Thaindian News

London, Jan 23 (IANS) The European Union Monday imposed an oil embargo on Iran over its nuclear programme.

The sanctions involve an immediate ban on all new oil contracts with Iran and a freeze on the assets of Iran’s central bank within the EU, BBC reported after a meeting of the foreign ministers.

The EU, which presently buys about 20 percent of Iran’s oil exports, said the sanctions prohibit the import, purchase and transport of Iranian crude oil and petroleum products as well as related finance and insurance.

All existing contracts will have to be phased out by July 1, it added.

Investment as well as the export of key equipment and technology for Iran’s petrochemical sector is also banned. Additional restrictions have been placed on Iran’s central bank and on the trade of gold, precious metals and diamonds, BBC said.

Ahead of the ministerial meet, EU foreign policy chief Catherine Ashton reiterated that the sanctions were part of EU’s “twin track approach” towards Iran and said: “The pressure of sanctions is designed to try and make sure that Iran takes seriously our request to come to the table and meet.”

“You will know from everything I have been saying in the last weeks the importance we attach to them either coming back and discussing the issues we left on the table in Istanbul a year ago or indeed putting forward their own proposals,” Xinhua quoted Ashton as telling reporters.