Switzerland, Iran sign gas export deal

TEHRAN—Iran and Switzerland on Monday signed a major agreement for Iranian gas exports to a Swiss company, in a rare energy deal between Tehran and the West as their nuclear showdown drags on. “Today we witnessed the signing of a gas contract between the two countries,” Foreign Minister Manouchehr Mottaki announced at a joint news conference with his Swiss counterpart Micheline Calmy-Rey.
Financial details were not disclosed but the contract between Iran’s state gas firm and Switzerland’s Elektrizitaets-Gesellschaft (EGL) Laufenburg reportedly envisages Iran supplying 5.5 billion cubic metres (194 trillion cubic feet) of gas annually from 2011. Calmy-Rey said the deal was in full compliance with UN Security Council resolutions imposed against Iran for its failure to suspend uranium enrichment, a potential nuclear weapons-making process. “I am happy that the gas exports agreement has been signed between the two companies,” she said. “It is in full compliance with international law and the UN resolution.”
The gas will be pumped to one of EGL’s power stations in Italy. Switzerland is a country with few energy resources of its own and has also said Europe needs to diversify its energy imports away from Russia towards other exporters like Iran. The deal, which was signed just ahead of the news conference, comes despite US pressure on European countries to cut their business ties with Tehran as a means to pressure it to give ground in the nuclear crisis.—Agencies