This is very worrying. Who wants to buy something from a company (country) if you can’t use it if necessary. The defense industry of Switzerland will shrink even more. This will lead to a loss of a defense industrial base. Finally the country’s deterrent potential will be weakened. (It’s also cowardly if you ask me)

Did we expect them to do anything else?

Makes sense. They’re right next to Russia and don’t yet have the luxury of NATO protection. It’s one thing to seek NATO membership and another thing to actively arm Ukraine against Russia.