Libya Halts Oil Shipments, Closes Offices Of Two Swiss Companies Over Arrest Of Gaddafi's Son

July 24, 2008 3:54 p.m. EST

Geneva, Switzerland (AHN) - Libya has restricted shipments of oil to Switzerland and closed the offices of two Swiss companies over the brief arrest of leader Muammar Gaddafi's youngest son by Geneva police, and Libya has threatened further action if Switzerland won't apologize for the arrest.

Hannibal Gaddafi was arrested by Geneva police and held for two days before being freed on bail after he and his pregnant wife allegedly hit two of their servants who filed a police complaint. The couple has denied any wrongdoing over the alleged July 15 incident for which they face charges of bodily harm, threatening behavior and coercion.

Halting oil shipments came a day after the Swiss foreign ministry had complained that Libya had retaliated for the arrest by doing such things as forcing the offices of Swiss companies in Libya to close.

Not only were the offices of Nestlé and the Swiss-Swedish engineering company APP in Libya closed, but the managers of both companies were taken into custody, even as Libya recalled its ambassador to Switzerland and restricted air transport between the two countries. Libya has also barred all vessels from unloading cargoes of Swiss-made goods at Libyan ports.

Although the halt in oil shipments does not affect oil carried by commercial vessels, it will eliminate most Libyan oil shipments to Switzerland because Libya's state-owned General National Maritime Transport Company, which has links to Hannibal Gaddafi, transports most of Libya's oil exports.

It is a blow because Switzerland imports 85 percent of its oil from Libya. But it is also a blow to Libya which owns an oil refinery in Switzerland.

Libya is an important trading partner with Switzerland, trade between the two nations during 2006 amounted to nearly $2 billion.

Switzerland's ambassador to Libya has expressed shock at the reprisals. In addition, Switzerland has dispatched a diplomatic negotiation team to Libya to explain the separation of powers in Switzerland and the fact that the nation's government does not control the actions of police officials and to try to avoid any further escalation in the matter.

The Gaddafi's were reportedly in Switzerland, staying at a luxury hotel to await the birth of their child.

Gaddafi has two previous arrests in Europe, both in Paris. The first was in 2004 for speeding on the Champs Elysées and the second was in 2005 when he was he was convicted and fined for assaulting his girlfriend.