On 29 October 2025, the Swiss Federal Council adopted amendments to the Ordinance on Measures Connected with the Situation in Ukraine (Ukraine Ordinance), aligning the Swiss sanctions framework with the EU's 18th sanctions package. The amendments aim, among other things, to tighten export, financial and energy restrictions against Russia.

The Ukraine Ordinance includes protective measures relating to investor state dispute settlement (ISDS) claims against either Switzerland or EEA member states (which includes all EU member states, plus Iceland, Liechtenstein and Norway) by persons and entities listed in article 30 of the Ukraine Ordinance (Listed Persons or Entities).

Switzerland will no longer recognise or enforce any award, judgment, order, or other decision issued by an arbitral tribunal or court seated outside Switzerland or an EEA member state where the decision both:

• Arises in connection with ISDS proceedings initiated against Switzerland or an EEA member state by Listed Persons or Entities.
• Could lead to the satisfaction of claims pertaining to sanctions imposed by Switzerland or an EEA member state under their sanctions frameworks.

(Article 30g(1), Ukraine Ordinance.)

Switzerland will also deny requests for mutual legal assistance and will not recognise or enforce any penalties or other sanctions in connection with such ISDS proceedings, where these are ordered by tribunals or courts seated outside of Switzerland (article 30g(2), Ukraine Ordinance).

The new amendments complement the existing "no claims" provision in article 30 of the Ukraine Ordinance, which bars Listed Persons or Entities from asserting claims in relation to transactions that have been affected by Swiss, EU or EEA sanctions regulations.

Finally, the Ukraine Ordinance allows Switzerland to recover any loss incurred through ISDS proceedings concerning measures adopted under the Ukraine Ordinance, including legal fees, thereby protecting Switzerland from the effects of ISDS proceedings seated or enforced outside Switzerland (article 30h).

Compared to the EU sanctions framework (see Legal update, EU sanctions on Russia and Belarus protect member states from illegitimate investment treaty arbitrations), two points stand out. First, while EU member states are obliged to participate in and challenge any ISDS proceedings initiated against them, Switzerland has not adopted an equivalent provision in the Ukraine Ordinance and, therefore, has discretion as to whether and how it engages with such proceedings. Second, although Switzerland committed not to enforce any decision rendered in ISDS proceedings brought by Listed Persons or Entities against an EEA member state, the EU has not adopted a reciprocal commitment for claims against Switzerland

Source: Swiss Federal Council: Ukraine: Federal Council applies 18th EU sanctions package (29 October 2025).