Switzerland joined the sanctions club against Russia despite her avowed neutrality. But that was not made a big deal except for casual mention in western media. When crunch times came Swiss tweaked her business strategy outlawing ammo for the Rheinmetall GMBH to be used against Russia. How come?
As part of sanction package, Swiss followed the EU version verbatim. Withdrawing most favoured nation tops the list followed by restrictions of transfer of goods & services transacted for and behalf of Russian state enterprises and providing rating agency services to Russian banks. The export of luxury goods to Russia was axed. Sale of radio & navigation systems and related equipment were banned for export. Swiss airspace is now closed to all flights from Russia and to all movements of aircraft with Russian markings. Moreover, a number of individuals connected to the Russian president are banned from entering into Swiss.
But when it comes to military supply from Swiss to Ukraine and her allies, Swiss had second thoughts. Presumably Swiss has the best of metallurgical industry with much more sophistication and precision. She manufactures range of high-precision weapons including but not limited to long-range rifle, sniper rifle, high calibre ammo used in long range artillery. An item worthy of note and most critical at this juncture is the ammo that is fitted with German Leopard tanks manufactured by Rhinemetall GMBH.
German defence company Rheinmetall has requested Deutsch government approval for export of Leopard 1A5 tanks to Ukraine. President Olaf Scholz was hesitating. He got a helping hand when Swiss citing the law prohibition over supply weapons and ammo to conflict zones declined to provide the requisite ammo. That saved him from the dicey situation. More than anything else, it was the Swiss business strategy on play here.
Most of the Swiss rules are canton based. Even though Federal court has the authority to frame law, implementation is subjected to the notion of Swiss neutrality and security. In WWII both Russia and Germany respected Swiss neutrality. Although it appears that in terms of sanctions imposed on Russia are severe negating the central theme of neutrality, these also allow Swiss to go with the crowd on one side and paly safe on the other side when it comes to implementing sanctions indiscriminately.
Swiss cannot throw the security of Basle, Berne, Geneva, Lausanne and Zurich far and wide. A couple of dirty bombs in these plausible targets could easily erase Swiss as a safe haven for financial and otherwise. Hence, Swiss business strategy is fine tuned to play hide & seek. Let this sink in Swiss has been in the game for the last several centuries!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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