Moscow's proposal to create "on Russian soil a joint Russo-Iranian undertaking to enrich uranium still stands," the Russian foreign ministry said in a statement.

It said the suggestion had been put to the Iranian government on Saturday.

"This proposal represents Russia's contribution to the search for a solution acceptable to all in the context of the settling of the situation... by political and diplomatic methods," the statement said.

The Europe Union wants Iran to accept the Russian idea that enrichment operations should take place in Russia without the direct involvement of Iranian scientists.

Tehran has turned down both this offer and a "Libyan-style" compromise that it should renounce sensitive activities in exchange for various types of aid.

Russia is building Iran's first nuclear reactor.

EU negotiators Britain, France and Germany restarted talks Wednesday with Iran over Western concerns that Tehran seeks nuclear weapons and agreed to meet again in January.

But the two sides acknowledged that wide differences remained, with Iran insisting on its right to make nuclear fuel, and the West fearful that this could be used to manufacture an atomic weapon.

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