LONDON (Zimbabwe Investor) - The EU has removed sanctions imposed on nine Zimbabwean companies but maintained sanctions on individuals by another year. The sanctions were first imposed as part of its targeted sanctions regime against individuals and companies connected to the Zimbabwean government.

The companies that had been under the sanctions included ZB Financial Holdings Ltd (Finhold), the Industrial Development Corporation of Zimbabwe, Intermarket Holdings Ltd, Scotfin Ltd, Zimre Holdings Ltd, Zimre Reinsurance Company (PVT) Ltd, Ziscosteel and Oryx Diamonds Ltd.

In removing the sanctions, the EU conceded that they were no longer necessary in light of the new political environment. The block however cited lack of progress in the implementation of the GPA when announcing that the sanctions on the individuals would be extended by another 12 months.

"In view of the situation in Zimbabwe, in particular the lack of progress in the implementation of the Global Political Agreement signed in September 2008, the restrictive measures should be extended for a further period of 12 months," the official journal of the European Union said on Tuesday, February 16.

At the Zimbabwe Diaspora Investment Conference held in London in September 2009, Zimbabwe Investor challenged Mr John Dennis, the Zimbabwe Country Director at the British Foreign and Commonwealth Office, on the issue of sanctions imposed on companies. Mr Dennis responded by stating that he would raise the matter with the relevant people within the EU set up.