Swiss Bans Luxury Watch Exports to Russia, Matching EU Measures

Switzerland, home to many of the world’s top watch brands, will ban the export of pricey timepieces and other luxury goods to Russia as the country matches European Union measures imposed in response to the invasion of Ukraine.

Switzerland’s Federal Council decided Friday to adopt the measures which will come into force in the next few days, the government said in a statement. The move deepens Switzerland’s commitment to matching EU measures to prevent their circumvention, further abandoning its traditional neutral stance.

“The ban on the export of luxury goods contained in the new sanctions affects only a small portion of Switzerland’s global exports of such goods,” the government said. “However, specific companies could be seriously affected.”

Home to Swatch Group, Richemont and premium brand Rolex, Switzerland is a global giant in the production of expensive watches. However, sales to Russia represent a small part of global industry revenues.

Sales in Russia and to Russians abroad account for less than 2 percent of overall revenue at Swatch Group and less than 3 percent at Richemont, according to a recent report by Edouard Aubin and fellow analysts at Morgan Stanley. Russia was the 17th-biggest export market for Swiss watches in 2021, accounting for 260 million francs ($278 million) of shipments, according to the Federation of the Swiss Watch Industry.

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UK Hits Russia With New Sanctions on Luxury Goods

The ban, which will “come into force shortly,” is part of the new wave of international sanctions designed to dial up economic pressure on Russia and isolate the region following its invasion of Ukraine.