EU readies new sanctions over Syria repression

The European Union prepared on Wednesday to tighten sanctions against Syria over its repression of anti-regime protests, as long-time Damascus ally Moscow warned against punitive measures.

The move came as Syria accused Qatar of fuelling the crisis by financing and arming rebels, a day after Damascus flatly rejected Doha's proposal to send in Arab troops to quell the unrest.

In Brussels, diplomats said EU foreign ministers are set to slap fresh sanctions on Syria at a meeting on Monday, adding 22 individuals and eight companies to an existing blacklist.

"As long as the repression continues we will step up our restrictive measures," said one diplomat, speaking on condition of anonymity.

No details were immediately available on the new targets.

The EU has already agreed 10 rounds of sanctions against the regime of President Bashar al-Assad, with some 120 people and companies targeted so far by an EU assets freeze and travel ban.

It is also enforcing an arms embargo and a ban on imports of Syrian crude.

The news comes as the Syrian pound hit a record low on Wednesday of 71 to the dollar on the black market, with one observer saying it has been hit by the political crisis, including the repercussions of sanctions.

The official rate hovers around 57.5 pounds to the dollar.

The EU move would come on the heels of a pledge by US President Barack Obama to redouble efforts to force a change of regime in Syria and as the UN Security Council struggles to agree on a resolution on Damascus's crackdown on dissent.

Russia, which insists the Syrian opposition is as much to blame for the violence as the regime, warned against Western calls for punitive measures.

"For us, the red line is fairly clearly drawn. We will not support any sanctions," said Foreign Minister Sergei Lavrov, whose country was a Cold War ally of Damascus and retains a naval base at Tartus on Syria's Mediterranean coast.

Meanwhile, China defended the Arab League's widely criticised observer mission to Syria.

"Since the Arab League observer mission began, the violence in Syria has not completely ended, but the security situation of major areas has improved," said Chinese foreign ministry spokesman Liu Weimin.

"(This) shows the mission is effective," he added.

The UN says that of 5,400 killed since protest erupted in March, 400 have lost their lives since the observers arrived.

Moscow and Beijing used their vetoes at the UN Security Council last October to block a Western-drafted resolution that would have threatened Damascus with "targeted measures."

Syrian state media stepped up its rhetoric against Qatar ahead of a meeting of the Arab League on Saturday and Sunday, which will discuss the future of the observer mission.