•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

Brussels. The European Union agreed Monday to slap an embargo on Iran’s oil exports as the West ramped up pressure on Tehran’s suspect nuclear drive and urged it to return to the negotiating table.

“There is a political agreement on an oil embargo,” said a diplomat speaking on condition of anonymity after early morning talks between ambassadors of the 27 EU nations, held as foreign ministers converged on Brussels for talks.

The ministers, who also agreed to toughen sanctions against Syria, are to formally announce the measures against Tehran later Monday.

“Iran continues to defy UN resolutions and enriches uranium to 20 percent, for which there is no civilian explanation,” said Britain’s Foreign Secretary William Hague as he joined the talks.

“It is legitimate for us to increase the pressure on Iran to enter into negotiations with the international community,” Hague added.

The compromise agreement, which follows weeks of difficult talks, provides for an immediate ban on importing Iranian crude and a gradual phase-out of existing contracts between now and July 1, diplomats said.

Greece’s dependence on Iranian oil had been holding up an accord on the timing and conditions of the embargo as the financially strapped nation relies on Iran for more than a third of its imports and had struck preferential financial terms with Tehran.

Greece had initially asked for a transition period of up to a year, or even more, and intensive talks have been going on for weeks to find alternative sources and resolve the issue.

Iran sells around 20 percent of its crude to EU nations, with Greece, Spain and Italy the top buyers.

In the toughest measures yet to reduce Iran’s ability to fund a nuclear weapons program, the EU ministers are set to also target the country’s central bank, petrochemicals and gold.

The measures come amid heightened concerns of confrontation following reports by the UN atomic agency, the IAEA, that Tehran is inching ever closer to building a nuclear bomb.

The Pentagon announced that US aircraft carrier USS Abraham Lincoln on Sunday passed through the Strait of Hormuz and is now in the Gulf, after Tehran threatened to close the strategic shipping route.

As the West’s reaction to Iran’s nuclear program strengthens, Britain’s Ministry of Defense said a British Royal Navy frigate and a French vessel had joined the carrier group to sail through the waterway.

The EU has already frozen the assets of 433 firms and 113 individuals, as well as restricting trade and investment in the oil and gas industries.

Also expected are bans on the sale of gold, diamonds and other precious metals to Iran and any delivery of newly minted coins and notes.

The EU imported some 600,000 barrels of Iranian oil per day in the first 10 months of last year, making it a key market alongside India and China, which has refused to bow to pressure from Washington to dry up Iran’s oil revenues.

The bloc therefore has been seeking new suppliers able to match the attractive conditions offered by Tehran to Greece. Contacts are underway with Saudi Arabia and hopes are high that Libya can soon increase its production.

Iranian oil accounted for 34.2 percent of Greece’s total oil imports, 14.9 percent of Spain’s and 12.4 percent of Italy’s in the first nine months of last year, according to the latest EU statistics.

With the three nations all in financial difficulties, weeks of talks on an oil embargo stumbled on a deadline for importers to phase out existing contracts.

Britain, France and Germany wanted a total embargo within three months.

Also under discussion has been a request from Italy to allow Iranian companies to continue repaying debts with crude instead of cash, a move which some argue would mean Tehran having less crude to sell on the market.

The freeze on Iran’s central bank would be partial “enabling legitimate trade to go ahead”, and ensuring there were no obstacles to continued payment of outstanding Iranian debts to Europe.

Germany notably expressed concern over the reimbursement of loans to Iran worth 2.6 billion euros should financial channels be closed.

Meanwhile, global powers involved in negotiations on Iran’s nuclear program are still waiting for a reply to a letter sent to Tehran months ago by EU foreign policy chief Catherine Ashton, her office said Friday.

Agence France-Presse