Image: from World News X @ferozwala
By Open Chronicle Staff with Agencies
BERN/WASHINGTON — A deepening diplomatic and financial row has erupted between Switzerland and the United States after reports revealed that Washington is utilizing a legal loophole to bypass a Swiss payment freeze. According to the Swiss public broadcaster SRF, the U.S. has redirected hundreds of millions of francs intended for F-35 fighter jets to instead fund Patriot air defense systems, missiles that are increasingly being diverted to Israel and Ukraine amid the widening conflict with Iran.
The revelation has left Bern essentially powerless, exposing the “small print” of the U.S. Foreign Military Sales (FMS) program, which manages billions in international defense contracts.
The FMS Loophole: One Account, Many Uses
Switzerland had officially frozen its payments for the Patriot missile system last fall after being informed of multi-year delivery delays. However, under the FMS framework, all payments for various military projects are pooled into a single trust-like fund.
Urs Loher, head of national armaments at armasuisse, confirmed the U.S. move, describing the redirected sum as a “low three-digit million amount”, signifying well over 100 million Swiss francs ($126 million).
“It’s frustrating when we impose a payment freeze and the money is simply redirected,” said Werner Salzmann, a Swiss senator and security expert. “The FMS contracts are producing more and more interpretation problems. We need to think carefully about whether we want to keep signing such agreements.”
Global Demand and Delivery Delays
The redirection comes at a time of extreme scarcity for Patriot interceptors. With the U.S.-Israeli offensive on Iran entering its sixth week, Israel has faced severe shortages following intense drone and missile barrages.
Switzerland, which signed for five Patriot batteries four years ago, was recently informed that its deliveries would be delayed by four to five years as Washington prioritizes active combat zones. Furthermore, the estimated cost for the Swiss system has reportedly surged by 50%, jumping from CHF 2 billion to roughly CHF 3 billion.
Regional Consequences and the Turkish Example
For international observers, the Swiss case is a cautionary tale of “dependency” on U.S. defense systems. In Türkiye, which was removed from the F-35 program in 2019, officials pointed to the Swiss predicament as justification for their own push toward domestic defense autonomy, including the indigenous Kaan fighter jet and Siper air defense systems.
The financial maneuver has forced the Swiss Defense Ministry to scramble, injecting tens of millions of additional francs ahead of schedule to plug the budget gaps in the F-35 program created by the U.S. diversion.