Swiss exports to Russia dropped marginally, while pharma registered strong growth despite sanctions 

Despite sanctions imposed by the European Union, Switzerland’s exports to Russia have dropped only marginally, while pharmaceutical exports continued to soar, a study has said. 

Swiss exports to Russia in other sectors like machines and watches have come to a standstill, but pharma continued to rise exponentially since the Russian invasion of Ukraine in February 2022, the Neue Zurcher Zeitung am Sonntag newspaper reported citing figures from the Federal Office for Customs and Border Security. 

Since the Russian invasion of Ukraine, pharma exports rose by about 40 per cent, from around $1.54 billion to around $2.2 billion. It now accounts for about a third of all Swiss exports to Russia. 

This is because medicines are considered humanitarian goods, and hence it doesn’t fall under the ambit of sanctions. 

Switzerland hosts many large pharmaceutical companies, including Novartis and Roche. 

“Sales in Russia were driven by a number of factors, including the influx of patients who had delayed medical treatment due to the pandemic,” Novartis told the paper while talking about the rise of pharma exports to Russia. 

“One factor was the stockpiling by patients and hospitals in anticipation of possible bottlenecks,” the company added, regarding the war. 

Between March 2022 and February 2023, Switzerland exported goods worth $3.2 billion to Russia, which was marginally lower than $3.8 billion in the previous year. 

“Given the long list of goods that can no longer be shipped to the warring country, the impact seems soberingly small,” the weekly said. 

Though it has honoured EU sanctions on Russia, Switzerland remained strictly neutral. 

It has also been facing pressure from Kyiv and its allies to allow countries holding Swiss-made weaponry to re-export it to Ukraine. 

(With inputs from agencies) 

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