The European Union (EU) on Monday expressed disappointment at Iran's refusal to respond positively to a nuclear package and threatened with sanctions if Iran fails to suspend uranium enrichment as required by the package.

"The Council (of foreign ministers) expresses its deep disappointment that Iran has not responded positively to the offer of negotiations," said the EU foreign ministers in a statement.

The package was designed by Britain, France and Germany, the three countries which had negotiated with Iran on behalf of the EU, and was backed by the United States, Russia and China.

Iran defied Western demands that it should have responded to the offer before the July 15 G8 summit in St. Petersburg, Russia.

The EU ministers recalled that the International Atomic Energy Agency Board of Governors and the UN Security Council have repeatedly called on Iran to suspend all uranium enrichment-related and reprocessing activities.

The nuclear package was an attempt to find a way for Iran to fulfill these requirements without further action in the UN Security Council, said the statement.

"Should Iran not comply, we will work for the adoption of measures under Article 41 of Chapter VII of the UN Charter," said the statement.

Article 41 of Chapter VII says the Security Council may impose economic sanctions to force a member state to comply with its decisions.

The six sponsors of the nuclear package decided on Wednesday to bring the Iranian nuclear issue back to the UN Security Council, agreeing to withhold further action if Iran returns to the negotiating table.

The EU foreign ministers echoed the position of the six nations.

"We remain committed to a diplomatic solution, and the ideas put to Iran remain on the table," said the statement.

"Should Iran decide to suspend all its enrichment-related activities and to implement the Additional Protocol (of the Non-Proliferation Treaty), the way to negotiation would be reopened and action in the Security Council could be suspended," it added.

The ministers said the package will not only meet the Iran's needs to develop a modern civil nuclear power program, but also would open the way to a new relationship with Iran based on mutual respect and expanded cooperation in political and economic fields.

The EU remains committed to building a long-term relationship with Iran based on confidence and cooperation, said the statement.

Such a development, however, will depend on progress on all issues of concern which include terrorism, Iran's approach to the Middle East peace process and human rights, it said.

EU foreign policy and security chief Javier Solana has recently held two rounds of talks with Iran's chief nuclear negotiator Ali Larijani. But officials said the talks were disappointing.

(Xinhua News Agency July 18, 2006)