Swiss Government Advises Companies to Continue Trade Relations with Iran

The Swiss government has advised its companies to continue their business activities with Iran despite the re-imposition of U.S. sanctions against the country. This request comes after Donald Trump, the U.S. President, stated on his Twitter page regarding the official return of sanctions on Iran that 'anyone who does business with Iran will not do business with the United States.' The Swiss government expressed regret over the 'deteriorating situation' resulting from the return of U.S. sanctions on Iran, acknowledging that U.S. penalties may also affect Swiss companies with economic ties to Iran. Fabian Maienfisch, head of the Economic Secretariat of the Swiss Foreign Ministry, stated that U.S. sanctions will not affect the 'legal status' in Switzerland regarding Iran. He mentioned that Switzerland regrets the deteriorating situation related to U.S. sanctions against Iran. This official added that the Swiss federal government defends the economic interests of the country but cannot pressure companies in this regard. However, Maienfisch recommended that Swiss companies continue their trade relations with Iran and keep their information updated regarding the new conditions. The first round of U.S. sanctions against Iran has been implemented as of this Tuesday, targeting Iran's access to dollars, trade in metals, coal, industrial software, and the automotive industry, despite requests from its allies to postpone them. The U.S. has announced that the next phase of sanctions, which will start on November 4, will target Iran's oil industry and is currently working to reduce Iran's oil imports by its allies to zero. European countries have repeatedly urged Iran to adhere to the provisions of the nuclear agreement despite the U.S. withdrawal and have stated that they are trying to encourage their companies to continue trade relations with Iran while mitigating the effects of U.S. sanctions. Meanwhile, many prominent European companies have exited Iran, stating they are unwilling to accept the risks of doing business with Iran and facing potential U.S. penalties. However, the Swiss company Nestlé, which produces baby food and bottled water in Iran, recently announced that the new U.S. sanctions against Iran will not have any direct impact on its operations. Federica Mogherini, the EU's High Representative for Foreign Affairs, recently stated that the EU encourages companies and traders to increase exchanges with Iran, deeming it essential for preserving the nuclear agreement, international security, and the treaty on the non-proliferation of nuclear weapons.