BREAKING NEWS: Swatch Group blocks exports to Russia

Swatch Group has put exports of all watches to Russia on hold.

WATCHPRO contacted most major luxury watch companies this morning to ask how they are responding to Russia’s invasion of Ukraine.

Very few had responded by this afternoon (Thursday), although a Rolex spokesperson did reply with a statement that, “having checked with colleagues in Geneva, we will politely decline to comment”.

Swatch Group, valued at around $13 billion, is home to three of Switzerland’s largest brands — Omega, Longines and Tissot — and also to historic marques such as Blancpain and Breguet, has stopped selling to Russia.

“Swatch Group is monitoring and analysing the situation very closely. At the moment, we have put exports to Russia on hold,” WATCHPRO has been told.

Suspending sales of goods like watches is significant because Russian elites are thought to be buying high value assets as the plunging rubel erodes their wealth.

Watches, like jewellery and gold, are also easy to transport.

Bulgari’s CEO Jean-Christophe Babin has said there is evidence that sales in Russia have risen in recent days: “In the short term it has probably boosted the business,” he told Bloomberg, describing Bulgari’s jewellery as a “safe investment.”

He went on to say that supplying Russian boutiques may become more difficult because cross border payments are being hit by sanctions.

“How long it will last it is difficult to say, because indeed with the SWIFT measures, fully implemented, it might make it difficult if not impossible to export to Russia,” Mr Babin told Bloomberg.

Swatch Group’s 100% affiliate Swatch Group Russia continues its operations, as well as its activities in order to serve the Russian consumers, the company clarifies.

“Also, our stores in the country remain open,” a statement adds.

In addition to Swatch Group and Rolex, WATCHPRO reached out to LVMH, Richemont, Patek Philippe, Audemars Piguet and Richard Mille to ask whether there has been any response to Russia’s invasion of Ukraine.

Swatch Group’s decision aligns them with other global corporations including Adidas, Apple, Exon, BP and IKEA, which have all said they are withdrawing from Russia in response to the invasion of Ukraine.