Russia insists Iran missed nuclear plant payments

MOSCOW (Reuters) - Russian nuclear officials insisted on Tuesday that Tehran had missed several payments worth a total of over $70 million for the construction of Iran's first nuclear power station at Bushehr in southwest Iran.

A spokesman for Russia's Atomic Energy Agency (Rosatom) said the payment problem would delay the launch of the Bushehr plant.

Mohammad Saeedi, deputy head of Iran's Atomic Energy Organization, said on Monday that Iran was up to date with its payments, the official IRNA news agency reported.

"In February no payments were received. In January we received just $5.1 million of the $25 million due," said Rosatom spokesman Sergei Novikov.

Russian officials said the situation was also complicated by Iranian attempts to pay in euros instead of U.S. dollars and by United Nations sanctions which had hindered equipment deliveries.

Russia has repeatedly delayed building work at Bushehr, a highly sensitive issue as Tehran has come under pressure from the United States and the European Union over its nuclear goals.

Last September Moscow signed a protocol with Iran which set out a timetable for the launch of Bushehr and obliged Iran to pay Russia $25 million a month for the plant.

Moscow agreed to start nuclear fuel deliveries six months before the reactor's start-up this September.

But in the fourth quarter of 2006, Iran made just 60 percent of the payments due, Novikov said. This means that, together with the missed payments in January and February, Iran has missed payments totaling at least $73.75 million.

RUSSIA RECOGNISES OBLIGATIONS

"Despite the insufficient financing, Russia recognizes her obligations on building the Bushehr nuclear plant including the delivery of nuclear fuel," Novikov said.

"But the under-financing influences the agreed timetable and the launch of the reactor and, as we had agreed nuclear fuel would be supplied six months before the launch, the under-funding also will influence the date for the delivery of (nuclear) fuel," he added.

Novikov would not say how long the plant's launch might be delayed and said Iran had given no reason for missing the payments.

Russian arms sales to and nuclear cooperation with Iran have strained relations with Washington, which suspects Tehran of trying to build atomic weapons under cover of a civilian nuclear program.

Moscow says Tehran does not have the capability to make nuclear weapons. Iran says it has a right to develop its civilian nuclear sector and denies seeking nuclear arms.

Russia made a contract to build the plant in 1995 on the base of an earlier project begun in the 1970s by German firm Siemens. Siemens' project was disrupted by Iran's 1979 Islamic revolution and the 1980-88 Iran-Iraq war.

The price tag of about $1 billion, agreed in 1998, is significantly less than the current price for reactors of a similar type, one source in Russia's nuclear industry said.

"At the present time the building of one 1000 megawatt nuclear reactor of the same type costs 2 to 3 billion euros," the source said.

Atomstroiexport, the Russian state company in charge of the Bushehr work, said an Iranian delegation would visit Moscow soon for talks about the plant.

"The general financial deficit for the building of the atomic station demands urgent discussion and concrete decisions in the very near future," Vladimir Pavlov, the head of the company's Bushehr work, said in a statement.