EU to mull measures against Central Bank of Iran

PanARMENIAN.Net - The European Union, piling pressure on Iran after an attack on the British embassy, beefed up sanctions over Tehran's nuclear programme and threatened to hit its oil and finances next.Expressing "deepening concerns" on the nature of Iran's nuclear activities, EU foreign ministers meeting in Brussels slapped sanctions on an extra 143 firms and 37 individuals.

The measures follow the publication last month of a report on Iran's nuclear sector by the International Atomic Energy Agency (IAEA).

With some European nations demanding even harsher action, a statement from the ministers threatened to "extend the scope" of punitive action to strike at Tehran's economic heart.

It said the EU would examine measures targeting the financial system, energy and transport by late January.

"The EU made very clear that it will not bow to Iran's intimidation and bullying tactics," said British Foreign Secretary William Hague.

"We will not back down," he added, as French Foreign Minister Alain Juppe said the EU was eyeing "unprecedented" new measures.

The crisis-hit EU is deeply split over slapping an oil embargo on Iran as well as calls by some, including Britain, to place an assets freeze on its central bank.

In Washington, US officials concerned about a possible fallout from sanctions gave only cautious backing for "appropriately timed" measures against the Central Bank of Iran.

While Britain, France, Germany and Sweden favour barring oil purchases from Iran, several EU countries are major buyers and "Greece has expressed some reservations," Juppe said.

Spain, Europe's top importer of Iranian crude, said postponing a decision by several weeks was appropriate. "Spain will be able to seek alternatives," said Foreign Minister Trinidad Jimenez. Oil from Iran in 2010 amounted to 5.8 percent of total EU imports, making Tehran the bloc's fifth-largest supplier after Russia, Norway, Libya and Saudi Arabia.

Spain represents 14.6 percent of Iranian oil imports to Europe, Greece 14.0 and Italy 13.1 percent.

"Iran faces a choice between serious (nuclear) cooperation and international isolation," said German Foreign Minister Guido Westerwelle.

Much of the international community fears Iran's nuclear programme masks a drive for a weapons capability, though Tehran insists it serves peaceful civilian energy and medical purposes only.

The EU has already frozen the assets of hundreds of Iranian firms and in July last year adopted measures aimed at preventing new investment, technical assistance and technology transfers, particularly those pertaining to producing and refining gas.

EU foreign policy chief Catherine Ashton, who leads global talks with Iran on the sensitive nuclear issue, reiterated a plea to Tehran to resume dialogue, AFP reported.