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Switzerland is close to launch an initiative to let companies sell food. medicine and medical devices to Iran by using a payment channel that would be the first such mechanism to win Washington’s approval since it reimposed sanctions against Tehran.
Bern’s humanitarian supplies plan — which is the subject of delicate ongoing talks with the US and Iran — comes as leading EU powers hope within weeks to set up a much-touted mechanism to finance broader trade with Tehran. English daily Financial Times reported on Wednesday.
The simultaneous efforts highlight the transatlantic schism since President Donald Trump pulled out of a landmark international nuclear deal with Iran in May.
While Switzerland’s work is consistent with Washington’s insistence that it will continue to allow humanitarian trade with Tehran. the US officials have denounced the EU for its efforts to defy re-imposed US sanctions on industries ranging from oil to finance.
The Swiss economic affairs department told the Financial Times it was “striving“ to set up the humanitarian payments channel “as soon as possible“ but could not give a start date. “Discussions are still going on with the US authorities. Iran and Swiss companies.“ it said.
Switzerland — which is not an EU member-state and has large pharmaceuticals sector and a tradition of neutral diplomacy — has strong credentials to be a base for the mechanism.
Roche. the Swiss pharmaceuticals company. said it was aware of “discussions on a potential alternative financing channel for humanitarian purposes“. but could not comment further. “To our knowledge no concrete proposals have been made.` it said.
The US state department signaled that it was comfortable with the Swiss channel. and said. `We understand the importance of this activity since it helps the Iranian people. It has never been. nor is it now. the US policy to target this trade.`
It added. “The United States maintains broad authorizations that allow for the sale of agricultural commodities. food. medicine. and medical devices by US persons or from the United States to Iran.`
`In addition. the US sanctions laws provide similar exemptions for sale of food. agricultural commodities. medicine. and medical devices by non-US persons to non-designated persons in Iran.`
The EU hopes its payments channel for non-dollar denominated Iran trade could be in place as soon as the end of this month. Federica Mogherini. the bloc’s foreign policy chief. said last week.
The initiative — led by France. Germany and the UK — has struggled to make headway because of technical and political problems. notably a reluctance by countries to host it because of a possible US backlash.
The EU diplomats say it is likely France and Germany will shoulder the biggest burden. including hosting the channel.
