Libya halts oil shipments to Switzerland
1 hour, 33 minutes ago
 
(AP:TRIPOLI, Libya) Libya said Thursday it has halted oil shipments to Switzerland and withdrawn its money from Swiss banks, three months after the arrest of Moammar Gadhafi's son in Geneva sparked a diplomatic crisis between the two countries.

Essam el-Zanati, head of Tamoil, Libya's petroleum investment company, said the country has stopped providing Switzerland with crude oil. Tamoil has a refinery in Switzerland and produces 20 percent of Switzerland's fuel. It also owns 320 gas stations.

Farhat Qadara, head of Libya's central bank, told The Associated Press that "Libya has withdrawn all its deposits from Swiss banks and transferred them to other European banks." He did not provide specific figures.

The steps came after Libya threatened in July to stop crude deliveries after Hannibal Gadhafi was arrested at a luxury hotel in Geneva on suspicion of beating two of his servants.

While Gadhafi, the youngest son of the Libyan leader, was freed on bail three days later and returned home with his wife, the situation developed into a diplomatic incident.

Among other steps, Tripoli recalled some of its diplomats in Switzerland and detained two Swiss nationals who were later released on bail but ordered to stay in the North African country.

Analysts have speculated that the latest moves by Libya are an attempt to increase diplomatic pressure on Switzerland to close the case against Gadhafi.

Swiss oil officials have said that they would turn, as needed, to other suppliers to secure the necessary crude.

El-Zanati also said Thursday that the company's refineries in Italy and Germany have not been affected.
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