Swiss Businesses Suffer Fallout From Russia's Conflict With The West

Swiss trading companies’ business operations in Russia are adversely affected by the country’s trade war with Western European countries and the United States. Already in a decline due to a depreciating ruble, the Russian market turned for the worse following the West’s sanctions over Russia’s conflict with Ukraine. Fragrance manufacturer Luzi, for example, is finding it difficult to collect payments from customers after banks stopped doing business with Crimea following its annexation by Russia. Switzerland’s exports to Russia dropped 6.3 percent in the first half of 2014, according to the Swiss embassy in Moscow, while exports to Ukraine declined 8.5 percent in January–May. Big Swiss corporations operating in Russia, such as Swatch, Sulzer, and Holcim, said they have yet to experience disruptions to their business.