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The European Union attacked proposed legislation in the United States to penalise foreign energy companies which are active in Libya and Iran."We are also determined to combat terrorism, but we don't think this is the right way to go about it," said an EU trade spokesman, Peter Guilford.

The US House of Representatives adopted legislation on Tuesday which provides for sanctions against foreign companies that invest more than $40m (pounds 25m) a year in the Iranian or Libyan energy sectors. AP - Brussels