EU ministers agree to intensify sanctions against Iran

EU FOREIGN ministers intensified sanctions against Iran over its nuclear programme and resolved to examine penalties against its energy sector, an initiative viewed with scepticism in many member states.

Although the examination brings forward the prospect that Iranian oil imports might yet be banned in Europe, the ministers stopped short of agreeing to French and British demands for an embargo.

The ministers also condemned the storming of the British embassy in Tehran, saying they considered the attack and the expulsion of the British ambassador “as actions against the EU as a whole”.

EU foreign policy chief Catherine Ashton made it clear that the new round of sanctions was already in the works on foot of a UN report that the country was escalating its military nuclear project. The sanctions will freeze assets and impose travel bans on 37 individuals and 143 companies and institutions.

Many European countries fear that an import ban might drive oil prices upwards in the middle of an economic crisis. Greece in particular, which sources as much as 35 per cent of its oil supplies from the country, had been wary about such a move.

“Greece and a number of others expressed concerns that we wouldn’t end up in a situation where sanctions could have a negative impact on EU member states,” said Minister of State for European Affairs Lucinda Creighton, who represented the Government.

“I expressed similar concerns – in a sense of solidarity with Greece and others . . . We need to look at the impact both ways and make sure that it has the desired effect,” she added.

However, the ministers still moved to examine measures aimed at “severely affecting” the energy, transport and financial sectors in Iran.

According to French foreign minister Alain Juppé, it may be open to the EU to encourage other oil producers to offset any shortfall in supplies to meet the concerns of Greece.

“We have to take them into account and work with the different partners so that the interruption of deliveries from Iran could be compensated by a rise in production in other countries.”

Although the ministers said in a separate statement on the embassy attack that the EU was taking “appropriate measures in response”, Ms Ashton said this was a reference to measures taken in solidarity with Britain.

“Some [member states] have taken the decision to recall their ambassadors for consultations, others don’t have embassies on the ground, others are in dialogue with their teams on the ground to see what the appropriate thing could be,” she said.

Separately, the ministers moved to escalate European sanctions against Syria and welcomed moves by the Arab League to impose sanctions on Damascus. However, there is no prospect of a western military intervention.