Silke Koltrowitz

ZURICH (Reuters), – The Chief Executive of Swatch Group in Switzerland said that the company does not anticipate any material adverse impact on sales, or on access to raw materials after Russia’s invasion.

Nick Hayek claimed that Russia was responsible for about 1% in group sales. However, it did not source any gold from Russia due to the sanctions. According to him, Russia’s biggest brand names were the cheaper Tissot or Swatch labels. It was an indication that Russia is not only home to oligarchs.

Hayek stated that Russia has no gold sources. We also stock other precious metals and have multi-sourcing. So for Swatch Group we don’t see any impact except that prices may rise in the long or mid term.

Hayek declared, “We’re shocked by the situation. This has only been for three weeks.” We should take three deep breathes, and pray for a solution.

After initially halting exports, the group is also well-known for its Omega and Longines watches.

Russia is a complex country to conduct business after Russia’s invasion. The United States, Britain, and the Europe Union imposed severe sanctions.

Only about 1% of Swiss watches were exported to Russia last year, watch federation statistics http://www.fhs.swiss/eng/statistics.html show, but wealthy Russians also like buying luxury goods abroad.

Swatch Group is a wholesale partner for many watches, Hayek stated that it has 52 Russian stores.

Longines was one of the brands that opened its flagship Moscow store last year. The Tissot, a more budget-friendly brand from Swatch Group, also expanded its retail network, and has signed deals for pop-up monobrand stores throughout Russia. Last year, two stores opened in Moscow by its Swatch brand.