Iran removes $75bn from Europe as Brown warns assets will be frozen if they fail to stop nuclear development
By Daily Mail Reporter
Last updated at 2:01 PM on 16th June 2008
Pre-emption: President Ahmadinejad is said to have ordered the withdrawal of $75bn in assets from Europe ahead of possible new sanctions
Iran has withdrawn around $75billion from Europe to stop its assets being frozen under new sanctions aimed at its nuclear programme.
As Gordon Brown promised harsher sanctions against the regime, there were claims it was already moving money from Europe to Asia or converting it into gold.
Shahrvand-e Emrouz, an Iranian weekly, magazine, said President Mahmoud Ahmadinejad had personal ordered that the money be moved out of Europe.
The magazine claimed: 'About $75 billion of Iran's foreign assets which were under threat of being blocked were wired back to Iran based on Ahmadinejad's order.'
It quoted Mohsen Talaie, deputy foreign minister in charge of economic affairs, as saying: 'Part of Iran's assets in European banks have been converted to gold and shares and another part has been transferred to Asian banks.'
Iran's Eternad-e Melli newspaper has already reported that the country was withdrawing assets from European banks but did not give any figures.
The Prime Minister warned today that Britain would be pressing for stronger action against Tehran if it failed to curtail its nuclear ambitions.
At a joint press conference with President George W. Bush in Westminster, he warned Iran they must not 'choose a path of confrontation with the West'.
While insisting Britain would do everything to keep up a dialogue, he announced a new phase of sanctions to hit their assets in Europe and gas and oil reserves.
The Premier said: 'I will repeat that we will take any necessary action so that Iran is aware of the choice it has to make to start to play its part as a full and respected member of the international community - or face further isolation.'
Tough talk: Gordon Brown and George W. Bush both delivered harsh warnings to Iran today at their joint press conference in Westminster
Referring to talks held at the weekend with Iran and the international community, he said: 'Once again, we put our enhanced offer on the table - including political and economic partnership and help with nuclear technology for civilian use.
'We await the Iranian response and will do everything possible to maintain the dialogue.
'But we are also clear that if Iran continues to ignore (United Nations) resolutions, to ignore our offers of partnership, we have no choice but to intensify sanctions.
'And so today Britain will urge Europe, and Europe will agree, to take further sanctions against Iran.
'First of all, we will take action today that will freeze the overseas assets of the biggest bank in Iran, the Bank Melli.
'Second, action will start today for a new phase of sanctions on oil and gas.'
President George Bush said he wanted to send a 'focused message' to Iran and, when asked about military action, stressed that 'all options are on the table'.
He accepted Tehran had a 'sovereign right' to have a civilian nuclear programme but they did not have the 'trust' of the West when it came to its desire to enrich uranium.
He said Tehran had to understand that when the international community spoke 'with one voice', it was serious.
While admitting the Iranian demand for a nuclear power programme was 'justifiable', he told reporters: 'When the Iranians say we have a sovereign right to have one the answer is 'You bet you have a sovereign right, absolutely'.
'But you don't have the trust of those of us who have watched you carefully when it comes to enriching uranium because you have declared that you want to destroy democracies in the neighbourhood, for example.
'Therefore, and this is a Russian proposal by the way, we will provide fuel for you and we will collect the fuel after you have used it so you can have your civilian nuclear power.'
Fears: An aerial view of the Natanz Nuclear facility. Iran halted its nuclear weapons development program in 2003 but is still enriching uranium
The President added: 'What these nations need to see is we are serious about solving these problems and the United States spends a lot of time working with our partners to get them solved.'
On Saturday, Iran again ruled out suspending uranium enrichment despite the offer by six world powers of help in developing a civilian nuclear programme if it stopped activities the U.S. and others suspect are designed to make bombs.
The offer - agreed last month by the United States, Britain, Russia, China, Germany and France - is a revised version of one rejected by Tehran two years ago.
Iran's refusal to suspend nuclear enrichment, which can provide fuel for power plants or material for weapons if refined much more, has drawn three rounds of U.N. sanctions since 2006.
EU diplomats have said the bloc is preparing an asset and funds freeze on Iran's biggest bank, state-owned Bank Melli, but that it first wants to see how Tehran responds to the new offer.
Iran is also currently making windfall gains from record global oil prices and said in April its foreign exchange reserves stood at more than $80 billion.
Western countries suspect Iran is seeking the ability to make nuclear weapons but Tehran insists its secretive programme is purely aimed at generating energy.
U.S. President George W. Bush and British Prime Minister Gordon Brown have promised new sanctions on Iran if the Gulf country continues to enrich weapons-grade uranium. 

At a joint press conference in London today, Brown announced that "today we will urge Europe - and Europe will agree - to take further sanctions against Iran." Britain is pressuring the European Union to freeze the overseas assets of Iran's Bank Melli, which the United States accuses of supporting Iran's missile programs. European Union spokesperson Cristina Gallach says that Europe is prepared to take action.

Iran denies its enrichment program is aimed at the creation of nuclear weapons, insisting that they will use the technology to generate electricity. In response, Brown announced that during weekend negotiations, "we put our enhanced offer on the table - including political and economic partnership and help with nuclear technology for civilian use. We await the Iranian response and will do everything possible to maintain the dialogue."

In response to the announcement, Iran has withdrawn approximately $75 billion of its European foreign assets. "Part of Iran's assets in European banks have been converted to gold and shares" said Iranian deputy foreign minister Mohsen Talaie, "and another part has been transferred to Asian banks." The Iranian government gauges its foreign exchange reserves at $80 billion.