Iranian President Mahmoud Ahmadinejad said Thursday Iran does not need to sell its oil to European countries, the semi-official Mehr news agency reported.

The European Union (EU) on Monday imposed further sanctions against Iran's oil exports as well as its central bank, a move aimed to ramp up pressure over the country's disputed nuclear program.

Sanctions cannot stop Iran's progress, Ahmadinejad made the remarks when addressing a group of people in the southeastern city of Kerman, adding that "We do not need to sell oil to Europe."

Iranian lawmaker Nasser Soudani said Wednesday that in a preemptive move, Iranian parliament is mulling over a plan to cut oil exports to EU member states.

"Majlis (parliament) representatives are seeking to approve a plan, according to which all European countries that have imposed sanctions against Iran will not be able to buy even one drop of oil from Iran," said Soudani, a member of Iran's Majlis Energy Commission.

On Thursday, Ahmadinejad also dismissed Western governments' sanctions on Iran's central bank as "efforts in vain," the official IRNA news agency reported.

He said that sanctions on the central bank of Iran will not work and is in fact a useless initiative, according to IRNA report.

Undermining the effect of EU sanctions on Iran, he said that Iran's total foreign trade is 200 billion U.S. dollars, and only 24 billion dollars of which is with Europe.

"In the past, about 90 percent of Iran's trade was with Europeans; but nowadays it is about 10 percent," he was quoted as saying.

The EU currently purchases nearly 20 percent of Iranian crude exports, with countries such as Greece and Italy most reliant on Iran's oil.

Persian Gulf nations such as Saudi Arabia have offered to step up its own production to compensate for any shortfall caused by the ban on Iranian oil.

Iranian officials have threatened to close the strategic Strait of Hormuz if their oil exports are sanctioned. The Islamic republic heavily relies on crude exports and its by-products for annual revenue.