Swiss weapons makers, stymied by Ukraine ban, find solace in Qatar export surge

Switzerland’s exports of arms and ammunition grew by almost a third last year, even though manufacturers complain the country’s longstanding neutrality puts them in an existential bind.

Swiss-made arms worth 955 million Swiss francs ($1 billion) were exported in 2022, up 29% from a year earlier, the government said Tuesday. Shipments to Europe now only account for half of total exports — down from about two thirds in 2021 — while more shipments are going to the Middle East.

Qatar topped the list, receiving air defense systems and other arms totaling 213 million francs. It was followed by Denmark, Germany, Saudi Arabia and the US, who bought armored vehicles and various types of ammunition.

Russia’s invasion of Ukraine has put Swiss manufacturers in a tight spot, as the country’s neutral stance means the government prohibits arms sales to countries at war. If a NATO member became part of the war in Ukraine, Swiss weapons makers would have to cease shipments to all NATO countries immediately, according to political experts.

Based on that neutrality principal, Switzerland also bans re-exports of its arms. This prevents European partners like Germany and Denmark from sending Swiss-made weapons to Ukraine.

An initiative to soften the restrictive law has recently gained traction, but given the country’s complicated system of consensus-based rule, its outcome is unclear.

To circumvent restrictions, Germany’s Rheinmetall AG last month moved production of anti-aircraft rounds from Switzerland to Germany, a move also mulled by some Swiss producers. 

“You can either produce abroad or you will go bankrupt in the medium term,” a Swiss industry spokesman said.

While the topic polarizes, weapons deliveries play a minor role for the Swiss economy — they accounted for just 0.25% of total goods exports last year.