EU bans new investment in Syrian oil

AFP , Wednesday 21 Sep 2011

The European Union steps up economic pressure on Syrian President Bashar al-Assad by banning European firms from new investments in Syria's oil industry and further sanctions

 European Union (EU) governments banned European firms from making new investments in Syria's oil industry and added several new entities and two individuals to a sanctions list on Wednesday.

The sanctions, which will take effect on Saturday if formally approved in writing by Friday by the 27 EU states, also include a ban on delivery of Syrian banknotes and coins produced in the European Union, an EU official said.

EU officials declined to name the new entities and individuals targeted, but the sanctions will involve travel bans and asset freezes and prevent EU firms doing business with them.

Plans to add a large Syrian bank to the sanctions list were shelved, diplomats said, because of concerns that by targeting the government's access to cash, the funding possibilities of ordinary companies and the population could be hit.

After a series of piecemeal measures, European governments have pushed strongly in recent weeks to step up economic pressure on President Bashar al-Assad in the hope of ending six months of violence against anti-government demonstrators.

The new steps complement a ban on importing Syrian crude oil and asset freezes targeting several Syrian companies and entities. The EU has also imposed travel bans and asset freezes against officials involved in the crackdown. .

The new sanctions on the oil sector ban European firms from new investments in Syrian oil exploration, production and refining.

They bar the creation of new joint ventures with enterprises in Syria's energy sector, the provision of loans and the purchase or extension of stakes in Syrian companies.

However, they do not affect existing investments.

EU officials say the aim is to block long-term access to funds for Assad's government.

European companies have watched the deliberations closely. Anglo-Dutch Royal Dutch Shell and France's Total , among others, have significant investments in Syria.
The United States has already imposed wide-reaching sanctions against Syria.

Short link: