U.S. diplomat says Iran resolution "punitive"

JERUSALEM (Reuters) - Under Secretary of State Nicholas Burns said on Thursday a new draft resolution against Iran agreed by major powers over its nuclear work would be punitive, despite Russian remarks to the contrary.

"This resolution will be punitive. I saw some comments from Moscow yesterday saying it will not be punitive. That's not correct. It's a punitive resolution," Burns told reporters during a visit to Israel.

Russian Foreign Minister Sergei Lavrov said in Moscow on Wednesday the measures in the draft "do not have a tough sanctioning character".

Burns countered that the resolution would build on earlier sanctions banning travel by certain Iranian officials, freezing assets of some institutions and limiting exports of targeted "dual-use" items.

"In some cases it strengthens them (existing sanctions), in some cases it opens up new elements of those sanctions, and in other cases it creates new sanctions categories," Burns said, without providing any specific examples.

Burns said the resolution would be presented later on Thursday or Friday in the U.N. Security Council, and expressed confidence it would soon be passed.

World powers agreed on Tuesday on the outline of a third sanctions resolution against Iran over its disputed nuclear work, but diplomats said the draft did not contain the punitive economic measures Washington had been seeking.

The United States has spearheaded a drive for new sanctions and had been pushing for a new resolution to impose a ban on business with leading Iranian state banks.

"Iran is flagrantly out of compliance with its Security Council obligations," Burns said after meeting with Israeli officials on strategy towards the Islamic Republic. "Iran should now understand that it remains in isolation."

Burns said he and his Israeli counterparts did not discuss military options for dealing with Iran. "Our discussions were focused on the diplomatic process," he said. "There is time for diplomacy, that we ought to exhaust diplomatic options."

Burns distanced himself from what he termed "extreme comments" by former U.S. ambassador to the United Nations, John Bolton, in which he asserted the Bush administration was unlikely to act militarily against Iran and that Israel should be prepared to do so.

"Mr. Bolton no longer works for the United States government. He doesn't speak for the United States government. His views are at variance with those of our leadership," Burns said. "And so, I would disassociate my own self with those rather extreme comments of John Bolton..., or I should say, very extreme comments."

Iranian leaders have vowed to press on with its nuclear program regardless of any new U.N. sanctions.

Burns said a combination of U.N. and European Union sanctions should "get the attention of the Iranians".

The United States and other Western powers fear Iran's nuclear activities are aimed at building atomic weapons. Oil-rich Iran says its nuclear work is intended to generate electricity.

(Reporting by Adam Entous; Writing by Jeffrey Heller and Adam Entous; Editing by Caroline Drees)