IRAN HAS SAID that it is willing to return to negotiations with western powers about the exchange of nuclear fuel, despite the European Union imposing harsh new sanctions on the country on Monday.

Iran denies that the sanctions will hurt, but has stated that it plans to return to talks in the Autumn.

EU countries agreed to self-impose investment restrictions in Iranian oil and gas in response to Iran’s nuclear programme. Sanctions will also include a suspension on EU dealings with Iranian banks and insurance companies.

These are the latest extension on sanctions against Iran, against following similar UN, EU and US actions earlier in the year.

Despite Tehran insisting that the country is enriching uranium for peaceful purposes (medicinal and energy uses), suspicions that Iran is attempting to build a nuclear weapon have brought a slew of economic sanctions.

Last June, Turkey and Brazil agreed a fuel swap with Iran in an attempt to reduce escalating international tension surrounding Tehran’s nuclear ambitions. Under the terms of the agreement 1200 kg of Iran’s 3.5% enriched uranium would be sent to Turkey in exchange for 120 kg of 20% enriched fuel.

Nevertheless, the following day the United States, Britain, France, Germany, China and Russia all agreed to impose economic sanctions on Iran.

The nature of the sanctions are designed to hit Iran hard. Despite the country being the fifth largest crude oil exporter in the world, it has a extremely limited capacity to refine petroleum and so relies on foreign imports for about 40% of its domestic consumption.

Refined oil, such as gasoline, is essential for personal and commercial transport and business.  The country has been relying on friendlier nations like Turkey and China for gasoline imports.

Mark Fitzpatrick, an Iran specialist at the International Institute for Strategic Studies, told Reuters that the EU did not fear other countries rushing in to provide commercial imports for Iran as the areas chosen for the sanctions are ones in which Europe has “substantial leverage.”

She continued by adding: “Not so many other countries can provide the kind of financial services that will be cut off. Few other countries supply technology for liquefied natural gas, nobody else does re-insurance … The European Union has very wisely found areas over which it has real leverage and cannot be supplanted.”

However, some countries object to the new round of sanctions, including Russia. Iranian IRNA news quotes Maxim Shevchenko, president of the Center for Strategic Research on Modern Religion and Politics, as saying that “any pressure on the country to stop its program will be unjust, unacceptable and discriminatory,” and that “Iran maintains cordial relations with several powerful countries including Indonesia, Malaysia, China, Turkey, Brazil and Japan… (which  would) foil the effects of sanctions on Iran.”