New Syria sanctions have wide backing in EU -diplomat

BRUSSELS, Feb 8 (Reuters) - European Union governments

have reached an agreement in principle to impose sanctions on

the Syrian central bank this month as part of new measures

intended to force President Bashar al-Assad out of power, a

senior EU diplomat said on Wednesday.

Speaking on condition of anonymity, the diplomat said

details of the new sanctions were still being worked out but the

EU's 27 capitals were behind the push, which should be formally

approved by Feb. 27.

"Obviously, details are crucial. But (EU) member states

agree on the principle," the diplomat said.

"It is still a matter of discussion to what extent we can

take such a measure without damaging overall trade, because it

is not the intention to halt trade completely."

The EU was likely to move quickly in adopting the sanctions

despite such concerns, he said, amid growing acknowledgement in

Europe that it is difficult to completely avoid hampering

civilian trade through sanctions.

A European ban on trading with the Syrian government in

phosphates, diamonds, gold and other precious metals was being

planned, the diplomat said. European countries buy some 40

percent of Syrian phosphate exports.

"Phosphates are one of the most important natural resources

for Syria," he said. "Suspending these imports would have

obvious serious economic repercussions. I don't think member

states are reluctant to move towards such a measure."

In preparing sanctions, EU governments have aimed in recent

months to ensure measures such as a ban on central bank activity

do not harm the country's civilian population. Concerns over

such an impact have in the past slowed the process of preparing

sanctions in the EU, where decisions require unanimity.

Such considerations were taken into account when the EU

considered its sanctions on Iran. Evidence has suggested in

recent days that a Western effort to punish the Tehran

government over its nuclear programme - which the West says aims

to produce weapons - is damaging imports of food to Iran.

"If you start dealing with financial transactions, as would

be the case with sanctions against the central bank, this will

have consequences on the everyday economy," the diplomat said.

"There are pros and cons (of sanctions) and you need to find

a balance."

The new sanctions, which are expected to be approved by EU

foreign ministers at their next meeting, would follow several

previous rounds targeting Assad's government. In September, EU

governments agreed to ban imports of Syrian crude.

Several European governments have said they want to tighten

sanctions since Saturday, when Russia and China vetoed a U.N.

Security Council resolution that would have supported an Arab

call for Assad to give up powers.

"The Dutch government is in favour of sharpening and

broadening the sanction package with regard to Syria due to the

terrible situation over there," Dutch Foreign Minister Uri

Rosenthal said on Tuesday during a visit to Prague.

"The Dutch government for its part will propose to give

active support, as far as possible, to the opponents of the

Assad regime."

(Reporting by Justyna Pawlak; Additional reporting by Jana

Mlcochova in Prague)