EU slaps new sanctions on Iran

The European Union has agreed on a new set of financial sanctions against Iran in an attempt to press for a closure of its nuclear programme. The move includes severe restrictions against the country's biggest bank.

The fresh measures were adopted at ministerial level on Monday (23 June), following last week's visit of EU foreign policy chief Javier Solana to Tehran, where he presented a new package of incentives in return for a freeze of proliferation activities in the country.

While the Iranians say their nuclear activities are intended for solely peaceful purposes, Western governments believe that they could be used to develop nuclear weapons,

With no reply from Iranian authorities, the EU moved to boost the existing UN sanctions.

The new restrictions include a complete freeze on the assets of Bank Melli, which has branches in Paris and Hamburg, and a unit in London called the Melli Bank. EU authorities have accused the bank of providing services to Iran's nuclear and ballistic missile programmes.

In addition, some 20 individuals and 15 organisations have been added to an EU black list against entering the bloc or operating on its territory.

However, the EU has signalled that despite the newest round of sanctions, Europe is still ready to participate in talks over the package of incentives proposed by Russia, China, the UK, France and Germany earlier this month - if Tehran replies positively.

The package offers the Iranians a long-term deal on their nuclear programme if they halt uranium enrichment. The proposed deal would offer financial assistance for the development of nuclear power stations and fuel guarantees, as well as trade concessions for the country.