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* EU has already imposed several rounds of sanctions

* Europeans frustrated over lack of options to end conflict

By Sebastian Moffett and Justyna Pawlak

NICOSIA/PAPHOS, Cyprus, Sept 8 (Reuters) – The European

Union may impose new sanctions on the Syrian government of

President Bashar al-Assad as soon as next month, EU diplomats

said on Saturday.

Belgian Foreign Minister Didier Reynders said his EU

counterparts meeting in Cyprus had agreed new sanctions were

needed and had tasked Catherine Ashton, the bloc’s foreign

policy chief, with preparing suggestions for talks next month.

“We need to go further in (targeting Syria’s) financial

sector and commercial activities,” Reynders told Reuters after

the meeting in a luxury resort in Cyprus – less than 400

kilometres (250 miles) from Damascus.

The agreement comes amid frustration that Assad is clinging

to power despite a 17-month uprising against him and several

rounds of EU sanctions. These include an arms embargo and travel

bans and asset freezes on around 50 businesses and 150 people.

Ashton said the bloc would also boost its efforts to help

refugees and other victims of the Syrian conflict and support

Lakhdar Brahimi, the new U.N.-Arab League special envoy.

“Sanctions are under review,” Ashton told a news conference

in Nicosia, the capital of Cyprus, after the meeting.

“Not only to consider whether more sanctions should be taken

but to make sure that the enforcement of sanctions is done

properly and any ability to evade them is dealt with.”

Some 20,000 people have been killed in the conflict,

according to U.N. figures. Ashton cited a figure of 230,000

people who she said had fled the country, mostly to Turkey,

Jordan, Iraq and Lebanon.

LACK OF OPTIONS

The EU executive on Friday said it would donate 50 million

euros ($64 million) to help Syrian civilians, adding to the 69

million it has already contributed.

Swedish Foreign Minister Carl Bildt warned it would be tough

to find areas of the economy where sanctions could have a strong

impact.

“There is very little we can do,” Bildt told reporters.

One other option would be to create a buffer zone shielded

from air strikes but the EU executive has said that would be

impractical without a U.N. Security Council resolution

authorising intervention. Russia and China have so far vetoed

attempts to pass tough Security Council sanctions against Assad.

French Foreign Minister Laurent Fabius said a week ago that

France and Turkey had identified areas in the north and south of

Syria that had escaped Assad’s control, creating a chance for

local communities to govern themselves without feeling they had

to flee to neighbouring countries.

Other EU ministers were reluctant to support him for now.

“We need to go back to the capitals and see how we feel

about it,” Polish Foreign Minister Radoslaw Sikorski said.

“Nobody knows what to do about Syria, other than try to

convince the Syrian opposition to be better united,” he said.