Russia signs nuclear fuel deal with Iran

Russia is to supply Iran with nuclear fuel for its Bushehr reactor. The agreement, which also provides for Iran to return spent nuclear fuel to Russia, had been expected yesterday but was delayed by 24 hours. The United States strongly opposes the deal, believing the Bushehr plant could be used as cover by Tehran to build atomic weapons. Iran denies this, saying it needs nuclear power to generate electricity. However Moscow hopes the clause obliging Tehran to repatriate all spent fuel will allay American fears. The document was reportedly signed at the plant by Russia's nuclear energy chief and the head of Iran's Atomic Energy Organisation. The Russian-built reactor - Iran's only such plant - is expected to go on line later this year and reach full capacity by 2006.