Russia to withhold nuclear fuel to Iran

Russia has informed Iran that it will withhold nuclear fuel for its nearly completed Bushehr power plant unless the country suspends its uranium enrichment as demanded by the United Nations Security Council, a media report has said.

In a dispatch from Paris, the New York Times reported, quoting European, American and Iranian officials, that the ultimatum was delivered in Moscow last week by Igor Ivanov, Russia's Security Council Secretary, to Ali Hosseini Tash, Iran's deputy chief nuclear negotiator.

"We are not sure what mix of commercial and political motives are at play here," the paper quoted a senior Bush Administration official as saying in Washington.

"But clearly the Russians and the Iranians are getting on each other's nerves and that is not all bad. We consider this a very important decision by the Russians," a senior European official told the paper.

"It shows that our disagreements with the Russians about the dangers of Iran's nuclear programmes are tactical. Fundamentally, the Russians don't want a nuclear Iran."

For years, President Bush has been pressing President Vladimir V Putin of Russia to cut off help to Iran on the nuclear reactor, which is Tehran's first serious effort to produce nuclear energy and has been highly profitable for Russia. But Putin has resisted.

Recently, however, the paper noted that Moscow and Tehran have been engaged in a public argument about whether Iran has paid its bills, a dispute that may explain Russia's apparent shift. The ultimatum may also reflect Moscow's increasing displeasure and frustration with Iran over its refusal to stop enriching uranium at its vast facility at Natanz.

Russia has been deeply reluctant to ratchet up sanctions against Iran in the Security Council, which is expected to vote on a new set of sanctions against the country within the next week.

But the Times said American officials have also been trying to create a commercial incentive for Russia to put pressure on Iran. A proposal the Bush administration has endorsed since late 2005 envisions having the Russians enrich Iran's uranium in Russia.

That creates the prospect of tens or hundreds of millions of dollars in business for Russia and a way to ensure that Iran receives only uranium enriched for use in power reactors, instead of weapons.

Iran has rejected those proposals, saying it has the right to enrich uranium on its own territory. The Russian Atomic Energy Agency, known as Rosatom, is eager to become a major player in the global nuclear energy market, the paper said, adding that as Security Council action against Iran has gained momentum and its isolation increases, involvement with Iran's Bushehr project may detract from Rosatom's reputation.

In a flurry of public comments in the past month, Russian officials have acknowledged that Russia is delaying the delivery of fuel to the reactor in the port city of Bushehr.