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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Africa Europe Latin America Middle East North America Iran agrees controversial nuclear fuel swap deal AFP - 46 minutes ago Send IM Story Print File photo shows an Iranian security guard standing outside the building housing the reactor of Bushehr nuclear power plant. Iran has agreed to ship the bulk of its low enriched uranium abroad in a nuclear fuel swap deal backed by Turkey and Brazil but treated cautiously by European powers seeking new sanctions against Tehran. TEHRAN (AFP) - – Iran agreed on Monday to ship most of its low enriched uranium abroad in a nuclear fuel swap deal backed by Turkey and Brazil but greeted sceptically by world powers seeking new sanctions against Tehran. The accord, which commits Iran to depositing 1,200 kilograms (2,640 pounds) of low enriched uranium (LEU) in Turkey in return for fuel for a research reactor, was signed by the foreign ministers of Iran, Turkey and Brazil. Even after signing the accord Tehran insisted it will continue enriching uranium, a process which the West fears hides a covert nuclear weapons programme. Related article: West keeps pressure on Iran. Iran, already under three sets of UN sanctions for refusing to halt uranium enrichment, touted Monday's deal as a goodwill measure designed to pave the way for a resumption of talks with world powers. Brazilian President Luiz Inacio Lula da Silva, a driving force behind the deal, said in a radio interview: "Diplomacy emerged victorious today. It showed that it is possible to build peace and development with dialogue." Turkey said it made the need for further sanctions redundant. But Western diplomats close to the UN nuclear watchdog, which has been probing Iran's nuclear programme for years, said the deal did not remove the case for further sanctions over Tehran's refusal to halt enrichment. NATO's supreme commander, however, said the agreement was "a potentially good development." Iran said that the signing meant the ball was now in the court of Western powers, and President Mahmoud Ahmadinejad called for fresh talks over the Islamic republic's nuclear programme. "I hope the 5+1 (UN Security Council permanent members plus Germany) enter talks with honesty, respect and fairness and heed the great work started in Tehran," the official IRNA news agency quoted him as saying. But Iran's arch-foe Israel -- the sole if undeclared nuclear-armed power in the Middle East -- quickly accused Tehran of manipulating Turkey and Brazil and seeking to buy time in the long-running nuclear standoff. Related article: Israel says Iran 'manipulated' Turkey, Brazil. French Foreign Minister Bernard Kouchner said the International Atomic Energy Agency must be the first body to respond to Iran's agreement, while Germany said nothing could replace a deal between Iran and the IAEA. Britain, too, expressed reservations. "Iran's actions remain a serious cause for concern, in particular its refusal to meet for discussions of its nuclear programme, or cooperate fully with the IAEA, and its decision to start enriching low enriched uranium to 20 percent," British junior foreign minister Alistair Burt said. Within the region, however, Egypt's Foreign Minister Ahmed Abul Gheit told reporters in Cairo that the accord was "a positive step forward" which Cairo hoped would "lead to a solution to the crisis between Iran and the West." Monday's signing came after three-way talks in Tehran by Ahmadinejad, Lula and Turkish Prime Minister Recep Tayyip Erdogan. The deal appeared to be a breakthrough in long-stalled discussions over the refuelling of the Tehran research reactor that makes radioisotopes for cancer treatment. Key dates in Iran's nuclear standoff. The IAEA has been trying to persuade Iran since October to sign a deal with the United States, France and Russia that would see Iran's LEU stockpile shipped abroad and then turned into fuel for the Tehran research reactor. But Iran has so far stalled on the deal, insisting it wants to keep the uranium on its own soil for a simultaneous swap with reactor fuel. Uranium enrichment is at the centre of Western suspicions over Tehran's atomic programme, because in a highly purified form, it can be used to make the fissile material of a nuclear bomb. Under the new agreement, a copy of which was obtained by AFP, Tehran is ready to deposit the LEU in Turkey "within one month." In return, the United States, France and Russia would deliver 120 kilos of fuel needed for the reactor "in no later than one year." A spokeswoman for EU foreign affairs chief Catherine Ashton said while the deal was welcome, it "does not solve the fundamental problem which is the international community has serious concerns about (the stated) peaceful intentions of Iran's nuclear programme." An Israeli official told AFP the fuel swap arrangement would "radically complicate" international efforts to rein in Iran's nuclear programme through sanctions. "It is going to be much more difficult for the United States or the Europeans to reject this arrangement because we won't be only dealing with Iran, which is much easier to handle, but with rising powers, such as Brazil and Turkey, with whom relations are very sensitive," he said. Tehran sparked international concerns in February by stepping up its enrichment level to 20 percent to make fuel for the research reactor. In February, the UN watchdog calculated that Iran had stockpiled 2,065 kilos of LEU. Turkish Foreign Minister Ahmed Davutoglu said there was "no need" for further UN sanctions in the light of the deal as Turkey and Brazil "have made guarantees and the low enriched uranium will remain in Turkey." 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