Chairman of National Security and Foreign Policy Commission of Iran's parliament, Alaeddin Boroujerdi, said Saturday that imposing new sanctions on the Islamic Republic will harm the West, the official IRNA news agency reported.

"Any measure by the European Union ahead of the end of talks between Iran and the five permanent members of UN Security Councilplus Germany (Group 5+1) will be unacceptable," the report quoted Boroujerdi as saying.

He said that Iran and the EU enjoy a high level of economic cooperation and any move by the EU to impose new sanctions on Iran would be hasty and would lead to negative results on mutual ties.

Boroujerdi called on EU foreign policy chief Javier Solana and Group 5+1 to hold a new round of talks with Iran to receive a clear response from the Islamic Republic to a package of incentives, which has been presented to Tehran calling for a suspension of uranium enrichment activities.

The EU issued a decree on Friday to consider fresh UN Security Council sanctions against Iran over its controversial nuclear program.

The EU presidency decreed that its financial institutions must exercise restraint on export credits to Iran and that its 27 member states inspect Iran-bound cargoes.

It also urged the countries to exercise vigilance in dealing with all banks domiciled in Iran, in particular, Bank Saderat.

The West accuses Iran of developing nuclear arms. Tehran, however, argues its enrichment activities are aimed at electricity generation and peaceful applications of nuclear technology.

(Xinhua News Agency August 10, 2008)