, with sanctioned individuals also facing entry bans into Switzerland.
The expanded package targets key Russian revenue streams and entities involved in circumventing existing restrictions. A significant aspect is the focus on disrupting Russia's "shadow fleet," with 105 civilian vessels from third countries identified as part of this fleet now sanctioned. These vessels are instrumental in bypassing established price caps on Russian oil and gas and, in some instances, are involved in transporting military cargo for Russia. The "shadow fleet" comprises aging tankers, often registered under flags of convenience, employing tactics such as GPS spoofing and ship-to-ship transfers to obscure their activities. This network, estimated to include hundreds of vessels, has been critical in enabling Russia to maintain its oil exports despite international sanctions, though it also carries increased risks of accidents and environmental damage.
In line with the EU's decision, Switzerland has also adjusted the price cap on Russian crude oil, lowering it from $60 to $47.60 per barrel. This adjustment, effective from September 3, 2025, aims to further constrain Russia's oil revenues. Analysts suggest that such measures, combined with the complexities introduced by the shadow fleet, have already led to a significant contraction in Russia's oil export revenues. Switzerland's decision underscores its evolving approach to foreign policy, balancing its traditional stance of neutrality with participation in international cooperative measures.