Iran's gas deal crucial for Switzerland: report

TEHRAN, Oct. 12 (Xinhua) -- A Swiss official said here on Monday that Iran's gas deal is crucial for Switzerland and his country attaches much importance to the deal with Iran.

Swiss Deputy Foreign Minister Michael Ambole said in a meeting with his Iranian counterpart Mehdi Safari that the two countries' relations are deeply influenced by the contract and the prospects of the two countries' relations will be more brilliant by the materialization of Iran's gas exports to Switzerland, the semi-official Fars news agency reported.

In March 2008, Iran's foreign minister and his Swiss counterpart announced that Tehran and Bern struck an strategic gas contract, which was signed by the National Iranian Gas Export Company and Swiss company EGL, totaled at 13 billion U.S. dollars.

According to the 25-year deal, Iran would deliver 5.5 billion cubic meters of gas to the European country per year, it was aimed at reducing Bern's dependency on Russian gas.

Ambole said the Islamic Republic has a significant position in Switzerland's foreign policy. He called for the further development of bilateral ties, Fars said.

"Existence of rich gas and oil reserves in Iran will transform Tehran into an effective factor for the European energy market, Safari said in response, adding that Iran is "ready to supply and transfer energy from the region to the European countries."

Earlier in September, managing director of National Iranian Gas Export Company expressed hope that the gas deal between Iran and Switzerland would be implemented within the next few months, reported Fars.

"The agreement to sell natural gas to Switzerland is among the most important deals... It has been finalized and there only remains some pricing differences which will be resolved ... We hope to bring the deal into implementation this year," Seyed Reza Kassaeizadeh was quoted as saying.

According to the initial agreement between the two countries, Iran was due to start selling half a billion cubic meters of gas to Switzerland from 2009 and the amount was planned to increase to over 5 billion cubic meters in 2012.