Swiss War Materiel and Arms Exports

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Tethys exports despite India’s Rheinmetall ban

Goods category: War materiel

Oerlikon GDF-003 35 mm twin gun, Taiwan, 13.08.2011.

CC BY-SA 3.0

In 2012, India barred Zurich-based Rheinmetall Air Defence from arms deals in connection with corruption allegations. Investigators accused an Indian intermediary of receiving US$530 000 to secure the company’s removal from a blacklist. Rheinmetall denied the allegations. In 2014, Federal Councillor Ueli Maurer lobbied his Indian counterpart in support of a suspended order for the Indian navy. In June 2026, it was reported that the Zurich subsidiary’s exclusion had been extended until 2028. Fire-control systems were exported to India in 2017 and 2018 through Tethys Systems, founded by former Rheinmetall managers. WOZ reconstructed the transactions by cross-checking licensing and export data; in 2017, the approved value was 8.3 million Swiss francs. Tethys held a Rheinmetall licence. On 26 April 2017, the competent Indian criminal court discharged Rheinmetall Air Defence, Gerhard Hoy, Abhishek Verma and Anca Neacsu from the bribery proceedings. The CBI challenged the decision in the Delhi High Court that same year. The Central Information Commission’s information-access decision of 11 May 2026 documents the separate administrative procurement ban and its extension in 2023. The Rüstungsreport profile lists approved Tethys export values of 75.05 million Swiss francs (2015), 14.42 million (2016), 8.31 million (2017) and 2.29 million (2018), all for fire-control equipment.

Effect of the proposed War Materiel Act revision

Under the new Article 22b, the Federal Council could depart from all the licensing criteria in Article 22a under vaguely defined ‘exceptional circumstances’. The public would not have to be informed. The Federal Council could add India to Annex 2 by amending the War Materiel Ordinance. This would remove the exclusion criterion based on participation in an armed conflict and make approval the rule. The Federal Council could refuse a licence only in exceptional cases. Article 18 paragraph 1 would abolish non-re-export declarations in the vast majority of cases. Weapons for India could thus easily be supplied through a subsidiary or intermediary in a third country. France could serve as a third country, having, according to SIPRI, supplied substantial quantities of war materiel to India in recent years (6’103 million TIV).

Countries

Companies

Time period

2009–2026

Sources