The European Union has extended its trade and aid sanctions against Fiji until the end of March 2010 at a meeting in Brussels yesterday.

The decision means that about $85 million in development aid will remain frozen as well as $300 million commitment of EU funds to restructure Fiji's sugar industry.

An EU statement said that the EU has decided to extend existing appropriate measures for Fiji in order to create a window of opportunity for new consultations.

The decision has been conveyed to the Acting President Ratu Epeli Nailatikau in a letter yesterday.

The letter stated that if new consultations result in substantial commitments from Fiji, the EU is committed to an early, positive review of these appropriate measures.

The EU said if the situation in Fiji does not improve, then further losses of development funds for Fiji are set to continue.