The EU has announced the official adoption of an oil embargo on Iran, as well as a freeze for Iran Central Bank's assets in the EU, in a move aiming to cut financing line for Iran's nuclear program. No new contracts can be signed, but existing contracts can continue until July 1, 2012. The move marks the broadening of EU restrictions aimed at stopping Iran's nuclear program. Commentators have described the decision as among the toughest measures ever taken by the EU.

Import of Iranian crude oil and petroleum products to the EU has been banned, while sanctions apply to purchase, transport, insurance and related finance of Iran's oil and petroleum products. Import of petrochemical products and export to Iran of oil industry equipment and technology have also been stopped, according to today's announcement. Assets held by Iran's Central Bank in the EU have been frozen and trade in gold, precious metals and diamonds with Iranian public bodies and the country's central bank is also to be stopped. The EU statement says “the Council subjected three more persons to an asset freeze and a visa ban. It also froze the assets of eight further entities,” but does not give further details of the persons and entities affected.

EU foreign policy chief Catherine Ashton said the intention of the tough, new sanctions was to “make sure that Iran takes seriously our request to come to the table and meet.” She went on to say that the door to negotiation is still open to Iran, but only for meaningful discussion. Tensions are high. British and American warships have been sent to the Persian Gulf in response to a threatened Iranian blockade of the vital shipping route.

editor@romania-insider.com