Updated on
Summary
The European Union and Canada slapped tough sanctions on Irans key energy sector in a bid to block its contested nuclear programme, and the United States said the punitive steps would bite. European foreign ministers formally adopted the new measures Monday on the oil and gas industries, going beyond a fourth set of UN sanctions imposed over Irans refusal to freeze uranium enrichment. Canada then followed suit. The moves, which follow similar sanctions imposed by the United States, are aimed at reviving moribund talks between Iran and six world powers Britain, China, France, Germany, Russia and the United States. Irans foreign ministry however said the sanctions were not an effective tool and would only serve to complicate its showdown with the West. Oil Minister Masoud Mirkazemi said they would have no impact on oil production because European oil firms had no presence in Irans energy sector. The EU measures include a ban on the sale of equipment, technology and services to Irans energy sector, hitting activities in refining, liquefied natural gas, exploration and production, diplomats said.New investments in the energy sector are also banned. Iran is the worlds fourth largest producer of crude oil, but imports 40 percent of its fuel needs because it lacks enough refining capabilities to meet domestic demand.The Iranian banking sector was also hit by restrictions, forcing any transactions over 52,000 dollars to be authorised by EU governments before they can go ahead.The United States hailed the move, saying the steps underscore the international communitys deepening concerns about Irans nuclear program.
