Libya halts Swiss crude supplies

Libya has halted deliveries of crude oil to Switzerland, Libyan oil refining and distribution firm Tamoil said yesterday, three months after a diplomatic spat broke out between the two countries.

"In light of recent media reports, Tamoil would like to confirm we have been advised that the supply of Libyan crude oil to Switzerland has been suspended," Tamoil said in a statement read to Reuters by its chief executive officer Issam Zanati. "The deliveries of Libyan crude oil to Tamoil refineries in Italy and Germany are not affected."

Mr Zanati did not say when deliveries might resume or elaborate on why Libya had decided to halt supplies now.

Tamoil says it supplies 20 per cent of the Swiss market, or 2.5 million tonnes of oil products a year, and has around 330 service stations in the country as well as a refinery.

Opec member Libya threatened to cut Swiss crude deliveries after a son of its leader, Muammar Gaddafi, was arrested in Geneva on July 15 and charged with mistreating two domestic employees before being freed on bail.

The son, Hannibal Gaddafi, denied the allegations. The Swiss prosecutor later said he had dropped the case after the plaintiffs withdrew their complaint.

Hannibal Gaddafi's arrest caused uproar in Tripoli and embarrassment for Switzerland, which uses Libya as a major energy supplier.

In the wake of the arrest, Libya's Foreign Ministry advised its citizens not to travel to Switzerland and Tripoli threatened to halt oil shipments to Switzerland and stop issuing visas to Swiss nationals.

Two Swiss nationals in Libya were also detained and later released.