The US embassy in Belarus, reacting to a threat to expel the ambassador if Washington tightens sanctions, yesterday restated its own threat of tougher action against Belarussian officials for rights abuses.

The United States and the European Union accuse President Alexander Lukashenko of strangling democracy by jailing opponents, shutting down independent media and rigging polls, including his own re-election to a third term in 2006.

The United States has already imposed some sanctions, including forbidding state oil company Belneftekhim to do business in the United States, freezing assets and banning Mr Lukashenko and top officials from entering the United States.

US ambassador Karen Stewart said in mid-December that Washington might extend the sanctions, prompting Mr Lukashenko to say on Sunday that Minsk would expel her and ban trade in US dollars if that were to happen.

"We are prepared to take appropriate action against entities owned or controlled by such persons (who abuse human rights)", an embassy official said in reaction to Mr Lukashenko's comments.

"The key to improved US-Belarus relations remains in Belarussian hands - the release of all political prisoners and its respect for basic democratic norms, including free elections and freedom of expression, freedom of assembly and association," the official said.