U.N. to impose new sanctions on Iran; Tehran defiant

By Evelyn Leopold

UNITED NATIONS (Reuters) - Major powers announced an agreement on Thursday to impose new U.N. arms and financial sanctions on Iran for its nuclear program, and a defiant Iranian President Mahmoud Ahmadinejad asked to address the U.N. Security Council on the issue.

A draft resolution was introduced in the 15-nation Security Council by Britain for a potential vote next week. Ahmadinejad has asked to address the council on the day of the vote, according to South Africa's U.N. Ambassador Dumisani Kumalo, the current council president.

At a rally in central Iran, Ahmadinejad vowed the initiative would not sway Tehran.

The deal came after two weeks of negotiations in New York by Germany and the five permanent council members -- the United States, Britain, France, Russia and China. But Kumalo said there might be changes because the 10 rotating members resented being a rubber stamp for the big powers.

The measure would penalize Iran for refusing to suspend uranium enrichment, which can be used to make nuclear bombs or for peaceful ends. The sanctions would be suspended if Iran complied and returned to negotiations.

French Prime Minister Dominique de Villepin noted that Iran had been offered economic and other incentives by Europeans if it adhered to council demands.

"These measures are gradual and reversible," he told reporters during a visit to New York. "That means that if in 60 days we have no answer, we will have more sanctions."

The new draft follows a resolution adopted in December that imposed trade sanctions on Iran's sensitive nuclear materials and technology, and froze the assets abroad of some Iranian individuals and companies. Iran ignored a February 21 deadline to suspend enrichment or face further action.