EuroChem Group AG intends to comply with Swiss and other laws following sanctions on the group’s main beneficiary Aleksandra Melnichenko, according to a Reuters report.
Switzerland’s State Secretariat for Economic Affairs (SECO), the organization responsible to monitoring sanctions against Russia, asked the fertilizer group to comply after the European Union (E.U.) added Aleksandra Melnichenko to its list of sanctioned individuals as part of its sixth sanctions package against Russia and Belarus, adopted on June 3 (GM June 3, p. 1).
Switzerland’s Federal Council subsequently adopted the Bloc’s sixth sanctions package, and the country’s Federal Department of Economic Affairs, Education, and Research (EAER) also approved the sanctioning of over 100 further Russian and Belarusian individuals and entities (GM June 10, p. 27).
According to a Bloomberg report on June 10, Switzerland’s list of sanctioned individuals and entities is identical to that of the E.U.
Being added to the Swiss sanctions list requires all assets controlled or owned by Melnichenko to be blocked and reported to SECO.
According to the report, SECO will make an assessment after EuroChem shows evidence it can operated legally under Swiss law.
Melnichenko, who was born in Belgrade, Serbia, and holds Serbian and Croatian citizenship, will “vigorously contest the unfortunate decision against her,” according to an earlier Reuters report, citing an emailed statement from the representative.
Melnichenko became the new beneficiary of the trust holding the controlling 90% stake EuroChem in May (GM May 27, p. 29). Her husband, Russian billionaire Andrey Melnichenko, withdrew as main beneficiary of the group and resigned his position as Non-Executive Director following his inclusion on the E.U.’s expanded sanctions list in March (GM March 11, p. 1).