As the war between Russia and Ukraine continues, Swiss industry continues to export goods to Russia. For Swiss multinationals, revenues are almost as high as before the conflict. Ethically questionable, their activities in Russia are nevertheless legal.
Since the start of the Russian invasion in Ukraine in February 2022, Swiss brands active in Russia have had to position themselves. If certain companies, such as the chocolate maker Lindt and Sprüngli or the cement maker Holcim, have chosen to leave Russia for ethical reasons, the majority of them have retained a significant presence there, despite the risk of financing the Russian state in paying taxes there.
According to provisional data, Switzerland exported more than 2.6 billion francs to Russia in 2023, mainly products from the pharmaceutical industry (2.1 billion francs), because medicines and pharmaceutical products are excluded from the sanctions for humanitarian reasons.
This business with Russia therefore involves taxes paid to the Russian state, indirect financial support for the latter’s actions.
Goods produced on site
This figure of 2.6 billion francs does not, however, include the production of Swiss companies on site. This means, for example, that goods manufactured by Nestlé in its six Russian factories are not counted. Thus, the Vevey multinational, which still employs 6,000 people in Russia today, produces chocolate locally under the Rossiya brand, breakfast cereals, instant coffee, ice cream and animal feed, while ‘she indicates in her last taking a position having “refocused its activities on the provision of essential and basic foods to the local population”.
Another example of the Swiss presence on site: Lacoste, which belongs to the Geneva group Maus Frères, also at the head of Manor. Clothing or sneakers branded with the famous crocodile are easily found in Moscow as elsewhere in Russia. Several dedicated stores still exist in the Russian capital. The company did not wish to respond to requests from the Basik show on this subject.
Juicy financial returns for Moscow
But the most profitable Swiss brand for the Kremlin is another multinational: Japan Tobacco International. The tobacco company which produces, among other things, packs of Camel and Winston is domiciled in Geneva. According to the Russian agency Interfax, its turnover in Russia in 2023 is 4.7 billion francs. This represents juicy financial gains for Moscow, cigarettes being, like everywhere else, a very heavily taxed good.
Contacted by RTS, the tobacco company did not wish to expand on its activities in Russia and preferred to highlight the commitment of its foundation to the Ukrainian people.
Although ethically questionable, the activities in Russia of Nestlé, JTI, Lacoste and others are legal. For the moment, as the State Secretariat for the Economy (Seco) points out, only military, dual-use or luxury goods (whose purchase price is greater than 300 francs) are under sanctions and therefore prohibited from export to Russia.
Gabriel Tejedor
