"The European Union stands ready to initiate and adopt further sanctions, including measures to ensure that oil and gas revenues do not reach the Qadhafi regime," the statement added. Issued by the EU's 27 heads of state and government during a two-day summit, it added that EU states will lodge similar proposals at the United Nations Security Council.

The move to strangle funding for Qadhafi followed new sanctions on the Libyan oil sector announced earlier, and the banning of aircraft suspected of carrying mercenaries from EU airspace. The 27-nation bloc ordered an assets freeze on the National Oil Corp. and five of its subsidiaries as well as targeting a further 14 economic entities and 25 Qadhafi associates, diplomats said.