Sarkozy urges tougher Iran sanctions, warns French firms

NEW YORK (Reuters) - French President Nicolas Sarkozy called for tougher international sanctions against Iran's nuclear program and warned French oil giant Total and gas firm Gaz de France to refrain from investing in Iran.

In an interview with The New York Times, published on the newspaper's Web site late on Sunday, Sarkozy pointedly eschewed his foreign minister's talk of preparing for war with Iran but said more pressure must be applied to make Tehran renounce its nuclear ambitions.

"It's not true that there is no solution between surrender and war," Sarkozy said, according to a text released by his office.

"Between surrender and war, there is a range of solutions that exist like the reinforcement of sanctions which will eventually have an effect," he said, calling for a third U.N. resolution tightening economic restrictions on Tehran.

If the U.N. Security Council was unable to agree on another resolution, Sarkozy said he would support the European Union adopting additional sanctions.

The French leader, in New York to attend his first United Nations General Assembly session since his election in May, said he had urged Total and Gaz de France to refrain from bidding for new projects in Iran and told French banks to stop doing business there.

EU foreign policy chief Javier Solana played down French calls for the 27-nation bloc to consider its own sanctions against Iran, saying there had been no discussion of such an idea in the EU to date.

French Foreign Minister Bernard Kouchner said last week he saw no prospect of the U.N. Security Council agreeing tougher measures on Iran because of Russian and Chinese resistance, so the Europeans should consider their own measures to hit credit, investment and insurance.

But Solana told reporters in New York, where he will attend the annual United Nations General Assembly session, that no such idea was on the EU's agenda.