Tougher economic sanctions on Russia could hit revenues at Swiss luxury watchmaker Swatch Group, but the impact is likely to be short term, the company's CEO told CNBC.
European foreign ministers are meeting on Tuesday to discuss further sanctions against Russia, after the downing of the Malaysia Airlines Flight MH17 over Ukraine. Russia has been accused of providing the missile system that allegedly shot the civilian plane down.
New sanctions could include asset freezes and travel bans for some of Russia's wealthiest citizens¬-potentially hitting luxury goods companies.
However, Swatch Group CEO Nick Hayek said any impact was likely to be temporary.
"Of course, there can be an impact short-term, but there is enough other opportunities in the world that will compensate for this," Hayek told CNBC in a TV interview on Tuesday. "We are here for the long run, and what we are doing is to serve the consumers in all parts of the world."
'Victim' of own success
Swatch Group, which owns the Omega and Harry Winston watch brands, reported net income of 680 million Swiss francs ($755 billion) for the first half of 2014 on Tuesday, down 11.5 percent from the same period last year. The company said a strong Swiss franc as well as a "high level" of marketing expenses for the Russian Sochi Winter Olympics had weighed on earnings.