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“Kyiv already feels cold,” said Swiss president Ignazio Cassis after visiting Ukraine and speaking to Volodymyr Zelensky. Cassis is turning his thoughts to how Ukraine will rebuild after the war, but there is no knowing how long the conflict will drag on.
In the news: Cassis gives impressions of Ukraine, Credit Suisse begins selling off the silverware and SWISS ground staff get more pay.
- Ignazio Cassis spoke to SRF about his surprise visit to Ukraine on Thursday. His talks focused on humanitarian aid and helping the country rebuild from the ruins as Russia targets Ukrainian energy plants. “You can already feel the cold in Kyiv,” Cassis said. The Swiss president went to Ukraine despite his German counterpart postponing a trip on safety grounds. “I see that the city unfortunately has wounds from the last attacks, but it still seems to be in a stable and calm state. But of course in a war zone, there is never no risk.”
- Embattled bank Credit Suisse has started selling off assets as part of a strategic overhaul that will be fully outlined next Thursday. The bank sold its stake in Spanish fintech company Allfunds for €334 million. It is rumoured to be planning the sale of a Swiss hotel and business units.
- Ground staff at Swiss International Air Lines are to receive a pay increase of at least 2% plus a Covid-related one-off payment. But the threat of flight disruption has not been completely averted. Pilots are still negotiating their own deal with management and strike action is still possible.
Many companies stopped doing business in Russia after it invaded Ukraine, including watch manufacturers who are no longer allowed to sell their luxury products there.
Russia was the 17th biggest market for the Swiss watch industry in 2021, with sales expanding by more than a third compared to the previous year. Russia no longer features on official statistics but monthly sales to Eastern Europe plunged from CHF29 million to CHF5 million from February to March.
But the withdrawal of Swiss watch brands has other consequences for Russia. Audemars Piguet will no longer support the Bolshoi Theatre while other brands have withdrawn from car racing events that were regularly held in Russia, says Russian journalist Konstantin Startsev, a member of the Geneva Watchmaking Grand Prix.
The closure of boutiques will cost jobs and likely result in the depression of high-end property prices. The only thing that will flourish is the black market in counterfeit watches, says Startsev.
Apparently Russian president Vladimir Putin once had a fondness for luxury Swiss watches, but is now pictured wearing cheaper Russian brands.
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