Germany says doesn't rule out sanctions on Iran

Khaleej Times:

German Foreign Minister Frank-Walter Steinmeier said on Tuesday he did not rule out economic sanctions against Iran in the standoff over its nuclear ambitions. READ MORE

Steinmeier, in Japan on a three-day visit for talks with Japanese officials, was speaking several hours before Russian and Iranian nuclear negotiators were to hold a second day of talks in Moscow to try to strike a deal to ease international concerns that Teheran wants a nuclear bomb.

The two sides are discussing a Russian offer to enrich uranium for Iranian power plants on its own soil -- seen by some as the last chance to defuse the row over Iran's nuclear ambitions before Western governments seek sanctions.

"We do not rule out the possibility of economic sanctions completely," Steinmeier told a news conference in Tokyo.

Asked what might happen in the future, he said: "We have no option but to pray that the Iranian government will make a final decision with sincerity."

Steinmeier stressed that the international community should seek a diplomatic solution to Iran's nuclear ambitions.

"With respect to military options, I believe it is important for us to use diplomatic possibilities and not to lose our creativity about diplomatic options," he said through an interpreter.

While looking ahead to March 6 when the United Nations nuclear watchdog is to report on Iran to the U.N. Security Council, the United States and the European Union trio of France, Britain and Germany -- the countries pressing Iran hardest on its nuclear programme -- have welcomed the Russian plan.

Iran says its needs atomic power for electricity, not bombs. It says Western powers are infringing on its sovereign right to develop a civilian atomic energy programme.

Russia has demanded that Iran reinstate a moratorium on uranium enrichment before creating a joint venture to supply it with low-enriched fuel, which could not be used for bombs.

Russia, which has veto power at the council, opposes sanctions which would disrupt its commercial ties with Iran and says the dispute should be solved under the International Atomic Energy Agency umbrella.

The 35-nation IAEA board this month reported Iran to the U.N. Security Council, which is waiting to hear the conclusions of nuclear watchdog chief Mohamed ElBaradei before deciding on possible action against Teheran.