Russian agents have seized millions of dollars worth of Audemars Piguet watches in Moscow in apparent retaliation for Swiss sanctions banning exports of luxury goods, Swiss newspaper NZZ am Sonntag reported.

The expensive watches were seized from the company’s local premises by Russian FSB special agents, the newspaper said, citing people familiar with a confidential memo from the Swiss Federal Department of Foreign Affairs.

Switzerland, home to many of the world’s top watch brands, has abandoned its traditional stance of neutrality and is matching European Union sanctions banning the export of luxury goods to Russia earlier this month in response to the invasion from Ukraine.

Russian authorities cited customs offenses as the reason for the seizure of Audemars Piguet watches, but Swiss foreign ministry officials said the move was “most likely an arbitrary repressive measure in response to sanctions”, the newspaper reported. , citing the memo.

Audemars Piguet officials did not immediately respond to emails seeking comment. The Swiss watchmaker has halted Russian exports and suspended retail operations in Russia, a company spokesperson told Bloomberg News on March 8.

A spokesperson for the Swiss Department of Foreign Affairs said that the Swiss Embassy in Moscow provides business support in Russia in coordination with other departments and that “within the framework of Russian sanctions and countermeasures, the companies face many uncertainties and regulatory measures”.

“The embassy is currently maintaining a very intensive exchange” with local Swiss businesses in Russia, the spokesperson said in an email response to Bloomberg News. “Individual cases therefore cannot be commented on, also to ensure the safety of the employees of these companies.”

For many of Europe’s leading consumer-facing companies, a large-scale exit from Russia has proven difficult. Companies, including Swiss packaged food giant Nestle SA, have thousands of employees and sensitive production facilities that risk being seized and recriminated by Russia if they were to leave.

Family owned and controlled for nearly 150 years, Audemars Piguet is one of the three largest independent Swiss watch brands, along with Patek Philippe and Rolex.

Russia was the 17th largest export market for Swiss watches in 2021, accounting for 260 million francs ($278 million) in shipments, according to the Federation of the Swiss Watch Industry.