Russia Downplays Iran Nuclear Links

By Vladimir Isachenkov, Associated Press Writer

Russian Nuclear Chief Says Iran Nuclear Plant Contract Not 'Super-Profitable'

NEW YORK (AP) -- The Russian government does not view the contract for building a nuclear plant in Iran as essential for its economic interests, but it will be launched on schedule next year, Russia's nuclear chief told a Moscow press conference Tuesday.

"As for protecting our interests in Iran, that's not a priority task," Federal Nuclear Agency director Sergei Kiriyenko said. "I can't say that the Bushehr plant project is extremely lucrative for us. It's an interesting project, we have put a lot of work in that, but I can't say it's super-profitable."

Russia -- which along with China has the right of veto as a permanent member of the U.N. Security Council -- has been the main obstacle to efforts by Western nations to punish Iran for its refusal to halt sensitive uranium enrichment activity.

While Kiriyenko refrained from commenting on the dispute with Iran over its nuclear program, which the U.S. and other nations believe is aimed at developing weapons, his comments on Bushehr could indicate that Moscow is edging closer to supporting sanctions.

Kiriyenko insisted that Russia, like other nations, primarily wants to ensure that the Iranian nuclear program is peaceful. He said last year's deal obliging Tehran to ship all spent nuclear fuel from Bushehr back to Russia had assuaged international concerns that the material could be used to build atomic weapons.

Kiriyenko said the reactor in Bushehr was set to be launched in September 2007 and should start generating electricity two months later.

"I don't foresee any technical problems, provided the project receives stable financing," he said.

Russia's contract to build the Bushehr plant was estimated to be worth about $1 billion.

Russia strongly supports Iran's right to nuclear energy, but has joined the U.S. and Europe in demanding Iran halt enrichment in order to ease concerns. But Moscow rejected the European draft, urging revisions including removal of all references to the Bushehr plant.

The European draft resolution would order all countries to ban the supply of material and technology that could contribute to Iran's nuclear and missile programs, measures that could damage Russia's nuclear and arms-industry ties with Tehran. It would exempt the Bushehr plant, but not the nuclear fuel needed for the reactor.

Russia wanted the measures to last for a limited time only, and insisted that they should not affect the Bushehr contract. Its proposed amendments would reduce sanctions to the minimum needed to directly target enrichment.

Kiriyenko said that Moscow's offer for Iran to create a joint venture that would produce uranium for Iran on Russian soil remained on the table. Iran has stonewalled the offer and insisted on its right to have the domestic uranium enrichment program.

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