Switzerland on Friday resumed European Union sanctions for luxury goods in response to the war in Ukraine, acknowledging that some companies could be badly affected in the country known for its watches.
Read alsoThe United States bans exports of luxury goods to Russia and Belarus
On Tuesday, the European Union took a fourth set of measures, extending sanctions to luxury goods, which the Federal Council (government) will take up in turn, he said in a press release.
At the end of February, Switzerland, despite its traditional neutrality, aligned itself with the EU sanctions.
This new set of sanctions will take effect “
in the coming days
”, specifies the Swiss government.
The ban on the export of luxury items "
concerns only a small proportion of Switzerland's global exports
", notes the government.
“
Some companies, on the other hand, could be heavily affected
,” he acknowledges.
Rich Russians, great watch lovers
Watchmaking is Switzerland's third largest export sector, far behind pharmaceuticals and electrical machinery and equipment.
Russia is the 17th export market for Swiss watch manufacturers.
In 2021, their exports there amounted to 260 million Swiss francs (252 million euros), according to statistics from the watch federation, which represents around 1.1% of total Swiss watch exports.
Exports, however, only give a partial indication of watch sales to wealthy lovers of luxury watches in this sector, where part of the purchases are made during tourist trips.
Rich Russians are among the great watchmaking enthusiasts,
Read alsoWar in Ukraine: EU to ban luxury goods exports to Russia
Even before the sanctions, several major Swiss brands had already taken the lead and ceased their exports, such as Rolex in particular.
Last week, the Swatch group, owner of Tissot, Omega and Breguet in particular, closed its stores in Russia after having already suspended its exports the previous week.
Luxury giant Richemont, owner of jewelry house Cartier and luxury watches such as IWC and Jaeger-LeCoultre, also suspended business operations in Russia from March 3.
In a 14-page document published in the official journal, the EU detailed the list of targeted products, banning exports of champagnes as well as cigars, perfumes, watches, jewellery, yachts and luxury sedans.
