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The National Council, the lower house of the Swiss parliament, has voted against an amendment that would allow the re-export of Swiss-made weaponry to third countries, such as Ukraine, the news agency Swissinfo reported on June 2.
The discussion about the transfer still continues and there are several more proposals pending in the parliament.
Members of the Council of States, the parliament's upper house, recommended easing the restrictions on arms re-exports on May 12.
The move would have opened new possibilities for the re-export of Swiss arms to Ukraine's military.
Following Switzerland's long-term neutrality policy, the country's law does not currently allow the delivery of Swiss weapons to combat zones, even when supplied by an intermediary country.
Earlier on June 2, the Dutch government announced plans to buy several dozens of Leopard 1 tanks for Ukraine, potentially from Switzerland.
The latest decision by Bern could present an obstacle to Amsterdam's plan.