Russia is building Bushehr, Iran's first nuclear power plant, under a 1995 agreement in the south of the Islamic Republic, which has been in the focus of international attention over its controversial nuclear research program. Western nations and Israel suspect Tehran of concealing a weapons program, but Iran says it needs to enrich uranium for energy.
The $1-billion project, implemented under the supervision of the UN nuclear watchdog, came under the threat of suspension after Russian contractors said in February that Tehran had only covered 60% of the required funding by the fourth quarter of 2006, and had completely stopped payment in mid-January.
Following negotiations with Iranian officials, Atomstroyexport said in March that Iran had made part of the payments but still had to cover the arrears.
Another round of bilateral talks in Moscow April 21-22 yielded a bilateral deal outlining a set of measures to provide stable financing for the project. The Bushehr project was originally to be commissioned in July 1999, but the deadline has been revised five times since then.
