Switzerland Expects Limited Impact From US Sanctions on Iran

The reintroduction of economic sanctions against Iran by the United States is unlikely to have a major impact on Swiss businesses.

The State Secretariat for Economic Affairs (SECO) said the legal situation remained unchanged and simply advised Swiss companies doing business in Iran to monitor the situation, the Swiss News Agency reported. Washington reimposed sanctions against Tehran over its nuclear policy on Tuesday.

Three months ago, US President Donald Trump announced the United States’ withdrawal from the 2015 multinational nuclear deal that offered Iran sanctions relief in exchange for ending its enrichment program.

SECO said that the Swiss government will try to prevent negative consequences for Swiss business, but that possibilities to influence Washington’s sanctions policy were very limited.

Swissmem, the umbrella group of the electrical and mechanical engineering industry, said it expected no major impact as Swiss-Iran trade relations have been modest.

In 2017, Swiss exported goods and services worth CHF532 million ($534 million). Ten years before, exports amounted to CHF800 million.

Washington has threatened to punish companies that ignore the sanctions against Iran, Swissinfo reported.