Iran–Switzerland relations explained

Iran–Switzerland relations are foreign relations between the Islamic Republic of Iran and the Swiss Confederation.

Switzerland has had a consulate in Tehran since 1919 which was raised to the status of embassy in 1936 and also represents the interests of the United States in Tehran. Switzerland has also represented Iran in Canada, Israel, and Saudi Arabia.[1] [2]

History

Notable Monarchy-era Iranians who lived and studied in Switzerland

Former Iranian Prime Minister, Mohammad Mosaddegh obtained his Doctorate of Laws (doctorat en droit) at the University of Neuchâtel in Switzerland, 1911. As a child, Mohammad Reza Pahlavi, the Shah of Iran attended Institut Le Rosey, a Swiss boarding school, completing his studies there in 1935.

1979 Revolution

Switzerland becomes the "protecting power" of the United States in Iran after the Iranian Revolution of 1979.

Since May 1980, the Swiss embassy in Tehran has been consistently relaying diplomatic communications between Iran and the United States.[3]

Iran–Iraq war

Beginning in 1984, victims of the Iran–Iraq War received medical treatment in neutral Switzerland, while Swiss companies were doing multibillion-dollar business with Iraq at the same time. Cooperation on the national level to prevent natural catastrophes was initiated in 2006.

Murder of Kazem Rajavi

Ali Fallahian, an Iranian politician and cleric who served as a member of the 3rd Assembly of Experts of the IRI and as the Minister of Intelligence of Islamic Republic of Iran in cabinet of President Hashemi Rafsanjani was charged by a Swiss court[4] [5] with masterminding the assassination of Kazem Rajavi, a brother of Mujahedin-e Khalq leader Massoud Rajavi, near Geneva in broad daylight by several agents on April 24, 1990.[6]

Crypto AG and espionage case

In 1992, Hans Buehler an employee of Swiss firm Crypto AG was detained in Iran on charges of espionage. He was later released by the Iranian authorities after the firm paid a 1 million dollar bond.[7] Soon after Buehler's release Crypto AG dismissed him and charged him the $1m. Swiss media and the German magazine Der Spiegel took up his case in 1994, pursuing the question of whether Crypto's machines had in fact been rigged by Western intelligence (namely the NSA).[8] [9] [10] [11] In 2020, a Swiss parliamentary investigation revealed that in fact "Swiss intelligence service were aware of and benefited from the Zug-based firm Crypto AG’s involvement in the US-led spying".[12]

Friedrich Tinner, the Iranian nuclear program and the CIA

Friedrich Tinner is a Swiss engineer, connected with the Khan network trafficking in the proliferation of nuclear materials and know-how to Pakistan, Iran, Libya, and North Korea. He has been connected in particular with gas centrifuges used for isotopic enrichment of uranium.[13] In May 2008, the President of the Swiss Confederation, Pascal Couchepin announced that the Tinner files, believed to number around 30,000 documents, had been shredded.[14] It is alleged that this was a cover-up, to hide the involvement of Urs Tinner with the CIA.[15] [16]

Swiss diplomat arrested on sexual charges

In February 2009, the Iranian police arrested Marco Kämpf, the Swiss diplomat acting as the First Secretary of the US Interests, on sex charges after finding him with an Iranian woman in a car. The diplomat was recalled to Switzerland.[17] [18]

Human rights dialogue and the 2009 Swiss vote on minarets

See also: Human rights in Iran. The two countries have been engaged in a human rights dialogue since 2003 and in discussions on migration since 2005. Following a constitutional amendment banning the construction of new minarets in Switzerland in 2009, Iran described the Swiss vote as "Islamophobic" and a blow to religious freedom.

Security incidences at the Iranian embassy in Bern

In November 2011, Swiss police investigated two minor attacks on the Iranian Embassy in Bern.[19] [20]

On 1 October 2022, Swiss police had to use rubber bullets to disperse a crowd of a thousand protesters in front of the Iranian embassy in Bern. The demonstrators protested against the death of a young woman in Iranian police custody the month before.[21]

Tax evasion

In 2014, international medias reported Iranian nationals to be listed among the tax evaders in Switzerland.

Death of Swiss diplomat

In 2021, Iranian authorities found the dead body of a Swiss diplomat at the base of a tower in Tehran. The cause of the fall was “unknown”.[22]

Diplomatic representation on behalf of the United States

The Swiss diplomatic corps in Tehran has represented U.S. interests soon after the Islamic revolution in 1979. A number of crucial agreements such as the JCPOA in 2015 but particularly direct affairs such as the exchange of U.S. and Iranian detainees in 2023 were negotiated through the Swiss protecting power mandate. Secretary of State Antony Blinken thanked Switzerland for its valuable service during the prisoner swap in 2023.

The Iranian Foreign Ministry summoned Swiss charge d'affaires in September 2023. Earlier, U.S. Secretary of State Antony Blinken met with the Gulf Cooperation Council (GCC) Secretary General Jasem Mohamed AlBudaiwi and GCC member states' foreign ministers in New York and issued a joint statement that included a warning to Iran “to cease its proliferation of dangerous weapons that pose a grave security threat to the region". Despite an improved diplomatic climate between the U.S. and Iran and renewed diplomatic relations between Saudi Arabia and Iran, Tehran claims the plunder by the U.S “of the region's wealth and resources through pursuing its Iranophobia policy." The Swiss diplomat assured to convey Iran's protest to Washington as soon as possible.[23]

Bilateral relations

Marking 100 years of high-level diplomatic ties, Swiss president Ignazio Cassis made an official visit to Iran from 5 to 7 September 2020. Mr Cassis‘ encounter with Iranian President Hassan Rouhani, Foreign Minister Mohammad Javad Zarif and Secretary of the Supreme National Security Council Ali Shamkhani underscored the successful bilateral ties and continued presence of Swiss companies and institutions in Iran. Swiss Representatives of the national security and foreign affairs committees were also present at the talks. Swiss officials were introduced to the new speaker of the Iranian Parliament Mohammad Bagher Qalibaf, reflecting the excellent cooperation between the two nations. Discussions on the ongoing Swiss humanitarian channel were another important topic during the visit by the Swiss president.

Trade

Oil trade

See also: Naftiran Intertrade.

Marc Rich, a US-Israeli businessman with international ties, entered Iran through his Glencore company headquartered in Switzerland. Rich ignored US and international sanctions on Iran and became the major trader of Iranian oil for 15 years.[24]

Arms trade with Israel and Swiss banks

See also: Iran-Israel relations and Iran-Contra. The Observer estimated that Israel-based private arms dealers sold Iran US-made weapons during the Iran–Iraq War totaled US$500 million annually, to supply Iran's Shah-based arsenal at the time.[25] Time magazine reported that throughout 1981 and 1982, "the Israelis reportedly set up Swiss bank accounts to handle the financial end of the deals”.[26] [27]

Trade agreements

See also: Iran and WTO. There are agreements between the two countries on air traffic (1954, 1972 and 2004), road and rail transport (1977), export risk guarantees (1966), protection of investments (1998) and double taxation (2002). Iran is one of Switzerland's most important trading partners in the Middle East. Swiss-Iranian economic treaties already exist for investment protection, double taxation and aviation.[28] A trade agreement was signed in 2005 but has not yet been ratified. In 2010, the volume of trade with Iran was about 741 million Swiss francs; Switzerland exported goods for about 700 million francs, and it has imported goods to 41 million Swiss francs. The main goods exported by Switzerland are pharmaceutical products, machinery and agricultural products.[29] Switzerland exports to Iran totaled nearly US$1.9 billion in the ten-month period ending on January 31, 2014. In 2017, Iran continued to import a significant amount of Swiss goods and services worth US$2.18 billion (4.3% of total imports) while Iranian exports to Switzerland only accounted for US$12 million during the same time period. According to national statistics, both exports from the EU and Switzerland to Iran dropped sharply after 2017, including those for pharmaceutical products.[30] In early 2020, Geneva-based bank BCP and a large Swiss drugmaker were participating in the initial pilot shipment of essential medicines worth 2.3 million euros ($2.55 million).[31] In July 2020, the State Secretariat for Economic Affairs (SECO) announced that the first transaction under the humanitarian trade agreement had been completed. In October 2020, the Trump administration further expanded U.S. sanctions to all Iranian financial institutions, thereby complicating additional exports under the agreement.[32] In 2021, the Iran-Switzerland Chamber of Commerce noted an uptick in the trade between the two countries despite challenging banking operations. IRNA reported an increase of imports from Switzerland to 672,000 tons ($539 million) during the first four months of 2021, mostly in form of medical products and organic cereal. In 2021, Switzerland has become the fifth largest exporter to Iran, after the UAE, China, Turkey and the European Union.[33]

2007 gas contract

In the year 2007, Iran and Switzerland signed a major 25-year gas contract to export over 5 billion cubic meters of gas per year from the Persian Gulf reportedly valued at 18 billion euros.[34] Starting with 1.5 billion cubic meters per year in 2010, to be increased to 4 bcm by 2012. This contract has been signed between the Switzerland's company of Elektrizitätsgesellschaft Laufenburg (EGL) and the National Iranian Gas Export Company which will be started practically at the beginning of 2009.[35] [36] There is some skepticism that Iran will not be able to supply gas to Switzerland for the foreseeable future because no pipeline connects Iran to Europe at present.[37] In February 2010, Iran announced it is ready for gas export to Switzerland.The deal was aimed at reducing Bern's dependency on Russian gas. In October 2010, EGL announced the unilateral suspension of the gas contract with Iran.[38] [39]

International sanctions

See also: sanctions against Iran. Switzerland and Iran have greatly reduced their bilateral economic cooperation since the UN Security Council took up Iran's nuclear enrichment program in 2005. The Swiss government has been cooperating with the U.S. to freeze banking accounts and other financial assets belonging to individuals involved in the Iranian nuclear program; Switzerland has also committed to block the sale of dual-use items.[40] Vitol and Glencore, 2 Swiss-based firms, were also major re-sellers of gasoline to Iran until recently but have since stopped trading with the country.[41] [42] In January and December 2011, Switzerland expanded its unilateral sanctions against Iran.[43] The Swiss Federal Council said in a statement in January 2014 that it had suspended part of its economic sanctions against Iran in accordance with the Geneva nuclear accords between Tehran and the six world powers but the trade barriers are still officially in place. Based on a statement by Swiss President Didier Burkhalter at the 9th World Economic Forum, it will be a step by step process and the official removal of all trade sanctions will depend on the final agreement about Iran's nuclear program.[44] The adoption of the Joint Comprehensive Plan of Action (JCPOA) took place in the Swiss city of Geneva and the general framework of the current agreement was concluded on April 2, 2015 in Lausanne.[45] In 2016, following the implementation of the JCPOA with P5+1, Switzerland lifted all unilateral sanctions against Iran pertaining to its nuclear program and Johann Schneider-Ammann became the first ever Swiss president to visit Iran.[28] [46] [45]

After the Trump administration unilaterally canceled the Joint Comprehensive Plan of Action (JCPOA), economic sanctions were reimposed in 2018, and further tightened in late 2019 by designating the Central Bank of Iran (CBI) under U.S. counterterrorism authorities, as well as imposing restrictions on cargo shipping from and to Iran. Swiss food and pharmaceutical companies have continued to do business with Iran, but due to the strict financial sanctions, even payments for exempt goods were difficult to process by Iranian and Swiss banks.[47] [48]

In November 2022, Switzerland adopted additional EU sanctions against Shahed Aviation Industries, the manufacturer of the Shahed drones, used by Russia in its war against Ukraine, as well as three senior Iranian military officers. But Switzerland did not impose additional EU sanctions following the death of Mahsa Amini as the 'diplomatic approach' was given priority. Switzerland holds several protecting power mandates carried out on behalf of Iran.[49]

Humanitarian channel

In late January 2020, the Swiss Humanitarian Trade Arrangement (SHTA) with Iran was implemented, assuring export guarantees through Swiss financial institutions for shipments of food and medical products to the Islamic republic.

On 15 June 2021, Swiss Foreign Minister Ignazio Cassis and US president Joe Biden said during a press interview in Geneva, Switzerland, they would both support more payments through the rarely used Swiss-Iranian humanitarian channel.[50] [51]

See also

External links

Notes and References

  1. Web site: Switzerland to represent Iranian interests in Canada. Swissinfo.
  2. News: . Swiss Back Channel Helped Defuse U.S.-Iran Crisis . January 12, 2020 . Drew . Hinshaw . Joe . Parkinson . Benoit . Faucon . https://archive.today/20200113141647/https://www.wsj.com/articles/swiss-back-channel-helped-defuse-u-s-iran-crisis-11578702290 . January 13, 2020.
  3. Web site: Countries. Iran. 14 April 2023. state.gov.
  4. Web site: Swiss orders arrest of Iranian ex-minister. Swissinfo.org. January 11, 2018. September 30, 2007. https://web.archive.org/web/20070930210827/http://www.swissinfo.org/eng/swissinfo.html?siteSect=106&sid=6617021&cKey=1144592966000. dead.
  5. Web site: People's Daily Online – Switzerland orders arrest of Iranian ex-minister on murder charges. English.peopledaily.com. May 18, 2016.
  6. Web site: Xinhua – English. News3.xinhuanet.com. May 18, 2016. https://web.archive.org/web/20160303232410/http://news3.xinhuanet.com/english/2006-04/10/content_4403509.htm. March 3, 2016. dead.
  7. Web site: Breaking Iranian codes. Schneier. Bruce. June 15, 2004. Crypto-Gram newsletter.
  8. http://www.letemps.ch/Page/Uuid/5d6f440e-4749-11e5-85d0-41b5fd577541/La_lune_de_miel_secr%C3%A8te_entre_la_Suisse_et_le_renseignement_international Mehdi Atmani: La lune de miel secrète entre la Suisse et le renseignement international
  9. News: Scott. Shane. Tom Bowman. No Such Agency, part four: Rigging the game. The Baltimore Sun. 9–11. December 4, 1995. December 19, 2008. https://web.archive.org/web/20080720180806/http://jya.com/nsa-sun.htm. July 20, 2008. dead. Archived online March 8, 1997.
  10. http://english.ohmynews.com/ArticleView/article_view.asp?no=381337&rel_no=1 The NSA-Crypto AG Sting – OhmyNews International
  11. Web site: Investigation opened into Swiss encryption firm linked to CIA. SWI swissinfo.ch. September 13, 2020.
  12. Web site: Swiss intelligence benefited from CIA-Crypto spying affair . November 10, 2020 . www.swissinfo.ch . dead . https://web.archive.org/web/20201111022708/https://www.swissinfo.ch/eng/swiss-intelligence-benefited-from-cia-crypto-spying-affair/46153706 . 11 November 2020.
  13. émissions – temps présent – Les espions qui venaient d'Helvétie. tsr.ch (January 22, 2009). Retrieved July 23, 2010.
  14. Nuclear bomb blueprints for sale on world black market, experts fear . The Guardian . UK . Ian Traynor . May 31, 2008.
  15. In Nuclear Net's Undoing, a Web of Shadowy Deals . New York Times . August 24, 2008 . William J. Broad and David E. Sanger.
  16. Web site: US delivers legal aid in nuclear probe . https://archive.today/20130115222010/http://www.swissinfo.ch/eng/front/US_delivers_legal_aid_in_nuclear_probe.html?siteSect=105&sid=7301039&cKey=1164805998000&ty=st . dead . January 15, 2013 . November 28, 2006 . Swissinfo.ch .
  17. News: Swiss call diplomat home—but is there a scandal?. Iran Times International. February 20, 2009. Washington, DC.
  18. News: Schweizer Diplomat nicht mehr im Iran tätig . dead . 20 Minuten . February 9, 2009 . https://web.archive.org/web/20161229101444/http://www.20min.ch/news/kreuz_und_quer/story/18437312 . December 29, 2016 . December 29, 2016.
  19. Web site: Swiss police: Iran embassy attacked – Nov. 30, 2011. November 30, 2011. Kyivpost.ocm. January 11, 2018.
  20. Web site: Iranian embassy in Bern is not safe: ambassador. https://archive.today/20120904044703/http://www.mehrnews.com/en/newsdetail.aspx?NewsID=1478270. 2012-09-04. dead. September 13, 2020.
  21. https://www.swissinfo.ch/eng/hundreds-of-swiss-demonstrate-against-iranian-repression/47946352 "Hundreds of Swiss demonstrate against Iranian repression"
  22. Web site: Swiss diplomat in Iran found dead after 'fall from tower block'. www.aljazeera.com. April 14, 2023.
  23. https://english.news.cn/20230923/633096abbd004a3b981fb72406f29bc1/c.html “Iran summons Swiss charge d'affaires over U.S. anti-Tehran claims”
  24. News: Marc Rich, the Man Who Sold Iranian Oil to Israel. Haaretz.
  25. Web site: Israeli Arms Sales to Iran.
  26. Web site: From Many Strands, a Tangled Web - TIME . www.time.com . 12 January 2022 . https://web.archive.org/web/20080408171452/http://www.time.com/time/magazine/article/0,9171,963021,00.html . 8 April 2008 . dead.
  27. For more on Israeli Hawk missile sales to Iran see Richard Johns, "Arms Embargo Which Cannot Withstand The Profit Motive," Financial Times (London), 13 November 1987)
  28. Web site: Swiss brands advised to risk Iranian market. John Heilprin. swissinfo.ch. SWI swissinfo.ch. May 18, 2016.
  29. Web site: Admin.ch - Iran: Le Conseil fédéral veut la sécurité juridique et entend prévenir les contournements . March 26, 2011 . https://web.archive.org/web/20121011124225/http://www.admin.ch/aktuell/00089/index.html?lang=fr&msg-id=37283 . October 11, 2012 . dead .
  30. https://wits.worldbank.org/CountryProfile/en/Country/IRN/Year/2017/TradeFlow/Import/Partner/all/Product/Total Iran Imports By Country
  31. https://www.reuters.com/article/us-swiss-iran/cancer-transplant-drugs-open-swiss-humanitarian-channel-to-iran-idUSKBN1ZT205 "U.S. says first shipments of medicine to Iran delivered via Swiss humanitarian channel"
  32. Lee M. (Oct. 2020), "US hits all of Iran’s financial sector with sanctions". AP News. Retrieved 12 October 2020.
  33. https://financialtribune.com/articles/domestic-economy/109762/irans-trade-ties-with-switzerland-flourishing-under-sanctions "Iran's Trade Ties With Switzerland Flourishing Under Sanctions".
  34. https://fpc.state.gov/documents/organization/107234.pdf Iran's Economy
  35. http://www.tehrantimes.com/index_View.asp?code=167664 US feels the heat after Iran-Switzerland $42b gas deal
  36. https://archive.today/20130115210141/http://www.swissinfo.ch/eng/news/social_affairs/United_States_seeks_copy_of_Iran_gas_contract.html?siteSect=204&sid=8912377&cKey=1206955208000&ty=nd Washington seeks copy of Iran gas contract with Switzerland
  37. Web site: We're sorry, that page can't be found . June 25, 2017 . https://web.archive.org/web/20170627081501/https://fpc.state.gov/documents/organization/107234.pdf . June 27, 2017 . dead .
  38. http://www.letemps.ch/Page/Uuid/3346ff30-4f43-11e0-8c91-860209a8f825/Quand_la_Suisse_joue_et_perd_en_Iran
  39. http://www.foxbusiness.com/news/2012/03/14/swiss-iranian-gas-deal-remains-suspended-due-to-sanctions-minister/
  40. http://www.irantracker.org/foreign-relations/switzerland-iran-foreign-relations Switzerland – Iran Foreign Relations
  41. Kittrie, Orde F. (November 13, 2008) How to Put the Squeeze on Iran – WSJ.com. Online.wsj.com. Retrieved July 23, 2010.
  42. https://www.theguardian.com/business/feedarticle/8482597 Iran's May gasoline imports up 37 pct on yr | Business | guardian.co.uk
  43. Web site: Iran Focus – Iran Focus. Iranfocus.com. September 19, 2006. May 18, 2016.
  44. http://www.srf.ch/news/wirtschaft/wef-2014 SRF Tagesschau vom 24. Jan. 2014.
  45. Web site: Partners In Time. The Business Year. January 11, 2018. January 11, 2018. https://web.archive.org/web/20180111224205/https://www.thebusinessyear.com/iran-2016/partners-in-time/guest-speaker. dead.
  46. Web site: La Suisse lève ses sanctions contre l'Iran suite à l'accord sur le nucléaire. rts.ch. January 17, 2016. May 18, 2016.
  47. https://www.npr.org/2019/08/24/753446099/iran-under-sanctions-a-scramble-for-cancer-care-and-blame-to-go-around "Iran Under Sanctions: A Scramble For Cancer Care And Blame To Go Around"
  48. https://www.reuters.com/article/us-swiss-iran-usa-exclusive/exclusive-swiss-humanitarian-channel-to-iran-seen-within-months-swiss-u-s-officials-idUSKBN1YF23E "Exclusive: Swiss humanitarian channel to Iran seen within months - Swiss, U.S. officials"
  49. https://www.swissinfo.ch/eng/swiss-adopts-latest-eu-drone-sanctions-over-ukraine-war/48022402 "Swiss adopt latest EU drone sanctions over Ukraine war"
  50. https://www.reuters.com/world/swiss-hail-constructive-us-approach-iran-after-biden-talks-2021-06-15/ "Swiss hail constructive U.S. approach to Iran after Biden talks"
  51. https://www.reuters.com/world/swiss-hail-constructive-us-approach-iran-after-biden-talks-2021-06-15/ "Iran says US approved its funds transfer to buy COVID vaccines"