EU agrees to strengthen Myanmar sanctions

By David Brunnstrom

LUXEMBOURG (Reuters) - EU foreign ministers agreed on Monday to strengthen sanctions against Myanmar's military rulers in response to a crackdown on protests last month and warned they could go further and ban all new investment.

The ministers agreed to broaden sanctions that include visa bans and asset freezes on generals, government officials and their relatives, and to take new steps targeting the country's key timber, metals and gemstone sectors.

"The EU deems it necessary to increase direct pressure on the regime," the ministers said in a statement issued after talks in Luxembourg.

"It will therefore adopt a package of measures that do not harm the general population but that target those responsible for the violent crackdown and the overall political stalemate in the country."

The new measures include an export ban on equipment to sectors involving timber, metals, minerals, semi-precious and precious stones plus import and investment bans on the sectors.

Ministers instructed experts to look at further steps, which could include a ban on all new investment in the country.

Foreign Secretary David Miliband told reporters such additional steps would be imposed if Myanmar's military rulers failed to participate in a U.N.-facilitated dialogue with political opponents.

The United States told Myanmar's rulers to stop its crackdown against pro-democracy dissidents and also threatened more sanctions.