Swiss exports of gas turbines, air pumps and other machinery to Russia have skyrocketed over the past two months, reports Bloomberg with reference to Swiss customs. “Total Swiss exports to Russia worth CHF 492 million in June were 83 percent higher than in January, the month before the war began on February 24,” he said Bloomberg.
The reason for the sharp increase in deliveries to Russia lies in the European sanctions imposed after the start of Russia’s military operation in Ukraine: manufacturers are hurrying to fulfill all their obligations under the contracts concluded earlier with Russia. After that, many deliveries would be “illegal”.
As the agency explains, some of the measures would include settlement deadlines “before the bans come into effect, as well as a number of exemptions”. “In the case of Switzerland,” most of these deadlines would expire “between mid-June and the end of July.”
A representative from SECO, the Swiss agency that enforces Switzerland’s sanctions, told Bloombergthat the application of transitional provisions explains the strong increase in Swiss goods going directly to Russia. Once those expire in August, violators will be prosecuted, he added. Bloomberg emphasizes:
“Switzerland’s latest trade numbers show how the war, coupled with sanctions on key Russian supplies, is distorting world trade by diverting flows of many essential goods, changing demand patterns and causing congestion in European ports. At the same time, authorities are stepping up their Efforts to oversee compliance with a complex maze of new regulations.”
More on the subject – Economic sanctions against Russia: who actually suffers more from them?