EU to impose sanctions on Iran.
http://online.wsj.com/article/SB1000142 ... 85826.htmlEU Agrees to Iran Sanctions
By JOHN M. BIERS and LAURENCE NORMAN
BRUSSELS—European Union foreign ministers Monday agreed to enact an oil embargo on Iran to take effect immediately on new contracts and to impose a full oil embargo, including existing contracts, by July 1, EU diplomats said Monday.
Under the policy, EU countries would be barred from signing new contracts to import Iranian oil as soon as the measures are officially published, expected Tuesday. But these countries could still import Iranian oil through July 1 under contracts signed before the embargo was enacted. A formal announcement by EU foreign ministers is expected early Monday afternoon.
In its most sweeping moves yet, the EU also agreed to impose sanctions on Iran's central bank and to ban Iranian exports of petrochemical products from May 1. It also added trade bank Bank Tejarat to its sanctions list, diplomats said.
The EU has agreed "unprecedented" sanctions on Iran, U.K. Foreign Secretary William Hague told reporters on the sidelines of a foreign ministers meeting that was ongoing Monday. Hague said the move "shows the resolve of the EU" to respond to "Iran's continual breach" of international agreements.
EU Ministers said ahead of the Monday meeting that they hoped there could still be continued diplomacy with Iran.
Under the agreement, the EU will undertake a review of the effects of the policy on member states by May 1, bowing to a condition sought by Greece. However, any move to reverse or delay the embargo would require a unanimous decision of the EU's 27 members, officials said.
EU officials have been working in recent days to allay concerns from Greece and some other countries that the embargo could further strain their economies. EU foreign policy chief Catherine Ashton said ahead of the gathering that the EU is "talking to a number of" oil producers to "ensure that there is a continuity of supply for everybody."
Ms. Ashton said the EU is still pursuing a twin-track approach to Iran, so that even as the 27-nation bloc ratchets up pressure, it is ready to talk with Iran about its nuclear activities if Tehran shows itself willing to engage.
Diplomats said the EU foreign ministers would promise to take all necessary measures to ensure all member states, including Greece, would continue to have access to oil supplies. However, Greece didn't win a special exemption giving it extra time beyond July 1 to implement the full embargo—a proposal it had made last week.
As expected, the foreign ministers were set to sign off on sanctions on Iran's central bank, diplomats said, in another move aimed at isolating the regime. The central bank will be added to the EU's sanctions list, meaning some transactions will be banned and assets frozen. However, there will be exceptions to allow Iran and Iranian companies to repay their debts and for other legitimate trading purposes, a diplomat said.
Monday's action will also ban petrochemical exports from Iran to the EU as of May 1, and bar technology transfer for petrochemicals immediately, diplomats said Monday.
The sanctions represent the most-serious EU pressure on Iran thus far over its nuclear program. France, which initially proposed the sanctions, is one of several member states that accuse Iran of seeking to develop nuclear weapons, a charge that Tehran denies.
Ms. Ashton wrote to Iran's chief nuclear negotiator Saeed Jalili in October offering to relaunch negotiations. As of Friday, the EU has received no response.
Separately, the foreign ministers were set to impose sanctions on 30 Syrian firms and individuals over the repression of protesters by President Bashar al-Assad's regime. The EU also took the first steps on easing sanctions on Myanmar's government in response to political reforms.
Write to Laurence Norman at
laurence.norman@dowjones.com