IRISH companies are unlikely to be directly affected by the new US sanctions on companies trading with Iran and Libya. Trade and investment between Ireland and the two countries is very limited.

However, the EU Commission has warned that the US legislation has potentially serious implications for the security of energy supplies to the EU.

Irish companies are not believed to have any significant investments in the energy sectors targeted by the US.

Meanwhile, a spokesman for ESB International, which undertakes major energy consultancy projects in the developing world, said it was not working on any contracts in Iran or Libya.

The legislation, signed by US President Bill Clinton on Monday, requires the president to penalise foreign companies investing $40 million (£25 million) or more a year in the energy sectors of Iran and Libya.

The bulk of the trade between Ireland and the two countries was in beef and cattle and was halted by the BSE crisis.

The last full year for which figures are available, 1994, shows exports to Iran of £35.5 million.

Beef accounted for £29.6 million of this, with food preparations and chemicals accounting for £3.2 million and £1.7 million respectively. Pharmaceuticals accounted for £440,000.

Imports from Iran came to £886,000 in 1994, made up of textile waste, floor coverings and fruit.

In the first half of 1995, exports to Iran were worth £8.7 million.

Exports to Libya in 1994 were worth £9.5 million. The most important items were food preparations (£3.1 million) cattle and beef (£2.5 million) and chemicals (£1 million).

There were no imports from Libya recorded that year.

In the first six months of 1995, exports to Libya were worth £14.3 million, with the increase mainly attributable to cattle exports.

Between 1994 and the out break of the BSE scare, sales of Irish cattle and beet to Libya and Iran had been growing strongly.

Both Libya and Iran closed their markets to European cattle and beef with the outbreak of the BSE scare, although the Government has been trying to persuade them to re-open their markets to Irish beef.

Exports to Iran have been in beef and to Libya in live cattle.

However, the EU Commission warned that 20 per cent of EU oil imports came from the two countries, and the legislation could affect EU supplies.

EU companies, including France's Total and Elf Repsol of Spain Petrofina of Belgium Austria's OMV and Germany's Veba and Wintershall have interests in one or other country. Agip, the Italian energy company, has a significant natural gas investment planned in Libya.