Foreign Minister Manouchehr Mottaki, speaking to reporters at the end of an overnight visit to the Philippines, also dismissed the prospects of more sanctions even as US President Barack Obama warned of the "consequences" of Tehran's stance.

He said Iran had broached to International Atomic Energy Agency (IAEA) chief Mohamed ElBaradei the idea of a simultaneous exchange of uranium for fuel, instead of the Western proposal that Iran export more than 70 percent of its stocks before receiving any nuclear fuel in return.

"We raised to Mr ElBaradei of the IAEA and the other sides the suggestion regarding the swap of the fuel, and within that framework we reviewed the swapping and exchanging of that fuel within the territory of the Islamic Republic of Iran in the form of a straight swap," Mottaki said.

"If they insist on this suggestion we could discuss and work within the framework."

The UN nuclear watchdog, which has been brokering the negotiations, has already said that idea is unacceptable to the Western powers.

Shortly after the foreign minister's comments in Manila, Obama, who is visiting South Korea, declared that Washington and its partners were now discussing "consequences" in the form of toughened sanctions on Iran.

"Sanctions was the literature of the '60s and the '70s," Mottaki retorted when asked about the prospect of more sanctions.

"Well, in the last four years they have the experience of doing so. And I think they are wise enough not to repeat failed experiences. Of course it's totally up to them."

Western leaders have expressed fears that Iran might covertly divert some of its uranium stocks and enrich them further to the much higher levels of purity required to make an atomic bomb, an ambition Iranian officials strongly deny.

Western governments support the UN-brokered deal because they believe it would leave Iran with insufficient stocks of low-enriched uranium with which to make a bomb.

Under the IAEA-brokered proposals, Iran would send out 1,200 kilograms (more than 2,640 pounds) of enriched uranium, which would then be further enriched by Russia and converted into fuel by France before being supplied to the Tehran reactor.

earlier related report
Russia still sees chance of Iran nuclear deal
Moscow (AFP) Nov 19, 2009 - Russia said Thursday there was still every chance of reaching a deal with Iran over its nuclear programme, adding that the question of new UN Security Council sanctions was not on the agenda.

The comments came despite the apparent rejection by Tehran of a UN-brokered offer the day earlier, which prompted US President Barack Obama to warn of "consequences" in the form of toughened sanctions against Tehran.

"At the current moment it is important to let diplomacy work, and superfluous emotions only harm the situation," Russian foreign ministry spokesman Andrei Nesterenko added in a statement.

He said there was still "every chance" of implementing a preliminary offer brokered by the UN nuclear agency under which foreign states would further enrich Iranian uranium abroad.

"Currently there is no discussion about working out additional sanctions measures against Iran at the UN Security Council," he said.

Russia is a permanent, veto-wielding, member of the UN Security Council and the United States requires its support -- as well as that of China -- if it is to agree a new set of sanctions against Tehran

Iranian Foreign Minister Manouchehr Mottaki on Wednesday said Tehran had rejected the plans for it to send most of its stocks of low-enriched uranium abroad.

But Nesterenko said that there had still been "no official and final response" from Tehran to the offer. He said the UN atomic agency was still working out the technical aspects of the offer.

Different scenarios were still being examined, the spokesman said, adding that Iran "has its concerns and wants the most favourable conditions for itself."

Russian President Dmitry Medvedev had at the weekend given one of his strongest warnings yet to Tehran following talks with Obama on the sidelines of a regional summit in Singapore.

Medvedev said Moscow was "not completely happy about the pace" of efforts to resolve the crisis and, in a clear reference to sanctions, said "other options" were on the table in case of failure.

Russia has the strongest ties with Iran of any major power, and its capacity to provide technical help for the Iranian nuclear drive is seen by some analysts as giving it an unmatched power of leverage in Tehran.

Russia is building Iran's first nuclear power plant in the southern city of Bushehr but earlier this week warned the facility will not start operations by the end of 2009 as previously announced.

The West suspects Tehran is trying to develop a nuclear weapon under cover of its civilian nuclear energy programme. Russia has said there is no evidence to support these accusations.

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