Question: Does the EGL deal violate UN sanctions?
Answer: Deals such as the reported EGL agreement undermine the concept reflected in the P-5-plus-1 proposal of offering enhanced economic engagement as inducements for Iranian compliance. The P-5-plus-1 provides opportunities for political, security and economic benefits to Iran and to the region.

We have conveyed to the Swiss Government that major new oil and gas deals with Iran send precisely the wrong message at a time when Iran continues to defy UNSC resolutions requiring it to suspend enrichment-related, reprocessing and heavy water activities.

Does the EGL deal violate the U.S. Iran Sanctions Act (ISA)?

The Department of State closely reviews any information about these types of deals with Iran in light of the ISA. In addition, deals such as the EGL agreement undermine the concept reflected in the P-5-plus-1 proposal of offering enhanced economic engagement as inducements for Iranian compliance

If the contract is found to violate ISA, what will the US do?
We don't comment on hypothetical situations. 

Is the United States actively investigating whether the contract violates ISA?
The Department of State is reviewing this contract as it relates to ISA. As of now, we have not received a response to our request for a copy of the contract.

What are your specific concerns regarding the contract? Why do you refer to the contract as undermining the concept or the spirit of UN sanctions?
We have never seen the contract. We originally asked for a copy of the deal in June 2007. Following the March 17, 2008 signing, the United States Government made an official request to the Swiss Government for a copy of the contract.

The EGL agreement undermines the concept reflected in the P-5-plus-1 proposal of offering enhanced economic engagement, which could include contracts with and investment in the Iranian energy sector as inducements for Iranian compliance with its international legal obligations.

Is Switzerland's role as the United States' protecting power in Iran and Cuba in jeopardy?
At this time, the Swiss have a mandate as our protecting power in Cuba and Iran.