Iran says has deal on nuclear plant as Russia denies

By Zahra Hosseinian

TEHRAN (Reuters) - Iran said on Thursday it had agreed a timetable with Russia for the start-up of the Islamic state's first nuclear power plant, local media reported, but an official in Moscow said talks with Tehran were still under way.

Iranian chief nuclear negotiator Ali Larijani was quoted by the state broadcaster and other media as saying a deal was reached with Moscow for the inauguration of the Russian-built Bushehr plant, without giving details on when it might happen.

The timing of the power station's launch is significant as it is viewed by the United States as an important element in a nuclear drive which the West suspects is a front for developing atomic weapons. Iran says the programme is entirely peaceful.

In Moscow, the contractor building the plant in southwestern Iran said talks were not yet finished.

"The negotiations are still under way and we do not yet have results from that so I am not confirming this information," said Irina Yesipova, a spokeswoman for Atomstroiexport.

Russia has repeatedly delayed the plant which under a previous schedule was due to be started up in September 2007, citing missed payments. A Russian sub-contractor has since said there is no chance of it happening before autumn 2008.

Moscow has traditionally been seen as Tehran's closest big-power ally but the delays to Bushehr have chilled relations.

Iran's state broadcaster IRIB, which had quoted Larijani as saying "we have reached good agreements with Russia" and specified a timetable for the plant's inauguration, later issued a report quoting him as saying only progress was being made.