Azernews.Az

By Sara Rajabova

European Union countries imposed sanctions on Tuesday against major Iranian state companies in the oil and gas industry, and toughened restrictions on the central bank, cranking up financial pressure over Tehran's nuclear program, Reuters reported.

On Monday, EU governments agreed further sanctions against Iran's banking, shipping and industrial sectors. The pressure being piled on Tehran aims to draw it into substantial negotiations on its nuclear activities.

EU foreign policy chief Catherine Ashton said she hoped that turning up the heat on Iran would persuade it to make concessions and that negotiations could resume "very soon".

Among the more than 30 firms and institutions listed in the EU's Official Journal as targets for asset freezes in Europe were the National Iranian Oil Company (NIOC), one of the world's largest crude exporters, and the National Iranian Tanker Company (NITC).

Both are vital elements of the Iranian oil industry, the main source of revenue for the government, which is being targeted by Western sanctions.

Their importance has risen in recent months as governments in Europe and the United States seek to curb Tehran's access to cash, forcing Western companies to halt trade with Iran and, in turn, driving Tehran to rely more on domestic firms.

Justifying the decision, the EU governments said both NIOC and NITC provide financial support to the government.

US State Department spokeswoman Victoria Nuland said at a daily press briefing in Washington on Monday that the U.S. obviously welcomes the EU's significant new sanctions, saying the move was in response to Iran's continued violation of international obligations regarding its nuclear program.

"This action further strengthens the international efforts to persuade Iran to engage constructively and address the concerns of the international community," Nuland said.

"Iran knows what it needs to do. It has an opportunity to do it. It just needs to make the choice. These sanctions that the EU put forward today were in the categories of financial sanctions, trade sanctions, energy, transport; obviously they are coordinated," the spokeswoman said, adding that the U.S. works very closely with the P5+1 group, which is negotiating with Iran on its nuclear program.

On the other hand, Iran's Foreign Ministry said on Tuesday that the new, tough EU sanctions will not force Tehran back into negotiations with world powers over its nuclear program, Reuters reported.

"We think the error in calculation which these countries are pursuing will distance them from a favorable result," ministry spokesman Ramin Mehmanparast told a news conference.

"They don't know the spirit of the Iranian nation," Mehmanparast said. "These steps are mistakes and will have no results for them."

China also criticized the EU on Tuesday for imposing new sanctions on Iran, calling again for talks to resolve the stand-off.

"We oppose the imposition of unilateral sanctions on Iran and believe that using sanctions to exert pressure cannot fundamentally resolve the Iran nuclear issue," Chinese Foreign Ministry spokesman Hong Lei told a daily news briefing.

China is Iran's largest crude oil customer and, along with Russia, has resisted imposing sanctions on Tehran.

The widening sanctions regime is already doing significant damage to the Iranian economy, notably due to an oil embargo imposed by the EU this year and new financial sanctions applied by the United States.

Riots broke out in Tehran this month in protest at the collapse of the rial currency, which has lost some two-thirds of its value against the dollar in the past 15 months, stoking inflation that is now running at around 25 percent.