The US President has signed legislation that allows sanctions against Sudan if he thinks its government is not serious about peace talks with southern rebels.

Under the Sudan Peace Act, President George W. Bush will evaluate the peace process to end a bloody 19-year civil war every six months.

Sanctions list

Sudan National Broadcasting Corporation Sudan Radio and TV Sudan TV Coptrade Eng and Automobile Services National Cigarettes National Electricity Posts and Telegraphs Corporation Sudan Tea Sudanese Free Zones and Markets Company Sudanese Petroleum Sugar and Distilling Industry SFZ

Sudan's First Vice-President Ali Uthman Muhammad Taha described the Sudan Peace Act as a declaration of war against peace in Sudan, the daily Akhbar-al-Yawm newspaper reported.

He criticised the law for "rewarding" the opposition Sudan People's Liberation Movement (SPLM) for stalling the peace process.

The government of Africa's largest nation signed an agreement with the SPLM last Tuesday to halt fighting during peace talks, after which a ban on aid flights to the south was lifted.

About two million people have been killed and twice as many displaced since the start of the civil in 1983.

Asset freeze

The US also froze financial assets of 12 Sudanese companies, including the Sudan National Broadcasting Corporation.

Taha attacks Act as war on peace

The 12 firms were named in a bulletin by the US Treasury's Office of Foreign Assets Control (Ofac) without any explanation, as is standard practice.

The companies were added to an existing list of " specially designated nationals" with whom it is illegal for US citizens to conduct business.

Ofac in 2000 virtually admitted it erroneously froze the assets of a Sudanese business man, whose factory pharmaceutical factory in Sudan was destroyed by 13 US cruise missiles in 1998, for allegedly making chemical weapons for Osama Bin Laden.

US standards

If Mr Bush finds that Khartoum has not negotiated in good faith or "unreasonably interfered with humanitarian efforts" in the south, then Washington will move to block multilateral loans to Sudan.

The conditions do not apply to the opposition forces in the south of the country.

Bush signs the Sudan Peace Act

The US will also seek to stop Sudan buying weapons with its oil revenues and ask for a UN Security Council arms embargo on the government.

The law will also allow the US government to spend $100m a year until 2005 in areas not under the Sudanese government's control and compile a war crimes dossier.

Congress would have to pass separate legislation to provide the money.

Osama Bin Laden, who the US holds responsible for the 11 September attacks, lived in Sudan for many years.