Julius Bär, a Swiss private bank, has informed its clients based in Russia that it will terminate all business relationships with them, according to a letter seen by Reuters on Tuesday.

The bank intends to cease business with Russian-domiciled clients by the end of December 31, while wealth management activities, including mandates for managing investments, credit agreements, and credit card contracts, will be terminated by the end of September.

Julius Bär has chosen not to provide further comments on the matter.

This decision comes as Swiss banks, known for handling offshore wealth, have come under scrutiny from authorities, who are using sanctions, asset freezes, and criminal investigations to put pressure on Russia's affluent elite and reduce support for President Vladimir Putin.

Switzerland, which traditionally maintains a neutral stance, adopted sanctions imposed by the European Union (EU) on Russian individuals and companies in March 2022, in response to the invasion of Ukraine. The country has continued to expand its sanctions in line with EU actions.

Credit Suisse and UBS, Switzerland's two largest banks at the time, were reported in March to be under investigation by the US Department of Justice (DOJ) for potential involvement in helping Russian oligarchs evade sanctions. Credit Suisse has since been acquired by UBS, making Julius Bär the second-largest among Switzerland's listed lenders.

As of November 25, 2022, Switzerland had frozen approximately CHF 7.5 billion ($8.63 billion) in related financial assets, according to the agency overseeing sanctions. This amount is in contrast to the existing deposits held by Russian nationals and Russian-domiciled individuals, which stood at approximately CHF 46.1 billion.

In response to the situation, Julius Bär announced in March 2022 that it would stop conducting new business with wealthy Russians, as part of the efforts made by European lenders to limit their exposure to Russia's elite.

In May, Forbes Russia reported that Julius Bär had informed Russian and Belarusian clients that their investment accounts would be frozen due to requirements from clearing house Euroclear. Photo by JoachimKohler-HB, Wikimedia commons.