Trade Delegation Campaign: Switzerland
UANI’s Switzerland Campaign highlights the extensive Iran business activities of Swiss firms, and the refusal of the Swiss government to join the international community in implementing robust sanctions against the Iranian regime. As one of the world's key commodity trading and banking hubs, Switzerland’s Iran business enables the regime to offset the effects of ongoing sanctions and supports the regime’s industrial sector and even its nuclear program.
Switzerland's economic and foreign policy largely conforms with the EU, its main trading partner. Although not a party to the JCPOA, the Swiss Government announced on October 21, 2015, that Swiss sanctions against Iran would be lifted at the same time as those of the UN and the EU. Most notably, this repealed the Swiss Government’s funds transfer controls.
During the height of sanctions,Switzerland's refusal to adopt critical EU-backed embargo measures enabled Geneva-based oil trader Vitol to buy 2 million barrels of fuel oil from Iran in July 2012 and profit from its sale to Chinese traders. U.S. Ambassador to Switzerland Donald S. Beyer expressed “disappointment” that Switzerland failed to join the EU oil embargo.
Switzerland has also permitted the Iranian regime to operate front companies for its sanctioned oil sector on its territory. For example, the Swiss-based Naftiran Intertrade Company and Petro Suisse Intertrade Company are both under U.S. and EU sanctions. Naftiran has been described as a virtual “offshore arm of the National Iranian Oil Company.”
Swiss officials have defended their country’s close business ties to Iran by arguing that the Swiss government only supports those sanctions imposed by the United Nations. Even by its own standards though, Switzerland falls well short. In March 2013, it was revealed that Swiss commodity traders Glencore and Trafigura had engaged in barter arrangements with the Iranian Aluminum Company (Iralco) that provided Iralco with thousands of tons of alumina in exchange for aluminum metal. At the same time, Iralco has provided aluminum (potentially produced from Swiss supplied alumina) for Iran’s nuclear program through a contract with the sanctioned Iran Centrifuge Technology Co. (TESA), which is, in turn, a subsidiary of the Atomic Energy Organization of Iran (AEOI). According to a confidential report by the U.N. Expert Panel monitoring Iran sanctions enforcement, Glencore and Trafigura’s metal swaps deals.
The Swiss government’s failure to implement robust sanctions against Tehran and the Swiss business community’s dubious trade with Iran make Switzerland a flagrant outlier in addressing the Iranian regime’s illicit nuclear aspirations. Now is the time for Switzerland to stop counteracting the will of the international community, and correct its irresponsible Iran policies.
UANI’s Switzerland Campaign highlights the extensive Iran business activities of Swiss firms, and the refusal of the Swiss government to join the international community in implementing robust sanctions against the Iranian regime. As one of the world's key commodity trading and banking hubs, Switzerland’s Iran business enables the regime to offset the effects of ongoing sanctions and supports the regime’s industrial sector and even its nuclear program.
Switzerland's economic and foreign policy largely conforms with the EU, its main trading partner. Although not a party to the JCPOA, the Swiss Government announced on October 21, 2015, that Swiss sanctions against Iran would be lifted at the same time as those of the UN and the EU. Most notably, this repealed the Swiss Government’s funds transfer controls.
During the height of sanctions,Switzerland's refusal to adopt critical EU-backed embargo measures enabled Geneva-based oil trader Vitol to buy 2 million barrels of fuel oil from Iran in July 2012 and profit from its sale to Chinese traders. U.S. Ambassador to Switzerland Donald S. Beyer expressed “disappointment” that Switzerland failed to join the EU oil embargo.
Switzerland has also permitted the Iranian regime to operate front companies for its sanctioned oil sector on its territory. For example, the Swiss-based Naftiran Intertrade Company and Petro Suisse Intertrade Company are both under U.S. and EU sanctions. Naftiran has been described as a virtual “offshore arm of the National Iranian Oil Company.”
Swiss officials have defended their country’s close business ties to Iran by arguing that the Swiss government only supports those sanctions imposed by the United Nations. Even by its own standards though, Switzerland falls well short. In March 2013, it was revealed that Swiss commodity traders Glencore and Trafigura had engaged in barter arrangements with the Iranian Aluminum Company (Iralco) that provided Iralco with thousands of tons of alumina in exchange for aluminum metal. At the same time, Iralco has provided aluminum (potentially produced from Swiss supplied alumina) for Iran’s nuclear program through a contract with the sanctioned Iran Centrifuge Technology Co. (TESA), which is, in turn, a subsidiary of the Atomic Energy Organization of Iran (AEOI). According to a confidential report by the U.N. Expert Panel monitoring Iran sanctions enforcement, Glencore and Trafigura’s metal swaps deals.
The Swiss government’s failure to implement robust sanctions against Tehran and the Swiss business community’s dubious trade with Iran make Switzerland a flagrant outlier in addressing the Iranian regime’s illicit nuclear aspirations. Now is the time for Switzerland to stop counteracting the will of the international community, and correct its irresponsible Iran policies.
Top Offenders
| Company | Sector | Nature of Business |
| Commodity Trading |
In March 2013, it was revealed that Glencore had signed a barter arrangement with the Iranian Aluminum Company (Iralco) in August 2011 that provided Iralco thousands of tons of alumina in exchange for a lesser amount of aluminum metal. Iralco has provided aluminum (produced from alumina) for Iran’s nuclear program through a contract with the UN-sanctioned Iran Centrifuge Technology Co (TESA), which is a subsidiary of the blacklisted Atomic Energy Organization of Iran (AEOI). Glencore stated the barter arrangement ended in October 2012. In September 2009, Glencore announced that it had stopped gasoline sales to Iran, and in July 2012, halted all Iran oil trade. |
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| Commodity Trading |
After the revelations about Glencore, Trafigura confirmed in March that it had also supplied Iralco with alumina in exchange for aluminum. The swap agreement was reached in October 2011 and ended with the signing of EU sanctions targeting such trade in December 2012. In November 2009, Trafigura announced that it had stopped gasoline sales to Iran, and in July 2012, halted all Iran oil trade. |
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Government of Switzerland |
Governmental |
The Swiss government has failed to responsibly join the international community in implementing robust sanctions against the Iranian regime. This dubious position has enabled Swiss businesses to continue brisk trade with Iran, and permitted the Iranian regime to continue operating front companies for its sanctioned oil sector on Swiss territory. |
Swiss Companies Reportedly Active in Iran
| Company | Sector | Nature of Business |
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Engineering |
Swiss trading company with an office in Tehran, Iran. |
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Banking |
In January 2017, the Reserve Bank of India, based on information obtained from the Indian Embassy in Tehran, named Banque Heritage SA as one of a number of international banks with correspondent banking relationships with Iranian banks. |
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Bank |
Following discussions with UANI, BCP stated it would no longer do business in Iran and assured UANI that its decision included the provision of correspondent banking services to all Iranian banks. However, it has since been reported that BCP has resumed working with Iran. |
| Tunneling |
Tunneling firm recently signed a tunneling technology contract worth over €1 billion with the Rahab Engineering Establishment, an IRGC entity. |
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| Banking |
In 2010, Credit Suisse agreed to a $536 million settlement over "egregious violations" that saw the bank process almost 5,000 transactions from August 2003 to November 2006 to the benefit of Iran. |
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| Industrial Metals |
Duferco S.A., according to its website, runs a representative trade office out of Tehran, functioning as Kemco AG. According to the branch's commercial manager, Kemco AG sells steel raw materials to domestic mills inside Iran. |
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| Energy |
The energy trading company signed a multi-billion-dollar contract with Iran in 2007 to buy 5.5 billion cubic meters of Iranian natural gas per year for the next 25 years. The contract is reportedly suspended. |
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| Luxury |
The luxury goods holding company has several subsidiaries active in Iran: Alfred Dunhill, Baume & Mercier, Cartier, IWC Schaffhausen, Panerai, Piaget, and Vacheron Constantin. |
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Financial Services |
In May 2016, Python, the Swiss-based law firm, opened an office in Tehran, Iran to advise foreign multinationals on how to operate in Iran. |
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Financial Services |
Launched a joint venture with Turquoise Partners of Iran, to establish $200 million fund. |
| Luxury |
The Swiss luxury watchmaker lists an official retailer in Tehran. |
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| Shipping |
Swiss engine manufacturer, whose engines are used in Iranian oil tankers.In 2016 Sulzer said the firm had established ties with two Iranian petrochemical companies. |
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| Luxury |
The luxury conglomerate and its subsidiaries Blancpain, Breguet, Glashutte Original, Jaquet Droz, Longines, Omega, and Rado are active in Iran. |
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| Luxury |
The Swiss luxury watchmaker lists an official boutique and multiple authorized retailers in Iran. |
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TL Technology
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Technology |
The Swiss-based engineering and trading company is represented in Tehran, Iran by TL Technology Ltd. |
UANI Corporate Campaigns
| Company | Sector | Nature of Business |
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Engineering |
Following discussions with UANI in June 2011, ABB, a Swiss-based Fortune 500 engineering firm, ended its oil and gas business in Iran in response to a notice received from the California Department of General Services, which has been using UANI’s Iran Business Registry to vet state contractors.However, following the removal of international sanctions, the Group reopened an ABB office in Tehran, Iran in January 2016. |
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Manufacturing |
Following discussions with UANI in July 2017 over reported operations in the Iranian market, Swiss-based manufacturing company confirmed it terminated its Distribution Agreement with the Iranian company Ramor Group and is no longer distributing products to the Middle East. |
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GGI Geneva Group International AG
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Financial Services |
Following discussions with UANI in June 2016, Swiss-based law firm GGI confirmed it does not have any member firms in Iran. |
| Banking |
Following the launch of UANI's Switzerland Campaign, Hinduja Bank contacted UANI, and stated that it "has stopped engaging in any transactions connected in any manner with Iran or with any Iranian domiciled persons, entities or vessels." |
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| Commodity Trading |
In July 2012, Vitol "bought 2 million barrels of fuel oil... from Iran and offered it to Chinese traders." Following disclosure of this transaction, Vitol announced in September 2012 that it had ceased all trade in Iranian crude oil and oil products.However, in January 2017, it was reported that Vitol clinched a deal with the National Iranian Oil Company to loan it an equivalent of $1 billion euros guaranteed by future exports of refined products. |
