Switzerland assured it was "unequivocally" ; engaged in the sanctions against Russia, reports "Reuters".
Bern highlighted its position after deciding not to fully accept the latest package of punitive measures imposed by the European Union.
Earlier this week, the Swiss government said it would not introduce the requirement targeting subsidiaries of companies operating in third countries. This drew criticism from the United States ambassador in Bern, who called it "disappointing".
The clause in question is an obligation on businesses to ensure that their subsidiaries operating elsewhere do not undermine EU sanctions.
"The clause only requires companies to prevent the circumvention of sanctions through their subsidiaries to the best of their ability. It will be quite unclear for companies what measures they need to take," the State Secretariat for Economic Affairs (SECO) said.
The government will consider adopting a version in the future if it is more accurate, SECO, the government department that oversees Switzerland's sanctions regime, added.
"Switzerland is unwaveringly and unequivocally committed to sanctions against Russia,", they emphasized.
This week's decision sparked criticism and fears that Swiss-based commodity traders who have set up operations elsewhere could continue to do business with Russia.
"The Federal Council's decision not to fully adopt all components of the 14th EU sanctions package is disappointing and we hope that the country will work to close the loophole that allows subsidiaries abroad to avoid sanctions" , said US Ambassador Scott Miller.