Swiss exports to Russia surge before end of EU sanctions' grace period

Swiss exports to Russia of turbojets, air pumps and other machinery surged in the past two months as manufacturers raced to fill any orders signed before sanctions over Moscow’s invasion of Ukraine render some of the sales illegal, Report informs, citing Bloomberg.

After ranging from 1 million Swiss francs ($1.04 million) to 2.5 million francs a month from January to April, exports of turbojets, turbopropellers and other gas turbines jumped to 11.2 million francs in May and 5.9 million francs in June, Swiss customs data shows. Shipments of air and vacuum pumps showed similarly large gains compared with pre-war levels.

Total Swiss exports to Russia valued at 492 million francs were about 83% higher in June than in January, the month before the war started Feb. 24, driven mostly by sales of pharmaceutical goods, medicines, diagnostics and blood.

Switzerland’s latest trade readings show how the war combined with sanctions on key Russian supplies are distorting global trade -- by rerouting the flow of many key goods, altering demand patterns and causing cargo pileups at European ports. At the same time, authorities are stepping up efforts to monitor compliance with a complex maze of new rules.

Overall, Russian imports have plunged since the US and its allies imposed sweeping sanctions over Ukraine, dropping 22% in the second quarter to $72.3 billion, according to the Bank of Russia. The authorities have stopped publishing detailed data amid the sanctions, but officials say shipments of investment and intermediate goods have been particularly hard hit. Complex machinery like the jet engines and other products coming from Switzerland are items Russia can’t easily replace from domestic sources.