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Edition: U.S. Article Comments (4) Video Save Email Print Reprints Most Popular Most Shared Euro skids, shares tumble on German ban | Video 2:21am EDT Disgruntled voters take down veteran senator 1:38am EDT Thai protest leaders surrender after deadly clashes | Video 3:22am EDT "Savagely beaten" Stanford asks to be freed 18 May 2010 Big powers agree on Iran sanctions draft | Video 18 May 2010 Lincoln loses leverage on US financial reform bill 1:07am EDT German ban on risky bets seen backfiring 12:29am EDT WRAPUP 7-Gulf Coast fears spreading slick, fishing ban widens 18 May 2010 Study suggests processed meat a real health risk 17 May 2010 U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Study suggests processed meat a real health risk 17 May 2010 Pesticides tied to ADHD in children in U.S. study 17 May 2010 U.S. reverses stance on treaty to regulate arms trade 14 Oct 2009 Disgruntled voters take down veteran senator 1:38am EDT Thai protest leaders surrender after deadly clashes | Video 3:22am EDT Euro skids, shares tumble on German ban | Video 2:21am EDT Thai crackdown may spark "guerrilla war": Thaksin 18 May 2010 Euro hits 4-year low vs. dollar after German regulation 1:33am EDT Canadian working women campaign for 25-hour day 18 May 2010 Drug-resistant TB risk demands push for new drugs 18 May 2010 Big powers agree on Iran sanctions draft Louis Charbonneau UNITED NATIONS Tue May 18, 2010 11:56pm EDT Related News Iran deal a boost or bust for Brazil diplomacy? Tue, May 18 2010 Turkey says not time to raise Iran sanctions Tue, May 18 2010 France says Iran fuel swap deal a positive step Tue, May 18 2010 Related Video U.S. reaches Iran sanctions deal Tue, May 18 2010 The Iranian flag is pictured before the opening of the 32nd Meeting of the Ministers of Foreign Affairs of G-15, at a Foreign ministry building in northern Tehran, May 15, 2010. Credit: Reuters/Morteza Nikoubazl UNITED NATIONS (Reuters) - The United States handed the U.N. Security Council a draft resolution on Tuesday that would expand U.N. sanctions against Iran by hitting its banking and other industries for refusing to halt nuclear enrichment. World The 10-page draft, agreed by the United States, Britain, France, Germany, China and Russia after months of negotiations, also calls for international inspection of vessels suspected of carrying cargo related to Iran's nuclear or missile programs. The text, Western diplomats say, was the result of a series of compromises between the United States and its three European allies, which had pushed for much tougher sanctions against Tehran, and Russia and China, which sought to dilute them. Few of the proposed measures are new. But Western diplomats said the end result was probably the best they could have hoped for, given China's and Russia's determination to avoid measures that might have undermined Iran's troubled economy. The draft has the backing of all five veto-wielding council members. The decision to circulate the resolution to the 15-nation Security Council was a tacit rebuff to a deal brokered by Brazil and Turkey and made public on Monday in which Iran agreed to send some enriched uranium abroad in return for fuel rods for a medical research reactor. U.S. officials regard that deal as a maneuver by Iran to delay more U.N. sanctions. Brazil's U.N. ambassador made clear her country was unhappy that the United States and its allies appeared to ignore the deal that her country has described as a major breakthrough in the long-running nuclear standoff between Iran and the West. "Brazil is not engaging in any discussion on a draft at this point because we feel that there is a new situation," Ambassador Maria Luiza Ribeiro Viotti told reporters outside the Security Council chamber. "There was an agreement yesterday which is a very important one." CHINA WELCOMES NUCLEAR FUEL DEAL A Turkish diplomat, speaking on condition of anonymity, did not rule out discussions on the draft but said "our focus is on the other track" -- referring to the Tehran fuel swap deal. But U.S. Ambassador Susan Rice said the deal had "nothing to do" with the uranium enrichment that led to the threatened sanctions against Iran. Chinese Foreign Minister Yang Jiechi, however, spoke to his Turkish and Brazilian counterparts about the Iran nuclear issue and their nuclear fuel swap agreement with Iran, China's Foreign Ministry said on its website. It said Yang told them that China appreciated their efforts and welcomed the nuclear fuel agreement. Yang said he "hopes that this (agreement) will help to promote peaceful resolution of the Iran nuclear issue through dialogue and negotiations." Iran rejects Western allegations that its nuclear program is aimed at developing weapons. It says its atomic ambitions are limited to the peaceful generation of electricity and refuses to suspend uranium enrichment. The draft resolution "calls upon states to take appropriate measures that prohibit" the opening of new Iranian bank branches or offices abroad if there is reason to suspect they might be aiding Iran's nuclear or missile programs. It also calls on states "to exercise vigilance over transactions involving Iranian banks, including the Central Bank of Iran" to ensure that those transactions do not aid Tehran's nuclear and missile programs. It urges countries to be wary of dealing with Iran's Islamic Revolutionary Guard Corps and says some members and companies it controls will be added to existing lists of individuals and firms facing asset freezes and travel bans. The draft, which would represent a fourth round of U.N. sanctions against Tehran, calls for an expansion of an already existing arms embargo to include more types of heavy weapons. Originally, the United States and the Europeans had hoped to impose a total arms embargo against Tehran and blacklist its central bank, but Russia and China had opposed those moves. Although many of the measures in the resolution are non-binding, diplomats said the European Union and United States would treat calls for "vigilance" against Islamic Republic of Iran Shipping Lines and other firms as bans and would pass regulations that go beyond any new U.N. measures. British Ambassador Mark Lyall Grant said one of the goals of the resolution "is to make it more difficult for Iran to acquire a nuclear weapons capability." Rice said the new resolution would make it more costly for Iran to continue to reject U.N. demands that it halt its enrichment program. But she said the door was still open to Iran if it was ready to accept offers to resolve the crisis through dialogue. "The draft seeks to support, and not replace, our efforts to engage Iran diplomatically," she said. Chinese Ambassador Li Baodong told reporters Beijing was looking for a "well balanced" resolution and that his country did not expect its close trade ties to Tehran to be harmed. "The purpose of sanctions is to bring the Iranian side to the negotiating table," Li said. "The sanctions are not for punishing innocent people and should not harm normal trade." Russian Ambassador Vitaly Churkin said about the draft: "It's language we can live with." Both Churkin and Li welcomed the nuclear fuel deal announced on Monday. Several Western diplomats said they hope the 15-nation council will vote on the resolution early next month. The draft will likely be revised in the coming weeks. Aside from Turkey and Brazil, council member Lebanon has made clear it would have trouble supporting sanctions against Iran. Lebanon, diplomats say, will likely abstain from a vote on the resolution because the Iranian-backed militant group Hezbollah is in its government. (Additional reporting by Patrick Worsnip, Emma Graham-Harrison and Chris Buckley in Beijing, Arshad Mohammed, Caren Bohan and Phillip Stewart in Washington; Editing by Sandra Maler and Philip Barbara) World Comments See All Comments (4) | Post Comment May 18, 2010 10:07pm EDT U.S. policy on nuclear Iran underscores bias toward Unbreakable bond Israel, AFTER IRAQ WITH NEVER BEEN FOUND WMD, IT IS CLEAR BY NOW US ANTI IRAN TIRADE RHETORIC DOUBLE STANDARD IS ONLY ON BEHALF OF UNBREAKABLE BOND ISRAEL, NOT THE NON PROLIFERATION TREATY OR THE WORLD, TO MAKE SURE THAT ISRAEL IS THE SOLE NUKES POSSESSOR IN MIDEAST. HISTORY PROVES ITSELF. THERE IS NO SINGLE CREDITABLE EVIDENCE THAT IRAN FLOUTS THE NPT RULES OR DEVELOPS NUKES. US AND ZIONIST MEDIA USING PROPAGANDA LIES TO CREATE ILLUSION AND MAKE BELIEVE THAT IRAN IS TO DEVELOP NUKES. With more than 200 nuclear weapons and the capacity to deliver them against its enemies or use them to buttress its policies, Israel refuses to join the Non-Proliferation Treaty or to open its nuclear facilities for International Atomic Energy Agency inspection. On the other hand, Israel and the United States insist on applying the harshest possible sanctions against Iran, which they fear may be developing nuclear weapons. The United States furthermore is responding to a regional initiative to make the Middle East a zone free of weapons of mass destruction by linking it to progress in the peace process, which means a peace customized by and suited especially to meet Israel’s interests, naturally, because Israel is the sole nuclear power in the region. In promoting this deal, imposed by a nuclear Israel on a much weaker region, the United States is affirming that it certainly pays to be a nuclear power — you get things done on your terms — It is making mockery of other nations when the white house spokesman says Iran must assure THE INTERNATIONAL COMMUNITY. In fact more than hundred countries support Iran’s right to nuclear technology UNDER NPT including uranium enrichment but the white house spokesman and the media do not consider that number of countries as international community. Only the bullies are entitled speak for other countries. INDONESIA CERTAIN IRAN’S NUCLEAR PROGRAMME NOT FOR DEFENCE PURPOSES. doublestandard2 Report As Abusive May 18, 2010 10:38pm EDT Eventually China will realize that unilaterally propping up police states, such as Iran, North Korea, and Myanmar, will not serve China’s interests in the long run, and make for poor allies. Whys Report As Abusive May 18, 2010 10:58pm EDT It might not be ideal that Israel has nukes, and hopefully they will get rid of them some day like South Africa did, but that is not an argument for Iran to have them too. The difference between Israel and Iran is that you don’t hear Israel saying it wants to destroy its neighbours. No one fears Israel nuking another country except in defence, but Iran is different. It is common practice for Iran’s leaders to start their official meetings with shouts of ‘death to Israel’ and ‘death to America’, all the time funding terrorist movements all over the world. How can you risk letting a country like that develop nukes? And what does it mean anyway if other countries like Indonesia think it is for peaceful purposes? What do they know? They don’t have credible intelligence capabilities to know one way or the other. When the IAEA is suspicious, you know all is not well at the mill. It is up to Iran to cooperate fully to assure others it’s program is for peaceful purposes. So far they haven’t been willing to do that, with half-hearted gestures designed to delay sanctions and duplicity over its nuclear facilities. Jay777 Report As Abusive May 18, 2010 11:47pm EDT I totally support economic sanctions against nations with ambitions to obtain nuclear weapons. ESPECIALLY nations that already possess nuclear weapons. We should really go to town on those nations. We should sanction them into the stone age. Sanction them until only the really rich and powerful living there have a high standard of living. That would be awesome! RandomName Report As Abusive See All Comments (4) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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