EU set to follow US in upping sanctions on Iran

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European Union leaders are today expected to adopt tougher sanctions against Iran in a further effort to stall its nuclear program. The EU sanctions follow the Obama administration's expansion of sanctions to target Iran’s nuclear and missile programs, state-controlled banks, companies accused of supporting proliferation activities, and the Revolutionary Guard Corps.

Both the EU and US sanctions go further than those adopted by the United Nations Security Council resolution June 9.

That fourth round of UN-approved sanctions was watered down to gain support from China and Russia. The intent is to punish Tehran for planning to enrich uranium to 20 percent by disrupting the money flow to Iran's Revolutionary Guard. It called for an asset freeze on 40 companies and organizations involved in nuclear or ballistic missile activities.

According to the Associated Press, the new EU measures "will target Iran's oil industry, shipping and air cargo companies, and dual-use products that could be utilized as part of the nuclear program. More sanctions will also be imposed on trade insurance and financial transactions."

Given the differing interests of EU member states, deciding which new sanctions to impose on Iran was a challenge, particularly since new measures will hurt European companies keen to invest in Iran’s oil and gas sector, the Guardian reported:

Despite objections from Sweden – which argues against sanctions as an effective foreign policy tool – reservations from Spain and Cyprus, and, crucially, reluctance in Germany, whose businesses are heavily engaged in the Iranian energy sector, the EU declaration calls for extra sanctions over and above those agreed in New York last week….

German industry has been strongly involved in the energy sector, and Berlin, wary of imposing the sanctions, argued that it would simply forfeit the business, which would go to China instead.

According to the European Voice, a Brussels-based weekly newspaper, the EU maintains that the option of nuclear talks with Tehran remain open. The paper quotes an EU diplomat as saying, “sanctions are not a punishment but a means to change behaviour.”

Iran, however, has already dismissed the tougher EU sanctions, reported Reuters.

“The carrot and stick policy of the EU is wrong and illogical because such measures would not resolve the issue [Iran’s nuclear row with the West],” Foreign Ministry spokesman Ramin Mehmanparast told a weekly news conference….

“Sanctions will not stop Iran’s nuclear work. Sanctions will make us more decisive to become self-sufficient,” Mehmanparast said.

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