Switzerland on Friday adopted EU sanctions on luxury goods exports to Russia imposed over the Kremlin’s war in Ukraine, acknowledging some Swiss companies could be badly affected. The European Union imposed a fourth wave of sanctions on Tuesday, which Switzerland wanted to join.
Switzerland is not in the EU and has a long tradition of neutrality on war issues, but has nonetheless joined waves of EU sanctions imposed after Russia invaded Ukraine on February 24.
Swiss government: Certain companies could be seriously affected
The new measures “will come into force in the next few days,” the Swiss government said in a statement. “The ban on the export of luxury goods contained in the new sanctions affects only a small part of Switzerland’s global exports in this area. However, certain companies could be seriously affected,” admitted Bern.
The watch industry is the third largest export sector of the rich Alpine nation, but far behind the huge pharmaceutical sector. Russia is the 17th-biggest export market for Swiss watchmakers, bringing in 260 million Swiss francs ($280 million, 250 million euros) last year, according to statistics from the Federation of the Watch Industry, about one percent of total Swiss watch exports.
However, exports only reflect part of watch sales to wealthy luxury watch enthusiasts, who often spend heavily on tourist trips to Switzerland. Rich Russians are among the biggest watch lovers, and even President Vladimir Putin is regularly seen doing it renowned Swiss brands on his right wrist.
Swiss brands stop exports to Russia
Even before the sanctions, several major Swiss brands, including Rolex, had stopped exporting to Russia. Last week, the Swatch group, which owns Tissot, Omega and Breguet, closed its shops in Russia after suspending exports the week before. LeCoultre, also ceased operations in Russia on March 3rd.
The EU list of affected products bans the export of champagne, cigars, perfumes, watches, jewellery, yachts and luxury limousines.(AFP)
This translated post previously appeared on FashionUnited.uk.