Iran faces new EU sanctions

Further sanctions against Iran could hit the
country's oil industry [AFP]


Source: Al Jazeera
http://english.aljazeera.net/news/europe/2010/07/201072684955954664.html

The European Union is set to adopt a new package of sanctions against Iran, targeting the country's foreign trade, banking and energy sectors.

The sanctions, which were agreed to in principle by EU leaders in June, will be the latest in a series of measures taken by the international community in an effort to disrupt Iran's controversial nuclear program.

EU foreign ministers were expected "to adopt a decision on a package of restrictive measures to be imposed on Iran in the areas of trade, financial services, energy and transport, and also a regulation extending the list of entities and individuals subject to an assets ban," a statement said.


It would include a ban on the sale of equipment, technology and services to Iran's energy sector.

The new European restrictions will come on top of a fourth round of sanctions imposed last month by the UN Security Council.

Western powers believe Iran is trying to develop nuclear weapons but Tehran insists its nuclear program has purely peaceful intentions.

The Security Council endorsed the latest round of sanctions after failing to get Iran to accept a UN-drafted plan to swap its low-enriched uranium for higher-enriched uranium in the form of fuel rods it needs for a medical research reactor.

'Dramatic effects'

Al Jazeera's Laurence Lee, reporting from the EU headquarters in the Belgian capital, Brussels, said the sanctions could dramatically affect the Iranian economy.

"As well as things like stopping Iranian banks with links to the Revolutionary Guard from operating in Europe, the key thing is that in the future, European countries, which have very strong ties to Iran, won't be able to offer technical assistance to Iran in things like refining oil," he said.

"Iran is a major producer of oil, but doesn't refine it very well. If this block comes in, it will dramatically affect the Iranian economy."

EU foreign ministers were in their Monday meeting also expected to reaffirm the bloc's invitation to Tehran to hold talks on the nuclear issue.

"Our aim is to bring Iran back to the negotiating table," Werner Hoyer, a German secretary of state, said.

"We're offering our hand, and all they have to do is to take it."

Turkey's foreign minister said on Sunday that Iran may hold nuclear talks with the EU after the end of the holy month of Ramadan in early September.

Ahmet Davutoglu briefed the media after a meeting with Manouchehr Mottaki, his Iranian counterpart, and Celso Amorim, the Brazilian foreign minister, in Istanbul.

"Iran has stated that it is ready to meet with [EU's foreign policy chief Catherine] Ashton as the representative of the P5+1," Davutoglu said, referring to the group negotiating with Iran which includes the five permanent members of the UN Security Council the UK, China, France, Russia and the US, plus Germany.


Davutoglu welcomed the move and expressed Turkey's readiness to host the meeting if need be.


Mahmoud Ahmadinejad, the Iranian president, has set three conditions for an eventual resumption of talks, saying countries who want to participate should make clear whether they oppose Israel's nuclear arsenal, whether they support the Nuclear Nonproliferation Treaty and whether they want to be friends or enemies with Iran.