European Union suspends majority of sanctions on Zimbabwe, but ZMDC still on list

The European Union has suspended most sanctions against Zimbabwe after a vote in the Southern African country that gave a green light to a new constitution that limits presidential powers and leading the way to elections which have been penciled in for July.

However, 10 people, including President Robert Mugabe, and two companies, one of them diamond mining company, Zimbabwe Mining Development Corporation (ZMDC), which mines in the Marange area, remain on the sanctions list, restricted by asset freezes and travel bans.

"The EU ... has agreed to immediately suspend the application of measures against 81 individuals and eight entities," EU foreign policy head Catherine Ashton said.

The EU is easing sanctions in a move to encourage political and economic reform in Zimbabwe.

Its sanctions remain for a handful of "key decision makers" until peaceful, transparent and credible elections are held, Ashton commented.

Presidential and parliamentary elections in the second half of this year will be monitored by the Western as Mugabe fights political rival, Prime Minister Morgan Tsvangirai.

Meanwhile, Britain said EU sanctions would remain against a small group close to Mugabe. "That small group includes those who we believe ultimately carry the most responsibility for ensuring elections are free of violence and intimidation," said British Foreign Secretary William Hague.

The European Union first placed sanctions on Zimbabwe 11 years ago, in protest at human rights abuses and violations of democracy by Mugabe's regime.

Rugare Gumbo, a spokesman for Mugabe's ZANU-PF party, said it was "completely unacceptable" for the European Union to only lift some of the sanctions. "We want them unconditionally removed. There is no reason why some should be removed from the list while some remain. There is nothing we have done to deserve these illegal sanctions anyway."

In a March 16 referendum, nearly 95 percent of voters approved a new constitution which reduces presidential terms and increases the powers of the cabinet and parliament.

EU foreign ministers last month agreed to the removal of 21 people and one company from the sanctions list, and agreed on a compromise under which measures against ZMDC, which operates five diamond mines in Marange, would be lifted within one month of peaceful and legitimate elections being held.