The European Union will extend an asset freeze against Libyan leader Moammar Ghadafi and his associates to include the Libyan Investment Authority, Tripoli, the country's sovereign wealth fund, said four people informed of the matter.
The agreement was reached Tuesday by officials from the EU's 27 members and may take effect on Friday, the people said.
The sanctions aim to freeze the European holdings of the LIA and its former deputy CEO, Mustafa Zarti; the Libya Africa Investment Portfolio; the Libyan Foreign Bank; the Libyan Housing and Infrastructure Board; and the country's central bank, the people said. More entities may be added to the list next week.
The EU on Feb. 28 implemented a United Nations resolution on Libya by imposing an arms embargo and freezing the assets of Mr. Ghadafi and close associates. The new measure will prevent the Libyan organizations from selling stakes or collecting dividends from holdings in UniCredit, Pearson and other companies.
The Libyan funds and central bank own stakes in companies across Europe, especially in Italy. Libyan entities own a 7.2% stake with a market value of €2.5 billion ($3.5 billion) in UniCredit, Italy's biggest bank. UniCredit's deputy chairman is Farhat Omer Bengdara, who is head of Libya's central bank.