WORLD> Europe
EU to announce sanctions against Iran's biggest bank
(Agencies)
Updated: 2008-06-23 19:58

BRUSSELS, Belgium -- The European Union was expected Monday to announce sanctions against Iran's biggest bank, adding to international pressure for Tehran to bring its nuclear program in line with international demands, an EU presidency official said.

The decision to freeze the assets of Bank Melli was expected to be confirmed at a meeting of EU ministers in Luxembourg on Monday afternoon, said the official who spoke on condition of anonymity before the official announcement.

Western officials have accused Bank Melli of providing services to Iran's nuclear and ballistic missile programs. The United States placed the bank on its blacklist last year. Any of the bank's assets found in the United States must be frozen, under terms of the US sanctions.

The EU measures follow a recent decision by the UN Security Council to pass a third round of sanctions on Iran, authorizing financial assets of additional Iranian officials and companies with links to the country's nuclear and missile program to be frozen.

Western nations fear Iran's uranium enrichment program could be used to make a nuclear bomb. Iran insists its enrichment work is intended to produce fuel for nuclear reactors that would generate electricity and has vowed to push ahead with uranium enrichment.

The EU move against Melli was agreed in principle by the 27 member nations last week. After clearing a series of legal and technical procedures, it will be rubber stamped by EU ministers in Luxembourg, said the official from Slovenia, which holds the EU's rotating presidency.