Q+A-How will fresh sanctions affect Iran?

LONDON, June 28 (Reuters) - The U.S. Congress has passed legislation to impose tough new sanctions on Iran's banking and energy sectors, seeking to curb Tehran's nuclear work that Washington suspects is aimed at bomb-making.

The measure, which goes beyond recent U.N. Security Council and European Union sanctions, would penalise companies from other countries that do business with Iran.

Iranian President Mahmoud Ahmadinejad said on Monday the country wants to delay negotiations for several weeks to punish the West for imposing new sanctions and warned that inspections of its ships in connection with the programme could provoke retaliation. [ID:nLDE65R1DZ]

How will Iran be able to cope with fresh sanctions, and will it find ways to bypass them? Below are some questions and answers on the issue.

WHAT IMPACT WILL THE FRESH U.S. SANCTIONS HAVE?

It will make trading with Iran tougher as international companies fear falling foul of U.S. sanctions.

"This will increase the already very tough business environment they are working under," said Samuel Ciszuk, senior energy analyst for the Middle East and North Africa with consultancy IHS.

Repsol (REP.MC), Spain's largest oil company, said on Monday it had pulled out of a contract it won with Royal Dutch Shell (RDSa.L) to develop part of the South Pars gas field in Iran. Separately, French oil group Total (TOTF.PA) said it had suspended sales of refined products to Iran. [ID:nLDE65R0JE] [ID:nWEA7721]

Iran has already found it harder to secure trade finance, while a number of oil companies, trading houses and other international companies have stopped doing business with the country this year in response to a U.S. drive to isolate Tehran. [ID:nN12203147]

"Many European and non-U.S. banks have refused to issue letters of credit for Iranian-related trades for fear that the funds may be blocked," Law firm Clyde & Co said in a report this month on sanctions.

"Sellers of Iranian commodities risk having payment by their buyers blocked, a refusal by the vessel's master to release bills of lading, cargo delays and a refusal of insurers to pay out on claims."

HOW HAS IRAN COPED WITH PREVIOUS SANCTIONS?

The combination of U.N. and U.S. sanctions has hurt Iran's economy, making it more difficult for the Islamic Republic to import and export a range of commodities and to develop not just its nuclear industry but also its oil and gas sectors.

Analysts said Iran was finding it hard to replace maturing oil production.

"Very few projects are still moving forward," IHS's Ciszuk said. "It is still very tough for Iran get to take hold of the technology ... especially transferring technology and know-how and experience onto its increasingly isolated workforce."

Iran, the world's fifth-largest crude oil exporter, says its nuclear programme is a peaceful bid to produce electricity and has dismissed the new measures as ineffective.

Ali Larijani, parliament speaker, quoted by the semi-official Fars news agency, said on Monday Iran's nuclear path would not change direction.

"The issuance of a resolution against Iran's nuclear activities was pre-planned and is following an agenda to first issue the resolution and then offer negotiations, to enable them create obstacles for the Iranian nation," Larijani said.

CAN IRAN BYPASS TIGHTER TRADE RESTRICTIONS?

U.S. Undersecretary of the Treasury Stuart Levey told a senate hearing last week Iran's leaders could be expected to step up efforts to work around the bans with tools such as front companies, doctored wire transfers and falsified shipping documents. [ID:nN22131228]

While U.S companies and international firms with U.S. interests have pulled back, previous sanctions did not deter other companies from regions such as Asia, including Chinese state-owned firms.

Iran also has previously used trading hubs such as the United Arab Emirates, Singapore and Hong Kong to get past restrictions on trade.

But the UAE's central bank has told financial institutions in the Gulf Arab country to freeze any accounts belonging to dozens of firms targeted by new U.N. sanctions on Iran, a banking source said on Monday. [ID:nLDE65R1JR]

"They will have to use small boutiques outside the main trading hubs," IHS's Ciszuk said. "It will be expensive and time consuming."

For a factbox sanctions on Iran click on: [ID:nLDE65R1DH]

(Additional reporting by Tehran bureau, editing by Jane Baird)