Friday, Aug 19, 2011

--EU preparing the way for Syrian oil imports embargo

--EU plans to suspend technical assistance to Syria from the European Investment Bank

--EU also preparing sanctions on those supporting or benefiting from the regime

(Updates with further details on possible further sanctions, beginning in fourth paragraph.)

BRUSSELS (Dow Jones)--The European Union agreed Friday to extend sanctions on 20 additional Syrian individuals and entities and said it is preparing the way for an embargo of Syrian oil imports.

The sanctions on the 20 new targets are expected to take effect in the coming days, Catherine Ashton, the EU's high representative for foreign affairs, said in a statement late Friday after a day of talks among EU member state ambassadors.

Ashton also said the EU is preparing to further broaden the sanctions regime on Syria.

In addition to the oil import ban, the EU plans to suspend technical assistance to Syria from the European Investment Bank and is preparing sanctions on those supporting or benefiting from the regime. Until now, only those ordering or involved in the violent crackdown of protesters have been targeted for EU sanctions.

"Political agreement has been reached to extend the scope of the EU restrictive measures against the regime, while minimising potential negative impacts on the Syrian people," Ashton said in the statement.

Ashton said the proposals for broadening the sanctions regime will be discussed again by member states early next week. A person familiar with the matter said the proposals could be adopted by the end of next week.

The EU has already slapped a travel ban, asset freeze and arms embargo on 35 individuals and four entities.

The new sanction measures proposed by the EU don't include all the options that member states were considering. A paper circulating Thursday had suggested the EU could also ban the sale of refined products to Syria and prevent Syria's energy companies from getting hold of specialized equipment needed for exploration and production.

However, there was concern that the sanctions shouldn't be too sweeping, with the U.K. among the countries arguing that new measures must harm the regime, not the general population.

If approved, the European Investment Bank suspension would have a limited impact. The EIB has a portfolio of some 17 projects in Syria worth around EUR1.5 billion. By withdrawing technical assistance, it is understood that Syria won't be able to complete about a third of those projects.

-By Laurence Norman and Riva Froymovich, Dow Jones Newswires; 32-2741-1481; laurence.norman@dowjones.com

(END) Dow Jones Newswires

19-08-11 1815GMT