The Swiss government cited expanded sanctions on luxury exports to North Korea.
Heavy rains and landslides have already delayed the project, viewed as a response to South Korea hosting the 2018 Winter Olympic Games.
Kim Jong-un has ordered the army to complete the resort by year’s end.
The North Korean leader has repeatedly visited the Masik ski resort site and promoted it as an attempt to enhance the lifestyle of the nation’s citizens.
But Switzerland’s State Secretariat for Economic Affairs (Seco) labelled the resort a “prestigious propaganda project for the regime”.
“It is inconceivable that this resort will be used by the general public,” Seco spokeswoman Marie Avet said.
It is thought Kim Jong-un learned to ski in Bern, where he attended secondary school without revealing his true identity.
The ski lift deal with Swiss company Bartholet Maschinenbau, valued at more than $7 million, is reportedly the third to fall through due to sanctions.
Austrian and French manufacturers also turned down deals, citing political reasons.
kkQSFY_2t0MImage source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…
Millions of voters across the US chose to return Donald Trump to the White House…
Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…
Stocks around the world are rising as Donald Trump appears to be on the cusp…
Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…
Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…