Switzerland extends Iran petchem sanction relief

Switzerland says it will maintain a suspension of petrochemical sanctions against Iran until December in light of an extension of Iran nuclear talks.

The Swiss Cabinet said in a statement that it is following in the footsteps of the 28-nation European Union, which decided last month to maintain a suspension of Iran sanctions until November 24.

Switzerland originally lifted a ban on precious metal trade with Iran’s state-run entities in January, when the Islamic Republic and the five permanent members of the UN Security Council – Russia, China, France, Britain and the United States – plus Germany reached an interim deal.

The Swiss government also eased restrictions on transport of Iran’s oil and petroleum products as well as insurance coverage for shipments.

Iran’s petrochemical exports have increased six percent over the first quarter of the current Iranian calendar year (started March 21, 2014).

Iran produced 40 million tons of petrochemicals in the last calendar year, with USD 9 billion worth of its products being exported. The country plans to increase its petrochemical exports to USD 12 billion this year.

Iran is to hold one-on-one talks with six world powers over its nuclear energy program ahead of a scheduled high-level meeting in September.

Iran and its six negotiating partners are holding talks to reach a final agreement aimed at resolving the standoff over Tehran’s civilian nuclear work.

The two sides signed a historic interim deal in Geneva last November. The agreement entered into force on January 20 and expired six months later on July 20.

In July, Tehran and the six states agreed to extend the discussions until November 24 in a bid to work out a final accord.