Brussels: The European Union agreed on Tuesday to slap new sanctions on Libyan leader Muammar Gaddafi's regime, notably targeting the Libyan Investment Authority (LIA), the overseas investment vehicle for Tripoli's oil revenues.
The new sanctions on five economic 'entities' also including the Libyan Central Bank were agreed at the expiry of a deadline for verbal objections, several EU diplomats told AFP, awaiting rubber-stamping by governments in writing.
A spokesman for Hungary's EU chair confirmed an agreement in principle had been reached on sanctions but declined to name those targeted. He said the sanctions would hopefully be enforced by Friday.
The deal was reached after experts soothed fears expressed overnight by Malta as to the effect on major EU businesses in which the LIA holds important stakes, several sources said.
The state LIA, set up in 2006 to diversify national income, has significant shareholdings in Italian bank UniCredit, Italian defence and aeronautical group Finmeccanica, Juventus Football Club and Pearson, the publisher of the Financial Times which itself froze that individual holding last week.
Brussels had already imposed the toughest international sanctions yet on Gaddafi's regime, ordering asset freezes and visa bans against the Libyan leader and 25 others for brutalising civilians.
The existing measures notably applied to the veteran ruler's seven sons and his daughter, along with his wife Safia al-Barassi. One new person was also added, another diplomat said.
The delegation from Malta, which lies between the Italian island of Sicily and Libya, had "raised questions about the (sanctions') impact on European companies," one of the diplomats said.
But sources said Malta backed down after experts vowed to 'avoid undesirable effects on European companies.'
It has been argued in Italy that the freezing of capital for the likes of Juventus will severely hamper the club's ability to compete in football's summer transfer market, for instance.
The EU sanctions, which target more people than a corresponding UN list, also enforced an embargo on arms sales to Libya, in line with the UN Security Council decision.
But toughening up the UN measures, the EU also slapped an embargo on sales to Libya of equipment which might be used for internal repression.
The sanctions allow the EU to keep up pressure on Gaddafi to go, which foreign and security affairs chief Catherine Ashton's spokesman Michael Mann reiterated today is the bloc's set position.