Switzerland has lifted sanctions on Iran over its nuclear program, calling the agreement reached between Tehran and the global powers in July a “turning point”.

The Swiss Federal Council said in a Wednesday statement that the decision would take effect on Thursday.

“Today's decision by the Federal Council underlines its support for the ongoing process to implement the nuclear agreement, and its confidence in the constructive intentions of the negotiating parties,” read the statement. “This agreement opens up new political and economic prospects with Iran, including bilateral relations.”

It added that the sanctions had been suspended since January 2014.

As the protecting power for the United States with no embassy in Tehran, Switzerland “has always been committed to dialogue and to keeping communication channels open,” it said.

The Joint Comprehensive Plan of Action (JCPOA), reached between Tehran and the P5+1 - the US, Britain, Russia, China, France, and Germany - in Vienna on July 14, “lays the foundation for complete settlement of the nuclear dispute,” the statement said.

The Swiss bans were related to transactions of precious metals, petrochemicals, crude oil and petroleum, insurance and reinsurance, as well as obligations in relation to money transfers.

Bern also removed sanctions against eight Iranian persons and organizations.