Construction of Bushehr nuclear power plant 'unprofitable': Russia

Moscow, May 25 (UNI) The construction of the Bushehr nuclear power plant in Iran had become ''unprofitable'' and the planned talks on its financing may be cancelled, Russia said today.

''It seems that the Iranians have lost interest in the project.

There are no concrete steps in financing on their part,'' an anonymous source at the Russian Federal Atomic Energy Agency (Rosatom) told RIA Novosti news agency.

So far this year Iran had paid only 20 million dollars, as against the provision of the contract which required 25 million dollars monthly payments to complete the project on schedule, he said.

''The project has become unprofitable for us,'' the source added.

He also warned that the completion of the plant now depended entirely on the Iranian side and the key remaining issue was the guaranteed financing of its construction.

''We will continue working under the contract as long as we receive financing and will supply fuel six months prior to the physical launch, as stipulated in the contract,'' the source said.

Russian Atomstroiexport company, which is building the Bushehr nuclear power plant, stopped the construction in February after blaming Tehran it had only covered 60 per cent of the required funding by the fourth quarter of 2006 and had completely stopped payment in mid-January.

The source also pointed out that Atomstroiexport's head Sergei Shmatko may cancel his visit to Iran later this month.

''It is possible that the head of Atomstroiexport will not go to Iran, because there is no point. What is there to discuss, if the Iranians are not paying?,'' he added.

''If they pay, we will finish the construction,'' he said.

Meanwhile, Federal Atomic Energy Agency's Director Sergei Kiriyenko today ruled out UN Security Council imposing sanctions in relation to Russian-Iranian nuclear cooperation.

''Our cooperation with Iran has no links with Security Council demands to Tehran to attach additional guarantees to observing the non- proliferation regime,'' Mr Kiriyenko told Interfax news agency.

''Moscow-Tehran cooperation on the construction of the Bushehr nuclear power plant is not a threat to the non-proliferation regime.

Experts around the world acknowledge this,'' he said.

UNI