Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
CIA spokesperson says law enforcement responded to a security incident outside CIA headquarters.
Brigadier General Saree: Operation achieved its targeted successfully, forcing millions of Zionists to flee to shelters, and halted air traffic at the airport.
YAF spokesperson: We've executed a military operation targeting Ben Gurion Airport in occupied Yafa with ballistic hypersonic missile.
IOF warning forces residents to evacuate and head South in preparation for expansion of aggression.
IOF issues large-scale evacuation orders for residents of 14 areas in northern Gaza.
Israeli media say that for second time in span of hours, a ballistic missile is launched from Yemen toward "Israel".
Israeli media say large explosion heard in central "Israel".
Israeli media: Missile launch from Yemen takes place at end of Yahya Saree's announcement.
Israeli media: Sirens blare in occupied Al-Quds.
Saree: Escalation of aggression on Gaza and the massacres committed necessitate urgent action by the [Arab-Islamic] nation to fulfill its moral and religious duty.

Switzerland's economy unstable after Russian sanctions

  • By Al Mayadeen net
  • Source: Agencies
  • 5 Mar 2022 08:16
  • 2 Shares
4 Min Read

Switzerland's economy may now pay the price after it abandoned its traditional neutrality to sanction Russia and Putin.

  • x
  • Switzerland's economy unstable after Russian sanctions
    Switzerland has traditionally maintained a neutral stance

Switzerland's recent stern attitude against Russia has caused the Swiss economy to respond to sanctions, causing panic in the raw materials sector in particular.

Switzerland stated Monday that it will join the European Union's sanctions, discarding Bern's usual reserve and ordering the immediate freeze of assets belonging to Russian firms and persons on the EU blacklist.

It escalated its measures Friday, imposing harsher EU sanctions in reaction to Moscow's military operation in Ukraine.

Exporting products that might improve Russia's military capabilities, as well as some commodities and services in the energy industry and aviation technology, is restricted.

In a statement, the government claimed that "the implementation of these sanctions is compatible with Switzerland's neutrality."

In an effort to reassure investors, the nation is emphasizing that Russian money accounts for only a fraction of their total revenue.

Swiss Airlines, a subsidiary of Lufthansa of Germany, has canceled flights to Moscow and Saint Petersburg.

Except for food, medical, and humanitarian commodities, global container shipping giant MSC and freight logistics business Kuehne + Nagel have stopped accepting Russian cargo orders.

"Limited" effects on commerce

According to the business organization Economiesuisse, the penalties will have "limited" direct effects on overseas commerce.

Switzerland's 23rd-largest commercial partner is Russia. The Swiss mostly export medications, medical items, watches, and machinery to Russia, whereas gold, precious metals, and aluminum are the most important imports.

According to customs, exports to Russia in 2021 totaled $3.5 billion.

Related News

China, Switzerland mark 75 years with push to expand trade ties

China’s exports to US fall 17.6% March to April amid trade war

Russia's Ambassador to the United Nations in Geneva, Gennady Gatilov, said Friday that the penalties shocked him since Switzerland has always tried to maintain certain neutrality.

Gatilov told the press, "We are disappointed with this because we have very good relations with Switzerland... and the joining of Switzerland to these unlawful sanctions... will have (a) certain negative impact."

According to Swiss press reports, 80% of Russian oil is traded in Switzerland, though Florence Schurch, Secretary-General of the Swiss Trading and Shipping Association, was unable to confirm the figure.

Schurch told AFP that the exact amount is "being assessed", but confirmed the sector's importance to the economy.

Trading in energy, grains, metals, and minerals accounts for approximately 10,000 direct and 35,000 indirect jobs.

Schurch revealed that since Monday "everyone has been in a bit of a crisis cell mode." The Secretary-General elaborated that companies are already trying to "locate their cargoes," or "repatriate sailors stranded in the Black Sea."

"A lot of companies have censored themselves," she said, not least because payments are becoming "complicated" now that Russian banks are cut off from the SWIFT system and Swiss banks are reviewing their trade financing.

Read more: Why cutting Russia from SWIFT is bad for the west

The Swiss-based Nord Stream 2 corporation went bankrupt when Germany shut down the gas pipeline in response to Moscow's operation.

The bankruptcy has sparked widespread fear in the industry. Glencore has undertaken a review of its operations in Russia, while Trafigura is reconsidering its interest in Vostok Oil, Rosneft's large oil project in Siberia.

Swiss banks are popular among rich Russians as a safe haven for their funds. Swiss banks' obligations to Russian clients totaled $23 billion in the third quarter of 2021, according to the Bank for International Settlements.

Not a priority market

In response to the sanctions, the Swiss Bankers Association stated that Russia was "not a priority" market, and it withdrew the Swiss subsidiaries of Gazprombank and Sberbank from its membership.

On the stock exchange, the Richemont company and Swiss watchmaker Swatch were also rattled by investor concerns about the luxury industry.

Jean-Daniel Pasche, head of the Federation of the Swiss Watch Industry, said Russian clients make up only one percent of exports.

Nevertheless, watch sales could be affected as most Russians have not returned to Switzerland since the pandemic began.

Switzerland Tourism spokesperson Veronique Kanel revealed that although Russian tourists made up 1.7% of hotel stays, they are relatively wealthy, choosing five-star establishments regularly, which could affect larger hotels with loyal Russian guests. 

  • Switzerland
  • Russia
  • Vladimir Putin
  • European Union
Russia & NATO

Russia & NATO

As the Draconian Western-led sanctions on Russia exacerbate the economic crisis worldwide, and as Russian troops gain more ground despite the influx of military aid into Ukraine, exposing US direct involvement in bio-labs spread across Eastern Europe and the insurgence of neo-Nazi groups… How will things unfold?

Most Read

YAF say struck 'Israel's' Ben-Gurion Airport with missiles, drones

YAF say struck 'Israel's' Ben Gurion Airport with missiles, drones

  • MENA
  • 18 May 2025
Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza

Israeli media: Yemen may push 'Israel' towards ceasefire in Gaza

  • MENA
  • 17 May 2025
Rachel Accurso criticized for speaking out on Gaza children crisis

Ms. Rachel accused of antisemitism for speaking out for Gaza children

  • Politics
  • 20 May 2025
Martyrs, injuries in violent Israeli bombardment of southern Gaza

Israeli operation fails; IOF launch violent strikes on Gaza

  • Politics
  • 19 May 2025

Coverage

All
War on Gaza

Read Next

All
Telegram jumps to $540mn profit despite founder facing legal peril: FT
Technology

Telegram jumps to $540mn profit despite founder facing legal peril: FT

Ireland's Simon Harris speaks with the media as he arrives for a meeting of EU foreign ministers at the European Council building in Brussels, Monday, Jan. 27, 2025. (AP)
Politics

Ireland’s deputy premier accuses Israeli government of genocidal acts

Israeli occupation forces near military vehicles at the Gaza border (AP)
Palestine

WSJ: War fatigue grows in 'Israel' 19 months into war on Gaza

The facade of Trump Tower is shown in New York, Friday, March 22, 2024 (AP/Ted Shaffrey)
MENA

Trump Tower in Damascus: Inside Syria’s bold proposal

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS